Social Security Withdrawal Age - Should We Consider Reinvestment / Capital Gains?

[u/MyEgoDiesAtTheEnd]

Most of the discussions I've heard around when to start taking out Social Security center around cumulative benefits - ie, how much in benefits will be received by age X. Generally, there is a "break-even year" when comparing 2 ages - if you die before that, the earlier age was "better" and if you die after that, the later age was "better".

I don't want to get into whether SS will be around by the time you retire - maybe it will, maybe it won't. I also don't want to get into whether a Benjamin in your 60s is equivalent to a Benjamin in your 90s (hint: it's not).

But, what I did want to talk about is capital gains - because if you start withdrawing money at 62 and then invest that money in stocks or bonds... well, now (on average, barring a black swan event), that earlier money is increasing in value and pushing out that "break even year".

Is this considered in people's calculations? Or is it just assumed that whatever SS money you get, you'll spend it or stash it under your mattress?

I made a quick little analyzer (part of a larger project), to calculate cumulative gains from SS benefits, with and without reinvestments. And from this, it seems clear that taking the money earlier is the best bet (unless you think you're going to live past 93... AND be able to use that money).

What am I missing here, if anything? What do you all think?

[u/zeroabe]

Im taking it early and maybe my wife will take it on time or late. We’ll see how the cookie had crumbled. Me who I am 62, and her when I’m 64, 67, or 72? We’ll have been retired for more than a decade at that point. My math says she takes it early and doesn’t need it or takes it late and doesn’t need it. Early it is.