Reply to Taking social security at 62?

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[quote=Anonymous][quote=Anonymous]A couple of posters have called the 8% increase in annual payments for each year you wait an “investment return.” It is not.

The 8% is an adjustment factor for not receiving your benefits earlier. Put differently, if you start SS at 62 and live to 85, you’ll get 23 years of payments, but if you begin payments at 70, you’ll get 15 years of payments. The incremental 8% adjustment just increases the latter’s payments so that they receive the same lifetime benefit as the former. That’s not an investment return. It’s largely shifting the same amount of dollars to a shorter timespan from a longer one.

If you don’t believe me, run SS’s breakeven calculator. These payments are setup to be equal for the average lifetime + a bit. You have to live to 85+ to make more money with the delayed benefit. The System offsets this with the early death of many other seniors.

If it was a true “investment return,” people who wait until 70 would receive MORE than the additional dollars to compensate them for giving up benefits for an additional 8 years during an average lifespan. [/quote]

^ Way too smart for dcum[/quote]

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