Trying to Figure out the best way to guarantee income for the rest of our lives.

[Al18]

In 2022, the maximum SS benefit is $2364 or $28368 per year.

[almost there]

Quote:

Originally Posted by Al18 In 2022, the maximum SS benefit is $2364 or $28368 per year.

Yes, my wife and I are 3 months apart. I used both...
Also taking in Jan 2024. Me 62/4 months, her 62 / 1 month.
Mine is $2175 today + her 33% $718 (we are both 60 as of today)
Should see a 10%+ bump combining both Jan. 2023 and Jan. 2024 increase

[TheWizard]

Quote:

Originally Posted by Al18 In 2022, the maximum SS benefit is $2364 or $28368 per year.

No it isn't.
I get close to $4000/month, but I filed at 70.
Perhaps you mean for filing at FRA?

[braumeister]

Quote:

Originally Posted by TheWizard No it isn't. I get close to $4000/month, but I filed at 70. Perhaps you mean for filing at FRA?

I'm sure he meant filing at 62.

[ShokWaveRider]

Quote:

Originally Posted by Al18 In 2022, the maximum SS benefit is $2364 or $28368 per year.

Not sure where you get that number from.

My projected for 70 (2024) before WEP is currently ~$4,000 a month. A small Canadian Pension will qualify for WEP. DW is currently collecting her SS after WEP has been calculated.

[Al18]

Almost there in post #40 mentioned he would start collecting SS soon at age 62 of 38K per year, which sounded too hi. The number I posted was off SS website for a single earner.

Almost there then clarified the 38K was for him and his wife.

Simple miscommunication - didn’t mean to start a war.

[Gearhead Jim]

DW and I are ages 75/77.

For our own investments, the 4% rule of thumb would allow us to take 4%/$4,000 per year, and increasing with inflation.

A quick look at immediateannuities.com shows that $100k would get us $8,040 per year as long as either of us is alive. That's 8%. No inflation adjustment.

Trying to do the math myself (?), it appears that the annual spending power of the annuity and the 4% rule, would be equal at about the 15 year point if we presume 5% annual inflation. If we both die prior to that, we would have been better off to buy an annuity. If we live longer than that, the 4% rule gets ahead on an annual basis and soon gets ahead on the total payout. (We would not annuitize more than about 25% of our investment).

Although we both seem healthy, still being alive at 90/92 seems questionable. Being alive and having enough brain power and mobility to enjoy the money, seems much more of a long shot.

Thoughts?

[almost there]

From the "One thing that seldom gets mentioned" category
Everyone I have known personally spends less in their 80's than 60's, 70's.
Did a quick search and it seems I am not the only one who noticed.
Maybe its not discussed much here as its "Early Ret.org"
Having been here 13 years now, time is flying by...

"Do retired people spend less as they get older? Apparently, they do. On average, retirees age 60 or older trim their spending by 2.5 percent a year, or by about 20 percent over a 10-year period, according to a new report by United Income"

The other side is Inflation & Health care.
But those in their 80's in my circle hardly spend anything.
They notice the cost of goods / food / gas going up more than most.
It bothers them, but has little effect on their actual finance's.

[MarieIG]

Quote:

Originally Posted by almost there From the "One thing that seldom gets mentioned" category Everyone I have known personally spends less in their 80's than 60's, 70's. Did a quick search and it seems I am not the only one who noticed. Maybe its not discussed much here as its "Early Ret.org" Having been here 13 years now, time is flying by... "Do retired people spend less as they get older? Apparently, they do. On average, retirees age 60 or older trim their spending by 2.5 percent a year, or by about 20 percent over a 10-year period, according to a new report by United Income" The other side is Inflation & Health care. But those in their 80's in my circle hardly spend anything. They notice the cost of goods / food / gas going up more than most. It bothers them, but has little effect on their actual finance's.

Spent a lot on care for DF during his final years. Before that, he liked to spend money on the family, so his spending went up, not down. Obviously YMMV