The fact is that no matter when you begin your Social Security benefits the amount is actuarially equal – sort of.
It’s a matter of collecting less and living longer or collecting more and collecting for fewer years – actuarially speaking that is.
The problem is the reduction in benefits collected before age 70 has not been adjusted for changes in life expectancy since originally established so they are not as accurate as they started.
The other issue is that there is link between income and longevity – lower income people do not live as long as wealthier people so the reduction in benefits for early retirement favor higher income beneficiaries.
Bottom line is that seniors are faced with three choices.
- Begin Social Security only when you need the money
- Begin Social Security before you actually need the income and invest it until you do
- Delay the start of benefits to maximize future income
QUINNSCOMMENTARY 
I started SS benefits at 62, in 2018, I had left the workforce at age 50 in 2006. Living on a small military pension and credit cards, until I had over $25,000+ in credit card debt, by 2018. Without SS I would of had to file bankruptcy. I paid off the credit card debt in 18 months. Now for the first time in my life I have an emergency fund. In 2020 I leased and then purchased a new Ford Edge after lease. My first new car purchase since 1981. Only buying used cars for cash from 1986 to 2020. In January 2024 at age 68 I will be able to save 100% of my SS benefit $1,667 per month and live off my military retirement. None of this would of been possible without taking SS at 62. The biggest thing that I tell people is no credit card debt will make your life better. Of course, I use credit cards and pay the balance off before any interest is charged. I love the cash back and zero interest for 15 months cards.
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Richard, I enjoy your perspectives from a few years ahead of me in retirement. I especially like the gif of a crap shoot. Sometimes it feels that way. For me it comes down to whether you need the money now or later and what you need it for? If it is for subsistence, you’ll want the money sooner rather than later. If it is for longevity insurance and an inflation-indexed fixed income throughout your retirement, you will want to wait as long as you can. But rather than a crap shoot, I’d use the analogy of a poker hand or a bridge hand, for those later in their retirement. You work with the cards you are dealt. As someone who began retirement sooner than I expected, I realized the only way I was going to make it was as a DIY retiree, learn the rules of the game and play with the skill I’ve acquired.
Jim also reachable at jimiwasretired@gmail.com jimiwasretired@gmail.com and on YouTube and Twitter at @Iwasretired
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Not everyone is fortunate enough to hold off until 70 to begin taking their SS. Most folks I speak with use the criteria in those Wentworth ads, “it’s my money and I need it now”.
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You are right they can’t and most don’t. I didn’t. I started SS while still working at full retirement age and invested it until I needed it.
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