I will be retiring at the end of this year at 63. When I decided to retire early I never understood why people advise on waiting to take SS until 66 years old or later. I am taking it at 63 and this is why.
1. The estimated 8% annual increase only applies if you are still working and earning the amount your SS payments are calculated on, if you quit work your payments will not increase so why wait?
2. In my case I would have to wait 16 years for my increased payments to catch up with the income I lost by not taking early SS.
3. If I wait until I reach 66 most people advise taking more money out of their 401K or IRA, if I do this and if there is a downturn (bear) in the market I may never recover the extra money I have taken.
Regards
Bigfish
1. The estimated 8% annual increase only applies if you are still working and earning the amount your SS payments are calculated on, if you quit work your payments will not increase so why wait?
2. In my case I would have to wait 16 years for my increased payments to catch up with the income I lost by not taking early SS.
3. If I wait until I reach 66 most people advise taking more money out of their 401K or IRA, if I do this and if there is a downturn (bear) in the market I may never recover the extra money I have taken.
Regards
Bigfish