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So, am 62 and retiring 6/1. I could delay SS filing/benefit for about 6 months by using some funds out of cash savings accounts, but running the numbers, it looks like the increased monthly SS payments (and projected COL increases) would take 10 years to break even.
So, it doesn't look like using that cash to defer SS for those months would really make sense, but am I missing something/some consideration other than just break-even calculations? Btw, taking that six months of equivalent SS money out of savings wouldn't deplete it and I would still have other funds available if needed (401K etc).
No, you are correct. If you are not working at a similar salary and paying into SS, the gain to waiting is minimal. And you are depleting your savings in the meantime.
Break even is one way of looking at it, but another valid perspective is as an insurance alternative. To be safe, your basic needs should be covered by guaranteed income like a pension or annuity. Then your wants can be funded from a risk portfolio including stocks and bonds.
Social Security can be thought of as an annuity, and by delaying you are in effect buying an incremental slice of annuity. If the annuity is a good deal, and you desire the guaranteed income, then delaying would be a rational choice.
To evaluate whether it is a good deal or not, price what an annuity from an insurance company would cost by going to immediateannuities.com
No, you are correct. If you are not working at a similar salary and paying into SS, the gain to waiting is minimal. And you are depleting your savings in the meantime.
Sorry I disagree. If he waits to collect to at least MRA then he is looking at a much larger monthly income. That of course is a big if. He would obviously need income to survive for those 4 years. A part time income job and suplement it with savings is an option he could consider. It really all depends on his current financial status. Also that SS income increases yet again if he can even wait until age 70. Again all dependent upon thier financial status. A financial planner can help and that is something suggested here and I agree he should look at that.
He is not waiting to FRA as per his post and my response is accurate.
If he WERE waiting to FRA and working at the same financial level then yes he would have a much larger SS benefit.
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