SS benefits

People often ask me what is the best age to start social security and I tell them that no matter what the age you can expect to collect the same total amount. This is because the benefit is paid out on an annuity bases meaning by life expectancy. The average retirement benefit at age 62 is $1,500 per month and at age 70 it is $2,600 per month. Life expectancy for a male age 62 is 18.2 years and for age 70 it is 12.7 years. This comes to $328,000 for the 62 year old and $395,000 for the 70 year old but adjustments must be made for the use of the money between age 62 and 65. If the money at age 62 is invested at 3% for 8 years it grows into $160,000 and that will buy an annuity of $1,100 per month and add that to the $1,500 you would continue to collect and you have the $2,600 that the person starting at age 70 would get. Other personal factors must be considered. If you have a large sum, say several millions in an IRA, you might wait to take your social security for tax purposes. Consideration must be given to health as younger people might want to do the things that money can buy.