Social Security at 70

[jollystomper]

Roth conv. if you are just now thinking about it at 62. You have been asleep at the switch. Probably a draw in the end at that point anyway. Converting late in life.

Not necessarily. Some folks (such as us) were not eligible for Roth IRAs until after retirement. We had to wait until the first calendar year after retiring to open Roth IRAs.

It seems to me that taking SS early is a relatively easier decision if one is single or has a spouse with a high SS amount as well. But when married and planning for income for your spouse after you die, that it becomes much more dependent on one's total income and expense picture, both pre- and post-mortem.

 

[Almost There 2021]

SS decision

IMO the decision of when to start taking SS is not based on how long I may live or not. There are so many more "live" decisions to consider.
Be well...

 

[almost there]

Nice username.

 

[kyzymurgist]

Roth conv. if you are just now thinking about it at 62. You have been asleep at the switch. Probably a draw in the end at that point anyway. Converting late in life.

Many of us did think about it. Didn't make sense to convert while working. And then after retirement, the ACA tax credit and subsidies dwarfed any benefit of Roth conversion - $20k last year.

So large conversions for 5 years between Medicare and SS at 70. And maybe smaller ones therafter until 72 (or 75 if SECURE 2 passes the Senate).

I think there are many of us in the same situation.

 

[Dtail]

Roth conv. if you are just now thinking about it at 62. You have been asleep at the switch. Probably a draw in the end at that point anyway. Converting late in life.

Umm nooooo.
There are many folks on this site including myself who had a game plan on when to start doing the Roth conversions. So for many of us, this process doesn't start until we are in our 60's, as too high a tax rate to convert earlier.
ACA tax rebates comes into play too.

So one needs to think about many moving parts and can be well worth it to start converting at 62.
Do the math and eventually you will be "almost there".

Edit: Post #229 was being nice about it.

 

[almost there]

Sometimes I just point out opposing views for lively discussion. And to see different points of view. The problem with these posts, is no two situations are the same.
It's just good to see several situations. And find the one that is closest to your own. So much depends on actual age at retirement. Something that needs to be considered.

 

[Philliefan33]

One thing that has not been mentioned, is taking a distribution from an IRA and using some of it to contribute a Roth. In my case (2) so $14k per year total. When I start pulling from my IRA in 2024. Will do that as long as the law allows.... Rental income should satisfy the income requirement. Just another angle. Worth mentioning.
Thoughts?

Also worth mentioning that rental income is usually considered passive income, not earned income. You would probably need other earned income to qualify for an IRA contribution.

 

[meleana]

My plan (although this can change) is to wait until 70. I can't see taking a benefit at 62 and then see my check get even smaller with the Medicare deduction.

If I die sooner, DH can file for his widower's benefit. I see it as an old age annuity/supplement.

You can have Medicare continue to take premiums from your checking account when you start taking SS at age 70.

Then you won’t have the perception of a smaller SS check. ?

 

[Exchme]

Sometimes I just point out opposing views for lively discussion.

I believe that's called trolling.

 

[MissMolly]

You can have Medicare continue to take premiums from your checking account when you start taking SS at age 70.

Then you won’t have the perception of a smaller SS check. ?

But, if you don't have your premiums deducted from your SS benefits, you aren't protected by the hold harmless agreement for future increases.

 

[pb4uski]

Roth conv. if you are just now thinking about it at 62. You have been asleep at the switch. Probably a draw in the end at that point anyway. Converting late in life.

Sometimes I just point out opposing views for lively discussion. And to see different points of view. ....

I'll have to remember that one the next time I post something foolish and other posters point out how foolish it is.

 

[travelover]

I believe that's called trolling.

+1

 

[Chuckanut]

Sometimes I just point out opposing views for lively discussion.

I would not like it one bit, if people felt they could only support their own point of view. IIRC, in debate contests, one is often assigned the position to advance and defend. It makes for more understanding, more interesting discussions and less of this sanctimonious certainty that plagues social media.

Besides, like my old grand pappy used to say, "If you and I agree on everything, at least one of us isn't thinking."

IMO, trolling has an element of flame throwing in it.

 

[almost there]

Not trolling at all.

70 does not work out as well for some folks.
Sorry I am not in the group think here.

Some of my posts do seem foolish.
But am posting under the assumption of early retirement.
And am forgetting many many posts here are not referring to actual early retirement.
So, sorry about that.

 

[MichaelB]

I can confidently say there is no ER Forum group think on when to begin taking SS.

Most of the discussions are thoughtful, and personal circumstances matter.

 

[imnontrad]

If you have a benefit that is less than what your spouse gets right now, then file.

BUT the (revised in 2020) longevity tables are based on the average life expectancy for everyone born in a certain year - including all those who died as children.
So if you made it until 60 and are in decent health, chances are you will live a lot longer than the "drop dead" date for your year group.
I read somewhere that there is a 50% chance that at least one spouse of a married couple will live past 90.
Chances are you will outlive your husband by many years. If your SS benefit at age 70 is higher than his, hold out. Yes, it may only be a little bit more but that extra money may come in handy later.
You can find out your estimated benefit by establishing your "My SS" account at ssa.gov. The estimated benefit assumes you would continue to work until you reach your FRA but most likely would not change much.

 

[daylatedollarshort]

I read somewhere that there is a 50% chance that at least one spouse of a married couple will live past 90.
Chances are you will outlive your husband by many years. If your SS benefit at age 70 is higher than his, hold out. Yes, it may only be a little bit more but that extra money may come in handy later.

Running out of money living to age 90 or older may be a concern for some here but not everyone. Some of us are still growing our NW in retirement. Many of us have other priorities, like some of us have kids we want to leave money to and others do not.

 

[imnontrad]

Running out of money living to age 90 or older may be a concern for some here but not everyone. Some of us are still growing our NW in retirement. Many of us have other priorities, like some of us have kids we want to leave money to and others do not.

it is not a concern for me either. BUT if you have more than sufficient funds, another reason to delay is to have more "runway" to convert pre-tax retirement accounts to Roth to avoid higher taxes and possibly Medicare premium surcharge (IRMAA) after one spouse dies.

 

[TheWizard]

it is not a concern for me either. BUT if you have more than sufficient funds, another reason to delay is to have more "runway" to convert pre-tax retirement accounts to Roth to avoid higher taxes and possibly Medicare premium surcharge (IRMAA) after one spouse dies.

I'm not familiar the "runway" term, but I totally agree with delaying SS to allow more HEADROOM for Roth conversions...

 

[daylatedollarshort]

it is not a concern for me either. BUT if you have more than sufficient funds, another reason to delay is to have more "runway" to convert pre-tax retirement accounts to Roth to avoid higher taxes and possibly Medicare premium surcharge (IRMAA) after one spouse dies.

I think most of us look at many factors in making our individual claiming ages decision - inheritance, future shortfall projections, taxes, Roth conversions, ACA income limits, spousal benefits, income diversity, longevity insurance, etc.

 

[RockLife]

Living to 100 Calculator

I am 64 and have not started collecting SS yet but for the past couple of months I have been reading the obituaries online in our daily paper and am kind of shocked at the number of premature departures so to say. Many in their late 70's or early 80's. I know this is in not an actuarily sound way to predict life expectancies but something I think about.

My breakeven age if I wait until 70 is about 82 but like the OP said I want to enjoy my SS while I am still in decent shape. Planning to collect starting next year in conjunction with Medicare.

This is more actuarial than anecdotes, and in fact, may be better than insurance tables because it is actual questions about your lifestyle. It's also entertaining: https://www.livingto100.com/calculator

 

[Lakedog]

Thought about waiting until 70 but decided to start along with medicare at 65. My SS benefit is small (around $1000) due to WEP so waiting does not make that much difference as I am not planning Roth conversions. I'm single and not concerned about longevity insurance as my pension more than covers expenses, and the SS payments are just added to investments. Everyone's situation is different so no one size fits all when it comes to SS decision.

 

[athena53]

This is more actuarial than anecdotes, and in fact, may be better than insurance tables because it is actual questions about your lifestyle. It's also entertaining: https://www.livingto100.com/calculator

Thanks! It did ask for an e-mail address, but I provided one and I'm expected to live to 99. Wow. Dad was in LTC his last two years and died at age 90- I hope I don't linger in that state.

These discussions always bring up new things to consider even though "When should I file for SS" is a frequent topic here. As others have said, we're all different; investment returns and tax law changes can impact our decisions as well.

 

[daylatedollarshort]

Thanks! It did ask for an e-mail address, but I provided one and I'm expected to live to 99. Wow. Dad was in LTC his last two years and died at age 90- I hope I don't linger in that state.

These discussions always bring up new things to consider even though "When should I file for SS" is a frequent topic here. As others have said, we're all different; investment returns and tax law changes can impact our decisions as well.

It can get down to pretty individual factors. We live in a state with poor asset protection laws, so will do some Roth conversions but aren't as eager as others to take money our of 401K plans with ERISA protections. Keeping money in the 401Ks is cheap asset protection. But that is just one of many factors we considered.

 

[Fermion]

It can get down to pretty individual factors. We live in a state with poor asset protection laws, so will do some Roth conversions but aren't as eager as others to take money our of 401K plans with ERISA protections. Keeping money in the 401Ks is cheap asset protection. But that is just one of many factors we considered.

Another reason we may want to set up a 72T instead of rolling 401K money over to IRA then converting to Roth. You have more protection if the money just stays in the 401K.

At some point I want to drop this ridiculous $510 a year premium for $1m of umbrella policy and some other insurances.