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Valued Social Butterfly
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Re: Taking Social Security at 63 or 66

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Message 71 of 72

I am more familiar with the model of reduced benefits at age 62 versus full benefits at age 66.  So age 63 is throwing me off. 

But,  I think most financial calculations use a break-even age of either 82 or 83.  Meaning,  if you expect to live a long life,  the effect of taking smaller benefits for a greater number of years will be pretty much equalized by taking larger benefits for fewer years at that point. (I think the actual age used varies according to which inflation factor is used to calculate)   So, you really have to think about your family history,  parents' longevity,  etc.,  as welll as your own health to gamble on how long you wll live.  

Having said that,  there are many variables to this.  For ex:  Some planners are advising if you don't need the soc. sec.  $$  to meet current expense,  take them early anyway and Invest the checks in some good,  no-load mutual funds.  The return on "taking soc sec. early"  will then be a far more enriching outcome than using the old,  traditional models.   

(Sorry I can't offer much else.  In my case,  it was a no-brainer.  I started drawing as a widow on my husband's account as soon as I turned 60.  Waiting to draw on my own at age 62 would actually have been slightly less as I did not have nearly as many high-earning years on my record.  I could have waited until age 66 and drawn full benefit on my late husband but after running the numbers a 6 year jump seemed the best way to go.  Widows get 71.5% at age 60,  then it goes up by increments to 100% at age 66.)    

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Taking Social Security at 63 or 66

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Message 72 of 72

I am planning to retire this year after my 63 birthday.  I could forgo social security and use  dividends and maybe dip into savings to make up the difference between expenses and pension.  It would allow a bigger check at 66 I have to believe this was already discussed but what is the thought here?

 

Thanks

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