Rosalind Evans
Social Security plays a pivotal role in the financial planning of older Americans, carrying profound implications for their retirement years. This significance is even more pronounced for women, as highlighted by Mary Beth Franklin, a certified financial planner and Social Security expert, during the Financial Advisor Magazine’s annual Invest in Women conference. According to Franklin, “It all comes down to longevity,” underscoring the critical nature of Social Security for women who, on average, outlive their male counterparts and spend more years in retirement.
Given its long-term financial repercussions, deciding when to claim Social Security benefits should not be taken lightly. Franklin points out that women, who generally live longer than men and have lower average earnings over their working lives, face unique challenges in retirement planning. This includes a longer lifespan to cover financially, often with fewer savings. The timing of Social Security claims is integral, with early claims resulting in permanently reduced benefits, while deferring claims up to 70 can significantly increase the monthly benefits due to delayed retirement credits.
Moreover, Franklin stresses the importance of not succumbing to political fears when deciding to claim Social Security benefits early. Despite concerns about the sustainability of Social Security’s trust funds, Franklin reassures that Congress will likely intervene before any drastic reductions in benefits occur. She likens early claiming out of fear to “selling stocks in the down market,” emphasizing the importance of making informed decisions based on individual financial needs rather than speculative fears.
Social Security is a cornerstone of retirement planning, particularly for women who face distinct challenges due to longevity and earnings disparities. Mary Beth Franklin’s insights serve as a valuable guide for navigating the complexities of Social Security benefits. She urges women to consider their unique circumstances and the broader financial implications of their claiming decisions. The thoughtful management of Social Security claims can significantly impact women’s economic security and quality of life in retirement, making it a subject of critical importance.
