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Old 04-02-2016, 10:18 AM
 
Location: In a vehicle.
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Quote:
Originally Posted by John1960 View Post
People just aren't prepared. According to a study on retirement confidence by the Employee Benefit Research Institute published last week, less than half of those surveyed have tried to calculate how much money they'll need in retirement, and 39% simply guess rather than doing a systematic analysis.

http://finance.yahoo.com/news/debt-a...73153224.html#
I find the other flip side is that those who are older have large homes they want to keep (To pass to the kids) and so they struggle with bills and refuse to "Downsize" and thus, hurt themselves in retirement. Of course, they also didn't invest or save.
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Old 04-03-2016, 06:19 AM
 
Location: NC Piedmont
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On other comment on the break even point - another reason that it seems like delaying if possible is better is because people who delayed and then it turned out to be the wrong choice can't complain about it. There is that thread where someone posted his brother's story and people piled on pointing out that there was no correlation. No, there isn't. But we so rarely hear about it that it is easy to forget that happens almost half the time.
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Old 04-03-2016, 07:07 AM
 
Location: RVA
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But does it happen half the time? What is the chance of living to 85 for one of a 70 yo couple? Pretty good actually especially if you have a family history on both sides of no heart disease or cancer, (which account for over 50% of the deaths at that age) and live a healthy lifestyle.

Plus, if you delay, you CAN always change your mind! You are stuck the other way around.

Also, technically, you can hedge your delay some, and always take your SS one year earlier than you wanted to delay until, and if you didn't have to use it, health is still good, and market is positive, just pay it back, interest free, and colect the higher income.

It totally depends on ones individual circumstances, especially the amount saved. As Matt points out, if you have a pension that cover most of your expenses, and withdrawals from tIRA are relatively minor (say 20-30% of your savings) you are in essence buying a cheap, safe, and highly effective COLA older age annuity.

The point I keep bringing up, and sorry if it's annoying, is the decision should be on your quality of life, which is tied to your income, if you live, not at all tied to breaking even or getting more of what's "owed you" if you die.

My FIL based his entire retirement, including a greatly reduced pension, on the assumption that he would be dead by 72. He lived to 88. And his wife died the following month. He left hindreds of thousands on the table because he did eveything based on duing younger, including selling his house and renting way early, for no reason, other than, better sell it before I die. He rented for 15 years and hated it.

My grandparents lived relatively unhappy lives the last 20 years partly because they were obsessed with not spending their savings, which were ample for them, and actually grew, plus the value of their real estate holdings. Which were then distributed to my dad and his sister upon their deaths. Now, even if they had won the Lottery, I doubt their lives would have changed much. They did pretty much nothing except wait to die. That will not be me and DW.
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Old 04-03-2016, 07:17 AM
 
71,469 posts, read 71,652,652 times
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Quote:
Originally Posted by ReachTheBeach View Post
On other comment on the break even point - another reason that it seems like delaying if possible is better is because people who delayed and then it turned out to be the wrong choice can't complain about it. There is that thread where someone posted his brother's story and people piled on pointing out that there was no correlation. No, there isn't. But we so rarely hear about it that it is easy to forget that happens almost half the time.
i always say delaying is a decision you will never live to regret
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Old 04-03-2016, 07:55 AM
 
Location: NC Piedmont
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Quote:
Originally Posted by Perryinva View Post
But does it happen half the time?
As I mentioned earlier, it is less than half the time. It is because of the way the calculate life expectancy, which increases as you age. I have not seen a recent graph, but it used not to be straight line either. The stories about how often people would die within a short period of time after retirement did have some basis.

Quote:
Originally Posted by Perryinva View Post
The point I keep bringing up, and sorry if it's annoying, is the decision should be on your quality of life, which is tied to your income, if you live, not at all tied to breaking even or getting more of what's "owed you" if you die.
That is an excellent point. The appeal of an annuity is that you get past the angst of spending savings; that ship sails and you just enjoy the level of spending that you know you can afford. I am not likely to purchase an annuity, but I do also want to make sure I don't end up doing little or nothing out of fear or running out. I an odd twist, it seems hardest to figure out how much you can spend when you have the most..
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Old 04-03-2016, 08:04 AM
 
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it is hardest to determine what you can spend because there is such a big span (15 years) between the best outcomes and the worst outcomes even with the same average returns .

so an awful lot of powder has to be kept dry since you do not know which outcome is yours . just the order of your gains and losses can make a 15 year difference in how long things last .

that is very hard to deal with and why you can spend more delaying ss since that has zero sequence risk .
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Old 04-03-2016, 08:06 AM
 
Location: Central IL
15,201 posts, read 8,509,345 times
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Quote:
Originally Posted by Perryinva View Post
But does it happen half the time? What is the chance of living to 85 for one of a 70 yo couple? Pretty good actually especially if you have a family history on both sides of no heart disease or cancer, (which account for over 50% of the deaths at that age) and live a healthy lifestyle.

Plus, if you delay, you CAN always change your mind! You are stuck the other way around.

Also, technically, you can hedge your delay some, and always take your SS one year earlier than you wanted to delay until, and if you didn't have to use it, health is still good, and market is positive, just pay it back, interest free, and colect the higher income.
Yes - this is extremely important! You can "wait and see" by delaying - if you get some bad health news or just find out your investments are being depleted faster than you'd hoped, go ahead and start collecting. But to just blindly start collecting when you don't need to may be quite costly later if you (or your spouse) do live into your 90's.
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Old 04-03-2016, 08:13 AM
 
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at fra you can stop your payments and let your benefits grow .

my wife filed at 62 , now that she is going to be fra she is stopping her benefit and letting it grow to 70 since indications are at these valuations equity markets are likely to have below average returns 8-10 years out so ss is the better choice for us .
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Old 04-03-2016, 08:17 AM
 
Location: NC Piedmont
3,911 posts, read 2,876,213 times
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Quote:
Originally Posted by mathjak107 View Post
i always say delaying is a decision you will never live to regret
When it does happen, it is usually not the SS delay that people regret. If someone gets terminally ill or disabled and spent the last few years just trying to fund a better retirement, and not really enjoying it, they can be pretty bitter about it. Earlier, I think you briefly mentioned the case that caused a few people regret this year - not locking in Medicare premiums. I don't plan to take mine really early, but I am kinda on the fence about 65 or FRA.
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Old 04-03-2016, 08:18 AM
 
71,469 posts, read 71,652,652 times
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play it by ear dynamically . that is the best part about delaying . you set your sight on a destination but can dock at any port along the way .
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