Reconsidering both waiting until 70 to claim SS

[DrRoy]

DW's benefit is much smaller than mine, and she filed at 62. I have been planning to wait until 70. I put in our info, and got 69 and 7 months. I'll probably stick with 70.

 

[walkinwood]

One of the problems I have with Social Security retirement calculators is that they do not take into account the amount I need to withdraw from my portfolio for living expenses between FRA and age 70. That is money that could remain invested. That more than offsets the difference between ages 66-10/12 and 70 in terms of the amount of money being left on the table, assuming we live into our late 80s.

Opensocialsecurity does consider it & you can set the value. See in the About link
https://opensocialsecurity.com/about


The "% of maximum PV" chart is very useful to see how much you're giving up by not following their recommendation.

 

[target2019]

I grew tired of waiting, and claimed at 69. The difference it makes for her as survivor is not a concern.

She took hers at 66, when she left fulltime work.

With three checks (includes her pension) each month, there is no drawdown.

The decision is so personal, you just have to reconsider each year, and question your previous assumptions. That's essentially what I did from 62 to 69.

 

[Midpack]

The decision is so personal, you just have to reconsider each year, and question your previous assumptions. That's essentially what I did from 62 to 69.

+1. We both plan to wait until 70, but if we change our minds for some reason, we can always file early. I've waited 69y1m already, and DW only has a few years left.

 

[Sunset]

I used the Opensocialsecurity , and it says I (lower income) should take it now, and DW wait until 70.
I get WEP'd (maybe it should be called WIP'd ). So after taking 1/2 off for my non-SS pension, (Thanks Canada Pension Plan), and doing the WEP entries.
It repeatedly says I should claim spousal after DW, but shows the same value received by me so that's odd

Other thing I realized, was if I extend my life estimate a couple of years, it changes and says I should wait until age 70.

Whatever I choose, the difference in amounts is small, partially because I'm already in the age range to take it and getting less choice each year.

It's certainly not as clear cut as I had first thought, except the part about DW (higher earner) waiting until 70.

 

[Perryinva]

I’m planning on taking mine next year at age 66. DW,
Now 70, took her much lower one (less than half what mine will be) at 62 for no good reason except she wanted it now. Just as OSS often shows, you do basically have to live past 90 to see s net positive, but there are far more chances that you won’t make it to 90. Since delaying an extra 4 years is not collecting $170k in the meanwhile, with too many other unknowns, I feel like it was a good compromise. I’m not looking to maximize what I leave behind by any stretch, and I don’t really think an extra $1000/mo when I’m 90, if I make it that long, is going to make much difference. No particular longevity in either if our families. Both my parents were gone before 80, and hers at 88, and she has a heart condition and I have Type2. $3500+/mo at age 66 is more than I originally thought I would see at 70, anyway!

 

[meleana]

My husband will start taking his next year when he turns 70. I’m 67 but so far also waiting to take it at age 70.

My first retirement year we kept income low so I could get full ACA subsidies. Lived off cash savings and a small RMD from an inherited IRA and still are.

Yeah- our cash account is draining out but once hubby collects SS it will drain out very much less. We aren’t big spenders. We’re not going to travel the world or anything like that.

Last year started some Roth conversions staying in the 12 % tax bracket and plan to continue until I collect SS. This strategy recommended by our fee only Garrett Network financial advisor.

SS to us is like having an annuity.

 

[GATime]

I use these tools as a guideline and not an absolute. We are both turning 63 this summer and I retire this week. Yeah! Her FRA is about 40% of mine, so we are filing hers now and I will wait a few years. Doubtful I will go beyond 67 because the breakeven pushes into our early 80's at that point and I'm ok with getting a little less if we make it to 90.

 

[Navigator]

I've been playing with https://opensocialsecurity.com and noticed it's pretty hard to get it to recommend we both wait until 70 to claim social security. When I choose their highest longevity set case (non smoker super preferred) it recommends I claim at 70 and DW claim much sooner at 66y 11m. Digging deeper, non smoker super preferred is based on me living to 87.5 and DW to 90. No matter how much I manually extend DW's longevity, it never recommends she wait to claim at 70. And if I manually extend my longevity, I have to live to 98 for her to claim at 70. Turns out if we both live to 90 or more, then it recommends we both claim at 70. There's a good chance we'll both live past 90 if our parents are any indication. I was just surprised how long you have to live to to make both claiming at 70 the financially preferred option...maybe I'm the last one to figure it out.

My PIA is about 160% of DW's, and I am about 2 years older than her. I am already 69, but it would be rude to disclose DW's age.

When you both take social security at 70 you are betting that both of you will live a long life. This has a lower probability than either one of you living a long life. For example, if we use 83 for your life expectancy and 86 for your wife’s, each of you has a 50% chance of living to your life expectancy. However, there is only a 25% chance both of you will live to your respective life expectancies. Your joint life expectancy is only 77, making both taking SS at 70 a bad statistical bet. If opensocalsecurity.com takes into account investment returns accrued on money received from taking SS before 70, this is what drives the age where both taking SS pays off to over 90.

 

[Romer]

I use these tools as a guideline and not an absolute. We are both turning 63 this summer and I retire this week. Yeah! Her FRA is about 40% of mine, so we are filing hers now and I will wait a few years. Doubtful I will go beyond 67 because the breakeven pushes into our early 80's at that point and I'm ok with getting a little less if we make it to 90.

when you file she can then claim the spousal portion and get an increase. It will be less than if she waited until 67. In the meantime she will collect what she is due. In our case, the difference in my wife spousal at 63 vs 67 is about $5K a year.

 

[Midpack]

When you both take social security at 70 you are betting that both of you will live a long life. This has a lower probability than either one of you living a long life. For example, if we use 83 for your life expectancy and 86 for your wife’s, each of you has a 50% chance of living to your life expectancy. However, there is only a 25% chance both of you will live to your respective life expectancies. Your joint life expectancy is only 77, making both taking SS at 70 a bad statistical bet. If opensocalsecurity.com takes into account investment returns accrued on money received from taking SS before 70, this is what drives the age where both taking SS pays off to over 90.

I suspect you’re right as to why it’s hard to get opensocialsecurity to recommend we both wait until 70. But since DWs Mom lived to 88 despite very poor health habits, my parents lived to 93 and 96, and DW and I live far more health conscious lives - I’m inclined to think we may well both live too long…

 

[Time2]

I grew tired of waiting, and claimed at 69. The difference it makes for her as survivor is not a concern.

As I have said 100 times, We are waiting until I'm 70 to start SS, so my wife will get a larger check after I die, and to leave more room for Roth Conversions. But I am also getting "tired of waiting". I have 1yr 6months until I'm 70. If I wait, the one more year after 2023, I'll be able to Roth convert an additional $150k of the $370k we will have left in tax deferred accounts.(22% bracket) This will get our tax deferred down to $220k. Still giving us 3 years to spend down mine and 7 years to spend down hers. So, unless we have a great rise in the stock market, I think we have the RMDs pretty well tamed. If we take SS one year early, it will only increase our tax deferred accounts by $60k to $280k. I don't consider that a lot.

On the other hand taking SS one year early, decreases our starting SS income by $4,450 a year, and my wife's spousal benefit (after I die) by $3,100 a year + any COLA's.
All that said, I'm still on the fence! But, I'm starting to lean towards a year early.


P.S. I did tell my wife wait until we start SS and then we will upgrade the kitchen. If we start early, does that mean I need to upgrade the kitchen early?
I'm not sure what the hurry is, the kitchen style is only hitting 50 years old this year.

 

[sparky08]

I just opened OpenSocialSecurity.com and I don't see where to select Non-Smoker.

 

[Midpack]

I just opened OpenSocialSecurity.com and I don't see where to select Non-Smoker.

Check the box in the first line, then mortality or whatever other options you want.

 

[Rianne]

Did you enter your current benefit for PIA? That would understate your benefit calculation since you retired a year or so before FRA. Just guessing since I don't know specifics, and I am not asking.

I entered the amount I received starting 9/2022 which was higher than my FRA amount. So, when it asks if the spouse is receiving SS, the age it started, and the amount I enter the amount I received on 9/1/2022, although paid in October. So, OSS did not adjust to the inflation increase. If that's the case for me, is it also the case for DH who has not filed? We're still deciding if he'll file at FRA or 70. The difference between DH filing at FRA and 70 is approximately $200K.

 

[Koolau]

As I have said 100 times, We are waiting until I'm 70 to start SS, so my wife will get a larger check after I die, and to leave more room for Roth Conversions. But I am also getting "tired of waiting". I have 1yr 6months until I'm 70. If I wait, the one more year after 2023, I'll be able to Roth convert an additional $150k of the $370k we will have left in tax deferred accounts.(22% bracket) This will get our tax deferred down to $220k. Still giving us 3 years to spend down mine and 7 years to spend down hers. So, unless we have a great rise in the stock market, I think we have the RMDs pretty well tamed. If we take SS one year early, it will only increase our tax deferred accounts by $60k to $280k. I don't consider that a lot.

On the other hand taking SS one year early, decreases our starting SS income by $4,450 a year, and my wife's spousal benefit (after I die) by $3,100 a year + any COLA's.
All that said, I'm still on the fence! But, I'm starting to lean towards a year early.


P.S. I did tell my wife wait until we start SS and then we will upgrade the kitchen. If we start early, does that mean I need to upgrade the kitchen early?
I'm not sure what the hurry is, the kitchen style is only hitting 50 years old this year.

I don't know if they're still doing it, but SS offered me a "deal" in which they would let me retire at 70 but get a good chunk of cash which would move my retire date back 6 months. Nah! I wanted to keep the highest monthly pay out so DW would get the bigger payout upon my demise. But it could w*rk for some folks - especially those on the fence about 69 or 70.

 

[finnski1]

I hope this woman waited to 70.
https://wgme.com/news/local/oldest-...KUjsGQk37uPJNCW64fAgAcZAqlZBqtsg4aZJGFr7cp3kI

 

[target2019]

As I have said 100 times, We are waiting until I'm 70 to start SS, so my wife will get a larger check after I die, and to leave more room for Roth Conversions. But I am also getting "tired of waiting". I have 1yr 6months until I'm 70. If I wait, the one more year after 2023, I'll be able to Roth convert an additional $150k of the $370k we will have left in tax deferred accounts.(22% bracket) This will get our tax deferred down to $220k. Still giving us 3 years to spend down mine and 7 years to spend down hers. So, unless we have a great rise in the stock market, I think we have the RMDs pretty well tamed. If we take SS one year early, it will only increase our tax deferred accounts by $60k to $280k. I don't consider that a lot.

On the other hand taking SS one year early, decreases our starting SS income by $4,450 a year, and my wife's spousal benefit (after I die) by $3,100 a year + any COLA's.
All that said, I'm still on the fence! But, I'm starting to lean towards a year early.


P.S. I did tell my wife wait until we start SS and then we will upgrade the kitchen. If we start early, does that mean I need to upgrade the kitchen early?
I'm not sure what the hurry is, the kitchen style is only hitting 50 years old this year.

Our house has had two kitchens, and one was done about 15-20 years ago. It may be time for you! Lol.

If you both have longevity, then the $4,500 additional per year makes sense. As I remarked elsewhere, it's a personal thing, and as you get closer to the end of life there is a more-important number.

Hey, I waited some, but want to enjoy a few checks before I can't.

I don't know if they're still doing it, but SS offered me a "deal" in which they would let me retire at 70 but get a good chunk of cash which would move my retire date back 6 months. Nah! I wanted to keep the highest monthly pay out so DW would get the bigger payout upon my demise. But it could w*rk for some folks - especially those on the fence about 69 or 70.

Bingo. When I called after hitting 69, I got the offer and took it. My check is lighter, and I banked about 19K as I recall.

So, I got tired of waiting, and I wanted a prize too. That worked for us, and of course there are other ways to follow "your plan." It's all good.

 

[Time2]

Our house has had two kitchens, and one was done about 15-20 years ago. It may be time for you! Lol.

My wife has a stove in the garage that she uses more than the one in the kitchen. And if she bakes, she'll do it in the garage so it doesn't heat up the kitchen.

If you both have longevity, then the $4,500 additional per year makes sense. As I remarked elsewhere, it's a personal thing, and as you get closer to the end of life there is a more-important number.

Not sure I have longevity, dad died at 74, mom at 84. Dad had his first heart attack at 43, so gar at 68 no hint of any heart problems.

Hey, I waited some, but want to enjoy a few checks before I can't.


Bingo. When I called after hitting 69, I got the offer and took it. My check is lighter, and I banked about 19K as I recall.

So, I got tired of waiting, and I wanted a prize too. That worked for us, and of course there are other ways to follow "your plan." It's all good.

If we take it a year early, the $4,450 we loose per year, it will take 12 years of getting the extra $4,450 to cover the $55,000 we get the first at 69 years old. I would be 81, not sure it will matter. Either way, we won't run out of money.

 

[Midpack]

So, I got tired of waiting, and I wanted a prize too. That worked for us, and of course there are other ways to follow "your plan." It's all good.

+1. When to take Soc Sec is definitely a personal decision depending on many things - marital status, projected longevity, other income sources, tax implications, faith in future Soc Sec, or just because...

 

[target2019]

My wife has a stove in the garage that she uses more than the one in the kitchen. And if she bakes, she'll do it in the garage so it doesn't heat up the kitchen.


Not sure I have longevity, dad died at 74, mom at 84. Dad had his first heart attack at 43, so gar at 68 no hint of any heart problems.




If we take it a year early, the $4,450 we loose per year, it will take 12 years of getting the extra $4,450 to cover the $55,000 we get the first at 69 years old. I would be 81, not sure it will matter. Either way, we won't run out of money.

Calculating the numbers was making me numb!

I wanted my check. I got it. Done!

 

[RunningBum]

When you both take social security at 70 you are betting that both of you will live a long life. This has a lower probability than either one of you living a long life. For example, if we use 83 for your life expectancy and 86 for your wife’s, each of you has a 50% chance of living to your life expectancy. However, there is only a 25% chance both of you will live to your respective life expectancies. Your joint life expectancy is only 77, making both taking SS at 70 a bad statistical bet. If opensocalsecurity.com takes into account investment returns accrued on money received from taking SS before 70, this is what drives the age where both taking SS pays off to over 90.

That depends on what you're betting on, or why you are betting. If you buy higher liability on your car insurance than the law requires, are you betting on having a bad accident? Or are you just protecting yourself in case it happens?