Social Security at 70

[daylatedollarshort]

We took SS at 62 and pensions at 55. Even with taking them all as early as possible, combined they cover most of our retirement expenses, so we can let the portfolio grow for our kids. Numbers wise, when to take SS has a pretty low impact on our retirement funding, compared to other actions we've taken like shopping at Grocery Outlet instead of the local supermarkets and joining seat filler programs.

 

[11522914]

You may wish to find less boring hobbies in your retirement

Reminds me of the proverb

One man's trash is another man's treasure

[emoji16]

 

[Imackenzie]

Great diversity on this site...

I love the fact that we have people on this site agonizing on how much to spend who have six figures of guaranteed income and folks who go to the Grocery Outlet and are pretty happy in retirement. I fall somewhere in between. No pensions (well, some pitiful remnants from jobs long a go--540 and 175) but still managing to retire at 59 and make it through so far (6 years) while not feeling poor. That's the point--however much you need to not feel poor, is enough.

We took SS at 62 and pensions at 55. Even with taking them all as early as possible, combined they cover most of our retirement expenses, so we can let the portfolio grow for our kids. Numbers wise, when to take SS has a pretty low impact on our retirement funding, compared to other actions we've taken like shopping at Grocery Outlet instead of the local supermarkets and joining seat filler programs.

 

[pb4uski]

I love the fact that we have people on this site agonizing on how much to spend who have six figures of guaranteed income and folks who go to the Grocery Outlet and are pretty happy in retirement. I fall somewhere in between. No pensions (well, some pitiful remnants from jobs long a go--540 and 175) but still managing to retire at 59 and make it through so far (6 years) while not feeling poor. That's the point--however much you need to not feel poor, is enough.

LBYM is a very powerful tool whether you practice it during accumulation or during retirement.... ditto for living within your means.

Unfortunately a deep, dark secret to much of the populace.

 

[daylatedollarshort]

I love the fact that we have people on this site agonizing on how much to spend who have six figures of guaranteed income and folks who go to the Grocery Outlet and are pretty happy in retirement. I fall somewhere in between. No pensions (well, some pitiful remnants from jobs long a go--540 and 175) but still managing to retire at 59 and make it through so far (6 years) while not feeling poor. That's the point--however much you need to not feel poor, is enough.

A lot of the posters who have 6 figures in retirement income probably are the Grocery Outlet shoppers, at least if you believe in the data from The Millionaire Next Door. The second chapter of that book is titled Frugal, Frugal, Frugal.

 

[MarieIG]

LBYM is a very powerful tool whether you practice it during accumulation or during retirement.... ditto for living within your means.

Unfortunately a deep, dark secret to much of the populace.

 

[TheWizard]

A lot of the posters who have 6 figures in retirement income probably are the Grocery Outlet shoppers, at least if you believe in the data from The Millionaire Next Door. The second chapter of that book is titled Frugal, Frugal, Frugal.

I'm a six-figure retirement income single person. I'm not sure what Grocery Outlet is, but I tend to buy the sales at my local grocery chains, including live lobster recently at $9/lb and fresh cod at $11/lb...

 

[jollystomper]

LBYM is a very powerful tool whether you practice it during accumulation or during retirement.... ditto for living within your means.

Unfortunately a deep, dark secret to much of the populace.

I wonder, if you walked up to 10 strangers and asked them "what does LBYM stand for?", how many would have the right answer.

 

[harllee]

Probably most people don't even know you can delay SS until age 70. It is not a concept in their realm of possibilities.

 

[Koolau]

I wonder, if you walked up to 10 strangers and asked them "what does LBYM stand for?", how many would have the right answer.

I wouldn't count on even one being familiar with the term - certainly only based on the acronym.

I've recently watched a couple of those "man on the street" interviews in which the interviewer (not a name TV personality) asked questions about such subjects as US gummint structure. How many Supreme Court Justices are there? How many states are there? How many Senators do each state have? What countries does the USA share a border with?

USA history is another MOTS interview I thought was hilarious (frightening but hilarious.) Who was the first President? What is the Declaration of Independence? How many stars are on the USA flag? How many stripes are there on the USA flag. What are the colors on the USA flag. Who fought in the US Civil War and who won it? From whom did we win independence as a nation?

The interviewer picked a significant cross-section {young/old, male/female, various races, various (apparent) socioeconomic status, etc.}

If 60% is failing, we may be in trouble - LBYM would be worse, I'm guessing but YMMV.

 

[Time2]

Probably most people don't even know you can delay SS until age 70. It is not a concept in their realm of possibilities.

I just ran across this chart, At first I was surprised, then I thought about how many people actually save a large nest egg, and maybe it's not so surprising. Only 3.7% of people collect at 70 years old. (I don't know the date of this) EDIT: Looks like this chart was 2018, So far I don't find an update.

 

[athena53]

A lot of the posters who have 6 figures in retirement income probably are the Grocery Outlet shoppers, at least if you believe in the data from The Millionaire Next Door. The second chapter of that book is titled Frugal, Frugal, Frugal.

That would be me- in some areas. It would KILL me to go over the initial level of data usage on my cell phone plan because, you know, that would add $7 to the monthly bill. I've got the A/C off and the windows open because we've had some rain and it's a bit cooler. When I travel in the summer the thermostat is set to 85. I get my hair cut at Great Clips.

But when I take my granddaughters to Chicago in October? Hilton O'Hare with a view of the runway.

On the OT- I probably posted upthread that I was collecting Survivor benefits on DH's record and started my own at 69 this year. Good decision, especially with the market tanking. My net SS payment nearly doubled although I have to put aside a chunk for the extra taxes.

 

[Rianne]

DH cuts and dyes my hair. I cut DH's hair. We've been doing this since the start of Covid and realized we do a darn good job, better than the pros. Interesting how many services we can do without.
--We rarely clothing shop anymore.
--I'm perfectly fine with the decor in our house. Very minor changes every so often.
--We groom our dog. $20 fur brush and baths in the backyard save $100/groom.
--I stopped worrying about make-up, moisturizers, Ad bait women's wrinkle cream, etc It's all marketing and honestly has no benefit. I have good genes.
--I make Starbucks espresso every morning and continue to be amazed at people in long lines at Starbucks. They sit waiting, cars running on their phones.

And that's my rant for the day. Cutting spending is no issue for us. LBYM is more like don't spend on ridiculous wasteful things. DSRWT.
-

 

[pb4uski]

I just ran across this chart, At first I was surprised, then I thought about how many people actually save a large nest egg, and maybe it's not so surprising. Only 3.7% of people collect at 70 years old. (I don't know the date of this) EDIT: Looks like this chart was 2018, So far I don't find an update.

The reason that age 62 is the highest is because many people live beyond their means, have little retirement savings and their bodies are making the physical work that they do increasingly difficult so they have little choice and have to take SS at 62.

 

[Time2]

The reason that age 62 is the highest is because many people live beyond their means, have little retirement savings and their bodies are making the physical work that they do increasingly difficult so they have little choice and have to take SS at 62.

Sure, I'm not surprised at the number collecting at 62, it was 70 that came to my attention.

 

[ShokWaveRider]

A lot of the posters who have 6 figures in retirement income probably are the Grocery Outlet shoppers, at least if you believe in the data from The Millionaire Next Door. The second chapter of that book is titled Frugal, Frugal, Frugal.

Guilty of being part of the Six Figure RE Income Club, even in this down market. But rarely spend anywhere near it. It is our choice as we are waiting till I am 70 to take SS but DW does claim hers. We will then spend a little more on travel when things have settled down in the Travel departments. It is only a year away, hopefully things will be settled down by then.

 

[MRG]

The reason that age 62 is the highest is because many people live beyond their means, have little retirement savings and their bodies are making the physical work that they do increasingly difficult so they have little choice and have to take SS at 62.

+1
My DS and BIL did that. He quit working at 60 because he was physically unable to continue working. They both took SS at 62 because "it's so small". She continued working for another decade. Their savings and investments are 0.
However when they were working full time there was always a brand new vehicle in the garage.

We're both 65, DW has hers and I'm going to wait. I'm honestly shocked at what mine is supposed to be. I didn't ever make big money but for 20 years I maxed out the contribution. So yeah uncle Sam is supposed to give us 5k monthly.

I really believe financial literacy should be taught in schools. I remember the best class I had taught us how to balance a checkbook.

 

[Winemaker]

I knew a lot of guys that w*rked for me over the years and retired early because with their reduced pension and SS at 62, they could replace their current income at the time. I always asked about their plan for cost of living increases and I always got a blank stare.

 

[ERD50]

I wouldn't count on even one being familiar with the term - certainly only based on the acronym.

I've recently watched a couple of those "man on the street" interviews in which the interviewer (not a name TV personality) asked questions about such subjects as US gummint structure. How many Supreme Court Justices are there? How many states are there? How many Senators do each state have? What countries does the USA share a border with?

USA history is another MOTS interview I thought was hilarious (frightening but hilarious.) Who was the first President? What is the Declaration of Independence? How many stars are on the USA flag? How many stripes are there on the USA flag. What are the colors on the USA flag. Who fought in the US Civil War and who won it? From whom did we win independence as a nation?

The interviewer picked a significant cross-section {young/old, male/female, various races, various (apparent) socioeconomic status, etc.}

If 60% is failing, we may be in trouble - LBYM would be worse, I'm guessing but YMMV.

Getting pretty far off-topic here, but I don't trust any of those "Person on the Street" interviews. I'm certain the directors pick the "interesting" ones.

It would be far more informative if it was a true random selection, no editing (or at least give the unbiased stats along with a few 'entertaining' responses). But to be honest, I'd probably be even more frightened, knowing it was a true representation!

Now that you mention it, I'd estimate that only 1 out of 200 people on TV/radio today express any true knowledge of what the Supreme Court's job is. And this includes commentators and politicians who *should* know (and maybe they do know, but are just posturing). Three branches of government, separation of powers, Constitution... it just gets lost. Sad.

-ERD50

 

[Music Lover]

Sure, I'm not surprised at the number collecting at 62, it was 70 that came to my attention.

Some people waiting until 70 to collect never made it to 70.

 

[crow]

I wonder, if you walked up to 10 strangers and asked them "what does LBYM stand for?", how many would have the right answer.

Beyond or Below?

 

[ERD50]

The reason that age 62 is the highest is because many people live beyond their means, have little retirement savings and their bodies are making the physical work that they do increasingly difficult so they have little choice and have to take SS at 62.

And I think the other bump at ~ 66 (FRA for most) is just inertia and lack of ever looking into and understanding the options. "Oh, it says I can retire now with full benefits, so that's what I will do".

-ERD50

 

[explanade]

With the market down, maybe a good time to put more money in the market so one could argue that's more of a reason to take SS early if one can now.

 

[Time2]

+1


We're both 65, DW has hers and I'm going to wait. I'm honestly shocked at what mine is supposed to be. I didn't ever make big money but for 20 years I maxed out the contribution. So yeah uncle Sam is supposed to give us 5k monthly.

Even though, we will not get as much SS as you, I'm still surprised at what we will get. We are looking at $47,000 a year, our spending is $60,000. If we withdraw $13,000 we are looking at less than a 0.6% withdrawal rate. Although that's today and I won't retire for 2 yrs 8 mo. If we are lucky, the market might be up making that 0.4%

 

[ERD50]

Originally Posted by jollystomper View Post
I wonder, if you walked up to 10 strangers and asked them "what does LBYM stand for?", how many would have the right answer.

Beyond or Below?

Yep, I always thought the LBYM acronym was a rather poor one. Living BEYOND your means always jumps into my mind. Maybe LWWYM would be better "Living Well Within Your Means"?

"SLTYM" Spend Less Than You Make (pronounced "Salt-'Em")?

Reminds me of a joke about the acronym for the Great Lakes ("HOMES" was the one we were taught in school - Lake Huron, Lake Ontario, Lake Michigan, Lake Erie, Lake Superior). So the joke goes:

An acronym for the Great Lakes: "LLLLL":
Lake Huron, Lake Ontario, Lake Michigan, Lake Erie, Lake Superior.

<groan>

-ERD50