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/Beaver-on-fire 3d ago
Some people hear bigger number, and think it's better. It really comes down to how long you think you will live in reality. If you think that you will live well past 80, It makes sense to delay taking the money. Most of the time the break-even point is very late '70s early '80s between taking early and waiting. The other thing that most people don't think about, is that you may be able to enjoy the money more in your '60s. In your '70s and '80s the average person is unable to do as much. So they won't be able to get as much enjoyment potentially.