Me: I am 61 and had plan to retire in about 4-5 years. I have two at home dependents ages 14 and 11. I have been reading up on how SS works when you have minor dependents. Here is how I understand it if I were to retire in my early 60s:
If so, my breakeven point of waiting is well into my 90s. That is before adjusting for taxes and the timing. The extra benefits could go a ways toward funding some college.
- At age 62, I get 70% of my monthly FRA amount.
- Each of my minor dependents get 50% of my FRA amount until they are 18 or out of high school.
- The SS payments to my dependents go on their tax return and would likely be tax free.
- All the amounts are COLA annually.
If so, my breakeven point of waiting is well into my 90s. That is before adjusting for taxes and the timing. The extra benefits could go a ways toward funding some college.