Millionaire, 66, Keeps Social Security Delay to 70 as Waiting Nearly Doubles Monthly Benefit
Updated
Updated · 24/7 Wall St. · Jun 21
Millionaire, 66, Keeps Social Security Delay to 70 as Waiting Nearly Doubles Monthly Benefit
2 articles · Updated · 24/7 Wall St. · Jun 21
Summary
Scott, a 66-year-old retired millionaire from Washington, was advised to stick with his plan to claim Social Security at 70 after questioning it because of a video promoting claiming at 62 and investing the checks.
An 8% annual delayed-retirement credit from full retirement age to 70 lifts the base benefit for all future COLAs, while claiming at 62 can cut benefits by about 30%; a $2,000 full-retirement benefit would be about $1,400 at 62 versus $2,480 at 70.
That early-claim-and-invest strategy also depends on market returns and exposes retirees to sequence risk, whereas the higher Social Security payment is guaranteed and can compound into hundreds of thousands of dollars over a long retirement.
Break-even typically falls in the early 80s, so Scott's family history of relatives living into their 90s strongly favors waiting; the calculus can shift for people with shorter life expectancy, income needs, or spousal-survivor considerations.