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Author: akck Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76398  
Subject: Re: What age to take SS payments? Date: 12/3/2013 12:28 PM
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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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