Social Security at Retirement

I always look at it as a guaranteed 7% between age 62-67, and then a guaranteed 8% between 67-70. This really only matters if you get to 62 before the whole house of cards comes down, but if your health is good and you have enough investments to survive the higher withdrawal rate for 5-8 years, then delay.

Most people don't have the luxury of waiting that long and if they smoke/have heart problems/history of cancer/etc. then definitely don't wait. I'll hang up and listen.

Damn the government figured out how to get a guaranteed 8% return?! Where do I get that?!

It depends upon a number of factors. First and foremost is your health when you turn 62 and every year thereafter. Second, when are you planning to stop working. And, third, building off the second factor, what is your tax situation, i.e., what other taxable funds are you taking in.

I've gone to the SS website and figured out what I will get at 62 if I stopped working now (and every year between 51-62) and if I worked until I was 62. In my case, I would have to live to 78-82 in order to make up the difference between starting SS at 62 versus starting SS when I turned 67. That, of course, assumes that I stop working at 62. And, that doesn't include interest that I may earn on that money (I assumed I'll be spending it, though).

Given my family health history, I doubt I'll live to 78. It's just a fact. Therefore, depending on my working situation, I'll most likely start taking it out at 62.

quote:

---

I am in my 30’s and saving sufficiently for retirement. However, I fully intend on retiring and taking SS benefits 62

---

40s here and have the same plan. Obviously, as I get closer I will further evaluate it, but my plan to to start collecting at 62 or when I stop working (whichever happens later).

A quick and dirty simplified table, if my balance is $3M (rough goal) and I take out $150k a year; I could be losing over $400k over the life of my investment portfolios by delaying SS benefits and needing to use more of my portfolio. Obviously does not take into consideration of RMDs, working a few years later, inflation....

That chart is pretty much EXACTLY what my scenarios bared out.

And, if you are able to save or "put away" that money and earn interest on it, the break even point will go well into the 80s.

quote:

---

guaranteed 8% return?

---

No such thing and you know it. US Government has been the best bet for a couple hundred years but that will end . . . At some point. May not be in ten years, but it will happen at some point.

That chart also assumes that SS will be able to pay out 100% of the benefits that it owes. We are less than 12 years away from the fund only being able to pay 76% of benefits.

That break even chart is what on lean on…
I also know as i get to the other side of the break even number I will be less active and spend more time on hobbies around the house…(less money required to sit around and smoke ribs ,watch tv and grow vegetables)

So use the ss a little early to subsidize retirement income and go see the world and have fun…

Fwiw…I am 63 and will probably pull ss at 65 with Medicare… I retired at 59 and live off investment and subsidize the ss with cash from a cash fund I set up to cover 8 years of ss….

Gotta weigh quality of life versus the ss yearly gain , life expectancy for your family history and early death

i'm 55 this year.
i will start SS at 62 no matter what.

based on my family history it's unlikely i live thru my 70's

I always hear this advice that "it's a guaranteed 8% return you cant get that anywhere else." It's not actually an 8% return though. You may get an 8% increase in benefit but you lose the principle for each year you delay taking the benefit. So you are in effect paying for that increased benefit. Am I missing something here? For a true 8% return I'd expect the principle to be intact.