moz-extension://5dd0dedf-1ef1-4db3-835a-37f57b66d0f1/pdf?url=https://cdn.pficdn.com/cms1/dcsolut...urns-for-Delayed-Social-Security-Claiming.pdf
From a paper prepared for industry professionals: BREAKEVEN RETURNS FOR DELAYED SOCIAL SECURITY CLAIMING | PGIM DC SOLUTIONS
CONCLUSION
The decision about when to start claiming Social Security retirement benefits can have significant implications
on the retirement outcomes for Americans. This article provides context on the required breakeven returns for
various Social Security claiming scenarios and various longevity planning ages. For most retirees who have the
assets to choose when to claim benefits, and the health to consider to do so, the required breakeven return is
likely to exceed 8% for single individuals and 10% for married couples. Note, this breakeven return is net of
inflation and fees.
The breakeven return for purchasing a life only annuity is lower than delayed claiming, typically in the
neighborhood of 6% for more common longevity planning ages (e.g., age 90 or over). This suggests that while
purchasing a life annuity can add value, delayed claiming Social Security should likely be considered first, given
the higher breakeven return.
omni
From a paper prepared for industry professionals: BREAKEVEN RETURNS FOR DELAYED SOCIAL SECURITY CLAIMING | PGIM DC SOLUTIONS
CONCLUSION
The decision about when to start claiming Social Security retirement benefits can have significant implications
on the retirement outcomes for Americans. This article provides context on the required breakeven returns for
various Social Security claiming scenarios and various longevity planning ages. For most retirees who have the
assets to choose when to claim benefits, and the health to consider to do so, the required breakeven return is
likely to exceed 8% for single individuals and 10% for married couples. Note, this breakeven return is net of
inflation and fees.
The breakeven return for purchasing a life only annuity is lower than delayed claiming, typically in the
neighborhood of 6% for more common longevity planning ages (e.g., age 90 or over). This suggests that while
purchasing a life annuity can add value, delayed claiming Social Security should likely be considered first, given
the higher breakeven return.
omni