For every year that you postpone Social Security benefits, your total Social Security Benefits will increase by 8% (accident, married)
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i didn't check your math but make sure you are not compounding the 8% ... the 8% is always based on the fra amount ... so it is 8% of the fra amount that gets added each year not 8% on the 8% the year before compounded.
Understood -- my method was to take the FRA benefit for a year, multiply X 8%, and then add that amount to the FRA benefit.
Are the vast majority of SS beneficiaries delaying taking SS until age 70 working full-time right up to that date, and not only working full-time, but making the exact same amount (or higher) than they made in their 65th year?
I don't know about the vast majority but I am delaying until 70. I retired at 62 so no, I am not working until the bitter end. I am 68 now.
Based on conversations with people and from reading posts here and elsewhere, I think most people do not delay SS. It is not a slam-dunk decision for everyone. It depends on what your financial situation is: savings and other sources of income, how long you think you will live, whether you want to leave money for the kiddies to inherit or whether you want to maximize your annual spend amount and leave nothing, what your spouse's SS status is. All those things affect the decision. I ran lots of scenarios with various tools that are available before I decided.
i didn't check your math but make sure you are not compounding the 8% ... the 8% is always based on the fra amount ... so it is 8% of the fra amount that gets added each year not 8% on the 8% the year before compounded.
As always, Mathjak, this is so helpful.
It still doesn't change my action, but at least I now can view it correctly. I was assuming it was compounded. Thank you for making it crystal clear.
Still going to hold off taking my benefit at 66. At 67 I will reevaluate. Having half of DH's has certainly sweetened the deal.
I don't know about the vast majority but I am delaying until 70. I retired at 62 so no, I am not working until the bitter end. I am 68 now.
Based on conversations with people and from reading posts here and elsewhere, I think most people do not delay SS. It is not a slam-dunk decision for everyone. It depends on what your financial situation is: savings and other sources of income, how long you think you will live, whether you want to leave money for the kiddies to inherit or whether you want to maximize your annual spend amount and leave nothing, what your spouse's SS status is. All those things affect the decision. I ran lots of scenarios with various tools that are available before I decided.
I just read an article that postulated that taking SS as early as possible was a winning move based on the scenario that SS will be out of money and facing cuts by early as 2028. Therefore getting several years of full benefits was > waiting for higher (and subsequently reduced) benefits.
This is not the original article but covers the same subject.
I just read an article that postulated that taking SS as early as possible was a winning move based on the scenario that SS will be out of money and facing cuts by early as 2028. Therefore getting several years of full benefits was > waiting for higher (and subsequently reduced) benefits.
This is not the original article but covers the same subject.
Not for the older crowd. They are not going to cut for the older crowd, they may close some loopholes. But I hate these kind of articles. Only stupid people can write stupid story like that. Sorry to use the stupid word twice but the whole thing is just stupid.
My post had nothing to do with another rehash about the pros and cons of collecting early or late. It had to do with misleading articles stating everyone loses 8% a year if they don't wait to collect. People just take that statement at face value and don't think about the missing checks and the costs of raiding your investment accounts and the likelyhood of a real break even date well into your mid 80s.
Good point. Other factors people should consider are when do you need it, how does that affect your taxes, how long do yu expect to live.
Good point. Other factors people should consider are when do you need it, how does that affect your taxes, how long do yu expect to live.
if anyone can guess correct on how long they expect to live i certainly would buy lottery tickets too .
that is one of those questions we can never answer until after the fact. both my parents were long gone at my age .
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