Early Retirement & Financial Independence Community

Early Retirement & Financial Independence Community (https://www.early-retirement.org/forums/)
-   FIRE and Money (https://www.early-retirement.org/forums/f28/)
-   -   Playing with OpenSocialSecurity benefits optimizer (https://www.early-retirement.org/forums/f28/playing-with-opensocialsecurity-benefits-optimizer-109597.html)

Bongleur 06-11-2021 02:43 AM

Playing with OpenSocialSecurity benefits optimizer
 
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 06-11-2021 05:04 AM

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 06-11-2021 06:28 AM

Thank you for posting this useful link!:)

LRDave 06-11-2021 07:40 AM

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 06-11-2021 10:04 AM

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

pb4uski 06-11-2021 12:10 PM

Quote:

Originally Posted by LRDave (Post 2619054)
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 06-11-2021 12:13 PM

Quote:

Originally Posted by Bongleur (Post 2618997)
....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.


All times are GMT -6. The time now is 12:19 AM.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.