Would it be wise for black men to start drawing their Social Security benefit at age 62 asks Scott Burns a business columnist with the Dallas Morning News?
According to the U.S. Life Tables black men have a significant life expectancy disadvantage at any age when compared to white men white women or black women. For instance:
• At 62 a black man has an expectancy of 16.9 years.
• Thats 2.4 years or 12.4 percent less than the 19.3-year life expectancy of a white man at that age.
But the news isnt all bad says Burns. First the longer you live the smaller the expectancy gap in both years and percent:
• By age 70 for instance a black man can expect to live an additional 12.4 years.
• Thats 1.3 years or 9.5 percent less than the 13.7-year expectancy of a white man at that age.
Second even though their life expectancy is lower than others it is still long enough that they can benefit from deferring Social Security benefits; the benefit gain isnt as much of a slam-dunk as it is for say white women but as long as your life expectancy is equal to or greater than the 12- to 13-year payback period they will increase their lifetime income says Burns:
• At 62 with a 16.9-year life expectancy deferral is a good bet.
• At 66 with a 14.6-year expectancy its still a good bet because theyre likely to exceed the payback period by about two years.
• Only at age 70 with a 12.4-year expectancy does it become an even bet.
Any decision of course will always be a gamble says Burns but if deferring Social Security benefits were a table game in a casino it would be one of the better games to play because youve got a good chance of beating the house.
Source: Scott Burns Even with shorter life expectancy deferring benefits is a good bet Dallas Morning News April 23 2009.
For text:
http://www.dallasnews.com/sharedcontent/dws/bus/columnists/sburns/stories/DN-burns_23bus.ART.State.Edition1.3ab5c23.html
Would it be wise for black men to start drawing their Social Security benefit at age 62 asks Scott Burns a business columnist with the Dallas Morning News?
According to the U.S. Life Tables black men have a significant life expectancy disadvantage at any age when compared to white men white women or black women. For instance:
• At 62 a black man has an expectancy of 16.9 years.
• Thats 2.4 years or 12.4 percent less than the 19.3-year life expectancy of a white man at that age.
But the news isnt all bad says Burns. First the longer you live the smaller the expectancy gap in both years and percent:
• By age 70 for instance a black man can expect to live an additional 12.4 years.
• Thats 1.3 years or 9.5 percent less than the 13.7-year expectancy of a white man at that age.
Second even though their life expectancy is lower than others it is still long enough that they can benefit from deferring Social Security benefits; the benefit gain isnt as much of a slam-dunk as it is for say white women but as long as your life expectancy is equal to or greater than the 12- to 13-year payback period they will increase their lifetime income says Burns:
• At 62 with a 16.9-year life expectancy deferral is a good bet.
• At 66 with a 14.6-year expectancy its still a good bet because theyre likely to exceed the payback period by about two years.
• Only at age 70 with a 12.4-year expectancy does it become an even bet.
Any decision of course will always be a gamble says Burns but if deferring Social Security benefits were a table game in a casino it would be one of the better games to play because youve got a good chance of beating the house.
Source: Scott Burns Even with shorter life expectancy deferring benefits is a good bet Dallas Morning News April 23 2009.
For text:
http://www.dallasnews.com/sharedcontent/dws/bus/columnists/sburns/stories/DN-burns_23bus.ART.State.Edition1.3ab5c23.html
