I understand that if I delay taking Social Security, I’ll receive a larger benefit. But while I’m waiting for that bigger benefit, I’ll have to withdraw more from my retirement savings, which means I’ll miss out on the investment gains those larger withdrawals would have earned. Given those lost investment earnings, am I really better off by waiting for a bigger Social Security check? –M.A.
It’s true that if you retire but wait to take Social Security to qualify for a bigger monthly check down the road, you’ll have to replace the income you would have received from Social Security had you taken it right away. Which means you’ll have to draw more from savings. So initially at least, the value of your nest egg will decline faster than it otherwise would have due to those larger withdrawals.