Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
File SS Late for 4%?
Old 12-28-2018, 05:47 PM   #1
Thinks s/he gets paid by the post
Red Badger's Avatar
 
Join Date: Jan 2017
Location: Piedmont Region
Posts: 1,806
File SS Late for 4%?

So, I'm counting on the combined sagacity of forum members here to counsel me on filing for SS. Apologies if this has been discussed - I didn't see it.

I'll turn 62 in May 2019. DW will hit FRA in August 2019. DW was a SAHM, so has no SS of her own. Also, under the 2016 "reforms" any File and Suspend is long gone.

My inclination is for both to file at her FRA. Her spousal benefit caps at her FRA (50% of my PIA). We can cover all the basics with SS and pensions. Once one of us assumes room temperature, the other can cover all the basics with same (SS, pensions) minus one SS check. And yup, if I file early and die first, DW gets my check, not FRA but .75ish of FRA

The nest egg provides for travel and infrequent big ticket stuff (car, major repair, intl travel, etc). ie, if the recent bear hangs around for a while, we'll limit draws to any big repairs, and maybe (or not) some travel.

I'd be okay with delaying to my FRA and burning a portion of our egg. Delaying to 70 doesn't fit our goals as that would leave little, if anything.

Open SS Calculator suggests filing at DW FRA.

I'm aware of the potential SS haircut in ~15 years, but suspect it won't happen. If it does, I think it might be half or so of the ~25%, in a share the pain situation (cowards in DC rightfully fear the geezer community. We're the ones that show up for every election).

DW and my parents all headed north in their 80's or earlier. Longevity risk is minimal.

So, if we delay, mine goes up ~8%, hers, 0%. So combined ~4%.

Nothing promised, but I think our pensions are fairly secure. The larger is COLA'd.

Thanks for any feedback!
__________________

__________________
Never let yesterday use up too much of today.
W. Rogers
Red Badger is offline   Reply With Quote
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!

Old 12-28-2018, 06:15 PM   #2
Thinks s/he gets paid by the post
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 1,203
There is really no right or wrong decision. You can look at it this way, that way, my way, your way and every decision might be a little or a lot different. In your situation, I think you have a good plan.
__________________

__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 12-28-2018, 09:02 PM   #3
gone traveling
 
Join Date: Mar 2015
Posts: 3,508
Quote:
Originally Posted by Red Badger View Post
DW and my parents all headed north in their 80's or earlier. Longevity risk is minimal.
Unless you happen to know something about your own health and that of your wife, your parents' longevity doesn't mean that your own longevity risk is minimal.

Quote:
So, if we delay, mine goes up ~8%, hers, 0%. So combined ~4%.
So what happens to her survivor benefit? Have you considered that at all? You should.
joeea is offline   Reply With Quote
Old 12-28-2018, 09:12 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 23,362
We are in similar situation.... both 63 in our case and DW was a SAHM and her PIA is less than 50% of mine.

I used opensocialsecurity.com and looked at now (62 in your case), FRA for both and FRA for her/70 for me as well as their optimal solution and the EPVs are all pretty similar.. perhaps 5% different at most.

Bottom line.. anything is an ok decision. We'll probably take at 65 or FRA or FRA/70 depending on investment results, Part A premium increases or health changes.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is online now   Reply With Quote
Old 12-28-2018, 10:10 PM   #5
Recycles dryer sheets
 
Join Date: May 2007
Posts: 434
Your situation is almost the same as ours. We actually would have gotten less by waiting.
We filed 3 yrs ago. One thing to consider is if one of you dies early on then you should have
a large portfolio to cover that event.
I filed at 62 the same year she got 50% of my FRA amount. Her ss was very minimal
without the spousal benefit.
homestead is offline   Reply With Quote
Old 12-29-2018, 08:14 AM   #6
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Brighton
Posts: 1,211
I am inclined to agree with your thinking on this one. I am in a similar situation with my wife being mostly a SAHM with a minimal FRA of 450.00. I was unable to claim early due to income control for the ACA, but would have claimed at my wife's FRA for sure to start the spousal benefits. Having a portfolio large enough to tide DW through in case of my demise would be the basis of my decision. Otherwise joeea is correct about protecting her longevity with your claiming.
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is online now   Reply With Quote
Old 12-29-2018, 08:15 AM   #7
Thinks s/he gets paid by the post
Red Badger's Avatar
 
Join Date: Jan 2017
Location: Piedmont Region
Posts: 1,806
Quote:
Originally Posted by joeea View Post
Unless you happen to know something about your own health and that of your wife, your parents' longevity doesn't mean that your own longevity risk is minimal.


So what happens to her survivor benefit? Have you considered that at all? You should.
Yes, we both have health issues that won't likely improve with age.


Her survivor benefit is my SS. As mentioned, if I draw early; 75% of PIA
__________________
Never let yesterday use up too much of today.
W. Rogers
Red Badger is offline   Reply With Quote
Old 12-29-2018, 11:33 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 7,438
Quote:
Originally Posted by Red Badger View Post
Yes, we both have health issues that won't likely improve with age.

Her survivor benefit is my SS. As mentioned, if I draw early; 75% of PIA
So your thinking: "So, if we delay, mine goes up ~8%, hers, 0%. So combined ~4%. " is wrong.

It really is: So, if we delay, mine goes up ~8%, hers, 0%, her survivor benefit 8%

Now, understand I don't know the rules on survivor benefit, but I'm betting that delaying, meaning NOT collecting early but instead at FRA would be passed on to survivor.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 12-29-2018, 11:44 AM   #9
Thinks s/he gets paid by the post
Red Badger's Avatar
 
Join Date: Jan 2017
Location: Piedmont Region
Posts: 1,806
Quote:
Originally Posted by Sunset View Post
So your thinking: "So, if we delay, mine goes up ~8%, hers, 0%. So combined ~4%. " is wrong.

It really is: So, if we delay, mine goes up ~8%, hers, 0%, her survivor benefit 8%

Now, understand I don't know the rules on survivor benefit, but I'm betting that delaying, meaning NOT collecting early but instead at FRA would be passed on to survivor.
And in that last sentence, lies the conundrum.

But thanks to all.
__________________
Never let yesterday use up too much of today.
W. Rogers
Red Badger is offline   Reply With Quote
Old 12-30-2018, 10:49 AM   #10
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 5,581
You could plug your case into i-orp and do some "what-if" runs.... changing when to start SS and also "expiration dates". In many cases, the differences between plans is small, and so comes down more to how you feel about it vs the dollars and cents. I noticed that higher expected returns on investments pushed toward taking SS sooner. That increased available spending while concurrently increasing lifetime federal taxes to pay. That was a bit of a surprise. But everyone's situation is different, and planning assumptions different, which is why this topic is a constant on this board.
__________________

sengsational is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Any good reasons to file - or not file - FAFSA? Curmudgeon FIRE and Money 26 11-03-2017 05:49 AM
File and Suspend versus File and Restrict Chuckanut FIRE and Money 12 10-18-2014 08:19 AM
Consumers Race to File Bankruptcy Petitions SteveR FIRE and Money 5 10-14-2005 02:18 PM
Did you ever have (big file alert... 256k) dory36 Other topics 2 07-29-2005 02:15 PM
I'm getting File Not Found about 30% of the time... Cb Forum Admin 1 06-14-2005 07:36 AM

» Quick Links

 
All times are GMT -6. The time now is 10:15 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×