Quote:
Originally posted by Sidd Finch
Did their number-crunching not include the income she would earn if she continued working from 65-70?
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No, she's not really working now; she effectively retired about 2 years ago. For her, the question isn't "is the new income enough to replace the income I must forego to receive it," but more "how do I maximize this new income stream." Not everyone has that set of choices, obviously.
Quote:
Originally posted by ltl/fb
(i) What do you mean by "net gain"? Gain over what??
(ii) What's the point? I think that would be true of any annuity. It's the nature of a fixed annuity.
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(i) Gain over the aggregate amount of the payments she will get over the 5 years between 65 and 70. E.g.: if she gets $15K per year if she retires now, she grosses $75,000 between now and 70. If she gets $20K per year if she waits until 70 to get register, it will be 15 years before that extra $5K/year equals the $75K she didn't get between 65 and 70. (Ignoring the fact that $75K later is worth less than $75K sooner.)
(ii) Agreed. The point was that it was a complete softball for me to taunt my mother about deriding the idea of privatizing any SS funds in theory but effectively deciding to do it herself in practice.
