AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

Scott,

 Thanks for your many articles on personal finance.  I've been an avid reader for several years.

Why not start SS as early as possible (age 62), when the repayment option allows a restart at a later age (assuming you can afford it) and I can keep more money in my IRA hopefully earning 8%?  I did a simple spreadsheet that shows that with an 8% return, starting at 62 gives a higher total return than starting at 66 up to age 90.  Seems like its a can't lose approach, as long as I have enough money for the repayment, if needed.

 Thanks,

Skip

Skip,

There are three factors that introduce uncertainty into this approach. First, the benefits you take may be subject to income taxes. If so, the amount you have to invest will be smaller. Second, the money you save will be subject to risk of loss. Third, it is possible that the government will close this odd arrangement---- the entire reapplication for benefits process--- if it becomes popular. As a consequence, the better option is to simply defer taking benefits.

Scott

I'm turning 62 next month so this issue is very timely.  I was a little concerned the SSA might restrict access to the approach of withdrawal/payback and subsequent re-start of benefits at the level of the later attained age.  Is there any data as to how common this is now?  Also, isn't it true than the SS retirement benefits are reduced at a slightly greater rate from 62 to 63 than they are from 63 to 66 (for those whose NRA is 66)?

Bruce