Historically, the worst 20 year period of a 60/40 portfolio was 6.3% annual return.
Plug that into a SS comparison spreadsheet, using 2.5% annual COLA, and compare the total SS payments for the 62 and the 70 start.
The break-even age is 86.7 years.
Consider a person with an above average FRA (at 66) benefit of $2000/mo.
Let's be very generous and say they live to 95. At 95 the total SS benefit for the 62 start is $2,652,909. For the 72 start is $2,954,143.
You have to look real close to see the differenece, don't you?
Just under three million dollars, either way.
In raw numbers, the age 70 collects $300,000 more over their lifetime.
But both are 2 3/4 million plus/minus a few percent.
Living to 95 is rare. More likely is living to 90. At 90 the total SS benefits are $1,776,157 and $1,873,433. Not really much of a difference.
And note that this is using the returns of the _worst_ 20 year period for a 60/40 investment. The median return was 9.1% and the breakeven is age 107.
To paraphrase Humphrey Bogart, "the difference doesn't amount to a hill of beans in this crazy world."
Plug that into a SS comparison spreadsheet, using 2.5% annual COLA, and compare the total SS payments for the 62 and the 70 start.
The break-even age is 86.7 years.
Consider a person with an above average FRA (at 66) benefit of $2000/mo.
Let's be very generous and say they live to 95. At 95 the total SS benefit for the 62 start is $2,652,909. For the 72 start is $2,954,143.
You have to look real close to see the differenece, don't you?
Just under three million dollars, either way.
In raw numbers, the age 70 collects $300,000 more over their lifetime.
But both are 2 3/4 million plus/minus a few percent.
Living to 95 is rare. More likely is living to 90. At 90 the total SS benefits are $1,776,157 and $1,873,433. Not really much of a difference.
And note that this is using the returns of the _worst_ 20 year period for a 60/40 investment. The median return was 9.1% and the breakeven is age 107.
To paraphrase Humphrey Bogart, "the difference doesn't amount to a hill of beans in this crazy world."