Talk of The Villages Florida - View Single Post - Decision time, retire or don't retire that is the question.
Thread: Decision time, retire or don't retire that is the question.
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Old 04-26-2021, 09:03 PM
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Originally Posted by Professor View Post
Sorry, the risk that you die anytime is the same whether you retire or not. If you enjoy what you do then do what makes you happy is my belief. Don't let greed, or fear, cause you to make a poor decision that you can't undo...
Dewi is spot on correct on this, mortality risk is a real financial risk when you opt to delay your SS benefits. If you die at 73, the extra 8% in SS benefits will not be nearly enough to recover the years of benefits you did not receive to get the extra 8%. The loss will be even greater if you adjust the numbers to a net present value by discounting the cash flows. I always crunch the numbers to determine how long I need to live to make it worthwhile delaying benefits for the hope of increased future benefits. Typically I end up taking the benefits early, I did with my pension. The other thing you need to consider is that the money you get now is a "bird in the hand", and money in the future is money you "hope to get". Given the funding status of the SS trust fund as well as many private pension plans, I will take the "bird in the hand".