You need to know when you will die to answer the question.
What is your break even age?
It’s six of one and half a dozen of the other. SS works on increments of years so the difference will be minimal. Unless you will be making a huge amount above your normal salary in the year before retirement, it makes almost no difference unless you die in the next two or three years. If you expect to die soon, take your benefits now. If you expect to live a while, flip a coin.
There is no penalty if you make a ton of salary in your last year and retire before the end of the year and start taking SS. You just fill out a form to let the SS know. You only get screwed if you continue working at a good salary and apply for SS benefits anyway.
I retired in June and got a huge buyout. I started SS in July and had no penalty. I did have to pay taxes on the SS at the higher rate because of my extreme income that year, but that’s to be expected.
I waited til 66. If you wait til 66 you get a bigger payment PLUS if you are married and your spouse made more than you in their lifetime you can apply for the “spousal benefit”. It’s a second application. Then you can receive half of what your spouse. We qualified and I receive 340.00 more a month until one of us passes.
If you take it before you retire, you screw yourself on the penalties. If you delay taking it, they’ll increase the payout for each year you wait. So basically, you can choose either ‘1’ or ‘2’. Rules change at some point- I think 70.5, so if you delay, look again at that point.
bump for later
It is really not answerable unless you know how long you will live.
For example if you postpone taking SS until you are 70 you will get a bigger check (8% per year) but if you kick the bucket right away you get nothing.
SSA questions: when to retire: benefits: bookmark
Why wait? My wife and i started SS at 62 because it would take enough years at the higher rates for starting later that we seemed better off by starting early. Penalty only imposes taxes on parts of SS...have no idea of what the 3 options you laid out mean...
Every year you wait you get a higher monthly check. For people who can wait and have longevity it’s wiser to wait.