OT: When to take Social Security

[RULoyal]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

 

[rutgersdave]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

I started my social security payment at 66 and had a small pension start at 65. I had taxed cash assets that I used during my early retirement for 13 years when I had no income. Most of my capital gains and dividends are non taxable since they are in my IRA. At 59.5 years, I started withdrawing money from my IRA, just enough so I didn’t have a taxable income greater than the 12% tax bracket( including 14,700 standard deduction taxable income of about $61,000for single) . Now that I am older and wiser, I wish I withdrew more from my IRA to avoid higher taxes when I take RMD also any taxes related to inheritance. Even if you leave your IRA to your kids they would be receiving it when they are in their highest tax bracket( 45-60 years old). Leave them assets that have been already taxed. Think about the tax implications with your withdrawal from IRA. Oh, I roll over most of the IRA withdrawals to a Roth IRA.

Probably 65 is a good number since any changes to social security won’t be effective for individual already collecting.

 

[letitrip2]

Here is a free simple calculator for maximizing SSA benefits over you and your spouses lifetime.

Open Social Security: Free, Open-Source Social Security Calculator

opensocialsecurity.com

That calculator uses average life expectancies in the formula to determine the maximum lifetime benefits. And as your financial advisors point out the maximized amounts may not work for everyone. And there is also the fun factor - Do I really want to wait until 70?

 

[Source]

Delaying your social security payments will increase your benefits by about 8% a year. Once you hit 70 years old, those increases stop (but the COLA adjustments continue yearly).

You indicated there isn't a "need" to apply now or in the near future. Be aware that once your take social security (plus any other income you still accumulated through interest, pension, a job, etc.) that results in your total going above, I believe, around $35,000-$40,000 gross income results in a higher taxation of your social security payments (and that could be as high as 80% !) . So you may want to consider the tax implications of how much you would actually pocket from social security payments. You have to estimate what your own yearly gross income may be and how much of the social security payment you can pocket to decide if delaying is a better choice.

You already stated your family history indicates you will probably fit into the life expectency tables that also plays a role in whether to take payments or not. The age considered "the sweet spot" to start taking payments is considered the best way to maximize considering how long the table expects you to live. Of course, it you're a rebel and want to defy age tables and live longer, then delaying payments would also move your "sweet spot."

One thing you might explore. You can take social security for up to one year and then decide to pay it all back and continue back on the road to never having taken it. You are allowed to do this only once. So you can "try it out" for up to a year and then "take it back." But you do have to pay back all the money you were sent within a one year deadline from the first payment.

Hope this helps. Good luck!

 

[tom1944]

I took it at 65 and I just buy a Total Stock Market fund with it.

I will not take my IRA/401K money until I am 72.

My parents are both 90.

 

[Morrischiano]

Try a product called LifeYield Social Security Analyzer. It will let you compare different scenarios based on your other assets. It’s used by many wealth management advisors out there.

 

[rutgersdave]

I took it at 65 and I just buy a Total Stock Market fund with it.

I will not take my IRA/401K money until I am 72.

My parents are both 90.

You aren’t rolling any IRA to a ROTH IRA ? You have a decent pension since you work for the state and maybe your spouse also.

 

[RUBOB72]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

Delaying your social security payments will increase your benefits by about 8% a year. Once you hit 70 years old, those increases stop (but the COLA adjustments continue yearly).

You indicated there isn't a "need" to apply now or in the near future. Be aware that once your take social security (plus any other income you still accumulated through interest, pension, a job, etc.) that results in your total going above, I believe, around $35,000-$40,000 gross income results in a higher taxation of your social security payments (and that could be as high as 80% !) . So you may want to consider the tax implications of how much you would actually pocket from social security payments. You have to estimate what your own yearly gross income may be and how much of the social security payment you can pocket to decide if delaying is a better choice.

You already stated your family history indicates you will probably fit into the life expectency tables that also plays a role in whether to take payments or not. The age considered "the sweet spot" to start taking payments is considered the best way to maximize considering how long the table expects you to live. Of course, it you're a rebel and want to defy age tables and live longer, then delaying payments would also move your "sweet spot."

One thing you might explore. You can take social security for up to one year and then decide to pay it all back and continue back on the road to never having taken it. You are allowed to do this only once. So you can "try it out" for up to a year and then "take it back." But you do have to pay back all the money you were sent within a one year deadline from the first payment.

Hope this helps. Good luck!

You are correct to consider taking it at 66. If you believe you will live to 70’s -80’s plus then maybe delay .If not enjoy retirement .It’s important to analyze but don’t overthink it. I had my pension ( decent ) 401K Rollover , savings , Andes real other investments. We had no mortgage or debts ( key) and still don’t .If we charge trips, and purchases we pay it off . I saw my mom pass away 6 months prior to her turning 65. Father had $$$$ , investments and no debt and wound up costing him an average of 60 k per his 5 years in an assisted living facility. Great place and care but a money pit. It is a personal decision and choice. No matter what there is much good to retirement at an early age.

 

[RUBOB72]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

Delaying your social security payments will increase your benefits by about 8% a year. Once you hit 70 years old, those increases stop (but the COLA adjustments continue yearly).

You indicated there isn't a "need" to apply now or in the near future. Be aware that once your take social security (plus any other income you still accumulated through interest, pension, a job, etc.) that results in your total going above, I believe, around $35,000-$40,000 gross income results in a higher taxation of your social security payments (and that could be as high as 80% !) . So you may want to consider the tax implications of how much you would actually pocket from social security payments. You have to estimate what your own yearly gross income may be and how much of the social security payment you can pocket to decide if delaying is a better choice.

You already stated your family history indicates you will probably fit into the life expectency tables that also plays a role in whether to take payments or not. The age considered "the sweet spot" to start taking payments is considered the best way to maximize considering how long the table expects you to live. Of course, it you're a rebel and want to defy age tables and live longer, then delaying payments would also move your "sweet spot."

One thing you might explore. You can take social security for up to one year and then decide to pay it all back and continue back on the road to never having taken it. You are allowed to do this only once. So you can "try it out" for up to a year and then "take it back." But you do have to pay back all the money you were sent within a one year deadline from the first payment.

Hope this helps. Good luck

You aren’t rolling any IRA to a ROTH IRA ? You have a decent pension since you work for the state and maybe your spouse also.

Delaying your social security payments will increase your benefits by about 8% a year. Once you hit 70 years old, those increases stop (but the COLA adjustments continue yearly).

You indicated there isn't a "need" to apply now or in the near future. Be aware that once your take social security (plus any other income you still accumulated through interest, pension, a job, etc.) that results in your total going above, I believe, around $35,000-$40,000 gross income results in a higher taxation of your social security payments (and that could be as high as 80% !) . So you may want to consider the tax implications of how much you would actually pocket from social security payments. You have to estimate what your own yearly gross income may be and how much of the social security payment you can pocket to decide if delaying is a better choice.

You already stated your family history indicates you will probably fit into the life expectency tables that also plays a role in whether to take payments or not. The age considered "the sweet spot" to start taking payments is considered the best way to maximize considering how long the table expects you to live. Of course, it you're a rebel and want to defy age tables and live longer, then delaying payments would also move your "sweet spot."

One thing you might explore. You can take social security for up to one year and then decide to pay it all back and continue back on the road to never having taken it. You are allowed to do this only once. So you can "try it out" for up to a year and then "take it back." But you do have to pay back all the money you were sent within a one year deadline from the first payment.

Hope this helps. Good luck!

Nothing like enjoying retirement as long as health is good.It doesn’t get easier as we age but this is a personal choice. Scary? Maybe but it is your choice.

 

[rutgersdave]

You are correct, retire as soon as you can financially. Most people are capable in their 60’s but starting in your 70’s quite a few individuals start to have difficulties in getting around.

 

[Rutgers1976]

It generally depends on how much you need the money. If you're still working and don't have a huge need for the money, then it makes sense to wait. There's a guaranteed 8% return on the "investment' by waiting. If your spouse also can collect and chooses to do so earlier, by your waiting until later, she'll get your higher amount of social security if something happens to you. A lot of people like the money in "my" pocket idea, but I think in terms of cash flow. For me, waiting from 66 to 70 garnered me at least an extra 900-1000/month. Pays for the taxes, at least.

 

[ru109]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

One question is who will have a higher SS payout, you or your wife? If you don't need it wait till full SS for the larger one and take the smaller one whenever you want. This way when one of you pass the surviving spose can just claim the larger payout and it will lessen the financial hit of losing a payment.

 

[RULoyal]

One question is who will have a higher SS payout, you or your wife? If you don't need it wait till full SS for the larger one and take the smaller one whenever you want. This way when one of you pass the surviving spose can just claim the larger payout and it will lessen the financial hit of losing a payment.

I have the larger benefit. I thought I read that if your spouse starts collecting early and you die, the spouse can claim the higher benefit but it is reduced based on when the spouse started collecting.

 

[RULoyal]

It generally depends on how much you need the money. If you're still working and don't have a huge need for the money, then it makes sense to wait. There's a guaranteed 8% return on the "investment' by waiting. If your spouse also can collect and chooses to do so earlier, by your waiting until later, she'll get your higher amount of social security if something happens to you. A lot of people like the money in "my" pocket idea, but I think in terms of cash flow. For me, waiting from 66 to 70 garnered me at least an extra 900-1000/month. Pays for the taxes, at least.

Retired - not working. Only income is from stocks, dividends, and interest. Bulk from retirement accounts but some from non-retirement accounts.

 

[WhichReligionIsRight]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

There is no bad decision here. The key question is how is your health? If you think you will die early, then by all means take the money now.

 

[LeapinLou]

It generally depends on how much you need the money. If you're still working and don't have a huge need for the money, then it makes sense to wait. There's a guaranteed 8% return on the "investment' by waiting. If your spouse also can collect and chooses to do so earlier, by your waiting until later, she'll get your higher amount of social security if something happens to you. A lot of people like the money in "my" pocket idea, but I think in terms of cash flow. For me, waiting from 66 to 70 garnered me at least an extra 900-1000/month. Pays for the taxes, at least.

My wife is 5 years younger than me and her grandma and great aunt (sisters) both made it to 100. So I plan to wait as long as possible so that when I croak she'll get as much as possible. In the meantime, I should have enough to live comfortably with work and 401K money until I'm 70.

 

[RULoyal]

There is no bad decision here. The key question is how is your health? If you think you will die early, then by all means take the money now.

I'll probably hit the average but what kind of shape will I be in to enjoy the extra money? Maybe I can ask Richie to check the crystal ball?

 

[RULoyal]

My wife is 5 years younger than me and her grandma and great aunt (sisters) both made it to 100. So I plan to wait as long as possible so that when I croak she'll get as much as possible. In the meantime, I should have enough to live comfortably with work and 401K money until I'm 70.

Similar to my situation financially except none of my relatives have hit 100 although everyone has made it past 85.

 

[rubaseball78]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

I did the same analysis as you in looking at the breakeven point to waiting. I opted to start taking it 2 years ago and, like you, my break even point was 79.

 

[wheezer]

I retired at 62 and started taking out SS then

My rationale was that I would be taking out less from my stocks/funds year to year thereafter to live on, which grew nicely over the years and continued in retirement .

I think many don't consider that tradeoff if actually retired at the same time

Worked out well for me, didn't look for advice

 

[mdk01]

Similar to my situation financially except none of my relatives have hit 100 although everyone has made it past 85.

If you use 85, then wouldn't it indicate you should wait unless you need the extra income currently?

 

[Source]

Retired - not working. Only income is from stocks, dividends, and interest. Bulk from retirement accounts but some from non-retirement accounts.

Don't hold me to this, but I ran the numbers a long time ago as to delaying to age 70 and then figuring out how long you would have to live to make that "pay off" than if you took smaller payments earlier in time. The answer was 84 years of age if I recall. Take highest payment at age 70 and live to or past 84 and you make the numbers work in your favor.

By the way, if your income is "small" enough you might consider a rollover from a normal 401(k) into a Roth IRA. If you have no or little income in a calendar year, you can "create" taxable income by rolling over X dollars from the taxable 401(k) or regular IRA into a Roth IRA. Come tax filing season, you take your normal deductions (mortage, local taxes, etc. or the standard deduction) against the amount of "tax income" you created and make sure they add up to zero. Voila! Now the transferred money is tax free in your Roth IRA when you are eligible to claim it and you owed little to nothing because of your tax situation. Unemployment can have its occasional usefulness. If you do this, the transfer has to be recorded within the calendar year. So if you decide to do this when doing your tax returns this spring, better do the rollover by December 31 (and since the 31st is a Sunday, better do it earlier).

 

[RUScrew85]

I think a large part of the equation is when you're going to die and that's mostly unforseeable.

There's math and cost analysis but they all ultimately depend on how long you live.

I am not a accountant nor and actuary.

 

[patk89]

I am at the short end of the stick as far as longevity so will take it earlier than the average person. Wish things were different. Willing to trade places.

 

[RUScrew85]

I am at the short end of the stick as far as longevity so will take it earlier than the average person. Wish things were different. Willing to trade places.

Maybe taking it early puts the reverse jinx on your life expectancy and you live to 110.

 

[rutgersdave]

I think a large part of the equation is when you're going to die and that's mostly unforseeable.

There's math and cost analysis but they all ultimately depend on how long you live.

I am not an accountant nor and actuary.

I was having recent problems with some of my medical reading during my tests and lower my life expectancy to about 80 so I took it a year earlier. I also had my will done. Just this month, all the tests look great and all the medical problems cleared up. I finally realized several of the illnesses and issues were due to long Covid. I had it three times over the last two years but I normally don’t take any precautions like mask wearing or run to the doctor on everything. Now I raised my expectation to 85-90. My parent live till mid 90’s. I probably will live to 100 but that’s not always a blessing unless you are really healthy.

 

[yesrutgers01]

I think it is much less about breaking even or payoffs- you have a single life to enjoy- your SS benefits are not going to be helping you future generations- it is a "me" thing.

At what age does it just make your life better and will continue better until you pass.

 

[tom1944]

You aren’t rolling any IRA to a ROTH IRA ? You have a decent pension since you work for the state and maybe your spouse also.

I am aware of the option but never really considered it.

My wife and I both have small side work that we make just under the social security income limit so with all that I thought why bother.

I will increase my income on the side business in 2024 when I hit full social security age.

 

[phs73rc77gsm83]

As others are saying, it depends a lot on your financial situation, health, and the unknown variable of how long you’ll live. I took it at 66 but would have been fine taking it earlier or later. Like Dave and some others, I’m converting tIRA dollars to Roth IRA each year to reduce RMD when that rolls around. The plan is to leave that to the kids tax free. If you do convert pay attention to tax implications, IRMA surcharges, and other personal considerations. Lastly, and not to get political, but I wouldn’t be surprised to see higher tax rates in the future (in fact current rates are due to expire in a few years). So it may well be that conversions are cheaper now and the next few years then down the road. But that’s just a guess/opinion. None of this should be considered tax or financial advise.

 

[RUScrew85]

As others are saying, it depends a lot on your financial situation, health, and the unknown variable of how long you’ll live. I took it at 66 but would have been fine taking it earlier or later. Like Dave and some others, I’m converting tIRA dollars to Roth IRA each year to reduce RMD when that rolls around. The plan is to leave that to the kids tax free. If you do convert pay attention to tax implications, IRMA surcharges, and other personal considerations. Lastly, and not to get political, but I wouldn’t be surprised to see higher tax rates in the future (in fact current rates are due to expire in a few years). So it may well be that conversions are cheaper now and the next few years then down the road. But that’s just a guess/opinion. None of this should be considered tax or financial advise.

Heck the way our Fed Gov has been spending for the last 50 years there might not be a dollar in the near future.

 

[patk89]

Maybe taking it early puts the reverse jinx on your life expectancy and you live to 110.

I appreciate that. Thank you very much. I think along the same lines with excessive life insurance. If I'm paying for it, I'm unlikely to benefit. Every year I write the premium check and think that I should be investing this.

 

[RUBOB72]

Heck the way our Fed Gov has been spending for the last 50 years there might not be a dollar in the near future.

Did you mean last 5 or 50? Actually in the last 5 we have spent enough for the next 200 years.

 

[Rutgers8086]

It generally depends on how much you need the money. If you're still working and don't have a huge need for the money, then it makes sense to wait. There's a guaranteed 8% return on the "investment' by waiting. If your spouse also can collect and chooses to do so earlier, by your waiting until later, she'll get your higher amount of social security if something happens to you. A lot of people like the money in "my" pocket idea, but I think in terms of cash flow. For me, waiting from 66 to 70 garnered me at least an extra 900-1000/month. Pays for the taxes, at least.

You are correct. If you are married, the Social Security claiming decision affects both you and your spouse. The spousal benefit gets shortchanged when claiming early.

 

[e5fdny]

Maybe taking it early puts the reverse jinx on your life expectancy and you live to 110.

I appreciate that. Thank you very much. I think along the same lines with excessive life insurance. If I'm paying for it, I'm unlikely to benefit. Every year I write the premium check and think that I should be investing this.

@RUScrew85 ‘s idea is what I call the “snowblower effect”…

- prep it yourself some snow
- pay for it, no snow

🙂

 

[Rutgers8086]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

5 Questions to Ask Before Claiming Social Security

 

[RURollShot]

A great utility (free & subscription options) that I use for SS planning/analysis is New Retirement (Link). This online tool has a SS Explorer to test various dates of filing for SS. The overall site itself is excellent at allowing one to model just about every aspect of retirement.

Rob Berger (not affiliated w/ New Retirement) has a YouTube channel where he has walkthroughs on its use and functions that are quite helpful.

Other tools I recommend:

• Personal Capital (now with Empower; free): Link
  • Great for tracking finances
• Projection Lab (free & subscription options): Link
  • Similar to New Retirement functionality but allows a deeper dive into number-crunching if desired.

Hope this helps. For the record, I am not associated with any of these tools in any function! I'm an RU EE grad focused on technology for sports.

 

[letitrip2]

One other word of advice - if you need to set up an appointment with SSA to submit your application do it early. The wait times are nothing short of ridiculous.

You can submit the application on-line - but I have a specific question I have not been able to get an answer to anywhere so I need to talk to one of the reps from SSA. Crazy wait times just to get through then when you get through they have told me three times now that they have not slots available at this time.

 

[rubaseball78]

I did the same analysis as you in looking at the breakeven point to waiting. I opted to start taking it 2 years ago and, like you, my break even point was 79.

The one thing I did not factor into the breakeven point was the cost of living adjustment to what I receive each year. That would extend breakeven into mh 80's.

 

[vkj91]

Don't hold me to this, but I ran the numbers a long time ago as to delaying to age 70 and then figuring out how long you would have to live to make that "pay off" than if you took smaller payments earlier in time. The answer was 84 years of age if I recall. Take highest payment at age 70 and live to or past 84 and you make the numbers work in your favor.

By the way, if your income is "small" enough you might consider a rollover from a normal 401(k) into a Roth IRA. If you have no or little income in a calendar year, you can "create" taxable income by rolling over X dollars from the taxable 401(k) or regular IRA into a Roth IRA. Come tax filing season, you take your normal deductions (mortage, local taxes, etc. or the standard deduction) against the amount of "tax income" you created and make sure they add up to zero. Voila! Now the transferred money is tax free in your Roth IRA when you are eligible to claim it and you owed little to nothing because of your tax situation. Unemployment can have its occasional usefulness. If you do this, the transfer has to be recorded within the calendar year. So if you decide to do this when doing your tax returns this spring, better do the rollover by December 31 (and since the 31st is a Sunday, better do it earlier).

I tried to do this last week but paperwork had to be into my broker by September

 

[Bagarocks]

Before the lectures start - I am not using this forum as the sole source of information. I have also had discussions with my accountant and financial advisor. I am simply looking for additional opinions/points of view. We do not need SS to maintain our current lifestyle. My wife is a few years younger than me and won't start collecting until full retirement age. Both my accountant and financial advisor have both basically said when I choose to start collecting is more a personal decision rather than financial.

I'm leaning towards starting to collect a year early (as opposed to full retirement age). The break even point for these two options is 79 including COLA (using 2%). I think id' rather have the money in my pocket as opposed to the governments. Even if I waited until 70 to collect, we are not talking life changing money. Also, nothing in my personal or family history indicates I'll be much outside the average life expectancy one way or the other.

The only question for you is how much do you want to leave on the table for uncle sam to keep?
5 years worth or im gonna start tommorrow?
I started mine when I retired. I could have waited for my "retirement age" but I would have left months of SS money on the table. Its there you earned it take it. Good health is a funny thing when we age...