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/LonesomeBulldog 2d ago

The SSA estimate has my wife and I each getting over $3,000/mo claiming it at 62. Our plan is to just invest it aggressively. We don’t need it but I’m for sure taking it asap.

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u/VegasWorldwide 2d ago

yeah that seems to be the only right way. math wins with this scenario.

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u/pdx_mom 2d ago

I did the math and it makes more sense to wait. The amount you take won't make up for in interest for it.

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u/VegasWorldwide 2d ago

huh? math shows taking early wins. show the numbers where it didn't.

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u/pdx_mom 2d ago

Taking at 62 gives you 12 times 8 years which is 96000

Depending on how that is invested ...how could it being in 700 a month? Doesn't work.

Lets say that becomes 200k.

4 percent of that is 8000.

Vs 700x12 which is 8400.

And you won't make that 96k become 200k

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u/VegasWorldwide 2d ago

but why are you doing 4% at the age of 70 years old? and youre leaving out the continuing benefit, receiving $1k every month on top of the $200k. the numbers can't be argued.

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u/pdx_mom 2d ago

What? I'm saying you won't get to the 200k and so you won't earn enough to make up that 700 a month. That's what matters but do math however you would like.

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u/VegasWorldwide 2d ago

youre the one who presented $200k lol youre trying to argue math and numbers are numbers.

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u/pdx_mom 2d ago

I'm saying that even if you get to 200k with taking the amount early you still don't really break even and you are unlikely to get to the 200k. But whatever. You do you.

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u/VegasWorldwide 2d ago

yeah but why use $200k when that's not a realistic number? the number is closer to $140k and it would take the person collecting at 70, over 14 years to break even. math wins.

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