Social Security

[UnrealizedPotential]

In that case, would they have not completely run out of money years earlier if they took it later? Sounds like they needed it for living expenses....And that they still have some assets today, as they took it early.

There's been no consensus on whether taking SS early is right or wrong on this board as far as I can tell. But I will tell you that living longer than expected is a real thing for many people. I see waiting to take SS as insurance against living longer. Now if one is very wealthy and the extra money isn't needed then it doesn't matter.

But the fact is for all too many individuals who collect SS who are not wealthy, and I dare say there are many who possibly suspect they are wealthier than they really are, they could make a big mistake by collecting it early. It would be a real concern of making the mistake of taking SS early and then realizing years later they should have waited.

Now some people can't wait to collect SS for a variety of reasons. I understand that. But for those who can and choose to collect early anyway and then realize they were not as well off as they thought, that is my concern. I believe there are a whole lot of people who fall into that category. I am not here to say that collecting SS is wrong in all cases at 62, it is just that I think there are a lot of people who could have waited but didn't and it was a mistake later in life as they lived longer and could no longer keep up with inflation.

 

[almost there]

Agree 100%. The whole thing is a gamble. Just something to yack about.
There is no right or wrong answer.
No disrespect on my prev. post. It looked like it may have worked out better taking it early. But dont really know.
I dont know the details, and dont want to know. None of my business.
Will post this again. It does prove your point.

 

[RunningBum]

There is no right or wrong answer, but there are sound reasons to base your decision on, and poor reasons.

 

[Floridatennisplayer]

Probably the same amount people that took SS early and wished they had waited as there are people who waited and wished they had taken it earlier.

Endless debate. But to side that one way or the other is the correct way for all is just closed minded. Everyone has a different situation in life.

 

[Rianne]

Probably the same amount people that took SS early and wished they had waited as there are people who waited and wished they had taken it earlier.

Endless debate. But to side that one way or the other is the correct way for all is just closed minded. Everyone has a different situation in life.

It's the debate that keeps me coming back.

 

[Floridatennisplayer]

Do people think not worrying about a few hundred a month is in any way a sound basis for financial decisions? I think I'll listen to the posters who are actually talking about optimizing finances, LOL. Most of us got here by watching our money for expenses like this. Why casually toss that aside now? If nothing else I'll blow that dough, or have more to pass on.

Never said “throwing away several hundred a month”. They would be collecting SS!! Some people chose to NOT withdraw from a possible already depleting fund in a possible down market and take their SS instead to preserve their stash.

Our government isn’t stupid...they are not giving you any more money if you wait. You just feel like you are getting more because it’s a larger check.......but.....over a much shorter period of time. So rarely and only an outlier would actually get slightly more in total.

 

[Rianne]

Our government isn’t stupid...they are not giving you any more money if you wait. You just feel like you are getting more because it’s a larger check.......but.....over a much shorter period of time. So rarely and only an outlier would actually get slightly more in total.

A comparison I often consider: what's the point of insurance? We have not had an accident, used home owners insurance or umbrella insurance in @ 20+ years. It's the known security of protection. We've gotten zero, zip benefit from all those years. It's the "what if" factor that keeps me edging towards drawing SS later. And of course, you can think of it the other way around. "What if" you die before 70. I simply refer to the health and longevity of my parents and grandparents.

I'm curious, how do you feel about LTC insurance?

 

[RunningBum]

A comparison I often consider: what's the point of insurance? We have not had an accident, used home owners insurance or umbrella insurance in @ 20+ years. It's the known security of protection. We've gotten zero, zip benefit from all those years. It's the "what if" factor that keeps me edging towards drawing SS later. And of course, you can think of it the other way around. "What if" you die before 70. I simply refer to the health and longevity of my parents and grandparents.

I'm curious, how do you feel about LTC insurance?

Please fix the quote. I know Florida botched the tags, but now it looks like I made the statements you quoted. I don't in any way want to be stuck with anything that poster says.

 

[almost there]

Average ret. age is now listed as 62. Projected to move up to 66.
So, it looks like most ret. and take SS at 62.
But as we are here, its not as applicable....
Just something to think about.

 

[Floridatennisplayer]

Please fix the quote. I know Florida botched the tags, but now it looks like I made the statements you quoted. I don't in any way want to be stuck with anything that poster says.

Passive aggressive much? Geez, you sound like a lot of fun.

 

[RunningBum]

Passive aggressive much? Geez, you sound like a lot of fun.

I apologize for that shot. I got attributed to a post that I didn't write, and don't agree with at all. I take issue with that. I want it fixed. Since Rianne may be offline, I'll ask a mod to fix it.

edit: Rianne has fixed it. Thanks!

 

[Rianne]

I apologize for that shot. I got attributed to a post that I didn't write, and don't agree with at all. I take issue with that. I want it fixed. Since Rianne may be offline, I'll ask a mod to fix it.

edit: Rianne has fixed it. Thanks!

YW! I clicked off not realizing what happened.

 

[ncbill]

Purchased MaxiFi Premium...it recommends both of us starting SS at 63.

I suspect the fact that we have so many zero earning years between us means there's really no point in waiting.

 

[almost there]

How do you like it? Worth $140.00?
Thanks!

 

[joeea]

Do people think not worrying about a few hundred a month is in any way a sound basis for financial decisions? I think I'll listen to the posters who are actually talking about optimizing finances

To be fair, some have sufficient funds for their retirement and have chosen to ignore some potential income. It's not all that different from choosing to "blow that dough", although it's not always clear they are actually getting anything in return for starting their benefits early.

Most of us got here by watching our money for expenses like this. Why casually toss that aside now? If nothing else I'll blow that dough, or have more to pass on.

Again, once you have reached your goals, you have the financial ability to casually toss aside anything you choose. Many folks do pretty much that (usually not casually) when they choose not to work "One More Year".

And btw if we're telling one-off experiences, my parents took SS at 62. Now 85 and 83 and in good physical health, they are very worried about running out of money, because my mom will probably need to move into a memory care place, which is quite expensive. It would've worked out better for them to take SS later. They will deplete their assets in a few years, and if Mom is still alive she will go on Medicaid. Dad will get to keep about $126k of assets, but that will start running out for his own expenses. A higher SS benefit would cover him a whole lot longer.

Sorry to hear that.

I've always felt that most folks are quite happy with their claiming decision no matter when they choose to start their benefits. Obviously, there are a few exceptions.

 

[joeea]

For those in "fat" FIRE, this is less of a concern. But for those in "lean" FIRE like they did, it's a real thing.

Just curious - did they actually retire early?

In hindsight, would they have been better off working longer, assuming they were capable of doing so?

(I'm not sure I'd be personally comfortable with the concept of "lean FIRE".)

 

[RunningBum]

Just curious - did they actually retire early?

In hindsight, would they have been better off working longer, assuming they were capable of doing so?

(I'm not sure I'd be personally comfortable with the concept of "lean FIRE".)

He retired at 62. Mom was never really in the outside work force except for a few part time jobs and baby sitting the grand kids, which she was close to being done with by then.

The stress nearly killed him. Literally. Major heart attack in his late 50s, at least partly due to work stress. They enjoyed a few retirement years where they could travel a little in decent health. I think it was worth the risk. If Mom did not have memory problems there's no doubt they would be fine.

I don't know if Dad even thinks about the consequences of taking at 62. I do, but I don't bring it up with him because there's no point. Given her family history Mom will even say she never expected to live this long, but my dad's family tended to live a lot longer. Maybe not with his heart attack, but he did correct most of the negative factors.

One way or another it'll work out, but that may be with me pitching in to cover the shortfall, and I know he doesn't want to resort to that. Thus, the longevity insurance of waiting until 70 would've been preferable to all. To your previous post, yes, probably many here can afford to not worry about a few hundred a month or even longevity insurance at all, but if we're talking general advice of "what should one do" to optimize finances, I don't see how you can brush it off. Not everyone is retiring fat, and at 62 you can't really predict how the next 20-30 years will go.

 

[Perryinva]

Even better that it's inflation-protected for both your life, and perhaps your spouse's (assuming you are the higher earner).

Makes it a hard deal to pass up.


Some people lie awake at night worrying about having a mortgage. Others worry (monthly?) about delaying benefits, I guess.

I don’t lay awake at night worrying about anything. And I referred to when I turn 68. Lets have this conversation again in 6 1/2 years. I may be all wet, and find it easy. But who effortlessly ignores a lost possible $3200/mo check, to get one that “only” increases $20/mo for each month delayed? As that check increases each month, the $20 gain each month is subsequently a smaller percentage. You can honestly be absolutely sure that will not factor in to your decision?

 

[joeea]

I don’t lay awake at night worrying about anything.

That's good.

You can honestly be absolutely sure that will not factor in to your decision?

Absolutely. I'm 65 and my decision has already been made.

While there are factors that could potentially cause me to reconsider my decision, worrying about benefit checks I am not receiving each month isn't one of those factors. The math is clear for me.

 

[Perryinva]

Congrats. Sound and clear thinking is not that common

 

[almost there]

Agree 100%. If you want to wait till 70. Wait till 70.
100% Your call. Just under 4% make the same decision every year.

 

[Floridatennisplayer]

Agree 100%. If you want to wait till 70. Wait till 70.
100% Your call. Just under 4% make the same decision every year.

I just busted out laughing!

 

[pb4uski]

Agree 100%. If you want to wait till 70. Wait till 70.
100% Your call. Just under 4% make the same decision every year.

I would not read the fact that most people take at 62 as proving it is the "right" decision or that so few take at 70 as proving it is the wrong decision.

You do understand that studies suggest that the vast majority of people who take SS at 62 do so because they financially have no other choice... they just need the money.... and in those cases there is no doubt that it is the right decision for them.

 

[almost there]

Yes. See my post here on this thread:Today, 10:39 AM
Most retire at 62 and take SS at 62.
As it no doubt makes it possible for many.
But has little to do with early retirement.
11 long years for me to get to SS.
Will be a nice 3k monthly boost (both wife and I taking it at 62) in 4 yrs..........
Again, no right answer. Thats what makes SS threads drive folks insane, or provide entertainment. Pick one.

 

[joeea]

Will be a nice 3k monthly boost (both wife and I taking it at 62) in 4 yrs..........

Terrific. You will join lots of like-minded people also getting what's theirs as soon as they can.