As inflation continues to rise and the Federal Reserve’s attempt to contain it pressures the markets, late-career investors may be considering changes to their retirement plans. However, Vanguard research shows that one thing these investors shouldn’t change is their strategy for claiming Social Security.
Although high inflation can affect retirement outcomes, Social Security benefits remain inflation-resistant, with payments increasing to reflect the cost of living. Because higher inflation means greater benefit amounts, delaying the claiming of Social Security payments can make those benefits even more profitable, both in annual Social Security income for the retiree and in the bequest amounts they’re able to leave behind. The chart below illustrates the difference the right strategy makes when it comes to the best ages to claim Social Security.