Do you mean 1 million more than you have now? Unfortunately it's impossible to know what your comfort level is without knowing what you have now.
You could have 5 million now so 6 million would make you feel safe in taking the SS early. Or you could have 1 million, no debts etc...meaning 2 million would work for you. And of course your age would be a factor too.
I seem to have been mocked a bit at my assertion that I won't need SS but that's not entirely fair without knowing my personal situation.
Thus I was curious to know what might make others confident in feeling the same.
I did mean 1MM more. After I posted this and was driving to pick up lunch I realized there really was a better way rather than an arbitrary extra 1MM.
If I take SS at 70 and live to 90 (optimistic but good reason for delay of SS)
Compare that to if I take it at 62 and live to 90.
The total difference is X.
Now folks will say I can invest the amount from 62 to 70 for 5% to get Y.
So while this is pretty simple, I would need at a minimum X - Y
Using SSA.gov site for monthly max values of SS in 2016
Age 62->90 = 28 yrs at $2,102 = $706,272
Age 70->90 = 20 yrs at $3,576 = $858,240
So the difference (ignoring inflation adjustments and the 5% earning on early takers) is = $151,968
I would not feel comfortable with just an extra 150K to take SS later as it provides other benefits:
- I could live longer than 90. (longevity insurance)
- Inflation protection as inflation could be super high for a number of years in a row (remember 1980 at 13.58%, or 1945 at 14.65%), what if we got inflation like some South American countries of 80% per year.
- It is unaffected by a terrible sequence of returns (ex 1929).
- If the gov every stopped paying out SS, you can be sure everything else is worthless due to some catastrophic calamity, so it will be the last to go.
- Delaying allows me to burn off some IRA money at low tax rates before RMD's set in.
- My heirs may not be all that deserving of my extra effort to reward them and my in fact simply blow the money on stupid/fun/worthless stuff, or give it away to charity (which I could do instead and be the nice guy).
It is really hard to put a value on those extra benefits of SS, but having run the numbers I would now revise my answer to say if the govt gave me $250,000 tax free to take SS at 62 instead of 70, I'd do it.