Should You Take the Social Security Lump Sum Payout

[@lonnirenee7645]

Like “H” to the NO. I wouldn’t take out no lump some Social SureCurity. I can understand waiting after the full retirement age.

[@roachtoasties]

It's a simple calculation, and the SSA already knows it (it's an actuarial adjustment they do so it averages out for them). Lets say it was a $15,000 lump sum, and for getting that your Social Security benefits are now $100 per month less. It will take 12.5 years before you break even (not considering inflation) if you decided to not take the lump sum. You then need figure out whether that works for you. Of course, there's the big unknown of your life expectancy and what other things (positive or negative) might happen in the future. If you decide to take the lump sum, you don't have to immediately spend it. You can save and invest it, which may make things more worthwhile than not taking the lump sum.

[@loralieisa]

I am filing for social security this year 2.6 months past my FRA. I received a call from social security advising I could get a lump sum going back to March, with a reduced benefit of $160.00 or get the anticipated higher check. I wasn't advised there would be a permanent reduction of social security benefits. I said I would call back and make a decision. I'll bet on living a long life and forgo the lump sum.

[@reidloscidem3562]

I would love a lump sum. I can invest it better than the government.

[@c.hunter631]

Great advice, now I just hope I remember this when I’m 67. 😂

[@ret4kind]

I'd take my entire SSA check today as a 1 time payment if I could and never collect it after I retire if I had the option.

[@joeanderson9267]

Good information!

[@OHinFL]

Why wait if you reached FRA? You can collect that while you're working with no penalty!!!

[@loralieisa]

I waited while I worked past FRA because imy social security check was going up 8% each year.

[@stephengrijalva8854]

Great video