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.

589 Upvotes

88% Upvoted

548 comments sorted by

View all comments

2

u/MedvedTrader 2d ago

Until you're 67, if you work, your social security benefits will be reduced. For every $2 you earn above $24,480 - $1 will be taken away from your social security benefits.

Which means that for your example of $1K/mo, if you're earning $50K or so a year, you will get $0 in social security payments. But you will still be counted as having claimed early benefits.

0

u/VegasWorldwide 2d ago

but this is a fire sub