Assuming you do not wish to leave much of an inheritance, taking SS at 70 gives you more money to spend each year starting at 62. This has been shown several times in other threads.
Must have missed it. All I can go by is my Estimated Benefits.
62 $1967 mo. $23,604 yr. 18 yrs to 80 $424,872
67 $2794 mo. $33,528 yr. 13 yrs to 80 $435,864
70 $3465 mo. $41,580 yr. 10 yrs to 80 $415,800
And yes, I would like to leave an ok inheritance. If possible.
I just don't see the big advantage of waiting till 70.
Unless you based your retirement around it. Which I didn't do.
I honestly don't have that much faith in our Gov. Just me I guess.
Especially going out to 2042. But agree it could be looked at as a plus after 80.
I expect to be spending less after 80 V.S. 60-80.
Again, probably just me.
Ok, so here's the math. Let's say that you are 62 and have $1 million and think that a 4% WR is ok.
If you retire at 62 and start SS at 62, you can spend $63,604 in inflation adjusted $ for the rest of your life... $23,604 of SS and $40,000 from your portfolio.
Alternatively, at age 62 you can put aside 8 years worth of SS at age 70 or $332,640 ($41,580 a year times 8 years) in a MM account, and withdraw 4% a year from the remainder of $667,360.... $26,694 a year. Between the $26,694 a year from your portfolio and the $41,580 from the side account for age 62-70 and SS after age 70, you can spend $68,274 each year in inflation adjusted $ for the rest of your life.
So for the same risk, would you rather have $63,604 to spend or $68,274 to spend?
ETA... even if SS is discounted 23% in 2034 you still come out ahead, albeit slightly...
SS @ 62 .... $23,604 * (1-23%) + $40,000 = $58,175
SS @ 70 .... $41,580 * (1-23%) + $26,694 = $58,711
