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Social Security income can provide valuable peace of mind 2010-03-31 Income a retiree receives from Social Security can provide peace of mind and financial security, a CBS Money Watch columnist argues. Columnist Steve Vernon wrote Tuesday that the government program provides an income stream for life, unlike almost every type of retirement-savings product. Nest eggs can be tapped in retirement, too, but they must be carefully managed to ensure that savings aren't exhausted prematurely. Experts generally recommend a savings draw-down of 4 or 5 percent each year. Social Security, by contrast, provides predictable, inflation-adjusted income in perpetuity. And, as Vernon notes, benefits continue to be provided to a person's spouse after that person dies - a measure that can be valuable to widows or widowers living on a fixed income. There may be one salient point that Vernon doesn't mention: the value of waiting to take Social Security. Benefit payments increase 7 or 8 percent for each year that a person waits (until no later than age 70, as per the government's rules) - and with life expectancies steadily increasing, delaying benefits may make sense. It's a decision that should be made carefully.  |
