Edward,
It is no where near the value you would associate with 7 or 8 % per year that your SS payments, once started, would go up. Forgoing the lower payments in a number of years is huge, especially considering life expectancy. That's why a break-even for me was at 83. I believe this number is revenue neutral for the US gov, which indicates going early is a winner on average for men and a loser on average for women. But when you add in the time value of money it skews it towards taking it early, especially if you are healthy and would enjoy it better then versus in a nursing home or being able to stay in a better retirement situation, or leave extra to your heirs if a later taking is chosen (less to heirs if early choice, you don't use it, and you die before break even)..
In my case I "won" the bet as my life expectancy is considerably less than 83 now (due to a significant heath issue) than it was at 62 when I made made my decision. Its a personal choice for everyone but I believe on average its a 50-50 situation, with men a little better and women a little worse for the short choice.
On Sun, Oct 9, 2016 at 10:26 AM, edward henry khp3655@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
Ranch71,
That is an excellent point about the break even strategy on Soc Sec and one's physical state to enjoy the money. Most people can be a lot more active between 62 and 75 than they can between 75 and 88 (if they are fortunate enough to live that long). Having those 5-8 extra years of getting the reduced 62 entry point Soc Sec can make a huge difference in quality of life.That said, I have seen strategies that encourage the use of TSP funds early in retirement to allow one to put off getting Soc Sec until later when the payment would be higher since the increase is about 8% per year, which is a significant increase.
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Posted by: Ralph Architzel <rarch71@gmail.com>
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