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Is it really worth it?

I have not drawn my SS yet and am waiting until 70. My thinking is as follows: I will continue to work into my 70's, so as far as early benefit collection I would have received a penalty based on my earnings. There is an about 30% reduction in benefit between drawing at 62 and full retirement age. There is an approximately 8% annual increase if drawing after your full retirement date and 70. My wife is 5 years younger than I am and has owned a retail store for more than 30 years, with very little personal income, thus her benefits are based predominately on her pre-retail earnings. At her full retirement age, she can draw half of my benefit, which will be more than her full benefit. Finally, should I predecease her she will lose her benefit and will begin receiving my full benefit which will be around 60% higher than it would have been had I drawn at 62.

We both come from fairly healthy families and have had parents, aunts, uncles and grandparents make it into their 90's.
 
KHS445 said:
I have not drawn my SS yet and am waiting until 70. My thinking is as follows: I will continue to work into my 70's, so as far as early benefit collection I would have received a penalty based on my earnings. There is an about 30% reduction in benefit between drawing at 62 and full retirement age. There is an approximately 8% annual increase if drawing after your full retirement date and 70. My wife is 5 years younger than I am and has owned a retail store for more than 30 years, with very little personal income, thus her benefits are based predominately on her pre-retail earnings. At her full retirement age, she can draw half of my benefit, which will be more than her full benefit. Finally, should I predecease her she will lose her benefit and will begin receiving my full benefit which will be around 60% higher than it would have been had I drawn at 62.

We both come from fairly healthy families and have had parents, aunts, uncles and grandparents make it into their 90's.
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That is how you make the decision. No one can answer the question for you without knowing any of the variables.
 
TerryRohrer said:
That is how you make the decision. No one can answer the question for you without knowing any of the variables.
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I'm not old enough to be looking at SS yet but I'd think another variable if you don't need to pull it early would be the difference in investing it safely interest rates vs the difference also.
 
shrubberyvaluation said:
I'm not old enough to be looking at SS yet but I'd think another variable if you don't need to pull it early would be the difference in investing it safely interest rates vs the difference also.
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I think the quickest and dirtiest calculation is to compare the total receipts from starting at one point until you reach the next, and then computing the breakeven point where that level and the next are equal. Say you would get $1,000/mo starting at 67, and would get $1,250/mo if you waited until 70. Over those 36 months, you would receive $36,000. Even without investing it, you would need to live until age 82 ($36,000/$250=144 months, or 12 years) to make the two roughly equal.
 
TerryRohrer said:
I think the quickest and dirtiest calculation is to compare the total receipts from starting at one point until you reach the next, and then computing the breakeven point where that level and the next are equal. Say you would get $1,000/mo starting at 67, and would get $1,250/mo if you waited until 70. Over those 36 months, you would receive $36,000. Even without investing it, you would need to live until age 82 ($36,000/$250=144 months, or 12 years) to make the two roughly equal.
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I think you'll find that the lines all cross at around 78-80 years old.


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Ricky LaFleur said:
Yeah, I'm not going to hold my breath for my age group. They'll be out of money long before I get there :LOL:
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Just make sure you don't weaken! Work overtime if you need to, in order to maximize your payments into the system!
 
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