Deferring SS

[67walkon]

I'm 70 and its nice to get that money every month. My retirement age was 63 and we had enough savings and retirement accounts to do okay. I did cash in some assets to help cash flow from 63 to 70 but I have a wife who is 5 years younger and I think one of us may live quite a while. In any event, I don't worry at all about SS running out of money. We seniors would vote somebody in who would figure out to restore SS. We are a pretty big voting block!

 

[N02L84ER]

I plan to start SS at 65. (Born Aug, 1958)

DW (5 years younger than me) will start hers at 62 and will change over to spousal at 67.

I am flexible and can start SS earlier if needed.

FYI

The rules have changed for people born after 1954. When your DW claims, she will get the higher of her benefit or the spousal benefit. We are no longer allowed to claim one and not the other.

 

[swabby01]

No change for me - still set to go at FRA, not sure where else you can get an 8% increase every year and god willing the health is still there. 65 in August but timing almost perfect that my FRA and wife 62.5 happen same month so she will take early and I will take FRA draw and our income will stay the same as before she retires

 

[sgstaley]

I started taking mine at about 62 and 8 mos of age.

We have our money saved and I don't trust the government as far as I can throw them, so every payment that makes it to the bank, I figure that I am that much better off.

 

[Luck_Club]

I have a few friends who are pretty well off. They said I was crazy not to take SS at 62

Just ran my numbers again for S&Grins.

Basically it boils down to playing the odds. According to SS I have an expected average life expectancy of 76.5 years. If I make it to 65 they expect me to kick the bucket at 78.5. If I run my numbers assuming I live beyond average to age 80 (since I've always been and always will be above average). I come up with the following payouts:

$367,416 starting at 62
$374,040 starting at age 65
$374,088 Starting at age 70

So given those numbers it doesn't matter 1 bit when I start collecting if I'm only going to live to age 80. What will make a difference is if I manage to kick the working can down the road another 9 years from now, which has a lower probability then SS going broke.

 

[2retireearly]

I'm missing something..so forgive me for not 'getting it'. But if you worry about longevity not being all that good. I am assuming that means you are assuming you will die early...If that's the case, then why oh why didn't you take it 'early' at 63? The break even point between 63 and 70 is mid 80's...So if you die before the mid 80's, and if you took at 62, you'd have gotten more than you would have by taking it past full retirement age, at 69? Maybe I read it wrong..maybe your reference to 'longevity isn't that good' means you are going to live to 100!

 

[Ebendana]

Given the pandemic, I have decided to move up my date to take SS at 62 vs 65...my thinking is twofold...first, I prefer to keep more cash in the bank vs spending it down waiting for a bigger payout and second it has made me re-evaluate how fragile life is, so I may as well take it as soon as I can to get some payout from the government in case I kick the bucket early...obviously, I may leave some "cash" on the table if I am fortunate enough to live a long life, but I have re-set my mindset.

 

[gayl]

I'm thinking about delaying until next year. I don't need ACA as DBP has health insurance. Not sure how WEP / WPO affects it but I recall that it was a significant hit. This final year will be tight as I try to sock away enough to overcome my stock market losses (I have a $×age comfort factor -- it's all psychological). Of course if the market goes up 10% over the next 12 months I'm a happy camper

FWIW I plan on keeping my legacy account intact

 

[VanWinkle]

My original plan was to wait to 70 for my spouse to be protected. Turns out I already have outlived her so that is the main reason for changing my plan to full retirement age(66). With my pension and SS I will likely not need to draw any money for living from my portfolio. I have recently started dating a very nice lady that is making me think like part of a couple again. Life has definitely changed in the last month with loneliness slowly fading away and a new smile on my face every day. Life is good again, and I have a little dance in my step again.

 

[GoodLife59]

I decided over a year ago to take mine at 62. I have to live well into my 80’s to make waiting a better value. But I can’t predict what may happen next week. Very comfortable with my thought process

 

[VanWinkle]

Agree 100%. I waited until 70 and don't regret it at all.

Those that regret waiting are not around to complain........

 

[Focus]

I was aiming for 70. An online calculator now says about 69.5 is ideal. Not too sure of longevity, so 67 (FRA for me) is still a possibility.

 

[almost there]

No change in plan at all. Taking it in 3 1/2 yrs at 62.

 

[RHONDAVE]

If the ACA goes away, as it has been speculated this year, we will be forced to take SS at 67 and 62 respectively to help pay for Healthcare for DW. Otherwise I will wait till 70 and DW will take hers at 65.

ACA going away? First I've heard of this. How could this happen?

 

[Dtail]

My original plan was to wait to 70 for my spouse to be protected. Turns out I already have outlived her so that is the main reason for changing my plan to full retirement age(66). With my pension and SS I will likely not need to draw any money for living from my portfolio. I have recently started dating a very nice lady that is making me think like part of a couple again. Life has definitely changed in the last month with loneliness slowly fading away and a new smile on my face every day. Life is good again, and I have a little dance in my step again.

Very nice to hear.

 

[travel55]

DH is 60 and still working. He is waiting till Medicare to retire. I was the high earner. I will be 65 this summer. My highpaying job ended when 62. I have worked p/t. Fully retired at the end of March. DH has a myriad of health issues. We both know I more than likely will be the widow.
If I wait till 70 the additional $800/mo will be important when one SS goes away. We are already living in our retirement home and DH retires when I turn 70 so our combined SS and our dividends we will be living higher( somewhat) than now.

 

[street]

Those that regret waiting are not around to complain........

True!

I check a local area obit notices a couple times a week. I pay attention to ages very closely and have never put a percentage number on it but a large number of those people are under 85 years of age.

 

[Dtail]

ACA going away? First I've heard of this. How could this happen?

The case is going to the Supreme Court at the end of this year. Who knows what will be.
I can't imagine changes if any taking place at least until 2022.

 

[MoPops]

I’m staying with my plan to take it at 69. I’m almost 66 now. Both parents lived to 90s. This (Covid) hasn’t changed my mind. Have cash on hand for another 18 months. Hopefully market will continue to improve. Politics aside, the market could get hammered at any time, for non Covid reasons.

 

[HunterAdvisor]

Take it now!

My husband and I have both taken SS at 62 and one minute. In my career as a financial planner I saw my clients drastically reduce their expenses by late 70s. They just didn’t have the needs or wants and despised dealing with TSA or pretty much stopped traveling. My calculations showed I would need to reach 78 to break even on not taking SS at 62. This was before I realized that at 65 there would be mandatory reduction for Medicare, I haven’t run those numbers, but I suspect it would put my break even closer to 80. Like many we are real estate rich and cash not as much, so the SS now has substantially improved the quality of our lives, we retired at 50 & 53. Neither hubby or I would ever consider a “home”, so the funding of that which is huge is not on our horizon. Mother was paying close to 80k two years ago when we bailed her out and brought her down to Mexico. She bought her stunning Marina front condo outright for $345,000 and with a full time assistant, dining out every night, Ubers, manicures, pedicures and all that would be of comfort to an 88 year old her budget is $2,500/month. That includes her HOA fees and utilities. She bops around on her electric scooter through the marina where she has 60 restaurants to choose from or did before Covid. Private health insurance runs us about $2,000/year for both of us with a $2,500 deductible and pays in the USA as well for the first 100 days when we visit.
The shelter in place gives everyone an idea of what life in your 80s might look like. Our spending has dropped in the last two months to about $100 total and for Mother about the same with the exception of her assistant who she continues to pay, although she doesn't’ have her come in at this time, (Mom is with us for now), that cost is about $900/month for 6 hour days, 5 days a week and part of Saturday.
When we visit the USA we normally drive and may or may not return this summer.

 

[SumDay]

I took SS at 62, and DH is taking my spousal benefit (50% of mine) until he turns 70 in 2023, when he'll switch to his. We're grateful we had those magic birthdays so we could take advantage of this benefit.

I've toyed with bumping his up to start now, but since he's already in payout status on my account, I can no longer see how much his benefit would be now vs. 70 on the SSA site. I don't feel like sitting on the phone for 5 hours to find out either.

I'm not worried (yet) about benefits being cut for those of us in pay status. I can't imagine it happening in an election year, which luckily ?? we have every other year. Good topic!

 

[eytonxav]

Just ran my numbers again for S&Grins.

Basically it boils down to playing the odds.

Thats right, it's actuarially neutral. So you play the odds based on lifespan the SS ability to pay.

 

[Spock]

Sorry to ask first and google later... but I was thinking
Which goes up faster: annual SS benefit when deferred (8%/yr) or COLA increased benefits if inflation hits 10% (or more)?
Or does the annual benefit go up with the COLAs + the 8% for age deferral?

 

[MissMolly]

Sorry to ask first and google later... but I was thinking
Which goes up faster: annual SS benefit when deferred (8%/yr) or COLA increased benefits if inflation hits 10% (or more)?
Or does the annual benefit go up with the COLAs + the 8% for age deferral?

This: Or does the annual benefit go up with the COLAs + the 8% for age deferral

 

[Sunset]

I took SS at 62, and DH is taking my spousal benefit (50% of mine) until he turns 70 in 2023, when he'll switch to his. We're grateful we had those magic birthdays so we could take advantage of this benefit.

I've toyed with bumping his up to start now, but since he's already in payout status on my account, I can no longer see how much his benefit would be now vs. 70 on the SSA site. I don't feel like sitting on the phone for 5 hours to find out either.

I'm not worried (yet) about benefits being cut for those of us in pay status. I can't imagine it happening in an election year, which luckily ?? we have every other year. Good topic!

I would keep milking this as the reason they got rid of it, is it pays you so much EXTRA.

SS Benefits won't even face any possibility of being cut for approx 14 years, so no worries until then.