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Author: FoolishProf One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: social security planning Date: 2/1/2000 11:36 AM
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All of your posts were very interesting to me.  
I'm at 59 and holding!  Plan to retire in 3 years
anyway and will be faced with this choice: 
62 or 65.5 for SS?

Here's my quantitative analysis using the estimates
sent to me by the SSA.  I'm assuming spouse gets 50% 
of mine at 65.5 and 37.5% at 62.  I have a record
(from the SSA) of all my inputs.  My first input was $18 in 1958!  
I assume there are no inputs after 
age  62. I've adjusted the ROI for 3% inflation:

            
LIFE         START AT 62    START AT 65        
EXPECTANCY   REAL ROI       REAL ROI
90             6.47%         6.92%
85             6.15%         6.57%
80             5.62%         5.96%
75             4.67%         4.82%
70             2.73%         2.19%

My sense is that the Gov'ment would like you to wait.
After all, if you "kick" (as someone put it) they
aren't out as much.

One possible other strategy that I want to look at
is starting my own at 62 but delaying the spouse's
benefit until she reaches the magic age
(65.5 in our case).

Of course, there are many other options also, such as
waiting until 63 or 64 to start.  Each of these choices 
can also be combined with a strategy regarding
the spouse's benefit.

Persevere!
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