Poll: Taking SS - when?

[Sue J]

I'm 63 and have not started SS specifically because of ACA subsidies. This year we have an HDHP with HSA. The HSA contribution is larger than my annual SS benefit so this year I could have taken SS and not have it impact our subsidy. If an HSA is available for us for 2019 I may go ahead and start my SS in Jan., 2019, almost age 64.

My plan has always been to take SS at Medicare age of 65. DHs pension covers 100% of our monthly expenses so I don't currently need the SS money. He will not get SS so we don't have any of the spousal issues to consider.

Here's the funny thing....since I turned 62 in Feb 2017 I knew I'd be waiting to claim SS. But lately I have this constant quiet hum in the back of my brain, reminding me that there is a chunk of money that has my name on it and I decided to refuse it, for now. At 62 it was $578 and as of April 2018 it's now $641. Not a large benefit, but there it is and it grows a little every month. And every month, I decide again to wait.

Patience, grasshopper!

 

[VanWinkle]

Also playing the ACA game. Wouldn't taking the SS just be a substitute for taking the investment assets?

No, because the investment income is from a taxable account and does not change the income requirements for subsidies and cost sharing with the ACA.

If you draw it from a tax-deferred account, then you are correct.

VW

 

[Red Badger]

DW only has spousal option, so will I take at 62. Also, she'll be near FRA when I'm 62. If I delay until FRA, our break even point is mid-80's. I'm not sure either of us will be around by then.

She's already has sufficient financial incentive to murder me - I'm not going to up that ante!

 

[Dtail]

Yes. But in our case, interest and dividends and roth conversions put us near the cliff. I could scale back the roth conversions and take SS at 62 but we have a couple of fair sized taxable IRAs and future pensions that will likely increase our tax bracket at some point. I want to keep funding the roth to minimize some of the future tax burden. Additionally, fingers crossed, we are both healthy.

Ah makes sense.
So many factors to consider, but that is why there is no true consensus...

 

[Dtail]

No, because the investment income is from a taxable account and does not change the income requirements for subsidies and cost sharing with the ACA.

If you draw it from a tax-deferred account, then you are correct.

VW

Yes in my case it would have to mainly be from a TIRA.
My DGF already receives SSDI, so that part of the equation has been answered.

 

[mpeirce]

If one is trying to maximize the number of years where one can do ROTH conversions it seems obvious to delay SS as long as possible.

 

[Cobra9777]

I answered under 62, SS at 70. DW and I are both 57. Tentative plan is for her to start SS at some point between 62 and FRA based on same criteria listed by others (health, market, rule changes, Roth progress). Mine is larger so we'll likely defer to 70 to maximize her survivor benefit.

 

[jimandthom]

Other------- spouse cannot collect a spousal/death benefit from my record due to federal civil service pension offset. That offset eliminates 1 of the prime reasons to defer. Will probably collect at 65 when medicare kicks in.

 

[Brett_Cameron]

I am 62. Started SS at 62. For me, the numbers worked out better.

 

[NYEXPAT]

Other, I took it at 62 (for child benefits) will stop at 66 (for delayed credits) and restart at 70 to maximize my young wife's benefits. Optimal age for me to "kick the bucket" is 94 and then young wife will start receiving benefits 3 mos later.

This assumes no changes in FRA for my Wife.

 

[Walt34]

I started mine at FRA, (66) and DW will start hers at her FRA in a few years.

 

[Rustic23]

Fra + 1

 

[ownyourfuture]

56 & plan to take at 62
But that will push my income to a level where I'll probably have to spend it all on HC insurance

 

[Dtail]

Interesting stat so far.
The % of folks under 62 who are planning to take SS at 62 is ~ 2x the rate of folks actually taking SS at 62.
Plans change and evolve.

 

[Brdofpray]

Took SS at 62. DW is not eligible for benefits due to pension offset. We really don’t need it at this time, however, I figure to collect SS and funnel it into a good investment vehicle. That way if I check out first, she will at least get some benefit from my SS.

 

[Tallman4123]

Voted "Younger than 62 - SS @ 70".

I am nearly 61 and DW is 53. My SS will be slightly larger than hers and I will take at 70 while she takes at 62; both in 2027. That being said, market performance, ACA subsidy changes, and/or changes in health status could warrant a change.

 

[jollystomper]

Voted "other" - I am younger than 62 and the earliest I will consider taking it is 63. If I do depends on several factors such as health and how our first 2 years of my retirement goes financially.

 

[PatrickA5]

Under 62 and plan on taking at 62. Higher earning spouse will probably wait until 70. I'll re-evaluate at 62 and will probably hold off if we don't need the income (i.e. spouse still working).

 

[cme4oil]

Took SS at 62. DW is not eligible for benefits due to pension offset. We really don’t need it at this time, however, I figure to collect SS and funnel it into a good investment vehicle. That way if I check out first, she will at least get some benefit from my SS.

I will be turning 62 in August and will be taking SS at that time for the same reason as Brdofpray. Pension offset negates any survivor benefits for DW so the best option for us is to take in now.

 

[Lawrencewendall]

Who knows what the future holds but my portfolio is earning more than the incremental increase of postponing SS so i’ll Use it and let my earnings compound.

Medical is not a concern so it just comes down to numbers.

 

[Crewer]

I'm in the group that could get spousal SS and then switch to my own later so I've been taking spousal since FRA and will switch to my own, which is about equal to DH's full amount, at 70. It's a longevity hedge. Of course, when we made the decision we were younger and were sure we'd definitely make the break even age. Now we're a older and ageing is accelerating so we'll see.

 

[omni550]

Interesting results so far. 142 have voted.


The 3 categories:.......................................................@62--@FRA-- @70

For age 62 or older crowd, almost an even split of votes 17---20---20

For <62 crowd, most plan on taking it at age 62 OR age 70 28---13---26

And 18 folks voted "Other"


omni

 

[LuckyDog]

We are 63 and plan to take SS at FRA. Unless we decide to take it earlier...

 

[Accidental Retiree]

I voted “Other.”

As of this writing, I will probably start my SS in the summer of 2019, at 63 and 8 months. My SS amount will be decreased somewhat because of WEP.

Having been born in 1953, DH will be at his FRA of 66 in the summer of 2019 and upon my filing, he will be able to draw half of my WEP’d SS amount, which will help put back the WEP deduction shortfall while allowing his SS to grow until age 70.

His waiting until 70 will provide a better survivor’s benefit for me, even though that benefit, too, will be decreased by the GPO.

We may make adjustments, but that’s the plan for now.

 

[LuckyDog]

Accidental or anybody,

Could you please educate me? I do not familiar with WEP and GPO in the above post...