For every year that you postpone Social Security benefits, your total Social Security Benefits will increase by 8% (alcohol, relatives)

[leastprime]

OP: Thankyou for posting. Not everyone has the knowledge of the alternatives of choice. Many are falsely allured by the theoretical future income by delaying SS and ignore the alternative of choices. I don't think I will make it to 75, now 68, took early SS @62. I have too many health problems.

[Rachel976]

Originally Posted by GeoffD

The way my math works, I'd collect $198,144 between ages 62 and 70 if I started taking Social Security at age 62. I can self-fund $200K. I'd rather have the largest possible Social Security check deferring to age 70 in the event I outlive my savings. I can live pretty well on my age 70 check. My age 62 check would be a real struggle. Health care and housing would chew up most of it.

This exactly. The question for me is NOT which way I will end up collecting more (an unknown at the decision point, obviously) but rather which way I am less likely to outlive my savings. If I delay, I will end up with a guaranteed, inflation-protected $3100 a month. That amount, once my mortgage is paid off (which it will be in a few years) will cover all my living expenses. As to what happens if I need to move to assisted living and costs rise, the equity in my house will pay for 8 years (including taxes).

Also factoring into this decision is that I have parents in their early 90s. Grandma lived to 95, and my aunt is now 95.

[davebarnes]

It is clear and has been that the optimal financial strategy is to:
1. delay SS until 70
2. work until 70 so that you take no money from your retirement funds
3. live to 85+

[Old Woman]

I have yet to read anything that proves that statistically, you are more likely to live a long life if your immediate family dies at 90+.

What if you retired at 60 and wait to collect Social Security at 70 and die at age 80 and you are still trying to reach an age that breaks even. Your kids cannot collect your larger Social Security Check and you have less in your investment accounts because you raided them to make up for the missing Social Security checks from age 62-70. If you had collected at 62 and not raided your mutual funds and ETF's your kids will have lots of money to put their kids in college.

[MichiganGreg]

...and we're off...!

Finished with the horses- and now...into the goats!...

[Hefe]

When I am in my, let's say... late 70's & start to have some big health issues that require aides, home modifications, therapy, etc... & I am unlucky enough to have this happen during a stock market downturn, perhaps after a few years of inflation, I am much more interested in having a guaranteed, COLA'd, tax-advantaged $40K/yr income from SS coming in steadily than the $22K or so I would have if I claimed at 62yo. I will have a lot of bills to pay then.

I really couldn't care less about the cumulative amount or the "break-even point" then, I just don't want to be sweating additionally about my personal income flow when I am in my most vulnerable point.

[arwenmark]

Don't forget that if you have a spouse and you die that your spouse will collect your higher benefit if it is more than theirs and they are FRA.

[reneeh63]

Originally Posted by Old Woman

I have yet to read anything that proves that statistically, you are more likely to live a long life if your immediate family dies at 90+.

What if you retired at 60 and wait to collect Social Security at 70 and die at age 80 and you are still trying to reach an age that breaks even. Your kids cannot collect your larger Social Security Check and you have less in your investment accounts because you raided them to make up for the missing Social Security checks from age 62-70. If you had collected at 62 and not raided your mutual funds and ETF's your kids will have lots of money to put their kids in college.

Thankfully, many people don't need to be concerned about leaving kids money -if they have some left, great but the bigger thing is to not burden the kids. Jeez, by the time your kids are 60 they should be nearly retired themselves!

My accounts are mine to "raid" as I see fit. I suppose you plan to start collecting at age 62 to leave the most in your accounts? ...just wondering.

So in my case I'd rather risk leaving a bit of money on the table if I happen to die a little earlier than planned than the other way around. Believe me, this has been discussed from every possible angle and to presume there is one right answer (yours) is a bit...presumptuous.

[JRR]

Originally Posted by arwenmark

Don't forget that if you have a spouse and you die that your spouse will collect your higher benefit if it is more than theirs and they are FRA.

That definitely played a part in our decision for me to wait until 70 to claim my benefit.

[Disgustedman]

Originally Posted by Old Woman

For every year that you postpone Social Security benefits, your total Social Security Benefits will increase by 8%

I cut and pasted this from one of the countless articles about the advantages of waiting until you are 70 to collect Social Security.

If someone who did not understand money and retirement would read this, they would assume that their lifetime Social Security income will be at least 64% higher if they wait until they are 70 vs 62 to collect Social Security Benefits.

This is false. What is true is that by waiting until you are seventy to collect, your monthly Social Security Check will be at least 64% higher. What most people don't intellectualize is the reason the SS check is higher if you wait until 70 to collect is that you did not get ninety-six (96) SS checks from 62-70.

If you actually get more Social Security money by waiting till you are 70 is a wild card based on how long you live and what you lost in interest, dividends, and returns by raiding your portfolio to cover your lost money because you waited to collect SS from age 62-70.

I'm dropping the Big R when I am 62. Why? I have had CHF, I take 5 meds (Along with 2 inhalers)...Life is still good, but make it to 70? Not possible unless hooked to machines...