When to Retire

I have regularly argued that if one has the wherewithal to do so, waiting to take Social Security makes tremendous sense.  That argument has now been quantified and graphed by Political Calculations:

Note the conclusion:  “What we find is that based upon the typical life expectancy for most Americans, it does indeed pay to wait longer to draw Social Security benefits after becoming eligible.”  Since the benefits of waiting increase dramatically as one ages and since one’s financial risks generally increase with age too, waiting to take Social Security as long as possible (up to age 70, when it no longer pays to wait) is the clear choice.  That people generally fear running out of money even more than they fear death (see this recent study) only makes the right choice clearer still.

It pays to wait.

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