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JLC analyzes,

Also, when will a person be most likely to "enjoy" the SS money? Take it at 62, more likely to be traveling, doing things, etc., etc., etc. while wait till 70 you might be splurging on an upgraded pill box and life alert bracelet.


That's where the understanding of mortality tables and actuarial science comes in. Making the "correct" choice adds $200,000 to $300,000 to the amount of money you can enjoy over the course of your retirement. You can spend more at age 62 if you know you'll be getting a much bigger SS check at age 70 and will need to withdraw less at that age from your retirement savings. That's the power of being able to "buy" an inflation-adjusted life annuity from the US Gov't for half the cost of what a private insurer would charge for the same benefit.

It's no different from understanding compound interest and the fact that if you're losing 2% per year to a financial advisor and excessive fees, you have to save about twice as much money for retirement. It's just arithmetic.

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