I've read conflicting advice on the various retirement websites about when is the best time to take Social Security.
So I wrote a Linux shell script that I can execute in a Cygwin terminal. I open 3 Cygwin terminals side-by-side so
that I can compare all 3 of my Social Security choices. My program displays a running total of the annual payout of
each SS scenario and it accepts these inputs:
1) My initial SS payment.
2) The starting year.
3) The starting month as a number.
4) The annual COLA increase percentage. Since we get about a 2% increase each year, I enter 2%.
5) The year that the SS trust fund goes bankrupt (currently 2034).
6) The percentage of my initial payment that I'll receive after the trust fund goes bankrupt (currently 79%).
7) The year to stop the calculation. I run it until the end of 2048, which is just before I'll hit 91.
The results may surprise you! It will take until I'm 81 for my full retirement age (FRA) payout to exceed my age 62
payout! Despite this, I'm planning on waiting until my FRA, or at least until I'm age 65 because, if I take SS before
age 65, I'll make too much to receive an ACA insurance subsidy. In addition, after the trust fund goes bankrupt,
my FRA payment is larger than my initial age 62 payment.
I see a lot of comments on some of the retirement forums recommending that I wait until age 70 to take SS and
here's why this is terrible advice! It takes until I'm 88 for my age 70 payout to exceed my FRA payout! For my
retirement planning, I've been hoping that I'll hit 90, but this is a long-shot because my father passed-away at
71. However, he was a heavy-duty cigarette smoker for several decades and I haven't emulated his lifestyle!
Note that, if you are able to work until either your FRA or, age 70, your results will be different that what mine
are. However, if you are retired and are waiting to apply for SS, I suspect that your payout threshold dates will
be the same as mine!
FYI,
John