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Subject:  Re: What age to take SS payments? Date:  12/9/2013  12:59 PM
Author:  Rayvt Number:  73933 of 88520

I can't think of a single investment that I can make that will safely return 8%. If I can live on my dividend and interest income from age 62 to 70, Social Security will be like a delayed lifetime annuity with an 8% return.

Delaying SS doesn't give you an 8% return. It just increases your eventual benefit by 8% for each year of delay (up to 70). But you forgo any benefit payment for that year. If you go around thinking that you're getting 8% return, then you are going to make bad decisions based on erroneous assumptions.

No delay, take for 5 years:
Total received: 5 * 12 * $1000 = $60,000
1 year delay followed by 4 years of payments.
Total received: 1 * $0 + 4 * 12 * $1080 = $51,840

You gave up $12,000 but gained $80/mo for the rest of your life (after the defer period). How long will it take you to that $12,000 you gave up? 1000/80 = 12000/960 = 12.5 years.
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