haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
We discussd this topic a few months ago. I felt that it was better to delay, if dire necessity was not a factor, and ignoring any fear that something might happen to those who are not yet getting it that people already drawing would be spared.
I wasn't sure about the soundness of the methodology I used in arriving at that conclusion.
Today I tried something that I think is valid. I just entered into an annuity quote machine the (paltry) monthly amounts that my SS statement tells me I will get at age 62(already passed), age 66, and age 70. Since I have been retired a long time, these amounts DO NOT reflect any future earnings on my part. The calculator gves a fixed immediate annuity quote, whereas SS payments are a very special kind of immediate annuity, one that has a COLA. I couldn't find an annuity underwriter who was even willing to enter into a similar contract.
I believe that the SS COLA makes the findings I will present even stronger in favor of delaying.
Here are the figures:
Age.......................62..............66.................70
Monthly Amt........$645...........$821.............$1061
Quote..................$104426...$121468........$142,035
I reason that if these SS annuity payments were in fact a tossup, then the annuity quotes should be roughly identical. As you can see, the later you begin, the more that annuity would cost you to buy. And this is for a man. The effect should be even stronger for a woman, although I did not check this.
Clearly, the insurance companies are operating with current assumed earnings on your premium, and the results would be altered if one were to assume for example that he could make 15% a year in gold or stocks or rental houses or whatever. This sort of optimist might prefer to get the money now.
My conclusion is that as is usual in life, if you can afford to wait, you do better.
Any problems spotted?
Mikey
I wasn't sure about the soundness of the methodology I used in arriving at that conclusion.
Today I tried something that I think is valid. I just entered into an annuity quote machine the (paltry) monthly amounts that my SS statement tells me I will get at age 62(already passed), age 66, and age 70. Since I have been retired a long time, these amounts DO NOT reflect any future earnings on my part. The calculator gves a fixed immediate annuity quote, whereas SS payments are a very special kind of immediate annuity, one that has a COLA. I couldn't find an annuity underwriter who was even willing to enter into a similar contract.
I believe that the SS COLA makes the findings I will present even stronger in favor of delaying.
Here are the figures:
Age.......................62..............66.................70
Monthly Amt........$645...........$821.............$1061
Quote..................$104426...$121468........$142,035
I reason that if these SS annuity payments were in fact a tossup, then the annuity quotes should be roughly identical. As you can see, the later you begin, the more that annuity would cost you to buy. And this is for a man. The effect should be even stronger for a woman, although I did not check this.
Clearly, the insurance companies are operating with current assumed earnings on your premium, and the results would be altered if one were to assume for example that he could make 15% a year in gold or stocks or rental houses or whatever. This sort of optimist might prefer to get the money now.
My conclusion is that as is usual in life, if you can afford to wait, you do better.
Any problems spotted?
Mikey