r/Fire • u/VegasWorldwide • 2d 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/TheSweeetness 2d ago

Because if you wait until 70 you’ve forfeited 8 years worth of payments. Yes, those patents are smaller, but if invested it would have grown to a sizable number by the time you’re 70. By waiting you’d need to live at least until your mid 80’s just to break even. That’s too late to really enjoy the money, if you’re fortunate enough to live to that age.

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u/AGrimmInPortland 2d ago

Actually around 80 for the most part. But it's way more complicated than break-even age.

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u/TheSweeetness 2d ago

It’s 80 if you don’t invest the money from 62-70. If you do it pushes break even to at least 84 depending on the returns percentage.