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Professor Pat, unable to wait, claims his Social Security at 62. This results in a monthly benefit of $1,613, reflecting the full reduction due to early retirement. Together with his spouse, their lifetime Social Security benefits total approximately $917,712, leading to a 78% success rate for their retirement plan.
Nancy’s Strategic Delay
Meanwhile, Nurse Nancy decides to delay her benefits until she turns 70. Her calculated monthly benefit, factoring in the 8% increase per year, results in a payment nearly double what Pat receives. Her lifetime benefits soar to $1,175,440, with an elevated success rate of 85% for her retirement plan—despite having to draw down her savings for an additional eight years prior to receiving her Social Security.