Originally Posted by
Andy
Retirement at age 62 vs 67 - 30% hit for early payment: assuming zero interest rate for time value of money, the break even point is 78yrs 7 mos. Assuming a 5% interest rate, your break even point is right around 90yrs.
I don't think that I'll live to be 90.
In my post I believe I said that "If you can afford to hold off until your full retirement age, you will have done very well with that investment." Part of this reasoning is that If you start receiving retirement benefits at age 62, you will get 70% of the monthly benefit because you will be getting benefits for an additional 60 months. As well, if you die, your spouse (if he or she elects to start receiving your benefits at their full retirement age) would receive only 50% of your monthly benefits. If they elect to start receiving benefits at age 62, then they get only 32.5% of your monthly benefit.
Rather than my trying to convince you of the logic of this, I'd ask that you read the following link. It's one of many that I've read over the past year or two. Hopefully you and everyone else nearing retirement will at least consider this. If not, that's ok too. It's your money and life.
http://www.boston.com/business/perso...rity_benefits/