pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
You can calculate an ROI for the decision to defer based on differential cash flows... I'm not sure it means much but you can do it. Below is an example based on 100 PIA at FRA of 66 and 132 at 70.
Obviously, the IRR is negative until you reach the breakeven point and then improves the longer that you live.
Obviously, the IRR is negative until you reach the breakeven point and then improves the longer that you live.
Age | SS at 66 | SS at 70 | Diff | IRR |
66 | 100 | 0 | (100) | NM |
67 | 100 | 0 | (100) | NM |
68 | 100 | 0 | (100) | NM |
69 | 100 | 0 | (100) | NM |
70 | 100 | 132 | 32 | NM |
71 | 100 | 132 | 32 | NM |
72 | 100 | 132 | 32 | NM |
73 | 100 | 132 | 32 | NM |
74 | 100 | 132 | 32 | NM |
75 | 100 | 132 | 32 | NM |
76 | 100 | 132 | 32 | -9.8% |
77 | 100 | 132 | 32 | -7.0% |
78 | 100 | 132 | 32 | -4.8% |
79 | 100 | 132 | 32 | -3.1% |
80 | 100 | 132 | 32 | -1.7% |
81 | 100 | 132 | 32 | -0.5% |
82 | 100 | 132 | 32 | 0.5% |
83 | 100 | 132 | 32 | 1.3% |
84 | 100 | 132 | 32 | 2.0% |
85 | 100 | 132 | 32 | 2.6% |
86 | 100 | 132 | 32 | 3.1% |
87 | 100 | 132 | 32 | 3.5% |
88 | 100 | 132 | 32 | 3.9% |
89 | 100 | 132 | 32 | 4.2% |
90 | 100 | 132 | 32 | 4.5% |
91 | 100 | 132 | 32 | 4.8% |
92 | 100 | 132 | 32 | 5.0% |
93 | 100 | 132 | 32 | 5.2% |
94 | 100 | 132 | 32 | 5.4% |
95 | 100 | 132 | 32 | 5.6% |
96 | 100 | 132 | 32 | 5.7% |
97 | 100 | 132 | 32 | 5.8% |
98 | 100 | 132 | 32 | 6.0% |
99 | 100 | 132 | 32 | 6.1% |
100 | 100 | 132 | 32 | 6.2% |