Poll: When Did You/Are You Planning to Start Soc Sec?

[skyking1]

What colors that rate of return calculation is the fact that we are nearing the part where we no longer want to play, to do the higher yield investment. I am not looking for growth when I get into SS age, my goals are shifted to security.
I will also qualify that by having no heirs but our favorite charities, so it is BTD all the way baby!

 

[vrijheid]

I’m just guessing this group will poll differently than the mainstream, though there are perfectly legit reasons to start early or late regardless. I’m not asking for anyone to explain, just curious how an ER.org poll pans out.

As a widow, I am eligible to take my husband’s social security at age 60. However I have chosen to take my own smaller ss benefit at 62 (starting April) and allow my husband’s ss to grow until my widows reduced FRA of 66 and 6 months. Once I reach my reduced widows FRA of 66 and 6 months, my husband’s benefit will no longer increase per SSA and therefore there is no benefit to wait until I’m 70.

 

[SloHan]

My thoughts were to wait till my FRA 67.

 

[RunningBum]

It always amazes me how little attention expected rate of return gets in these discussions, but the choice of rate can swing the decision. And the somewhat counter intuitive idea that in many cases, one can get fewer dollars from the treasury while having more money to spend in retirement is hard to grasp. A decent stock allocation and an expected return equal to what happened in the past might yield unexpected results. I'm only now entering the decision zone. The plan has been 62&70, but I plan to think more about that, given now I could actually do something actionable. Sad that I can no longer put it off.

My thinking is that if I get a good rate of return, I'm less reliant on SS. But a combination of a bad return plus living long could be trouble. I'd like to handle this worst case, so the longevity insurance of waiting until 70 seems right to me. But another possibility is high inflation, and I'm not sure that SS bumps will keep up with actual inflation.

 

[MrLoco]

Then you were fortunate not to have made poor life choices.

Disagree. Since fortunate implies luck. I believe I was smart enough not to make poor life choices early in life. Nothing to do with fortune.

 

[Dtail]

My thinking is that if I get a good rate of return, I'm less reliant on SS. But a combination of a bad return plus living long could be trouble. I'd like to handle this worst case, so the longevity insurance of waiting until 70 seems right to me. But another possibility is high inflation, and I'm not sure that SS bumps will keep up with actual inflation.

The inflation multiplier for SS increases is an interesting point which isn't typically discussed in detail.
IIRC, the current multiplier does not really reflect a true inflation rate or even more importantly a senior inflation rate.

 

[Gumby]

Disagree. Since fortunate implies luck. I believe I was smart enough not to make poor life choices early in life. Nothing to do with fortune.

Well, then, let's take another step back. You were fortunate to have been born with the intelligence and self discipline that enabled you to avoid poor life choices. But then, I suppose, you might claim that you chose your parents wisely.

The bottom line is that there is some unearned good fortune that contributed, at least in part, to each of our successes. And we should have the humility and grace to accept that. It is not a denial or denigration of our own efforts to do so.

 

[pb4uski]

It always amazes me how little attention expected rate of return gets in these discussions, but the choice of rate can swing the decision. And the somewhat counter intuitive idea that in many cases, one can get fewer dollars from the treasury while having more money to spend in retirement is hard to grasp. A decent stock allocation and an expected return equal to what happened in the past might yield unexpected results. I'm only now entering the decision zone. The plan has been 62&70, but I plan to think more about that, given now I could actually do something actionable. Sad that I can no longer put it off.

When you include the time value of money into a financial analysis of SS you really need to use a real return since the cash flows... SS benefits increase with inflation.

 

[Bigdawg]

Currently 55. Today's vote is 65. A few reasons: #1 want to start along with medicare so there is a net increase in incoming funds per month at age 65. #2. End of work (soon) until 65 will be ROTH conversions. #3. The value of a dollar (to me)(utility for me) is less over time. A dollar to me at 62-65 has much more utility to me than more dollars at 70 plus. Plan is for higher priced purchases/trips earlier in RE #4. Mutiple pensions so don't need it.

DW-Currently 49. Plans to work until 52-55. Her plan for SS is 70. Reasons: #1. Our earnings are basically equal so no spousal. #2. I have term life which ends at her age 70. At her 70 she will have 2 pensions plus SS which will roughly be 130K/yr. DW waiting until 70 ensures zero reliability on me. House will be paid and her cola pensions will give her a smooth ride when I am taking the dirt nap. Also her TSP will be fully converted to ROTH at that point so easy taxes (we hope).

 

[RetireBy90]

70 for me, to maximize DW’s SS ongoing after I die.

This has been my plan also. Plus it gives me a couple years of more room for Roth conversions.

 

[tb001]

Disagree. Since fortunate implies luck. I believe I was smart enough not to make poor life choices early in life. Nothing to do with fortune.

I, on the other hand, was supremely lucky that none of my many poor life choices early in life derailed ER!

But back on topic... we chose 62 for DH because we have young kids, so assuming nothing changes in the next 4 years, will receive a significant benefit because of them for several years. It’s my understanding that this skews the payback window significantly.

I’m not sure what we’ll do for me yet, but we’ll wait until at least 65 unless there’s a compelling reason not to. My benefit is much less than DH’s. We both have longevity in our family, though his is longer.

 

[Mossa33]

Planning on 70

 

[Still Learning]

Prior to retiring at 61 had planned to take SS at 68. Then after a few spread sheet studies found we could take SS at 62 which would pay for all living expenses plus some elective spending with a pension. This allowed us not to take a withdrawal from investments which continue to grow faster than SS ever would if we waited until 68.

 

[stepford]

If I delay SS until 70 it will just about cover the tax torpedo heading for me at 72.

 

[TheWizard]

If I delay SS until 70 it will just about cover the tax torpedo heading for me at 72.

If you levelize your AGI by doing Roth conversions in the years prior to age 72, you will then have a seamless transition when RMDs start
That's what I've been doing...

 

[RobLJ]

Open SS is recommending DW take at 62 and me and 70 (her FRA benefit is higher but I assume this is because I'm 4 years older).
So that's the plan..... for now. If the market is really high then, we might delay a year or two on her claiming. If it's really low, I might take mine in a little less than 4 years, at my FRA. SS is useful as an option on markets.

 

[Nature Lover]

I was planning on 70, but Open SS says I get better value at 69 and 1 month. I'll check again in 8-9 years (I'm 60 now), and adjust the plan depending on how things change. I'm single, so no spousal considerations at present.

 

[BlueberryPie]

I always thought 70 (max forever in case I live long)
If I did early, I may leave money on the table but then again, I won't need it.

And also, this calculator told me so
https://opensocialsecurity.com/

Actually it was helpful figuring out when my wife should claim

 

[littleb]

Currently too much money in TIRA's which are slowly being converted to ROTHs. Keeping an eye out on tax rates to ensure this plan is the most efficient for RMDs. SS at age 68 or so.

Pain today or pain later. [emoji856]

 

[F.I.R.E User]

62 has the lowest payouts so why not 70?

 

[RobLJ]

I myself am proud that I blundered into making the right choices, chief of which I inherited the right genes, unlike my twin who made the bad choice of inheriting the very rare progressive myclonic disease that disabled him, then killed him at 40. (Obviously we were fraternal twins.)


I went through university and grad school believing that meant I should not fail or I was betraying my good fortune. I never believed that I was not lucky; I just had to look at my twin.

All y'alls mileage will vary; I just know I was lucky as hell and it still haunts me.

Disagree. Since fortunate implies luck. I believe I was smart enough not to make poor life choices early in life. Nothing to do with fortune.

 

[inmypryme]

The fallacy of "waiting" to collect social security

If you are a savy disciplined intelligent investor/money manager/professional,you know that you can obtain a far greater return by taking present day/value dollars,and investing them in a high yielding vehicle.A simple vanguard mutual fund/etf,(the best in class and no/low fees/expenses),historically yields at a minimum in the 10% range excluding dividends and reinvestments.That alone,militates against "waiting" for several years for the government to "give" you an extra 4% to 8% on your initial "early" social security payout.Also,if you are in a higher income/net worth level,the taxes on any benefit will no doubt increase substantially in the future and/or result in decrease benefits and means testing.I am a well to do quite accomplished attorney,ceo and member of the accredited investor class,and there is absolutely no logical and/or rational rationale to wait one extra day to collect social security benefits for the reasons aforementioned,leave alone the program solvency and life expectancy risks to boot.Godspeed and Namaste,Stuart Rothenberg Esq.

 

[Don46]

SS when to take it.

I took mine at 66 on the advice of my accountant and based on the short lifespan of males in my family. I will break even at about 85, I remember my accountant telling me. I’m 75 now. I’m not so sure we took taxes into account there., but no regrets. It all depends on when you plan to die, doesn’t t it?

My wife is waiting until 70, which is this summer so she will have a nice monthly check in addition to her pension and her RMD.

 

[Poweruser]

Currently 60, planning on 70. DW is 8.5 years younger and has a much lower PIA so the goal is maximize the survivor benefit. This also allows for Roth conversions.

 

[joedil]

I'm holding out to age 70 (am now 68) when my benefit will increase from around $2300 at age 66 to a little over $3000 at age 70. Been collecting a spousal benefit of $1056 since 66....it's working out fine....