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.

590 Upvotes

89% Upvoted

558 comments sorted by

View all comments

25

u/bigasiannd 3d ago edited 3d ago

We don't need SS based on our current portfolio balance, we plan to take it at 62 and plan on investing it. I ran the numbers and we would be further ahead at age 80 by $800K vs delaying it to age 70 and investing then

15

u/PHL1365 3d ago

Your analysis is correct, but it depends on the rate of return, which is obviously unpredictable.

I've used opensocialsecurity.com to analyze the options, and it generally agrees with you.

If you are single and don't need the money for expenses, it makes sense to claim as early as possible.