Comparison of Cumulative Monthly Social Security Benefits

BY FRANCIS C. THOMAS

Using a side-by-side spreadsheet comparison of cumulative monthly Social Security benefits (reflecting the 11 months for the first year in which benefits accrue after reaching age 62 and assuming a 3% COLA) CPA financial planners can show clients how the 58-year-old worker without consideration of a spouse (illustrated in Exhibit 1 of "Social Security for Two," Jan. 09) needs to live to approximately age 75 years, 3 months to compensate for waiting until age 66 versus starting benefits at age 62. If the worker waited until age 70 to start collecting, it would take until age 77 years, 7 months to break even. This analysis does not take into consideration the time value of money.

For a demonstration and to download a side-by-side spreadsheet comparison of cumulative monthly benefits, click here.

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