City-Data Forum Early -- Very Early -- Social Security? (55, pension plan, physically)
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02-26-2017, 01:40 PM
 Location: North Beach, MD on the Chesapeake 33,926 posts, read 42,185,115 times Reputation: 43344

Quote:
 Originally Posted by jasperhobbs So is collecting at 65 the same amount as collecting at 62? yes 67 is my FRA
I don't feel like looking up the percentages, but each year you wait after 62 to collect increases your benefit.

02-26-2017, 01:50 PM
 489 posts, read 327,690 times Reputation: 1149
Quote:
 Originally Posted by North Beach Person I don't feel like looking up the percentages, but each year you wait after 62 to collect increases your benefit.
I think by about 8% a year, IIRC.

02-26-2017, 02:31 PM
 13,969 posts, read 7,441,074 times Reputation: 25508
Quote:
 Originally Posted by bigdogmom13 I think by about 8% a year, IIRC.
It's 8% per year increased benefit for the time you defer after hitting full retirement age. The calculation for retiring before full retirement age is a bit more complicated.

From the SSA:
Quote:
 In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.
So for someone with a FRA of age 67, retiring at age 65 is 24 months. Your FRA benefit would be reduced by (5/9)*24 percent. If I haven't blown the math, that's 13.33%.

My FRA is 66 years 8 months. Collecting at age 65 is an 11.11% reduction.

02-26-2017, 04:48 PM
 Location: NC 6,572 posts, read 8,005,004 times Reputation: 13490
The calculator at the SS website allows you to put in both when you will retire and when you will stop working at your current salary. So if you stop working at 63 1/2 and start taking SS at 65, just input those numbers for your personal calculation.

02-26-2017, 06:28 PM
There is an age where, if you delayed taking benefits you win. It can be looked at in a simple way using the benefit increases, or a little deeper trying to figure opportunity cost but bottom line at some point if you have still have a pulse you came out ahead by taking benefits later.

02-28-2017, 08:05 PM
 Location: Los Angeles area 14,018 posts, read 17,756,785 times Reputation: 32309
Quote:
 Originally Posted by lieqiang There is an age where, if you delayed taking benefits you win. It can be looked at in a simple way using the benefit increases, or a little deeper trying to figure opportunity cost but bottom line at some point if you have still have a pulse you came out ahead by taking benefits later.
This so-called "break-even age" is typically in the late 70's isn't it?

03-01-2017, 02:54 AM
 71,778 posts, read 71,875,234 times Reputation: 49331
the age is variable depending if you are working and delaying or retired at 62 and delaying .

it is longer if you figure it correctly and account for spending your own investments delaying . .

if you count spending down a balanced portfolio to delay 8 years and a 6% return given up , as well as the checks you didn't get it can run 22 years .

but the return grows quickly after the break even and just one person in a couple living until 90 can see a 5% real return ( inflation adjusted ) which beats that balanced fund

that is a great return from what amounts to a gov't bond with zero sequence risk ,inflation risk and market and interest rate risk ..

odds of one in a couple seeing 90 today is very high , at almost 50%

Last edited by mathjak107; 03-01-2017 at 03:08 AM..

03-12-2017, 11:57 AM
 Location: Southern New Hampshire 7,238 posts, read 12,691,626 times Reputation: 22070
Quote:
 Originally Posted by otterhere I'll make an appointment and ask the question soon. If for no other reason than to put a merciful end to this thread that has become an apologia for welfare-through-"disability."
OP, did you ever get an answer? Please come back and let us know!

03-12-2017, 02:57 PM
Quote:
 Originally Posted by Escort Rider This so-called "break-even age" is typically in the late 70's isn't it?
You get the maximum amount by waiting until you're 70, after which it doesn't increase.

03-12-2017, 03:17 PM
 71,778 posts, read 71,875,234 times Reputation: 49331
they were referring to break even not when growth of the benefit stops
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