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i want to cut our dependence on markets and rates as much as i can . we rather self sustain a few years and try to hold out until 70 for a 70% bigger check plus colas on that difference .
that will cut dependancy by a few percentage points .
It is helpful for folks to crunch the numbers and see what the various scenarios are and what options they have to work assets and can be. I think the reality is that many have a much simpler set of options as SS is pretty much their only income source as investments/pensions aren't part of the picture/equation.
Nice everyone! A civil on topic thread! Sorry if I wasnt clear, but I do know all the reasons to delay, and everything about the Tax Torpedo and RMDs. I too plan to retire at 62-63 and supplement my income with small withdrawals for IRA, since DW is already collecting her SS, and we both have pensions. I'm not looking for advice, just a feel for who had delayed, and whether they wish they had taken it earlier. I know most all the regular ones that posted so far, so no real surprises, so far. The biggest reason that people delay is because they can afford to, and prefer not to alter their lifestyle. Every person that answered so far, COULD have collected earlier, but would rather delay and maintain a higher income, than be foreced to reduce their expenses to match a lower long term income.
Well, it makes sense that anyone who is waiting until 70 (or has reached it) AND is still breathing feels that they made the correct decision. I think for some it's like a badge.
We made the decision to NOT take it at 62. Primarily to ensure my wife gets higher amount if I go first. Was $18,516 back then. Now at 64 and 9 months it's $22,884. At 70 it will be almost $33,000.
I track what our retirement income would be every month (I invest for income), so the first of every month I log onto our SS accounts and get the new total if we retire immediately. Most people don't know that if you are past 62 and not drawing, the figure gets updated every month. It's very satisfying to see the results of waiting each month.
So, yes. I am happy we have waited.
That's our reasoning too. We don't need the money, so we'll wait until FRA and either reassess, or start taking it. I don't look at it from the point of getting the most because there is no way to predict the future. But we want to make sure that the last one standing is in the best financial shape possible.
Mathjak is pointing out the optionality involved in the decision, a point I've made before. Waiting to 70 is betting on your own long life. If you win the bet, you'll need the money; if you lose, you won't care because you'll be dead. So you should wait unless you have an unusually short life expectancy.
for those who do not have pensions and need more then a 2% inflation adjusted draw plus what ss gives them you have two choices you can pick from .
you can file early and take on more market and interest rate risk or delay filing and reduce market risk and take on longevity risk .
there is no question if a couple the surer thing is taking on the longevity risk instead of market risk . i am more comfortable with our longevity risk then market risk as we age. especially because i just retired in to high valuations , whick ALWAY have resulted in below average returns by a decade out .
folks forget that if they elect to take that money early , there is no guarantee that invested assets you are not spending down instead ,will not be at a loss so the additional money you think you are getting early on may evaporate . all you need is a poor outcome of sequence risk the first 8 years and that early ss money advantage may be gone .
so a big part of the decision is about how your income in retirement will be structured and will invested assets be spent down .
Last edited by mathjak107; 03-27-2016 at 03:30 AM..
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