Social Security future? Applying at 62?

[martyp]

I am about to become 62 and I’m contemplating applying for Social Security benefits. To be honest, I’m suffering from a bit of paranoia about US politics of the last couple of years. SS is supposed to be solvent until 2034 but I’m concerned that either the economy or the crazy politics will lead to tinkering with the system before then. Past discussion of SS reform has exempted people in the system or those over 55 but I can’t help feeling it’s safer to be in the system rather than out.

I’m currently healthy. I have about $400k in savings. I have a very good COLA adjusted pension.

Any thoughts about this? Has current politics made anyone revise their views about the future of Social Security? Ultimately I realize that this is like any investment decision depending on personal comfort with risk and peace of mind.

One wrinkle is that though I have a great health care plan in the US, I am living in Thailand. Health care here in relatively inexpensive but right now I’m self insured. I’m looking for something like a catastrophic health care plan now.

 

[razztazz]

I am about to become 62 and I’m contemplating applying for Social Security benefits. To be honest, I’m suffering from a bit of paranoia about US politics of the last couple of years. SS is supposed to be solvent until 2034 but I’m concerned that either the economy or the crazy politics will lead to tinkering with the system before then. Past discussion of SS reform has exempted people in the system or those over 55 but I can’t help feeling it’s safer to be in the system rather than out.

I’m currently healthy. I have about $400k in savings. I have a very good COLA adjusted pension.

Any thoughts about this? Has current politics made anyone revise their views about the future of Social Security? Ultimately I realize that this is like any investment decision depending on personal comfort with risk and peace of mind.

I am 60 1/2 and have always planned on taking it at 62. I won't "make any money" on waiting till I'm 80. Like they say, there are no guarantees. If I live to 85 or 90 I doubt I'll be griping about "OH crap, man! If I had waited till 70 I'd have x thousand extra dollars now!" Then die the next day.

 

[Happyras]

We are in the 62 camp. Getting our fair share of $$$ paid back is a nice bonus to our cash flow. We do not need to withdraw any savings. I think this article says it well.
https://finance.yahoo.com/news/why-smart-people-social-security-110200255.html

 

[sengsational]

The usual upshot of threads like this is "if you need it, take it, if you don't, then don't".

One error people sometimes make is that they set their plan horizon long so that they don't run out of money, then they do the SS calculation with the long plan horizon. The plan horizon should be shortened to your expected age when you do the SS calculation. That makes waiting until 70 less "juicy".

 

[razztazz]

The usual upshot of threads like this is "if you need it, take it, if you don't, then don't".

Just a note and full disclosure. I do not need SS at 62 but I am taking it anyway. I'll be damned if I'm going to spend my own money if I don't have to.

 

[homestead]

I took it at 62 but wouldn't do it if you are still working.
If you are retired go for it.

 

[martyp]

I took it at 62 but wouldn't do it if you are still working.
If you are retired go for it.

I ER’d at 55. I’m inclined to take it. I can always save it if I don’t need it and have my savings to spend later in life for things like increased health care.

 

[Travelfreek]

I'm taking it beginning this month - just turned 62 late September ! I get only $402 since I have a fed pension also without SS. My brother in law died of cancer at age 64 in June. That's why I decided to take it. My pensions (2) are very good so why not add icing on the cake? Life is short.

 

[Sunset]

I'm taking it beginning this month - just turned 62 late September ! I get only $402 since I have a fed pension also without SS. My brother in law died of cancer at age 64 in June. That's why I decided to take it. My pensions (2) are very good so why not add icing on the cake? Life is short.

That's what I keep telling my 95 yr old Uncle...

 

[Sunset]

I'm planning to take it at 70. I can always change my mind later on and take it earlier.

But if I took it at 62, then I'm stuck with that decision.

So why am I waiting until 70:
- married so one of us will likely make it to 90
- gives me time to convert IRA to ROTH before age 70 , and if I did it when collecting SS, then the SS would be taxed.
- I have faith that all the congress members want to be re-elected so any change won't affect old folks who planned on SS.

 

[Major Tom]

Has current politics made anyone revise their views about the future of Social Security?

Not really. I'm fairly new at this retirement thing, but am beginning to get the feeling that I'll be fairly good at focusing on the long term, while willfully ignoring the bumps in the road on the way there.

One wrinkle is that though I have a great health care plan in the US, I am living in Thailand.

Awww heck. The info under your avatar had me fooled. There I was, thinking you'd been living just up the road from me all this time! (I'm in Oakland.)

 

[SonofCohoes]

I’m taking mine at 62, DW at 68-70.

 

[MaryAmenta]

I will apply at age 62
My husband at age 64.5. He will no longer work. He has back issues so that's a good plan

Our house will be almost paid off or totally paid off.

I will still be working part time until I can not do it any longer.

I consider myself retired right now only because it is not required I go to work

We will make it ok via his business if I quit my job now.

 

[martyp]

I'm planning to take it at 70. I can always change my mind later on and take it earlier.

But if I took it at 62, then I'm stuck with that decision.

So why am I waiting until 70:
- married so one of us will likely make it to 90
- gives me time to convert IRA to ROTH before age 70 , and if I did it when collecting SS, then the SS would be taxed.
- I have faith that all the congress members want to be re-elected so any change won't affect old folks who planned on SS.

I need to make sure that taking it doesn’t push me into a higher tax bracket.

 

[martyp]

Not really. I'm fairly new at this retirement thing, but am beginning to get the feeling that I'll be fairly good at focusing on the long term, while willfully ignoring the bumps in the road on the way there.



Awww heck. The info under your avatar had me fooled. There I was, thinking you'd been living just up the road from me all this time! (I'm in Oakland.)

I was until last February

 

[brucethebroker]

Easy decision...
If you are going to die before age 77 or so, take it now.
If you are going to die after age 77 or so, take it later.

What's the big fuss about?

 

[garyt]

Easy decision...
If you are going to die before age 77 or so, take it now.
If you are going to die after age 77 or so, take it later.

What's the big fuss about?

Kidding aside, that doesn't mean a thing either. Sure if your only goal is to get as much back from Uncle Sam as possible it may matter. I could couldn't care less if I maximize the exact amount I get back. I want to maximize the enjoyment I get out of whatever money I do get.
My Dad took SS at 62 and he's now 93. So he technically left money on the table. But he couldn't have retired at 62 without SS and he had a physical job that would've really wore him out had he tried to stay to 65. At 93, a couple extra hundred or so a month is meaningless to him.

 

[jollystomper]

I have performed the spreadsheet analysis for taking it in various years for our situation. Our current plan is to take it no earlier than age 63. When we actually take it is looking more like a decision based more on the lifestyle level we desire and less on financial need.

 

[bobandsherry]

I was wondering if someone at 90+ really had regrets on starting benefits early, you answered that question. I figure at 90+ they don't have as much need for $$ as they did when they were younger and may not miss the extra few hundred $$ each month now vs enjoyed having it when they were younger. I totally get trying to get there most you can, but also see the side that says enjoy life now.

 

[foxfirev5]

Taking it at 62 and hoping I live long enough to regret the decision.

 

[LRDave]

GPO whacks the spousal and survivor benefit for DW. The survivor benefit for DW was the most compelling reason to wait, so we will just look at it closely as I near 62.

 

[Tom52]

I am waiting till FRA which is 66. That is about another 13 months away. We don't need the money now and it will allow me to get an ACA month!y subsidy of over $1,500 for DW. She will also wait till she is at least eligible for Medicare before starting SS.

 

[Aerides]

There are as many opinions on this as forum members!

Here's a recent lengthy thread - granted this was started by a regular troll, and ultimately closed, but will give anyone ample to read on the topic!

http://www.early-retirement.org/for...2-is-the-best-decision-here-is-why-88951.html

 

[truenorth418]

Have you considered a bridging strategy?

Many analysts recommend waiting until age 70 to tap SS because the annual payout is much greater than at 62.

If you have a large enough portfolio, go on the SS website and determine your your age 70 payout. Multiply that number by 8. Then carve out 8 years worth of payouts and invest that money in safe investments like CDs or treasuries. The remaining portfolio is invested in any asset allocation you are comfortable with.

Then for the next 8 years spend one years worth of your SS reserve money and whatever withdrawal % of the the remaining portfolio you want - 3%, 4% whatever.

Once you hit age 70 the SS reserve will be depleted but your SS payouts will begin and you can continue spending at the same rate as before.

Run the numbers. You are likely to find you can spend more money overall - very safely - using a bridging strategy than if you take SS at age 62.

 

[martyp]

Have you considered a bridging strategy?

Many analysts recommend waiting until age 70 to tap SS because the annual payout is much greater than at 62.

If you have a large enough portfolio, go on the SS website and determine your your age 70 payout. Multiply that number by 8. Then carve out 8 years worth of payouts and invest that money in safe investments like CDs or treasuries. The remaining portfolio is invested in any asset allocation you are comfortable with.

Then for the next 8 years spend one years worth of your SS reserve money and whatever withdrawal % of the the remaining portfolio you want - 3%, 4% whatever.

Once you hit age 70 the SS reserve will be depleted but your SS payouts will begin and you can continue spending at the same rate as before.

Run the numbers. You are likely to find you can spend more money overall - very safely - using a bridging strategy than if you take SS at age 62.

I already have $400k in savings that I could leave untouched and mentally apply to the gap between 62 and 70.