MarketWatch.com: Retirement savers: It’s not too late for stocks - Robert Powell's Retirement Portfolio - MarketWatch "Delay taking Social Security and pensions
Speaking of interest rates, Chris Cordaro, chief executive officer and chief investment officer of RegentAtlantic Capital, says it pays to defer Social Security in a low interest rate environment.
Let’s say you are 66, the normal retirement age for Social Security. If you defer taking benefits, your benefits will increase by 8% a year, he said. “Where else can you get an 8% government guaranteed return?” Cordaro asked.
Similarly, you may want to defer taking employer-sponsored pensions. “If you have a cash balance plan most plans credit interest at the yield on the 30-year U.S. Treasury rate with no price decline if interest rates rise,” Cordaro said. Set aside three years of living expenses
Besides delaying Social Security, Shott Miller, a senior vice president of investments for Merrill Lynch, said retirees ought to set aside a three years of living expenses in liquid money market securities. “This keeps (them) from having to liquidate securities in a down market,” said Miller. “Usually (they) can wait it out with a three-year cushion.”"
Wow, this means one need to live very long beyond 70s to make the trade worthwhile for social security claim.
This also means that one needs to be filthy rich (setting aside three years of living expenses) or at least loaded with cold cash when one retires.
In sum, one should be a real old and real rich person for retirement planning purposes.
What is wrong with this picture?