RunningBum
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 18, 2007
- Messages
- 13,264
Sure, they should be doing that. I just don't use a retirement calculator to determine how much I can withdraw in a year.To those calculating present-value of future SS (I understand the logic of this):
Every retirement calculator I've used (including FIRE) appears to do something similar since first-year 100% safe spending level is 30% higher than DH's current SS + 4% of portfolio. It must be making similar assumptions since my SS doesn't start for either 2 or 5 years.
And you want to make sure you don't double count SS by inputting the PV of future SS and adding it to your invest NW, and then having the tool also include SS.
That's the way it's designed, to give you the same benefit value no matter when you take it, if you have an average life expectancy. There's no real bonus in taking early, or in holding out for the larger benefit, if you die at the typical age. The bonus with holding out comes if you live longer.(Speaking of the difference between early and FRA: tweaking the age I take SS makes surprisingly little difference.)