Should one wait until 70 to collect Social Security?

.
Of course, it will depend upon how long you live.

Looking at it from a break even prospective:

For an extra 8% per year gain in benefits, it will take you approximately 9 years of SS benefits to recoup the difference in the Social Security benefit that you passed up on at age 62.

For example: If one person retired at age 62 and started claiming their SS benefits, the person retiring at age 70 wouldn't break even in SS benefits with the age 62 retiree until age 79.

This is because the person drawing Social Security at age 62 has already drawn Social Security benefits for eight (8) years prior to the first benefit check of the person that started at age 70.

At age 65 vs. age 70 for SS benefits, the break even point is age 77.

Another part of this equation is, you have earned income limits between age 62 and age 66. If you plan to keep working, you will need to figure that into the equation as well; as once you past the maximum earned income limits, it will start to reduce the SS benefits that you are receiving. Don't hold me to it, but I believe the reduced SS benefit rate is fixed at (-$1) per $2 of earned income over the maximum earned income limit.
.

Let's block ads! (Why?)

Should one wait until 70 to collect Social Security?