Modelling when to take Social Security and other pensions

[Romer]

I should add if I change the ROI to 4% the difference between the options becomes smaller and as you can see it doesn't really matter when I take it. I can only spend so much money

That is the only variable I changed and now 65 isn't the sure winner. 62 and 65 are close, but 70 is still the best starting in the mid 90's which I think is to far out to count on for now

I did also model for my wife if I were to pass and she will be fine in any scenario

Edit- posted the wrong curve. Corrected

 

[Romer]

And if I just change the ROI to 8%, then 62 is the clear winner

These 3 posts should illustrate there is no right answer . . . it depends

 

[youbet]

If anything, I think the "site" is more on the wait til 70 side

But "the site" isn't entitled to SS!

 

[whatnot]

Romer - great graphs. Thanks

 

[FI_RElater]

I should add if I change the ROI to 4% the difference between the options becomes smaller and as you can see it doesn't really matter when I take it. I can only spend so much money

That is the only variable I changed and now 65 isn't the sure winner. 62 and 65 are close, but 70 is still the best starting in the mid 90's which I think is to far out to count on for now

I did also model for my wife if I were to pass and she will be fine in any scenario

Edit- posted the wrong curve. Corrected

based on what you modeled, and your subsequent post with 8%, I'd argue that you should seriously look at age 65... it also appears that anything above 65 is not adverse to a good outcome.
Why 65...if there's any sensitivity (8% is likely way too high...not many have 100% equities as that's just too much risk) then having the extra cash in the portfolio for "one offs"/immediate needs (by not delaying further and keeping your taxable account higher) would be beneficial. Clearly you show that age 62 is not acceptable; much better outcome if one delays (at least) three years. The case for age 70 (at least in your numbers isn't nearly as strong.

That's my pair of pennies

 

[Romer]

That is where I was at as well