W2R
Moderator Emeritus
I'm curious why are you delaying SS since your pension is so small . Wouldn't it be better to let your savings grow rather than depend so heavily on them ?
- I am not planning to take social security for 4-9 years after I retire, nor do I plan to rely on it since in my case it will be pretty small (and possibly non-existent at some point). I have saved more than will be required to "pay myself social security" during these years just since December.
- At 62 I will be getting exactly the same small pension (a whole $535/mo or less after taxes) as a 50 to 55-year-old "early out" retiree from my job
Only if the market is on the upswing. My plan is to have enough fixed income to survive. Then, especially during those crucial first ten years, I will only have to withdraw from my main nestegg when the market has done pretty well. During those good years, or I think even at an SWR of 4%, it will provide the majority of my income whether I spend it or not.
Like most people, I have customized my retirement plan for me. When it comes to spending, I have a lot in common with Khan (though he is definitely the King of Frugality in my opinion). I don't think I could spend $2K/mo (in 2007 $) if my life depended on it. I don't ever want to have to worry about where the first $1K/mo to $1.5K/mo is coming from, though.
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