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As I said I'm at the beach so I need to go back and look at my notes. But I did do a calculation based on filing at 65 and it was let's say $2,013. I did another based on filing at 66 and it came out to approx. $2,026 or +$13 more per month. I'm pretty sure of those numbers but I may need to check because I don't understand how $13/month suddenly translate into $156.
each year from 62-fra has to be at least 8% or you are figuring wrong . keep in mind the increases are not compounded , they are based on the original amount at 62 and each year another 8% gets added to the that amount . not compounded
so it would be like this:
age 62=2k a month or 24k a year
63 is age 62 (24k) plus 8% or 1920.00 a year = 25920.00
64 is age 62 amount ( 24k ) , plus 8% or 1920 plus another 8% (1920) =27,840.00
The actual year-over-year percentage gain for ages 62 to 70 are shown in the following table. Those gains range from 6.5 percent (claiming at 70 rather than 69) to 8.4% percent (claiming at 64 rather than 63).
they compute it from the previous year rather than the 62 amount but what makes it confusing is after fra the increase is based off the fra amount unlike the earlier years which are based on the 62 amount .
Claiming Age/Gain from Preceding Year
62 na
63 6.7%
64 8.4%
65 7.6%
66 7.2%
67 8.0%
68 7.4%
69 6.9%
70 6.5%
Looks like it is compounded. So it is 8% of FRA amount per year. Plus COLAs. Or 6% reduction of FRA for each year taken early. If I assume 1.5% COLA (the default is 2.39% COLA which is the Last 25 years averaged IIRC), then my SS of $33840 FRA SS (full max in todays dollars in 2024) translates to $39700 in 2025 dollars which becomes to $51200 if filing is delayed to age 70. Age 70 amount when collected if filed at FRA, becomes $41750. So an increase of $10500 per year to delay 3 years and 4 months from FRA. So BASICALLY, a $10,500/yr COLA increased annuity for about $133k. With survivor benefits. That I also get to pay for monthly and can change my mind at anytime and get a 6 month retroactive if I choose. That's a bargain. Compared to $25,700 at 62 in 2020 dollars which ends up at $29k in 2028 at age 70. $29000 or $51,200. So from delaying at age 62 to 70 would be a $22,200/yr annuity for just under $250k. An even better bargain. The "payback" is even shorter, but costs more to execute.
Interestingly, if you assume death at 85, the optimum solution is to collect at 69. 86, and its 70.
Last edited by Perryinva; 08-30-2016 at 12:07 PM..
The actual year-over-year percentage gain for ages 62 to 70 are shown in the following table. Those gains range from 6.5 percent (claiming at 70 rather than 69) to 8.4% percent (claiming at 64 rather than 63).
they compute it from the previous year rather than the 62 amount but what makes it confusing is after fra the increase is based off the fra amount unlike the earlier years which are based on the 62 amount .
Claiming Age/Gain from Preceding Year
62 na
63 6.7%
64 8.4%
65 7.6%
66 7.2%
67 8.0%
68 7.4%
69 6.9%
70 6.5%
Can you please supply a link? I noodled around but could not find anything but I remember clearly seeing links showing the 8% increase did not start until FRA and went to age 70. Prior to that it was a sliding scale starting at like a 5.3% increase that went up over time.
But 6% or 8% it still does not explain the difference between my figure of $13/month and others at $139. I need to get back my particular situation when I get home.
Last edited by DaveinMtAiry; 08-30-2016 at 12:21 PM..
I only care about cash flow, not the total amount I manage to get SS to pay me. I can wait until 70 and I will then have max cash flow, so that is what I am doing. If SS comes out better in the deal, that is fine with me. I am sure they can use it on someone else.
The actual year-over-year percentage gain for ages 62 to 70 are shown in the following table. Those gains range from 6.5 percent (claiming at 70 rather than 69) to 8.4% percent (claiming at 64 rather than 63).
they compute it from the previous year rather than the 62 amount but what makes it confusing is after fra the increase is based off the fra amount unlike the earlier years which are based on the 62 amount .
Claiming Age/Gain from Preceding Year
62 na
63 6.7%
64 8.4%
65 7.6%
66 7.2%
67 8.0%
68 7.4%
69 6.9%
70 6.5%
I don't know what you did either. Go to SSAnalyze - Bedrock Capital Management and plug in your numbers. For me, collect at 62 is $2143/mo. Change the age to 63 and it changes to 2327/mo. Gain of 184/mo. Change it to 64 and its 2533/mo. Gain of 390/mo. And so on. 184/mo is about an 8.6% gain (includes 1.5% COLA). 390/mo is an 18.2% gain from age 62 or a 8.8% gain from age 63. And so it goes. Dollar amounts are actual for that year NOT todays dollars, which is what SSA uses. SSA figures no COLA each years estimates in todays dollars.
yeah , he did something wrong. perhaps he thought the 156 bucks was a year and not a month .
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