Social Security (revisited)

[pb4uski]

Quote:

Originally Posted by USGrant1962 False. At age 62, life expectancy for a male is ~20 years (82) and for a female is ~23 years (85). https://www.ssa.gov/oact/STATS/table4c6.html But the whole point of claiming at 70 (i.e., annuitizing) is cheap longevity insurance. That is insuring against the chance that you are the 50% that lives past 82/85, especially if you live long past. Or, even more importantly and likely for marrieds, that one of you does.

Exactly. Plus the 4% or 7% are not a sure thing, especially in this low interest rate environment.

However, the fact that the OP's wife didn't work throws a wrinkle. I'd see what opensocialsecurity.com recommends.

[troutnut1]

I went through all this and forgot to look into the most important variable in the equation which is life expectancy. Finally at 67 I went for a lung CT scan to rule out lung cancer due to my smoking history. No cancer, but turns out I have “severe emphysema”. That surprised me as I quit smoking 20 years ago and ski 70 days a year with no symptoms. But I changed my mind about waiting until 70 and claimed immediately. My heirs can get a stepped up basis on most of my estate, but they won’t get anything on my SS. I should have had all my medical tests done at 62 and made the decision based upon that. I don’t plane on checking out anytime soon, but I am unlikely to set any new longevity records either.

[Sarah S]

Quote:

Originally Posted by ivinsfan Why should a divorced couple be treated more favorably then a married one? So they need to query SS, that's what they have to do.

A married couple at least in theory will make decisions as a team for their mutual benefit. A divorced couple is different. Ex spouse a may have decided for their best interest to delay until 70 which may put ex spouse b in a bad situation if they do not have a decent ss amount on their own record.

[ivinsfan]

Quote:

Originally Posted by Sarah S A married couple at least in theory will make decisions as a team for their mutual benefit. A divorced couple is different. Ex spouse a may have decided for their best interest to delay until 70 which may put ex spouse b in a bad situation if they do not have a decent ss amount on their own record.

You do understand that allowing one person to draw a spousal before the ex or current spouse files for benefits is a huge advantage..Why should divorced couples be treated better then married ones. Open it to everyone or no one that's my viewpoint.

[Ducati52]

Here's a good, free Social Security calculator:
https://opensocialsecurity.com/

Of course, it doesn't take a myriad of personal variables into account, but it will at least get you started.

If you want more personalized advice/information, here's a firm one of my friends used and recommended highly:
https://www.premiersocialsecurityconsulting.com/

[Midpack]

Quote:

Originally Posted by Ducati52 Here's a good, free Social Security calculator: https://opensocialsecurity.com/

+1. A very good FREE resource IMO. Make sure you add the additional info if applicable.

[Chuckanut]

Quote:

Originally Posted by USGrant1962 But the whole point of claiming at 70 (i.e., annuitizing) is cheap longevity insurance. That is insuring against the chance that you are the 50% that lives past 82/85, especially if you live long past. Or, even more importantly and likely for marrieds, that one of you does.

+1 Given that my dad hit almost 90 and my mother hit 92..... And both did that without the more intense attention to health that my generation seems obsessed about.

Also, in the event of LTC needs that go far beyond the normal time (which is under three years), the extra money would help out.

[Maidensong]

Start SS as soon as practicable for you. If leaving an inheritance is a consideration, your heirs, other than your wife) cannot inherit your SS unless she files for spousal benefits. So why not use SS now and save your other assets?

[MisterBill]

Quote:

Originally Posted by skipro33 Just collect and let accumulate the $216,000, investing it until age 70. $2250 a month at a conservative 4%, you would have over $250,000. At 7% you would have over $285,000. Then take the draw down on that for your life expectancy (84 years old or 14 more years at age 70) along with the original SS @ 62 of $2,250. At 4%, that would be $2000 a month along with the $2250 for $4450. Much more attractive than the $3960, and at 7% savings rate, add another $700 a month to that for $5150 a month. Plus, if something should happen to you or to SS, you'd have a nest egg built up that is inheritable. SS is not.

You forgot about income tax you'll pay on the SS payments and possible earnings.

[MisterBill]

Quote:

Originally Posted by Chuckanut +1 Given that my dad hit almost 90 and my mother hit 92..... And both did that without the more intense attention to health that my generation seems obsessed about.

My father died a year ago just short of his 95th birthday and his mother almost made it to 100. I'm planning to wait until 70. My wife, who worked but whose SS benefit is less than her spousal benefit will be, will start collecting at FRA next spring since there is no benefit to waiting longer.

[2retireearly]

I would imagine taxes should be a consideration. 50% of SS is taxable. 100% of IRA (unless roth) and 401k are taxable. Play with the numbers knowing those 2 variables.

[RunningBum]

Quote:

Originally Posted by 2retireearly I would imagine taxes should be a consideration. 50% of SS is taxable. 100% of IRA (unless roth) and 401k are taxable. Play with the numbers knowing those 2 variables.

Up to 85% of SS is taxable.

[2retireearly]

Quote:

Originally Posted by RunningBum Up to 85% of SS is taxable.

F

True, I was thinking of my elderly parents, who at the end were living only on Social Security:

For 2019 and 2020 tax years, single filers with a combined income of $25,000 to $34,000 must pay income taxes on up to 50% of their Social Security benefits. If your combined income was more than $34,000, you will pay taxes on up to 85% of your Social Security benefits.

[GenXguy]

Quote:

Originally Posted by RunningBum Up to 85% of SS is taxable.

And as little as 0%.

[Out-to-Lunch]

Quote:

Originally Posted by Maidensong Start SS as soon as practicable for you. If leaving an inheritance is a consideration, your heirs, other than your wife) cannot inherit your SS unless she files for spousal benefits. So why not use SS now and save your other assets?

Because you do not know how long you will live! You cannot know whether your heirs will be better off if you claim early or late until the will is being executed.

[RunningBum]

Quote:

Originally Posted by GenXguy And as little as 0%.

Yep. Though OP was talking about trying to stay under $170K/yr so I suspect 85% applies.

[Vacation4us]

Can an ex spouse collect on the ex’s SS record even if remarried? Although I worked PT income was low for me except the last 10 years. Was married 18 years prior to new marriage. Pretty sure 50% of ex’s SS would be higher than 100% of mine. New DH gets no SS benefit.

[Dash man]

Quote:

Originally Posted by Vacation4us Can an ex spouse collect on the ex’s SS record even if remarried? Although I worked PT income was low for me except the last 10 years. Was married 18 years prior to new marriage. Pretty sure 50% of ex’s SS would be higher than 100% of mine. New DH gets no SS benefit.

No.

[CRLLS]

According to the SSA:

Quote:

Surviving Divorced Spouse If you are the divorced spouse of a worker who dies, you could get benefits the same as a widow or widower, provided that your marriage lasted 10 years or more. Benefits paid to you as a surviving divorced spouse won't affect the benefit amount for other survivors getting benefits on the worker's record. If you remarry after you reach age 60 (age 50 if disabled), the remarriage will not affect your eligibility for survivors benefits.

I think your situation is somewhat special in that your current spouse is not entitled to SS benefits. I cannot find info on that situation. It is definitely worth talking to the SSA.

[Chuckanut]

Quote:

Originally Posted by 2retireearly For 2019 and 2020 tax years, single filers with a combined income of $25,000 to $34,000 must pay income taxes on up to 50% of their Social Security benefits. If your combined income was more than $34,000, you will pay taxes on up to 85% of your Social Security benefits.

And those numbers are not adjusted for inflation.