WaPo on seniors delaying SS in the wake of the pandemic

[RetMD21]

Me too!

But what do you do, Sell some stocks and have more bonds, If/when rates go up bonds lose value. Go to cash, then hope for what, a tanking market where you lose value of the stocks you still own, or hope stocks keep growing and wishing you had stayed in stocks. I'm contemplating selling some and holding cash. Being up 35% over two years is scary, but that is illogical.

Yeah, there's no great place to put those investment returns. I have short term bond funds with low yields but maybe that will look good in retrospect. I am not counting on outsized future returns so guaranteed inflation indexed future payments look more attractive.

 

[Dash man]

I decided to take SS at 64-10, but DW (same age) won’t consider it until FRA, but may wait until 70. Hers will be higher than mine, so it’s best she be the one to wait. The main reason I took SS early is because of some chronic health issues that will likely not let me get into my 80s. But who knows? Either way we’re fine and taking SS early doesn’t affect anything significantly. If my health prospects were better I would have waited.
When I applied in June it was by telephone appointment and was very easy. I was approved the same day and got my first deposit in July. I highly recommend it.

 

[Lisa99]

When I run Firecalc there is virtually no difference in spending level regardless of when I take SS from ages 62 to 67. So I'm not understanding why waiting is advantageous.

I'll be single soon so it's just my SS to consider rather than filing on a spouse first.

 

[Andre1969]

I've run my FireCalc numbers from time to time, for taking SS from every year from age 62 to age 70. The chance of success remains about the same, no matter what year I decide to take SS. So, I never really put that much thought into it, and just figured I'd start taking SS at 62, so I wouldn't have to rely so heavily on my own investments right away.

However, the only thing I really looked at was the chance of success. I didn't pay much attention to how different years for SS affected the average portfolio balance. And, with the way the stock market has run up in recent times, the withdrawal amount I'm shooting for each year is suddenly pretty paltry, so I suddenly find myself with a 100% chance of success even if I never get any SS at all. So, I guess I need to learn how to spend more money!

However, that's only my experience. As the old saying goes, your mileage will vary!

 

[RetMD21]

When I run Firecalc there is virtually no difference in spending level regardless of when I take SS from ages 62 to 67. So I'm not understanding why waiting is advantageous.

I'll be single soon so it's just my SS to consider rather than filing on a spouse first.

on average you end up with more lifetime payouts by waiting although it may not matter

 

[Sunset]

Covid actually pushed me back for a year. (Since I would be "trapped" I figured I might as well be "trapped" at work.) Otherwise, I have been doggedly, if someone slowly, ticking off the boxes, and my retirement was pre-planned. However, another DGC is making an appearance and the kiddos need our help, so for me, the jig is up.

I've considered taking a job, as a replacement for the lack of travel as I sometimes feel "trapped" at home/neighborhood.

 

[Perryinva]

Whether I file sooner or later (now 64) has zero effect on spending. This year I started automatic withdrawals of roughly (though definitely lower) monthly amounts from tIRA as SS. Portfolio is still 100k higher than the beginning of the year. We literally have not once not done or bought something we wanted due to cost. (Of course, we have a solid base in pensions and DW is already collecting, so base expenses are always covered). We have repeatedly discussed that leaving a large inheritance vs not doing what we want is absolutely not acceptable. I hate to say “BTD” because it sounds wasteful, and we don’t spend money just to spend it. No reason not to by whole fancy cashews at Aldis for $12 instead of $15 at Krogers. But produce & meats are far better (especially organic and fresh best cuts) at Krogers plus we typically an save $.40 -$1/gal on gas. We don’t put in any real special effort now, it is mostly routine.

But international travel was supposed to be a huge part of our budget the last 2 years, and it’s not happened. So there is that.

Like some others, I even went back to work part time consulting as a way to get out of the house and do something different until travel opens up.

Like pb4uski mentioned, the main reason to delay is the smoking COLA annuity deal, and to give me some extra headroom for Roth conversions. That’s it. Either way it doesn’t really make a difference to me, so why not minimize some future taxes and help future proof the income, at a time when I don’t want the extra income. The tIRA stubbornly continues to rise more than I pull out of it.

 

[Out of Steam]

It will (should) be backdated to April 1st when the application first went in. The application was online through the Federal Benefits Unit at the US Embassy in London and they were quick and efficient, 2 phone calls with interviews and the application put into the system.

I'm sorry your wife is having this hassle. My mother collected a small UK Social Security payment from the US that she earned for work after WWII. They were very efficient, and I will always remember the kindness of the gentleman I talked to on the phone to report her death.