When I was talking break even I was comparing the difference in total monies received between starting at 62 and 66.
If you start at 62 and get $1,230 a month for the next 4 years, you have received $59,040.00, (1230 X 48 months). The person who waited until 66 has received nothing. The difference in payments between the two people is 1640 - 1230 = $410. So how long does it take that extra $410 to equal $59,040 ?
59040 / 410 = 144 months. 144 / 12 = 12 years. So they retired at 66 and 12 years later they would be 78 years old. At this point they would have received just as much money as the person who retired at 62.
I am not advocating anyone take it early or wait. I was just explaining that you do not get more money by waiting, (as in total amount). What is best depends on the individual. In my case, my pension was not going to get any bigger, (retired at 55). I had a heart attack 12 years ago, and statistics are it will be another one that does me in before I hit 78. I can use the money to pay off debts, (mortgage). Being debt free is like having more income, (a penny saved is a penny earned). If I waited until 66 to start S.S., I would still have those payments to make. In my case I would have less income if I waited. Let's say my difference was $400, and my mortgage was $600. I would be losing $200 a month until the Mortgage was paid, (compared to starting at 62 and paying off the $50k mortgage balance).
