Whats the after-tax net present value?
The vast majority of Americans retire early, at age 62, instead of at what the government considers their normal retirement age, and take a reduced Social Security benefit. The vast majority of Americans would be better served if they crunched some numbers before retiring, said Brett Hammond, head of investment strategy and client solutions and chief investment strategist for TIAA-CREF. Preretirees should calculate what the after-tax net present value of their Social Security benefits and other income streams (from say capital gains, dividends and ordinary income) would be if they retire and compare that to the after-tax net present value of their Social Security and other income streams if they retire at normal retirement age (65 for those born before 1938) or later. All things being equal, many Americans would be better off delaying Social Security.
