Deciding when to claim Social Security benefits is a crucial choice for retirees, impacting finances and lifestyle. Certified Financial Planner Kevin Lum advises using a five-step test called LIFTS to determine the best strategy. Delaying benefits can lead to higher long-term income, but couples have different considerations. Claiming early can reduce pressure on savings but may increase taxes. Lum emphasizes the importance of considering the impact on IRS obligations and Medicare surcharges. Delaying benefits can provide more guaranteed income in later years when savings are depleted. Lum’s point-based test simplifies the decision-making process based on factors like life expectancy, financial gap, spousal dependence, tax implications, and desire for guaranteed income.

Read more at Yahoo Finance: 5 Key Things To Consider When Claiming Social Security, According to Kevin Lum