If I run the Social Security optimizer, it gives me (the higher earner) results that I would expect: claim at 70, wife claims around 66-67.
But... if I have three different scenarios, all identical with expenses, Roth conversions, and so on, and I tweak my wife's claiming ages amongst 62, 65, and 67, the 62 choice seems to produce the highest net worth in the Summary projection at age 85.
I'm not sure what the tool is suggesting. 🙂
@gianmatt96 Those are conflicting results, so I would need to see your data to be able to respond. Would you please send me an export file so I can investigate? Thanks!
Stuart (mail@pralanaconsulting.com)
@gianmatt96 Hi Tom, there are several reasons this could happen. For example, if you're cash flow positive (not spending all your income, i.e. the Run Analysis graph goes upward) that means your wife's SS is essentially being invested, which will grow. Depending on your asset allocation and stated rate of return assumptions, it may be growing above the amount the payment would if you'd waited from 62-66 or so. That means collecting earlier means more net worth later in life.
Keep in mind you can easily gauge this without using the complexity of additional scenarios by using the Sensitivities page under Optimizations. Often, when looking at the graphing of the ROI in taking SS earlier vs later, my clients are astounded at how little difference it makes. After all, the very good actuaries/mathematicians at the SS administration work hard to ensure you might end up with the same amount overall, no matter when you claim.
