Quote:
Originally Posted by JEEPONLY
For anyone old enough to be thinking about SS, it is important to be well informed. It's my understanding that the government will payout a full 1/3 more (of the estimated age 66 payout) if the qualified recipient defers payments until age 70.
Tax liability varies, according to the recipient's work activities, but I'm talking about SS payout, only.
When I do the math, based on an age 66 annual SS payment of 25k, it seems it would take about 13 years (33.333k/yr.) to start "making a profit" v. the estimated 25k/yr, at age 66.
I understand that, if the spouse's expected SS will clearly be less, it might make sense to defer.
A question I would like to know the answer to is, if the person with the expected larger SS payments defers, but passes before the age of 70, is there anything to be gained?
Just wondering about all of this.
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Only that the spouse can collect the larger payment for the rest of their life. This is beneficial if there is a big difference in payouts between the two.
This is my plan, defer until 70 but my wife will start collecting at 65 or 66. My payout is almost double hers so if anything happens to me she can collect mine.
Even though I plan on retiring at 66 I am financially able to support my lifestyle for four years until I start collecting SS.
There is no perfect plan because the unknown is how long you're going to live. But if you're healthy you have to plan for a long life.