Retirement and Social Security

Did you read the previous post? Better read it.

Life for me just got 'easier' -- or maybe it didn't. I have made the "big" decision to retire. Well, I can't until I'm at least 62, that I know. But I'm looking at the big "Social Security Computer" and devising a plan to escape the confines of employment and enjoy the thirty some years of the rest of my life.

Here's how it goes. If I retire at the ripe young age of 62, I'll receive State Retirement from two States of approximately $1000 total. My SS would be approximately $714 a month. For a monthly income of approximately $1714. If I wait until age 63, my SS would be approximately $768 and my total monthly income would be approximately $1768. If I wait until I am 64, my SS would be $843 and my total monthly income would be approximately $1843. At 65, my total monthly income would be approximately $1919 a month. And at 66, it would be approximately $1998.

So, the question of the day is: At what point of time does the diminishing return kick in? Or, in the vernacular, at what age will I want to kick myself in the butt for not retiring sooner?

With a base of age 62 the difference in amounts is:
Age 62 = $0
Age 63 = $54
Age 64 = $75 + $54 = $129
Age 65 = $76 + $75 + $54 = $205
Age 66 = $79 + $76 + $75 + $54 = $284

My goal date for retirement is 6/2008 or 5/31/2008. I will receive approximately $821 in SSA benefits. This puts the 'diminishing return' at approximately $107.

Now here is a very strange mathematical concept: Using the "compute your own benefits" at the website (click on my title), I come up with a HIGHER SS amount if I quit work NOW and start drawing SS at 62 than if I continue to work until 62 and then draw SS.

Can someone explain this to me?