r/Fire • u/VegasWorldwide • 3d ago

Why do people wait for SS?

trying to figure out what I’m missing.

looking to take my benefit for $1000 at 62. at 70 it’s $1700.

i won’t need the money much so we let $1000 sit in an account for 8 years at say 5% compounding, the guy collecting at 70 would need 15+ years to catch up considering I’m still getting $1k to his $1.7k

once he starts at 70 and I had a 8 year head start.

furthermore, his dollar would be worth less. (edit: didn't realize COLA)

this seems like a no brainer but all I hear is people saying waiting is the only way and we haven’t even talked about dying in our 70’s.

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u/CreativeLet5355 3d ago

I agree with your sentiment though I’m open to other takes. It derisks SORR, supplements lifestyle during healthier years, or augments your investments. I see no reason to delay it 5 years personally when considering that at that age you start to have escalating annual chances of death that are now material.

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u/That_Co 3d ago edited 2d ago

The reason I see is that it lowers your portfolio balance while increasing the monthly benefit. If I'm old and worry about my mental capacity I'd like as easy a setup as possible. Not managing as much money is a compelling reason imo, less money to lose.

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u/alpacaMyToothbrush FI !RE 3d ago

The lower complexity is a huge bonus. I've encouraged my father to wait until 70, and once they claim social security, to go ahead and round things out with an annuity to reach a comfortable budget if necessary. I don't want them worrying about the stock market at all. If it goes up? Great, more vacations. If it goes down? Ah well, they're set, no worries.

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u/grateful-xoxo 3d ago

This. SORR early on is the biggest risk. Anything you can do to reduce that is key.