Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
70 is the right answer for meI know. But it's the right answer for me.
Funny, no one says "your welcome to your views" to those who want to wait until 70
70 is the right answer for meI know. But it's the right answer for me.
Funny, no one says "your welcome to your views" to those who want to wait until 70
70 is the right answer for me
I took mine early simply because I find it easier to rationalize spending 'their' money rather than mine. ...
I took my SS as early as possible. My wife, a retired teacher, never participated in SS. She is not eligible to receive benefits. And, if I pass before her, she is not eligible for survivor benefits, on my record, due to her pension, and IRS WEP exclusion.
We decided to take my benefit, and funnel it into our portfolio. In this way she will get a greater benefit if I check out first. So far, this plan is working out very well.
I took my SS as early as possible. My wife, a retired teacher, never participated in SS. She is not eligible to receive benefits. And, if I pass before her, she is not eligible for survivor benefits, on my record, due to her pension, and IRS WEP exclusion.
We decided to take my benefit, and funnel it into our portfolio. In this way she will get a greater benefit if I check out first. So far, this plan is working out very well.
One thing to keep in mind is that the reason that so many people take SS at 62 is that they have no significant savings so they realistically have no other choice. Wealth give you choices that other people don't have, so let's count our blessings.
I just cannot imagine how it would be to lose your job, have no savings, have to take SS at age 62 and try to live off SS only. I know some people in the unfortunate situation and it is very tough. Watch the movie Nomadland for an idea what is is like. Most of us on this Forum are so fortunate.
Just an update that the Social Security web site now shows a very nice graphical display of the benefit levels vs. age, future annual salary, spouse, etc.
Yeah....no. At least not for me (DOB in 1963). It would have been a nice bit of money to tide me over as I STILL would like to wait until I'm 70 to collect my own, but it has since been disallowed.My plan was always to wait until age 70, if possible, which seemed prudent due to some familial longevity.
But then, Katsmeow and others on this forum explained how I could take divorced spousal SS, equal to 1/2 of the amount he was getting, at age 66. Then at age 70 I could switch over to the full, unreduced amount of my own SS based on my own work record. So I did that. (THANK YOU!!) Don't know if that is still possible but it was then. What a windfall!
For the poll I said "age 70".
If one truly needs the money to live on, then no real decision to make.
If one is deciding on using other funds or using SS to support their lifestyle, then the decision gets more complicated.
I don't think it has to be too complicated.Right.
I'm wondering what a proper metric would be.
I delayed seven years from start of retirement at 63 until starting SS last year at 70.
I had pension/annuity income as a base and withdrew $3000/month from tax deferred in lieu of SS for seven years.
If that $3000/month, $36k/year, had been 10% of my total retirement savings would that have been inadvisable?
What if it was just 4% of my accumulation per year?
That would be OK, right?
We need metrics to allow proper planning...
+1I don't think it has to be too complicated.
Figure out what you feel is a safe withdrawal rate on your retirement savings. Use a side fund for income until you start social security. If the SWR works with the rest of your savings, and the side fund doesn't drain your savings too low that you can't handle an unexpected or uneven expense, then you're good. If the SWR works but you run your savings too low, recalculate by taking SS earlier and see if that works.
What "too low" for savings is up to you. But for an example, if SS+pension+annuity just barely covers all of your expenses, I wouldn't want to run my savings down to $10,000 or anywhere close to that. But in that case you probably retired too early anyway. Maybe the "too low" number is $100K. I'm not facing that so I haven't really thought about it.
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.Break even calculations (should) consider investment return on your social security dollars that you take early. Either you don't spend the SS money or you don't deplete some other investments. It really doesn't matter which way, it's all the same pot of money. The numbers can change based on your rate of return assumption, but there is a return on that money. If you aren't able to invest, it means you need the SS money to live, so there's no option but to take it early.