Relevant article:
https://www.kitces.com/blog/how-delaying-social-security-can-be-the-best-long-term-investment-or-annuity-money-can-buy/
That article deserves it's own thread and may have one.
One thing I looked for and didn't find is,
"How does waiting until FRA vs 62 change the breakeven point?"
Here's a break-even calculator for social security benefits:
https://www.standard.com/individual/retirement/planning-tools-calculators/social-security-break-even-calculator
You can log into https://ssa.gov to look up your estimated benefits, then
input them into the calculator. It will produce the break-even points with
a nice graph.
A little thinking require, please critic my calculation.
Here are my numbers and my logic (if it is logical)
I see major difference between this calculator and Kitces, his adds in growth of the money if taken early.
I think that is what this means;
"Since benefits not paid from age 62 to 70 represents a foregone investment opportunity (either the money could have been invested if it wasn’t needed, or it could have been consumed and thereby allowed other assets to remain invested), we must account for not only the $750/month (at age 62) versus $1,320/month (at age 70) benefits, but also for inflation itself (assumed here to be 3%) and this time-value-of-money factor (projected at 6%, a “balanced” portfolio rate of return that could have been earned on the money invested or not-consumed)."
From The standard.com site, using my SS numbers I get, "After 30 years: 62-$518,760; 66-$591,240; 70-$654,456."
So by waiting until 70y/o I would have collected $135,696 more from SS vs collecting at 62.
BUT, if I collected at 62 and didn't have to spend that money out of my nestegg and it collected only 4% after inflation, I would have $159,332 after 8 years when I start to receive my Bigger SS check at 70y/o.
Then after 22 more years at 4% my $159,332 would be $377,604. This compared to the $135,696 30 year difference between retiring at 62 vs 70 is pretty big. I see an extra $241,908 by collecting early.
Since this is contrary to all I read, I must have it wrong.
Where did I get it wrong?
PS, In my case because my wife insists on working, I would pay taxes on the SS, so that messes things up, in my case.
That's another calculation.
Edit, Sheesh, 22 hrs and no response, is everyone just watching the hurricane or is math hard? :-)