Assumptions: The House is paid off. Also have say a 401k with a current value of 500k.
| Age 62 (Early) | October 2026 | Early Retirement Age (Minimum Benefit) | $2,619 / month |
| Age 67 (Full) | September 2031 | Full Retirement Age (Full Benefit) | $3,879 / month |
| Age 70 (Delayed) | September 2034 | Delayed Retirement Age (Maximum Benefit) | $4,880 / month |
How long do you expect to live, and what do you need monthly for expenses?
In terms of "total payout":
(using full years here, so your fall start might be off 1 yr)
If you take the Age 62, by 2030 you've received $157,140 in benefits
2031 you'd have received $188,568 by then vs $46,548 if you start to draw that year at 67
2034 you'd have received $282,852 for 62 retirement vs $186,192 for 67 retirement vs $58,560 retiring in that year.
2040:
62: retirement totals $471,420
67: retirement totals $465,480
70: retirement totals $409,920
So, 2041 is the crossover where delaying retirement, you have more overall accumulated income for 67 vs 62
2045 is where delaying until 70 you have $702,720 vs $698,220 for 67 retirement vs $628,560 for 62 early retirement
You do get substantially higher income by delaying, but to "make that up", you need to live past 77 or 81 for delayed SS in terms of "total payouts".
In terms of monthly costs:
The longer you think you might live, the more you might want to delay for a better guarantee you won't run out of $$
Latest I'd read, you can comfortably pull up to 4%/yr from retirement savings, so $500k nest egg would limit draws to about $20k/yr from that (5% is $25k). Some investment places claim higher %s.
Of course, this is all ignoring inflation adjustments, but those would all "cancel out" with how this is calculated - actual numbers would vary, but dates/timeframe would not. You can basically add $20-25k/yr to your SS annual benefit to determine if that's enough to live off of. Note that Medicare/Medigap insurance might run you $500-700 or more per month. So, $6000+ per year could go to healthcare bills.
If you can comfortably live off $51-56k/yr and have no/low cash outflows, then 2026 is an option. You'd bank quite a lot more by 67 at $66-71k/yr available.
Note that (I think) you HAVE TO sign up for Medicare at 65 or you lose out. And be cautious w/ the insurance option plans, because once you go on those, you may not be able to revert to regular Medicare and any pre-existing conditions might not be covered OR your premium will be a lot higher.
There's a reason those companies are pushing those Advantage plans so much, and it's not due to them necessarily being "better for the customers"...
If I were looking to "enjoy my retirement day", I'd probably opt for 62 or 67.
If I expected to live to at least 80 and wanted to maximize inheritance for kids, etc, might consider delaying and getting that extra income after 81 that could be accrued and inherited.
