Quote:
Originally Posted by Cantwaittoarrive
What I think you might not be considering is the annual increase you receive (except for 2010 and 2011). For example in my case I received an increase of $90 COLA a month this year, if for the each of the next 3 years I receive an additional $90 a month COLA the difference between age 62 and 66 would be $77 not $437. This of course is based on my numbers not yours, but I think most calculators and the SSA don't take in to account COLA when figuring breakeven. If you do take this into account most people would be dead for years before they ever reached breakeven. In my case in those 4 years I collect $100,000 from SSA in my case it would take about 80 additional years of life to hit breakeven. i doubt I will live to 142 so I'm not waiting. Also I will have my hands on the 100K to invest the way I see fit
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When SSA provides you with an annual benefit estimate statement, the first three amounts listed are: (1) the amount at your full retirement age (i.e. 66 and 2 months) i.e. $1396 a month, (2) your age 70 amount (i.e. $1872) a month, and (3) your age 62 amount (i.e. $997) a month. The difference between your full retirement amount and your age 62 amount is $399 (30 percent). SSA does not include estimated COLA increases in their benefit estimate statement amounts. Keep in mind that annual COLA increases would increase all three amounts at the same percentage rate. You do not derive or accrue any special COLA advantage by taking a reduced benefit.
Returning to the example amounts above, this person (w/o COLAs) could receive a total of $49,850 for 50 months. If they had waited till their full retirement age, they would begin receiving $399 more. but it will take this person 124.94 months (10.42 years) to break even (at age 76 and 7 months). The break-even point varies but it will never be more than 15 years. If you're coming up with 80 years, you've made a mathematical mistake.
George