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I think that is correct. Age 62 is the most popular age for claiming SS benefits.
We Americans aren't too good at delaying gratification.
For many it is not about instant gratification. Life events do happen. One other major issue was the inability of many to independently save for the future while in their younger years, making the early draw on SS necessary.
I really, really enjoy, as you say "non-cash value".
I really like the fact that, when we go on vacation, we don't have to worry about being back at a certain time, or get fired, docked pay, or harassed. The elimination of that stress in itself is 'Priceless'.
I have run all the calculators and I plan on taking SS at 62. My break even is out into my 70's. I have no idea how my health will be then. But the non-cash value will be in my ability to retire. Long ago my job became a clock puncher. I have been through several management turnovers, none of them good. Our wages are stagnant, and have been for a number of years. About a year and a half ago, they converted our pension plan into a 401k for younger workers. They also reduced the contribution to the retirement plan, which amounted to a 4% pay cut. Only after the older workers protested (I was one) did the company allow the oldest employees to stay in the pension. Once I hit 62, with the pension and SS I can get by. It will not be a lavish retirement, but it will be one where I can put my working life behind me and begin a new chapter. That is the most important thing to me, and SS at 62 will allow me to do it. That is my non-cash value.
I have run all the calculators and I plan on taking SS at 62. My break even is out into my 70's. I have no idea how my health will be then. But the non-cash value will be in my ability to retire. Long ago my job became a clock puncher. I have been through several management turnovers, none of them good. Our wages are stagnant, and have been for a number of years. About a year and a half ago, they converted our pension plan into a 401k for younger workers. They also reduced the contribution to the retirement plan, which amounted to a 4% pay cut. Only after the older workers protested (I was one) did the company allow the oldest employees to stay in the pension. Once I hit 62, with the pension and SS I can get by. It will not be a lavish retirement, but it will be one where I can put my working life behind me and begin a new chapter. That is the most important thing to me, and SS at 62 will allow me to do it. That is my non-cash value.
The million dollar question when retiring at 62 is what do you do about health insurance?
it really depends on your state .... some aca plans like in arizona are priced insanely . new york was high but i did it , but aizona is 2x the cost i paid .
new york lets you cobra up to 3 years but i couldn't since the insurer was not in new york they followed the 18 month rule.
now i made it to medicare and i love it compared to the crap i went through all my life with these hmo's .
The million dollar question when retiring at 62 is what do you do about health insurance?
How about ACA? It's there, why not use it if it makes health insurance at least somewhat affordable until you are 65? Of course, it depends on your income. If you are high income, it might not help you out much.
I started mine at 62. I did the math and it doesn't look that bad to me.
I take what I am collecting early, and figured it in at the later full amount age at 66.4 yrs, and I figure
I am good to 76 yrs. old. Then it works out back to the early amount collected at 62.
Not bad odds for me, with my family history for longevity and medical issues.
But, hey, If there is still funds available in Social Security, I good, cause I will still be collecting.
If I pass before (66-70 age range), at least I collected most of it before losing it.
My wife gets more than I do, so survival from mine will not help her, and she is collecting early also.
Besides, the money now helps us better.
(monthly amount at 62) x 12 (months a year)= yearly amount
(yearly amount) x (4 yrs) =
PLUS
(monthly amount) x (4 months) = total both for amount collected before 66.4 age for full.
S.S. at 66.4 (amount)
minus
S.S. at 62 (amount)=$430.00
Take $430.00 (times) 12 months = $5,160.00
Divide the amount that I have collected before 66.4 by $5,160.00
This will give me how many years from 66.4 before I will be back at the early
amount I started with at 62.(Hypothetically)
I am not a math wiz, so my calculations may be off. But, I thought it looked close.
I started at 62 and now I am 81. Seems to have been a good investment for me.
My plan is to COBRA for 18 months, and then ACA the rest of it. Either that, or by that time I will be re-located and maybe I can pick up some work here and there to cover some of the healthcare costs. But I agree it is an issue. I know this is not a political forum but I think the ACA would be working much better if the GOP did not do everything to undermine it. I remember clearly how Trump was on 60 minutes and said everybody would be covered. It would be so easy. Not only did the GOP have no plan, they made what we had worse. I am angry at the political system that has ruined the country for me after a lifetime of working. And yes, I voted for Hillary and am proud of it.
@matjack, The chart seems to indicate more people taking it at 70 then many years ago, I remember it used to be %2 taking at 70.
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Yes, non cash value
