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Social Security Benefits

January 29th, 2009

People are living longer than ever. What this means for a healthy, active person is whether they think they can outlive the average life expectancy for their age group. If you are willing to gamble that you will do just that, postponing your Social Security benefits until age 70 may return substantial benefits.

Say you were born in 1950. If you take SS benefits at age 62 you will receive about $1,600 per month. Waiting until age 66 gets you $2,200 and at age 70 you get $3,000. After doing all the fancy calculations and estimations, it looks to me that around age 82 those who postponed their benefits until age 70 will have already won on the bet. Living longer than age 82 (not unusual as far as I can see) will garner you substantially more money that if you had taken the money at age 62 and ran to the bank.

The bottom line – if you feel good and feel lucky, wait to draw your Social Security.

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