when to start collecting social security

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genxer67
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when to start collecting social security

Post by genxer67 »

Suppose two guys, A and B, are the same age (57), same salary, same life expectancy (90+), etc. A plans to retire at 65 but not collect social security until age 70. B plans to retire at 67 and start collecting social security at 67. Who will collect more?
livesoft
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Re: when to start collecting social security

Post by livesoft »

B will work two more years and contribute to SS for those 2 years, so ....
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Watty
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Re: when to start collecting social security

Post by Watty »

Check this web site to see what it says the best starting date is then scroll to the bottom of the web page to compare that to alternate strategies.

That will give you a figure which is a adjusted for life expectancy and discounts future cash flow.

https://opensocialsecurity.com/
gunny
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Re: when to start collecting social security

Post by gunny »

genxer67 wrote: Sun Feb 02, 2025 7:20 pm Suppose two guys, A and B, are the same age (57), same salary, same life expectancy (90+), etc. A plans to retire at 65 but not collect social security until age 70. B plans to retire at 67 and start collecting social security at 67. Who will collect more?
More total money? B will, unless they both live to a REALLY old age (not sure of exact number).

In contrast: if you compare taking at the earliest and latest ages, A takes it at 62 and B takes it at 70, A gets more total money until they hit 80. Personally I'd rather have more money sooner when I can still enjoy it. Many people often say oh wait and there's a logic there too....but there's no pat answer either way, depends on other specifics.
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Svensk Anga
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Re: when to start collecting social security

Post by Svensk Anga »

livesoft wrote: Sun Feb 02, 2025 7:23 pm B will work two more years and contribute to SS for those 2 years, so ....
His 2 extra years may make no difference at all to his PIA. If his wage-inflation adjusted earnings do not displace one of his 35 highest years, his PIA will not go up. If he is suffering age discrimination salary compression, it may not be a stretch to envision salary stagnation, even shrinking in real terms.

I retired at 57. I looked at what another year would do to my SS benefit. It was trivial per year. I had 34 full years post-college plus 2 partial years. Well beyond the second bend point.

I think living to 90 is beyond the break even point, so the late claimer could collect more, but detailed salary history is needed to settle it.
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skipper
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Re: when to start collecting social security

Post by skipper »

Using opensocialsecurity.com, B collects more until age 82 due to the headstart, but then A's higher benefit due to waiting overtakes until death, everything else equal. At age 90, A has collected 7.7% more total benefit than B. That's using a bday of 1/1/67 and a PIA of 3800, assuming my subsequent calculations are correct.
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Barky
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Re: when to start collecting social security

Post by Barky »

I always find it interesting that, when it comes to social security, the government is basically betting against you living.
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vriguy1
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Re: when to start collecting social security

Post by vriguy1 »

The SS payments are calculated to be actuarially equivalent whatever age you start collecting, so the government isn't betting actively either way on your living or dying.
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