Abstract

Two Excel-based templates are developed to help determine when it is optimal for starting to receive monthly social security benefits. The decision information accounts for uncertain life expectancy by implementing a rate of return that should be set, at a minimum, to the individual’s expected return on investments or based on a metric provided in the article that considers potential life expectancy.

Key Takeaways:

Excel templates allow for a comparison of receiving lower monthly social security benefits at an earlier age versus waiting for higher monthly benefits at a later age.

A “reserve rule of 72” metric allows for adjustments on comparing the different social security payment structures based on life expectancy.

Other adjustments for comparing the different social security structures can made for those who work while receiving benefits.

Document Type

Working Paper

Publication Date

7-19-2022

Publisher Statement

Copyright © 2022 The Authors.

Please note that downloads of the article are for private/personal use only.

Click below to download supplemental content.

SOCIAL-SECURITY-DECISIONS-PAPER.xlsx (17 kB)

Share

COinS