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Tom Margenau wrote an article responding to the WSJ's story on software programs that help you to maximize your Social Security. Mr. Margenau ran his own analysis using the WSJ's examples and Mr. Margenau concluded that there isn't that much of a difference in life-time benefits between taking the Social Security at 62 and waiting until 70. Is the Maximizing Social Security Game Worth It? by Tom Margenau on Creators.com - A Syndicate Of Talent
The way I look at it is if you don't need the money to live on now, and you won't need the money to live on in the future, and the Social Security benefit is strictly for extras, then it is probably a good idea to take the money at 62 and enjoy it.
If you have enough money to live now, but you will be on a tight budget in the future due to inflation, or if you are married and your spouse will be on a tight budget after you die, then I would wait to take the money at age 70.
You need to look at the expense side of life. At 80 you may not be well enough to travel, but you may be ill enough to need a lot of long-term care. It is the long-term care which Medicare doesn't cover that is extremely expensive.
If you have a pension along with SS you might want to compare what a pension combined with SS taken at 70 does to help pay projected LTC down the road out of fixed income cash flow. Especially if you have a LTC policy benefit to add to it. Also based on some surveys on retirement income it would be possible for some in the forum to pay for one spouse in a LTC and the other to still be comfortable.
Tom Margenau and has a regular weekly article on SS related subjects which I subscribe to. He is very knowledgeable on the subject. It comes out every Wednesday. Also check out his past articles.
Where can I go to sign up for his newsletter? Only link I could find is at creators.com, but didn't see where one could subscribe.
Where can I go to sign up for his newsletter? Only link I could find is at creators.com, but didn't see where one could subscribe.
At the bottom of the article page, there is a button to sign up for articles by e-mail. Otherwise the link above works every Wednesday for the latest article.
At the bottom of the article page, there is a button to sign up for articles by e-mail. Otherwise the link above works every Wednesday for the latest article.
Ah! I see it now. In itsy-bitty mouse type. Thanks.
I retired 16 months ago, at age 55. I don't need Social Security now. Hopefully I won't ever need it.
But you can be pretty sure that at age 62, I'm going to take.
Thanks for posting that Muonic. I retired last year at age 53, so we have similar situations. My pension covers everything plus. I don't need social security right now, but my thinking is to wait a while AFTER age 62 before I take it. I have a Roth which I'll start drawing from at age 62. Then at roughly age 67 or 68 I'll start collecting SS, then start into my 401K at age 71. I highly recommend to anyone who will be getting a pension and will have a 401K, to do the same. Start a Roth so that you have additional income after age 62, and then take the higher SS benefit later.
Yes, everyone had different circumstances. I took my social security at 62. I don't regret it. Luckily I had insurance through DH's last employer, so I was covered there. I think Medicare might force some to wait at least until 65.
I'm thinking of taking SS early as well, both me and my wife at 62. I'll get the max SS but I don't know about my wife, if hers is significantly less maybe we'll delay getting her SS until 67. But I look forward to spending SS money even at 62, I thought the article had a good perspective.
i plan on taking it at 66 although i plan on spending more from 62 to 66 than i would if i took the early ss.
the fact is taking it letter and getting a much much larger amount lets me spend more from savings early on because it will be refilled later on at a higher rate forever.
if you look at the money you lay out from 62 to 66 and think of it as annuity you are buying than the concept makes alot of sense.
folks think they can spend more if they take ss early at 62 but it is really the reverse that is true.
if i took early ss i might hold my spending to a 4% withdrawal rate.
if i wait until 66 to get ss i may start pulling 5-6% out at 62 because of the comfort of having that higher payment kick in down the road and refilling any over spending i do early on..
the nice thing is if i live i have more money to live on and if i die before i collect much who cares ,dead is dead.
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