Playing with OpenSocialSecurity benefits optimizer

[Bongleur]

re the tool at
https://opensocialsecurity.com/

You can ask an infinite number of comparison questions - I'd like to hear what people have discovered that might be important but not obvious to ask:

TAKING EARLY? CONSIDER REDUCTION IN SURVIVOR BENEFIT
I compared the loss of benefits if the higher earner retires at 69 instead of 70, and the lifetime difference is 1% for us. Seems trivial, and gives almost the same amount up front in the age 69 year while taking it back slowly over the rest of our lives. So think of the Present Value to take a trip or something while healthier.

HOWEVER if the survivor lives longer than expected, for us the reduction in survivor benefits is 6.2% per year. Living longer is all "bonus" money, but having a reduced bonus might be significant.

 

[Winemaker]

DW started her SS at 65, her FRA was 66y 4mos. The last strategy DW and I was encouraged to do was to stop her benny now, then restart next year at her 66y 4mos, her benny jumps $800/year.

 

[TheRunningMan]

Thank you for posting this useful link!

 

[LRDave]

I don't want to hijack OP's specific question, but I am not convinced that opensocialsecurity gets the GPO offset correct. I don't know how yo can estimate it until survivor benefits are claimed.

 

[tmm99]

Nice. Thanks for the link. It makes my calculations much easier.

 

[pb4uski]

I don't want to hijack OP's specific question, but I am not convinced that opensocialsecurity gets the GPO offset correct. I don't know how yo can estimate it until survivor benefits are claimed.

I'm sure if you emailed Mike Piper he could tell you how the the tool does that calculation. I'm guessing that it is tied into the mortality calculations.

 

[pb4uski]

....So think of the Present Value to take a trip or something while healthier. ...

I think this is a bit of a false premise for many.... arguably for anyone who isn't on the edge of financial ruin. Take the trip either way, it is just a matter of whether you are spending their money if you take early or of you take late spending your money and getting it paid back later.