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Grab an Extra $100,000 in Social Security Benefits

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HolisticSurvival.comWould you like to get an extra $100,000 in Social Security benefits during retirement? We thought so. The following bit of financial hocus pocus, brought to our attention by Steve Vernon at CBS Moneywatch, shows you exactly how to do this. Of course, the entire scenario depends completely on the assumption that there actually will be a Social Security in the future when you retire and that it operates in essentially the same manner as today.

Basically, we’re talking about retirement age. You can begin collecting Social Security benefits at age 62, but is that the optimum time to do so? Depends on how long you plan to live. If your health is poor and your parents and grandparents bit the dust early, you might should take what you can at 62 and have fun with it. However, if your family tends to be long-lived, into their 80s and 90s, it might make more sense to wait until age 66 or even 70 to start collecting Social Security benefits.

* The Following assumes three people born in 1950

Here’s the math:

The 62 year old comes out of the gate fast and is collecting $1,500 monthly which, cost of living adjustments notwithstanding, will continue until the day he dies. The 66 year old retiree will begin receiving a check for $2,000 when he retires, while the 70 year old retiree will get $2,640 when his checks start. As we said, in cumulative benefits, the 62 year old starts quickly, but by age 78 the 66 year old has caught up. By the time they all reach 82.5 years old, the 70 year old retiree will surge ahead and, if he lives to be 90 years old, will have received $129,000 more than the age 62 retiree.

Of course, ALL this hinges on how long you live, a question which very few of us know the exact answer to. You’ll have to make an educated guess as to how long you plan on living and base the decision on when to begin collecting Social Security benefits on that.

Easy, huh? Good luck.

Click here if you would like to read Mr. Vernon’s article in its entirety.

The Holistic Survival Team

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