Chartered Retirement Planning Counselor (CRPC) Practice Exam

The optimal time for Ann to start receiving Social Security benefits hinges on the balance between maximizing her monthly payment and ensuring that her total lifetime benefits align with her longevity expectations. Since Ann has reached her full retirement age, she faces the critical decision of when to begin her benefits. If she chooses to wait until age 70, Ann will enhance her monthly benefit amount substantially. Social Security provides increased benefits for each year you delay claiming after full retirement age, up to age 70. By waiting until age 70, Ann can potentially receive about 32% more than she would at her full retirement age. This option is particularly advantageous given her plans to live until age 90, as it allows her to take advantage of higher monthly payments over a longer retirement period. Starting benefits immediately or one or two years from now would provide her with an earlier income stream, but it would also lock in lower monthly payments due to earlier claiming. If her goal is to ensure maximum support for a lengthy retirement, delaying benefits until age 70 maximizes her financial resources and aligns with her longevity, making it the optimal choice.