Two things; work beyond fra if you can and "live down".
I'm 66 and not collecting ss yet because it is my hope I can make to 70.
The math is simple; for every year I continue to work putting off social security I will receive $200/month for $2,400/year in my social security payment. How much additional savings would I have to have in my IRA to withdraw $200/month indexed to inflation for the rest of my life?
At age 70 1/2 you must withdraw 4% every year or get hit with a penalty so we'll use that as a benchmark.
To withdraw $200/month, which is 4% of my IRA savings, I would have to have an additional $62,500.
To withdraw $800/month, which is 4% of my IRA savings, I would have to have an additional $250,000.
What makes ss more attractive to me is it is indexed to inflation.
Look at it this way if you worked earning $70,000 that "additional" value of $62,500 that you would eventually get would be equivalent to earning $140,000 starting at age 62 and saving $62,500 of that which, after all the taxes, wouldn't leave you with an excess amount to live on.
We're all different and there isn't any right answer but what would you rather have; a guaranteed $800 tax free for the rest of your life or $250,000 in an IRA and forced to take 4% or $800/month for the rest of your life?
Husband and wife both collecting. At age 70 the husband would receive $3,000 while the wife would receive around $1,125 which is roughly 50% of what her husbands fra benefit would be. Together they receive $4,125 for $49,500 annually. Their
estimated federal income tax on that would be $0.
Assume this couple saved $250,000 at age 70 1/2 they would have to withdraw 4% or $800/month.
If both took ss at their fra their combined ss would be $3,375 for $40,500 annually and they would receive an additional $9,600 ($800*12) in their IRA withdraws for a total income of $50,100.
The estimated federal income tax would also be $0.
In my part of the country if two people have a home that is paid for and can't live will on a tax free $50,000/year then they have a spending problem and not an income problem. In my part of the country $50,000 after tax is equivalent to nearly $70,000 in wages and if you can't make it on that I am not about to cry a river for you.
And then there is morning down. I never thought I would do it but I'm looking at a condo because at age 70 it's really the only thing that makes sense for me. Yeah, I might have a HOA fee of $150/mo but I spend that now for a yard service to do my yard.
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