Social Security 8% delay benefit vs. collecting now with 15-year life expectancy - worth waiting?
I'm turning 67 (my FRA) next month and trying to decide whether to start taking SS benefits now or wait another year for that 8% increase. My family history suggests I might live about 15 more years (parents and grandparents all died between 80-83). My monthly benefit would be $2,750 if I start now or about $2,970 if I delay until 68. I've tried using the SSA calculators but they don't seem to factor in life expectancy in a way that makes sense to me. Has anyone done this math or know of a good calculator that considers shorter life expectancies? I keep hearing about this "break-even point" but I'm not sure how to calculate it properly. I know the standard advice is usually "delay if you can afford to" but I'm wondering if that still applies when you have reason to believe you won't live into your 90s. I could definitely use the money now (my 401k took some hits), but I don't want to make a shortsighted decision I'll regret later.
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Amelia Dietrich
The simple math is that you'll need to live about 12 years beyond age 68 to break even. If you collect $2,750 now vs waiting a year for $2,970, that's $220/month more. But you're giving up $33,000 ($2,750 × 12) by waiting that year. It will take 150 months ($33,000 ÷ $220) to make back what you lost. That's 12.5 years, so you'd need to live to 80.5 to break even. I recommend the Open Social Security calculator (opensocialsecurity.com). It lets you input your own life expectancy estimates, which the SSA calculators don't. It uses actual actuarial data and present value calculations.
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KhalilStar
•Thanks for doing that calculation! So I'd basically need to live to 80.5 just to break even... that's right on the edge of my family history. I'll check out that calculator - sounds exactly like what I need.
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Kaiya Rivera
Take it now!!!! I waited til 69 and regretted it. Been collecting for 5 yrs now and still havent made up what I lost by waiting. You never know how long youll be here and that money now could really improve your quality of life. The govt WANTS you to wait so they dont have to pay as much if u die earlier.
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Katherine Ziminski
•That's not entirely accurate. Social Security is designed to be actuarially neutral - meaning the system isn't designed to "win" if you die early. The delayed credits are based on mortality tables and interest rates. The system is supposed to pay out the same total amount regardless of when you claim (on average across the population).
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Noah Irving
It's actually more nuanced than just the break-even calculation. You should consider: 1. Tax implications - higher monthly benefits might push you into a higher tax bracket 2. Inflation protection - the larger your benefit, the more protection you have as COLA increases are percentage-based 3. Survivor benefits - if you're married, your spouse will inherit your higher benefit amount 4. Current income needs vs. longevity insurance For tools, I've found that Maximize My Social Security (maximizemysocialsecurity.com) is worth the subscription fee for complex situations. They let you model different longevity scenarios.
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Vanessa Chang
•my brother in law used that maximize website and he said it was worth every penny. showed him how to coordinate with his wife's benefits too which made a big difference.
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Madison King
Have u tried calling SSA to ask them? they should be able to run the numbers for u specific to ur situation
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KhalilStar
•I've tried calling multiple times but keep getting disconnected after being on hold for 45+ minutes. It's so frustrating! I was hoping there was a way to figure this out without having to deal with their phone system.
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Julian Paolo
•I had the same issue trying to reach SSA about my benefit calculation. After getting disconnected three times, I used Claimyr (claimyr.com) and got through to an agent in under 15 minutes. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. Totally worth it when you're making a decision that affects thousands of dollars of benefits. The agent was able to run various scenarios for me based on different claiming ages.
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Vanessa Chang
my situation was like yours. took ss at 67 and dont regret it. used money to fix my house and take a trip i always wanted. calculator said id lose money but living better NOW was worth it to me. money now is always better than promises later, thats what my dad always said
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KhalilStar
•This is honestly what I'm leaning toward. I keep thinking about what I could do with that money now vs. a slightly larger check later. There's something to be said for enjoying life while I still can.
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Katherine Ziminski
Financial planner here. One aspect many people overlook is the "longevity insurance" value of delaying Social Security. If you end up being the family outlier who lives to 95, those extra dollars in your monthly check become extremely valuable. I often suggest clients consider their overall retirement income picture. If you have other sources that can sustain you until 68, the guaranteed 8% increase is hard to beat in today's investment environment. However, if taking SS now reduces the need to sell investments during market downturns, that's valuable too. Regarding calculators, also look at the T. Rowe Price Social Security Benefits Evaluator or the Fidelity Planning & Guidance Center if you have accounts with them.
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Kaiya Rivera
•but whats the point of having more money at 95 when ur too old to enjoy it?? better to have it when ur 67 and can still LIVE ur life!
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Katherine Ziminski
•That's a common perspective, but many 95-year-olds still have expenses and care needs. The extra money isn't necessarily for cruises at that point, but potentially for medical expenses or avoiding being a burden on family. It's about financial security through your entire lifespan, however long that might be.
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Ella Knight
I think we're overlooking something important here - future COLA increases! If inflation averages 3% over the next decade (which seems reasonable), that extra 8% benefit doesn't just mean $220 more per month forever. That difference gets bigger every year with COLAs. I ran some quick numbers: Starting with $2,750 now vs $2,970 next year, assuming 3% annual COLA, after 15 years: - The $2,750 benefit grows to about $4,300 - The $2,970 benefit grows to about $4,650 So the monthly difference becomes $350, not just $220. That should reduce your break-even point by a couple years.
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KhalilStar
•That's a really good point I hadn't considered! The gap between the two benefit amounts would widen over time with the COLAs. I need to factor that into my calculations.
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Julian Paolo
OMG I've been trying to figure out this exact same thing!!! I'm 66 and so confused about when to take my SS. My husband wants me to wait but I don't think he understands that we might not live long enough for it to matter? Both my parents died at 78 so I'm really worried about waiting too long. Did any of those calculators people mentioned actually help you make a decision yet???
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Noah Irving
•One consideration for married couples is that the lower-earning spouse will inherit the higher-earning spouse's benefit amount when they pass away. So if your husband's benefit is significantly higher than yours, it might make more sense for him to delay (to maximize what you'd get as a survivor) and for you to claim earlier. This is called a "split strategy" and it can be very effective.
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KhalilStar
Thank you everyone for the helpful advice! I checked out the Open Social Security calculator and it was really enlightening. Based on my family history and current financial needs, I've decided to go ahead and claim my benefits now at FRA. Having that steady $2,750 coming in monthly will ease my immediate financial concerns and let me leave my investments alone during this volatile market. If I end up being the family outlier who lives past 85, I might slightly regret this decision, but the peace of mind now seems worth it. Really appreciate all the perspectives here - gave me a lot to think about beyond just the basic break-even calculation!
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