|
|
Early SS could be the smartest move
09-18-2015, 02:15 PM
|
#1
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
|
Early SS could be the smartest move
Interesting study reported on Bloomberg. I was quite surprised by this statistic.
Quote:
Others might be justifiably worried about their health, Slavov’s study shows. Early filers were 80 percent likelier to die between 66 and 71 than those who filed for Social Security after the full retirement age. Early filers are also likelier to feel unhealthy and doubt whether they’ll make it to 75, according to the authors' analysis of survey data.
|
Don't Fall Into the Social Security Trap - Bloomberg Business
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
09-18-2015, 02:19 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
|
same reason those still w*rking have lower mortality rates than retirees, ceteris paribus
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
|
|
|
09-18-2015, 02:46 PM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,671
|
Makes sense to me. Early filers for SS would include all of those who had an idea that they were in poor health and wanted to get into the SS funds ASAP before they were ineligible to receive further SS checks.
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
|
|
|
09-18-2015, 07:05 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
|
That settles it. I am not collecting early, it leads to an early death.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
|
|
|
09-18-2015, 07:13 PM
|
#5
|
Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
|
I'm considering early SS in part because of family history. My mom and dad both died relatively young (lower than the SS actuarial tables would predict for their gender). My brother died in his late 40's. All of cancer. 3 of my 4 grandparents died relatively young of cancer.
I hope to match the remaining grandparent who lived to her 90's... but based on family statistics - taking SS early might be the more prudent bet.
I think a lot of people consider family history when deciding early vs late. After all - it's neutral from a $ POV (excluding spousal benefits etc.) Taking early makes sense for those who suspect they might die younger... taking later makes sense for those with family members who live longer.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
|
|
|
09-18-2015, 10:09 PM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,764
|
IMO taking SS early or late to try to maximize them amount you get overall is just a bet, like a lottery ticket. You'll win or you'll lose, but you don't have much, if any, control over it. I'm waiting to collect until 70 merely to maximize DWs income if I die first. The total amount collected has no impact.
Having said that, I'm with Senator, post hoc ergo propter hoc. I'm not going to collect early so I'll live longer.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
|
|
|
09-19-2015, 06:17 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,653
|
Quote:
Originally Posted by Senator
That settles it. I am not collecting early, it leads to an early death.
|
That was my thought as well. Same reason I stay out of hospitals -- people are dying in there.
|
|
|
09-19-2015, 06:53 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,863
|
I took it at 62 and both my longer term health and the health of SS concerned me. Probably both (myself and SS) need a major checkup and some preventative care. Since we (the DW and I) can easily get by without any SS, now or in the future, it was an easy decision.
|
|
|
09-19-2015, 06:57 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,863
|
Quote:
Originally Posted by jebmke
That was my thought as well. Same reason I stay out of hospitals -- people are dying in there.
|
I've noticed that too. Similar with going to the doctors office. Sure seems to be a lot of sick people in the waiting room.
|
|
|
09-19-2015, 07:11 AM
|
#10
|
gone traveling
Join Date: Apr 2011
Posts: 3,375
|
Quote:
Originally Posted by harley
IMO taking SS early or late to try to maximize them amount you get overall is just a bet, like a lottery ticket. You'll win or you'll lose, but you don't have much, if any, control over it. I'm waiting to collect until 70 merely to maximize DWs income if I die first. The total amount collected has no impact.
|
No, the lottery is completely random. Death isn't. Your lifestyle choices can shift the odds significantly in many if not most cases.
|
|
|
09-19-2015, 07:54 AM
|
#11
|
gone traveling
Join Date: Jun 2015
Location: seattle/dahlonega
Posts: 77
|
Quote:
Originally Posted by gerntz
No, the lottery is completely random. Death isn't. Your lifestyle choices can shift the odds significantly in many if not most cases.
|
Really?
|
|
|
09-19-2015, 08:18 AM
|
#12
|
Recycles dryer sheets
Join Date: Jan 2012
Location: Spokane
Posts: 63
|
I don't understand the comment about delaying SS till 70 to maximize spouse's benefit??
As I understand the spouse benefit rules, the lower earlier spouse benefit is at its maximum when you reach full retirement age (assuming they are filing against your income). They do not get any additional value based upon the primary spouse delaying retirement until 70. They only receive their 50% (or 100% if you pass) of your full age retirement benefit, not of the higher delayed benefit amount.
Am I mistaken on this?
|
|
|
09-19-2015, 08:44 AM
|
#13
|
Recycles dryer sheets
Join Date: Mar 2006
Posts: 157
|
Quam bene vivas refert, non quam diu!
__________________
The best things in life aren't THINGS!
|
|
|
09-19-2015, 08:51 AM
|
#14
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by Spokane2303
I don't understand the comment about delaying SS till 70 to maximize spouse's benefit??
As I understand the spouse benefit rules, the lower earlier spouse benefit is at its maximum when you reach full retirement age (assuming they are filing against your income). They do not get any additional value based upon the primary spouse delaying retirement until 70. They only receive their 50% (or 100% if you pass) of your full age retirement benefit, not of the higher delayed benefit amount.
Am I mistaken on this?
|
If you delay SS till 70 to maximize your benefit then die at 71, I believe your spouse will pick up your higher benefit. The survivor benefit is different than spousal benefit.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
09-19-2015, 08:53 AM
|
#15
|
Recycles dryer sheets
Join Date: Jan 2015
Posts: 81
|
Spouses benefit is capped at 50% of the primary persons PIA.
Widows benefits is capped at 100% of the monthly benefit amount the deceased was receiving.
In English: spouses do not benefit from DRCs. Widows do benefit from DRCs.
Sent from my iPhone using Early Retirement Forum
|
|
|
09-19-2015, 09:36 AM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,129
|
Quote:
Originally Posted by NW-Bound
If you delay SS till 70 to maximize your benefit then die at 71, I believe your spouse will pick up your higher benefit. The survivor benefit is different than spousal benefit.
|
This is what happened to my parents and the survivor benefit. Dad delayed SS until 70 to ensure Mom would get the maximum survivors benefit. He died at 72. Mom continued his benefit for almost 20 years until she died a year ago.
From a financial modeling standpoint I'm currently planning to take my benefit at age 63. In reality it will depend on our financial situation at that time. If I don't need it I will delay it.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
|
|
|
09-19-2015, 09:44 AM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,992
|
I plan to take it at 62 and again at 70, to cover all bases.
|
|
|
09-19-2015, 09:51 AM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by jollystomper
This is what happened to my parents and the survivor benefit. Dad delayed SS until 70 to ensure Mom would get the maximum survivors benefit. He died at 72. Mom continued his benefit for almost 20 years until she died a year ago.
From a financial modeling standpoint I'm currently planning to take my benefit at age 63. In reality it will depend on our financial situation at that time. If I don't need it I will delay it.
|
Between 65 and 70, your dad picked up a 40% increase. By forfeiting 5 years of claim, he has given your mom an extra 0.4 x 20 = 8 years. It's good but turns out not as good as I initially thought.
PS. Oops. Forgot that he himself picked up that 40% increase for 2 years. So add that 0.8 years and they together got an extra 8.8 years of benefits. Had he lived a few more years, it would work out even better. The longer you live, the more you win. Do I feel lucky?
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
09-19-2015, 10:14 AM
|
#19
|
Full time employment: Posting here.
Join Date: Apr 2011
Location: Castro Valley
Posts: 788
|
I plan to take my SS at 62. Even with a modest ROI, the breakeven point is around the early to mid 80s. Also, a bird in the hand is worth two in the bush. I don't trust the government to not change the rules.
|
|
|
09-19-2015, 02:42 PM
|
#20
|
Moderator
Join Date: Nov 2014
Posts: 9,101
|
The modeling I've done says that to maximize SS, I should take at 62, my wife should file and suspend at FRA and then take her full benefit at 70. During the file and suspend time period, my wife will take half of my benefit. I'm thinking it will depend on how our finances look each year I'm 62 and over. Interesting is that since my wife is five years older, she hits FRA the same year I hit 62.
As for this thread, I agree that many people who know they have health issues likely are driving up the percentage of people taking SS at 62. I have a friend that was waiting to take SS but got a diagnosis of Parkinson's and went ahead and filed early.
Another thing is pensions. I'm not sure how they all work, but my friends that early retired from the autos are required to take SS at 62. Basically, their pension is X and once SS kicks in, they still get X but it is made up of SS+a smaller amount from the auto.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|