Draw social security early or not?

[Chuckanut]

Quote:

Originally Posted by haha . This amount, and the higher steps are not inflation adjusted.

+1

You nailed it.

The tax increases are already built into SS.

Sort of reminds me of the alternative minimum tax rules.

[Lcountz]

NW-BOUND said:

Quote:

Originally Posted by NW-Bound "1) You took SS at 62, then find out that at 80 you are still going strong. It is highly likely that, due to human nature, you will regret not delaying it so that you would have more now. You will forget all the good stuff or experience you bought with that SS money. You will lament the "wrong choice" to anyone who listens, and tell them to learn from your "mistake". 2) You delay SS till 70, and at 71, find out that you do not have much longer to live. Are you going to regret not taking SS earlier, to spend it on that fancy car, taking that world cruise when you were younger? No, you will be so sad and too busy being scared to think about the unfulfilled bucket list."

I say: I like this line of thought. I'm single and intend to wait til 70 to start SS., but then again I don't care if I "leave anything" since I have no kids or spouse!

Plus Mom (93), her Mom (died at 85) her brother, and all her cousins ALL lived to 90+!

[43WorkYears]

I see that there have been 81 responses to this question, draw SS early or not, but as we all have read a lot of opinions, there is no right or wrong answer. I hope the opinions/suggestions keep coming, which in some cases we can relate to so we can make what we think is our best choice at 62, 65/66, 70 or somewhere in between. The responses have made me more knowledgable on the subject.


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[NW-Bound]

I have recently given this subject quite a bit of thought, although I still have a few years to even being able to claim SS early. It turned out to be more complex than I first thought.

I think that even when one is strictly maximizing the amount to spend, the answer still depends on how young the person is when retiring early, the ratio of the stash relative to the SS payout, etc... Here, FIRECalc can give some guidance. And then, there's the question of leaving some money behind for the surviving spouse, tax at RMD time, etc...

I will definitely want to delay mine if at all possible, so that it acts as an insurance for my wife who most likely outlives me (by one or two decades easily though we are of the same age). We may claim hers early or not, depending on how the market acts the next few years. If the stocks are doing well, we will live off it: sell high and bank the SS. If the market tanks, we will claim at least my wife's SS to avoid selling the stocks low.

[Ally]

I may have replied before, but my husband and I will take it at about 64.5. At that time, we will both be retired and by taking it and with his pension, we won't have to draw from our investments until we are required at 70. We both have some health issues that make us think that we may not live long enough to make it worth waiting. But if we do live long lives, we are OK with taking that chance, because we will still be due to the money we have saved.

[43WorkYears]

Sounds like a good decision. Not taking it at 62 or 70. More closer to the middle based on the issues you stated.


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[pb4uski]

Quote:

Originally Posted by haha What has already been done questions these assumptions. Look at the low income thresholds for Medicare premium increases. This is so far from "wealthy" that it is laughable. The first step-up comes at $85k for a single taxpayer. That is adjusted AGI, and all the adjustments increase AGI, not decrease it. This amount, and the higher steps are not inflation adjusted. Ha

Given that the median household income is about $54k, $85k for a single ($170k for MFJ) IS wealthy by comparison.

The lack of inflation adjustment is the stealth increase.

[imoldernu]

Didn't want to begin a new thread, so will pop this related article in here.
It may not affect anyone here, but the $1.3 Trillion in student loans will not disappear, and the compounding could affect many who will be expecting Social Security.

Quote:

One would think that Janet Lee Dupree, 72, a self-professed HIV-infected alcoholic, would be slowly putting aside material worries as she prepares to set the intangibles in her life in order for one last time. One would be wrong. Janet Dupree has had her wages garnished As she admits, "I am an alcoholic and I have HIV," she tells the BBC. "That's under control." So what is the cause of most if not all consternation in the final days of Dupree's life? "I was sick and I didn't worry about paying back the debt." As a result, Dupree defaulted on her loan, and since she turned 65 she has had money withheld from her Social Security benefits.

Meet Janet Dupree:72, Alcoholic, HIV-Positive, $16,000 In Student Debt: "I Won't Live Long Enough To Pay It Off" | Zero Hedge

More info on what can be garnished, from BankRate:

http://www.bankrate.com/finance/reti...rnished-1.aspx