I'm 66 and I have no intention of retiring from my present job any time soon...but I'm wondering whether there is any substantive upside, in my case, to my waiting till I'm 70 to apply for Security Security benefits.
They urge you to wait by dangling that extra monthly payout - in my case, about $600 - if you wait until you're older. But I've done the math, and between now and when I turn 70, if I apply and start collecting benefits now, I'll collect in excess of $77K during that 3 1/2 years. Not a fortune, but a nice chunk of money. On the other hand, if I wait until 70 to apply, that extra $600 a month would not add up to $77K until I was 81 years old. And given my medical history and condition, that is a considerable long shot; if I make it to 75, quite frankly I'll be surprised.
My Social Security income is always going to be taxable at the maximum 85% regardless of when I take it and whether or not I'm working, because my military pension plus the percentage of the payments they count as income would push me over that threshold at which the 85% kicks in.
If I apply for and start receiving payments now, chances are I would be able to just save or invest the money, so I'm trying to determine whether there is any downside to my doing it now instead of waiting.