Claiming Social Security: Decision Tree

[Midpack]

There is no one right answer, here's a good resource for those who are comfortable with flow charts. Mostly hinges on other sources of income (before claiming SS) and expected longevity.

 

[Luvtoride]

Thanks Mid...that's the million $ question....expected Longevity (and living WELL).

 

[qwerty3656]

"Do you have other sources of income" is the 1st question. I don't like how it's worded. What if you have no income, but have a big pile of stocks?

 

[jollystomper]

Interesting that it did not include a question about having a spouse, as that is part of the decision tree in that many in marriages wait to maximize the survivors benefit.

 

[MarieIG]

Interesting that it did not include a question about having a spouse, as that is part of the decision tree in that many in marriages wait to maximize the survivors benefit.

Yes, that occurred to me as well.

 

[Midpack]

"Do you have other sources of income" is the 1st question. I don't like how it's worded. What if you have no income, but have a big pile of stocks?

Your nest egg, in whatever form, is a source of income. Dividends, CGs, withdrawals.

 

[GenXguy]

The chart misses a big reason for me to delay SS until at least 65. That's to keep income lower to have more affordable health care through the ACA. But honestly, I expected that, like how most online articles on the topic of retirement savings and SS are often missing things and are off.

 

[Aerides]

Another factor is marriage. In a lot of cases, it makes sense for one to file early, the other to wait for FRA. And the answer might be different than if one were single.

But yeah managing to the ACA under 65 is a big factor too.

 

[RunningBum]

I would probably change "Do you EXPECT to live past 77/81" to "Do you have a reasonable chance to live past 77/81 and want to provide for the largest benefit IN CASE you live past 77/81".

Wordy, yes, but I often see a comment from people who mockingly say that some people "know" they WILL live past 81 (or longer). I don't know when I will die, but in case I live long I want to be better covered. If I don't live that long, I already know I have enough to cover everything. If I develop a terminal illness or have other high risk of dying in the near future, of course I will take SS sooner.

 

[Dtail]

The chart misses a big reason for me to delay SS until at least 65. That's to keep income lower to have more affordable health care through the ACA. But honestly, I expected that, like how most online articles on the topic of retirement savings and SS are often missing things and are off.

Yup, that was my guiding factor, plus small lump sum pension at 65.
So my decision tree starts at 66 through age 70.

 

[Healthy Lifestyle]

Did I miss something? What about delaying SS until age 70 for Roth conversions?

 

[MarieIG]

Did I miss something? What about delaying SS until age 70 for Roth conversions?

Leaving additional room for Roth conversions is one of my motivations. DH, the higher earner / longer worker is delaying to increase the survivor's benefits.

 

[Koolau]

Did I miss something? What about delaying SS until age 70 for Roth conversions?

Leaving additional room for Roth conversions is one of my motivations. DH, the higher earner / longer worker is delaying to increase the survivor's benefits.

Both of these reasons are why we waited until 70 for the higher earner. YMMV

 

[pb4uski]

Same here.