. Here's an interesting calculator that analyzes the best time for you to start collecting Social Security:
http://www.bedrockcapital.com/ssanalyze/
Here are my results:
Recommended Solution
Based on the data above, the following plan of action is recommended:
PatientSaver will file for her own benefit to start on 8/1/2029, the month after she turns 70 and receive 125.33% of her full retirement age benefit.
The optimal filing solution results in a net-present-value of $748,337
In contrast, if the client filed at 62 the net-present-value of their benefit would be $583,267
Social Security Calculator
April 13th, 2017 at 12:30 pm
April 13th, 2017 at 07:40 pm 1492112419
I took Social Security at 62 because if the net income is invested, the "break even" point changes significantly. I am also of the opinion that people already receiving the annuity will be less likely to have their payment cut when Congress decides to reduce benefits. My state does not tax Social Security (yet) and that makes a difference as well.
April 13th, 2017 at 09:22 pm 1492118525
Kiki will file for her own benefit to start on 8/1/2044, the month after she turns 70 and receive 124% of her full retirement age benefit. I have a windfall pension provision which will deduct about $400/month from my benefit.
The optimal filing solution results in a net-present-value of $720,092.
In contrast, if the client filed at 62 the net-present-value of their benefit would be $569,012.
If I die in 2063 aged 88 years 5 months the payout would equal 1,528,175
April 14th, 2017 at 02:11 am 1492135895
Also note that the amounts listed on your SSA benefit statements every year change, because they project that you will earn whatever your latest salary was input into the system every year for the rest of your working life. So in a low income year, you will see your projected benefits go down and in a high income year, they will go up.
When to begin collecting depends also on whether you are working. If you delay until your full retirement age, you are ok, but if you are working part-time and collecting, you will see a decrease in benefits.
Also be aware that until age 70 you can start, stop, and restart your benefit. Each year of stopping increases your benefit; each year you take it earlier decreases your benefit.
April 14th, 2017 at 11:46 am 1492170382
I believe someone told me once that if you use SSA's customized payout formula you can factor in an erratic or lower income until retirement. I would always make sure that whatever earnings I had did not interfere with my SS payments or cause them to be reduced, as that just wouldn't make sense to me. Why start collecting SS if your earned income will cause SS payments to drop? One or the other, but not both, although event the small amount of earned income SS allows would give you over $1,000 a month, enough to make a difference.
My plan is to collect at FRA, or 66 and 10 months, to boost monthly income but still start collecting when I can still hopefully enjoy the added money. I don't want to wait til I'm too decrepit to use it!
April 14th, 2017 at 09:06 pm 1492203983