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URL:  http://boards.fool.com/ive-actually-heard-it-was-more-of-the-opposite-31003282.aspx

Subject:  Re: What age to take SS payments? Date:  12/3/2013  12:28 PM
Author:  akck Number:  73891 of 76384

I've actually heard it was more of the opposite. Take SS earlier if you need the money, but take it later if you want to leave something for the family.

I look at SS being one pot of funds. If I delay taking funds from the SS pot, they then have to come from my IRA pot. In simple terms, say your SS is $15,000/year. Over 8 years, your IRA pot is $120,000 plus earnings bigger than it would have been had you waited until age 70. To me, that's a good start on an inheritance.

Now, let's say by waiting to age 70, SS is $25,000. It will take another 11 years before delayed SS matches what was saved in your IRA, for a total of 19 years your $120,000 has had a chance to grow. At 81, the SS at 70 IRA pot doesn't have too long to grow before it's likely to be inherited.

There are a lotnuancesnces that affect the comparison, like inflation could cut break eveneven point by 2 years, but the general premise favors taking SS early in order to leave a bigger inheritance. Compounding is your friend for leaving an inheritance.
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