Quote:
Originally Posted by MagicHef
That's a really good way to look at it. I don't know much about SS, how does it affect the amount you get if you stop working at 62 and live off savings from 62 to 70 versus working until 70?
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There's a "full retirement age" that determines your base benefit. For most of us it's age 67 now, though it's a little lower if you're older than 60. You can take your social security as young as age 62, but if you do you get notably less money. Apparently it's 70 percent of the base benefit if you take it at 62. And for every year you take it after age 67, the amount is increased by 8 percent above the base benefit.
For people without savings, it's really tempting to take it as early as possible, but if you're in good health and have a long life expectancy, there's a huge benefit to waiting longer.
Here are a couple of random articles about it:
https://www.nasi.org/learn/socialsec...retirement-age
https://www.fidelity.com/viewpoints/...security-at-62
These changes are independent of the amount you put in. So if you can live off savings until age 70, your social security payments will be 75 percent larger from that point on than if you took it at 62.