My wife and I need some help please with some basic questions for FireCalc.
I did try to search for my question but was not able to find an answer.
I am age 57 and the wife is 55
I am planning to retire age 60. The better half does not work.
Pension $72K , no COLA. Will start to receive 2020 upon retirement.
I am Planning to wait until age 67 to take Social Security, ~$36K per year
Wife will take ½ spousal Social Security two years later when she turns 67, ~$18K per year.
Our estimated Annual Gross expenses is ~$125K per year.
For simplicity – our questions do not include gains from saving accounts.
$125K - $72K = $48K
Therefore planning to pull ~$48K from our savings prior to Social Security kicking in. For the period from age 60 to 67 – I have been using $48K for Annual expenses entered in Fire Calc. Is this correct?
Showing Social Security starting in 2027 with $36K, and in 2029 with an additional $18K for my wife.
Our question is regarding how FirecCalc handles adjusting annual expenses as Social Security kicks in
For age 67 to 69
Since our savings account withdrawal rate will reduce once Social Security kicks in – it would seem to me that
$125K - $72K - $36K = $12K
Meaning we only need to pull ~$12K from savings annually?
Then in 2029 when the wife starts to get ½ my Social Securtiy
$125K - $72K - $36K -$18K = <$6K>
Meaning we would not need to take any money from our savings account when my wife starts to take Social Security
So it looks to us like our annual expenses reduce to ~$12K in 2027 thru 2029 and starting in 2029 we would not have to pull any monies out of savings?
I can’t figure out to show reduction in annual expenses in Firecalc? Or does Firecalc do this automatically?
Thank you for any advice and assistance you can provide to us.