Reddit Decides If This Social Security Strategy Is The Right Approach: "If You Die Before 70, Then It Was The Right Choice To Start Social Security At 62."

People work for decades before getting to tap into their Social Security. However, the time you choose to receive your first distribution determines how much you will receive from Social Security moving forward.

You can start receiving Social Security at 62, but you will receive the maximum benefit if you start taking Social Security when you turn 70. One Redditor posted in the Bogleheads subreddit to gauge when other Redditors are planning to take Social Security. 

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While you get the highest paychecks if you start at 70, not everyone lives past 70. "If you die before 70, then it was the right choice to start SS at 62," the original poster said. Commenters shared their thoughts under the post.

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Limited Upside for a Lot of Work

Part of the Redditor's strategy involves taking Social Security at 62 and putting the proceeds into an annuity. However, one commenter mentioned that putting the money into an annuity means you'll work a bit to make it work for a very limited upside.

If you take out Social Security at 62, you are taking a 50% pay cut compared with taking it out at 70. You have to generate a sizable return to justify walking away from a 50% deduction in your Social Security paychecks. While index funds can potentially deliver those types of returns, taking out your Social Security early becomes harder to justify as you live longer.

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Treat Social Security Like an Annuity or Insurance

One commenter suggested treating Social Security like a guaranteed annuity, while another encouraged the original poster to treat it like insurance. Most people shouldn’t be thinking about multiplying the money they receive from Social Security. Instead, these proceeds should help with basic expenses and preserving your quality of life.

You still need to contribute to your portfolio, and it's not good to rely exclusively on Social Security. However, seeing it as a safety net instead of an opportunity to grow your wealth can minimize risk when you retire.

"Take it at 62 if you need to survive. Otherwise, wait until 70," another commenter suggested. 

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Breaking Even

One commenter suggested that the breakeven point of taking out Social Security at 62 vs. 70 is when you turn 78 to 82 years old. If you live more than 82 years, then it makes far more sense to wait until you are 70 to take out Social Security.

The average life expectancy in the U.S. is currently 77.5 years. It turns out the average female lives for 80.2 years while the average male lives for 74.8 years. While waiting until you turn 70 can make sense for either gender, it statistically makes more sense for a female to wait until she turns 70. Factors like your lifestyle, commitment to health, and exercise will influence how long you live.

Money Is Worth More When You Can Move Around

While most of the Bogleheads commenters suggested waiting until turning 70, one commenter broke away from the trend.

"A dollar [is] worth more when you can move/travel around than [when] you cannot," the commenter explained.

Another Redditor responded to the comment saying that $1,400 per month at 62 sounds more attractive than $2,100 per month at 70. It's good to consider what you would do with the extra money and how long you expect to live. 

One compromise can be to access Social Security before turning 70 but a little after your 62nd birthday. You should assess your financial situation before making a decision.

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