Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The way to evaluate is not look at straight line projections - that misses a few things that will impact what you get. The ability to invest (or not draw from savings) can make taking early worth much more than waiting. Also if believe that may be drawing less time, early is better. Tax consequences may come into play if still working or trying to limit income and make waiting better. Another item to consider is survivor benefits that may say to wait to maximize spouses benefits. Based on what you have posted, I would take earlier rather than later.
I did the math. That is why I started this thread.
If I start taking the benefit at 62, or at 66y10m, or at 70, the total pay-out is about the same.
It is not a big difference.
The SSA has done the math, too. Based on your life expectancy, (78.54 years) the SSA has figured out that whatever age you begin to draw your SS benefits, it should be even steven at your projected death. Live longer, and you might have wished you'd waited for a higher monthly benefit. Die before your projected exit, and you get extra money if you draw it early. Works on a sliding scale, as everyone dies.
One thing you can do is "change your mind" when drawing SS. You can reverse your SS draw date, 1 time, during the 1st year you draw. And you gotta pay back every cent they sent you. But, it can be done...once.
Otherwise, when ever you start your SS, that's it. (You'll also have COLA adjustments annually.) This year was 2%, IIRC. It's tied to the rate of inflation.
I did the math. That is why I started this thread.
If I start taking the benefit at 62, or at 66y10m, or at 70, the total pay-out is about the same.
It is not a big difference.
I understand that SS is set up like this, the higher draw if you wait to start it is based on actuarial lifetimes, so on average SS pays out the same amount of money over your remaining lifetime, regardless of when you start taking it.
That said, from FRA to age 70, the current rules give you 8% more money every year you wait, so if you don't need it now, waiting to age 70 does have that advantage.
I am not sure of what to do with money above and beyond what we need to live on. I guess just spending it all on wine, women and song, but beyond that anything more will surely go to waste.
Buy a boat or an airplane. That will take care of any excess money in a hurry.
If you want to be more civic minded, give it to a worthwhile charity.
Nothing wrong with taking it at 62. My Uncle did that, he thought he would live to a fairly old age, he was healthy & lived a healthy lifestyle, but Cancer had a different idea & he was dead at age 70.
It's also worth considering that any income stream accrues risk the further out it goes.
The SS returns right now aren't guaranteed forever and I seriously doubt it'll go up unless the singularity occurs. Look at the pensioners in the ex-USSR.
The SSA has done the math, too. Based on your life expectancy, (78.54 years) the SSA has figured out that whatever age you begin to draw your SS benefits, it should be even steven at your projected death. Live longer, and you might have wished you'd waited for a higher monthly benefit. Die before your projected exit, and you get extra money if you draw it early. Works on a sliding scale, as everyone dies.
One thing you can do is "change your mind" when drawing SS. You can reverse your SS draw date, 1 time, during the 1st year you draw. And you gotta pay back every cent they sent you. But, it can be done...once.
Otherwise, when ever you start your SS, that's it. (You'll also have COLA adjustments annually.) This year was 2%, IIRC. It's tied to the rate of inflation.
Life expectancy is not 78.54 years when talking about social security, that is from birth ...that is before the unhealthy , the sick ,the weak ,those who died at birth are all weeded out by 62 .
When it comes to ss life expectancy for a 65 year old is :
For a woman a 54% chance of seeing 85
For a man 42%
For a couple odds of one seeing 85 is a whopping 74%
Odds of seeing 80
For a woman 72%
For a man 62%
For one in a couple 89%
Odds of seeing 90
For a woman 19%
For a man 13%
For one in a couple seeing 90 , 47%
Ss is not actuarially neutral anymore and hasn’t been for a long time as more and more live longer
Last edited by mathjak107; 04-13-2021 at 02:09 PM..
One thing you can do is "change your mind" when drawing SS. You can reverse your SS draw date, 1 time, during the 1st year you draw. And you gotta pay back every cent they sent you. But, it can be done...once.
Otherwise, when ever you start your SS, that's it. (You'll also have COLA adjustments annually.) This year was 2%, IIRC. It's tied to the rate of inflation.
No , it is not it as far as once you start ss at all ..
At fra or older ,anyone can stop their ss , let it grow until 70 and refile .
Only when cancelling ss the first year do you have to pay it back .
No money gets paid back with stop start ....your ss just starts growing again the month you stop. , but remover. You can only do start stop at fra
Life expectancy is not 78.54 years when talking about social security, that is from birth ...that is before the unhealthy , the sick ,the weak ,those who died at birth are all weeded out by 62 .
When it comes to ss life expectancy for a 65 year old is :
For a woman a 54% chance of seeing 85
For a man 42% for a man
Just another one of those areas where the niceties of polite behavior runs afoul of reality.
You'd think that men would receive a higher payout, double bonus points for some ethnicities. Purchasing an annuity results in a gender difference, no? The same reasoning could be applied to .gov vs. privately-issued health insurance.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
