The New Retirementality: Planning Your Life and Living Your Dreams...at Any Age You Want, 4th Edition

Chapter 13

The Waiting Game: Navigating Social (In)Security

“Life was always a matter of waiting for the right moment to act.”

—Paulo Coelho

I haven’t met many people in my career who can carry on an engaging and fascinating discussion on the topic of Social Security, but Christine Fahlund, senior financial planner at T. Rowe Price, is the exception to the rule. She understands and can explain (in an accessible way), the labyrinthine options available and the nuances of election at various ages—no small undertaking given the length and confounding content of the Social Security manual.

At T. Rowe Price, Christine and her team designed an approach to help people realize a period in life that they can one day look back on as—to use Christine’s description—your “vibrant 60s” and maybe even 70s. Her message is simple: if you want to have more money to spend and more security later, you need to play the Social Security “delay game” as much as you can. T. Rowe Price believes that the most important step you can take regarding Social Security election and timing is to educate yourself so you understand both the short- and long-term consequences of your election date decision. Patience and the willingness to wait is the greatest virtue you can bring to this process.

In the chart shown in Figure 13.1, also designed at T. Rowe Price by Christine and her team, you can see the variety of scenarios available to a couple at various ages and various levels of contributions to their 401(k) plans. ...