Delay Social Security, Invest More or Buy an Annuity: What’s Best for Retirement Income?
January 7, 2025 by David Blanchett
lients who want to claim Social Security early and reinvest the proceeds need a strong stomach for taking portfolio risk in order to come out ahead, according to a recent report published by PGIM’s David Blanchett.
Beating the delayed claiming strategy requires an 8% annual return for an individual retiree, according to Blanchett, and achieving comparable returns has historically required that 75% or more of a portfolio be allocated to equities.
Wink’s Moore on the Market: “…while purchasing a life annuity can add value, delayed claiming of Social Security should likely be considered first, given the higher breakeven return,” says my pal David Blanchett at PGIM.
Lots of good stats in this one.
Thanks for the statty stat stats, John Manganaro at ThinkAdvisor! -sjm
