When to start collecting Social Security benefits. Chapter 6.

You have three main options:

  • Start collecting early
  • Start collecting at full retirement age
  • Start collecting after full retirement age

One of the key trade-offs is longevity. If you die while delaying your benefit, you have made a bad choice. Since we don’t know what our individual life expectancy is, it’s useful to determine what the break-even point are.
As in the previous hypothetical example, let’s assume that your full retirement age is 66 and you are eligible for a benefit of $1000 per month at full retirement age.

  •  If you begin taking benefits at age 62 your total benefits will equal those who wait until full retirement age at age 78.
  • If you begin taking benefits at full retirement age your total benefit payments will equal those waiting until age 70 at age 82.

At age 85 the total benefit payments:
o   For those who began at 62 will equal $216,000
o   For those who began at 66 will equal $240,000
o   For those who began at 70 will equal $253,000


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