How Single Filers Can Get the Most from Social Security

I've received a number of e-mails from readers who are single and want to know what the best Social Security filing strategy is for them. I asked my Buckingham Asset Management colleague Tiya Lim for her input, as she wrote the Social Security section of our book The Only Guide You'll Ever Need for the Right Financial Plan. Here's her response.

As a single filer, the best strategy comes down to expectations about how long you think you're going to live.

Social Security benefits are actuarially neutral, which means that you'll get roughly the same overall benefits (on a present value basis) if you live to average life expectancy, no matter what age you begin taking benefits. However, keep in mind that your benefits get larger the longer you wait to begin taking them. If you live past life expectancy, you earn more by delaying benefits.

Furthermore, it's even more advantageous for women to delay filing since benefits are also gender neutral. That means that a man and a woman with identical earnings histories will receive the same benefits, even though an average woman's life expectancy is longer than the average man's.

For example, a 62-year-old female has an average life expectancy of 84. If her full retirement benefit is $1,000:

• She will receive $750 per month if she files at age 62.
• She will receive $1,320 per month if she files at age 70.

For further reading on Social Security, see the following posts:

• File and Suspend
• Double Dipping
• Former Spouses
• How Are My Benefits Calculated?
• Single Filers
• Understanding the Spousal Benefit
• Government Pensions: Offset Provision and Windfall Elimination Provision
• The Issues with Taking Benefits Early and Investing Them