I am not using my normal name as this is a little personal.
I have paid into SS for 49 years. I hit FRA this year. After being told by numerous folks that I was an idiot for not applying for benefits, I applied.
Previously I figured out that a year deferal would require 13+ years in benefits to break even.
I received a call from the SSA this afternoon. It seems I am able to draw a benefit of approximately 35% of my own benefit, and by doing so my own benefit increases the approximate 8% per year. The increase is added on monthly, and I can take my own benefit at any time. All I have to do is notify the SSA I wish to switch to my own benefit.
I have no health issues and work full time. I tried retirement 10 years ago, and I could not sit still for more than a day without going nuts. When I originally retired I never counted on a SS benefit, and I do not need it.
In after tax dollars, I figure the break even point with this offer is about 5.5 years. If I take my benefit I am going to pay taxes on 85% of it. If I am careful, I might squeeze by without paying taxes on the reduced benefit.
I am sure some of you have experience with the SSA. What would you do?