Yep, seems like everyone has different answers due to different circumstances. In our case, lower earning DW filed at 62, based purely on “I want it now”. I am delaying for the cheap annuity and the gains from preferred Roth conversions through 2025, when I will be 67. After that, it will be a “see what’s going on” decision. The gains from delaying in order to have enough Roth conversions room far outweigh any gains that MIGHT be there by filing earlier and making more on that amount invested. And if I die earlier than expected and am wrong, well, I won’t be around to hear the “ I told you so”s. It is far easier to take it earlier when the dollar amounts are relatively low compared to the budget, because the increased amount from delaying is less impactful. If you collect $720/mo instead of $1200/mo if your monthly estimated income is $10k/mo, it is no where near the budget anchor compared to whether you collect $2100/mo instead of $3500/mo ( same percentage increase) for the same $10k income.
Meanwhile, we base our budget now, on the assumption that we can withdraw an amount equal to what mine will be about then, ($42k), from cash accounts, since that will be there, then, one way or the other, but we will also base our draw on what the final reduced amount will be then, today, assuming growth equal to 5%. (About half what it has been historically for us, as a fudge factor). That will eliminate almost all after tax cash, and make RMDs less than our draw would be anyway, while minimizing taxes, for all intents and purposes. How much is left in pretax IRA will depend on how much it grows while I reduce it via conversions. There is no “take it early to have more money now” for us. There is more possible income now, by delaying, because there will be more income then. Pretty simple math.
