Here's the difference in SS benefits between 62 and 67 for me. (moving, payments)
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I still have a few years until I'm eligible for Social Security, but based on my recent SS benefits statement, if sign up to receive SS at age 62, I will get approximately $800 per month LESS than if I wait five years at 67 at full retirement age (FRA). Is that extra $800 per month worth working an extra five years?
Depends on your desires and plan and what would extra amount buy you after waiting another 5 years. It may not be worth it if you are looking forward to retiring and mentally set.
on the other hands if your retirement income is falling short, it's good to wait.
Breaking even is not even a consideration for me. For me, it's providing as much guaranteed income for my wife after I die. Next month I'll be 67. Have 3 more years till 70. When I was 62 waiting till 70 seemed like an eternity. Those 5 years went by in a blink.
We live a very comfortable life, spend less than we make, invest for income, so our financial situation improves every single month. My SS has gone from $18.5K to $27.3K since then on the way to $33K.
I still have a few years until I'm eligible for Social Security, but based on my recent SS benefits statement, if sign up to receive SS at age 62, I will get approximately $800 per month LESS than if I wait five years at 67 at full retirement age (FRA). Is that extra $800 per month worth working an extra five years?
Build a simple spread sheet. If you wait until 67, it will take x number of years to recoup the 5 years you collected less.
5 years at $2,000 per month age 62 to age 67 is a total of $120,000.
At $800 more per month ($9,600 per year) at age 67, it will take you 12.5 years (to age 79ish) to break even.
I ran all those numbers a few times some years back. I don't recall if I incorporated 2-3% inflation per year or not, but it consistently came out that the total income graphs crossed at about age 80.
it can be later than that since if you delay you need to spend down invested assets if you have no sources of income . as well the spousal benefits can drag it out that are not being had so it can take 22 years or more .
but once you hit break even the differences are made up quickly.
if one in a couple hits 90 you got the same inflation adjusted return as a balanced portfolio from what amounts to a gov't bond and zero risk and volatility ..
I ran all those numbers a few times some years back. I don't recall if I incorporated 2-3% inflation per year or not, but it consistently came out that the total income graphs crossed at about age 80.
Yep. Most people run the numbers assuming 0% inflation. Plug in 6% and the difference is huge. If you can afford to delay, the COLA protection really helps. My father made it to his mid-80s. My mom is 86. I want the insurance against running out of money. I’m close to the max possible benefit. An age 70 Social Security check would be fairly comfortable even if I have nothing left but my paid for house.
Hmmm, I’m pretty sure SS always states that future estimates are in todays dollars, as no inflation numbers are assumed. I’d be very interested to hear what nicet4 had for a predicted age 70 SS at age 60, and how that compares to what his actual amount will be/is.
I still have a few years until I'm eligible for Social Security, but based on my recent SS benefits statement, if sign up to receive SS at age 62, I will get approximately $800 per month LESS than if I wait five years at 67 at full retirement age (FRA). Is that extra $800 per month worth working an extra five years?
My husband is going to start drawing his next year when he's 62. Longevity is non-exist in his family, on either side, so we see no point in him waiting.
from what i see on these forums most people lack the knowledge involved to be able to make a well informed decision so it is always based on half a head of knowledge as far as "from what they see" . it usually is all based on what if i die as opposed to what if i live .
most also do not have a choice in delaying since they lack the assets to lay out to safely delay . so while they have an opinion about taking it early they do not have a choice to delay . .
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