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." 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."
See, here is the part I don't get. If you have to suffer or live poor in order to delay...then don't delay..or do you mean they delay be working much longer to fund the better retirement? Two totally different scenarios. The first is you have decided you are retiring no earlier than 59&1/2 so you have unfettered access to your IRA or 401k. And hopefully you have determined an income that you feel is workable. I only know Very few that actually map out a real plan and look at expenses and income streams, tax consequences and longevity. I know 4 people/couples that retired in their 50s and only one did due diligence. The other 3 act like they don't have a care in the world. And from what I can see, the light at the end of the tunnel is a train heading straight for them. I've chosen my number and plotted mutliple ways it can go, and 62-63 is good enough. If I Went to 65, I'd be golden, but that 2-3 of my best years for a solid "don't HAVE too". But that depends on delaying SS to at least 68, 69 is better. If I collect as soon as I retire at even 63, my income stream is all over the place, at times I don't need it, I pay way more in federal taxes, and stress the savings far more later in life. Naturally,mthe more income you have and the lower your expenses, the easier it is to delay collecting. It hets pretty gray when you look at everything and you think you can squeak by. I've never been a squeak by kind of guy.
The people who are most bitter could have retired earlier but stuck it out a little longer becaue they convinced themselves it was worth it to take it up another notch in terms of what kind of retirement they could afford, thinking that 17 years of awesome was better than 20 years of good but it turned out they had less than 3 left and didn't see any retirement (as an example).
Ok, so you mean working 3 more years, but getting terminally ill, what ever, after those 3 extra years and dying.
Sure, no doubt, bitterness for a bad decision because one doesn't know the future. That's pretty much the main thread that runs through virtually every "When should I retire/do I have enough to retire ?" thread on every forum in existence!
My biggest retirement fear for sure! My wife, who is 63, tells me weekly, "whenever you want to retire, we'll make it work." My best friend from high school, and his wife are both retiring this July at 57 & 58 respectively, because of that, but they both have healthy pensions and benefits that will provide more than they need to make it to full FRA, their plan. My joke is, if I die before I retire, I'm gonna be pissed.
But right now, in my own personal life, my job is nowhere near the most stressful part of my life. In fact, work allows me to escape and throw money at the problems (not my making and personal) that would only be much more stressful if I retired today. So I remain flexible with my plans, and make sure I am fully aware of my options and consequences of my decisions. I find comfort in that. In general, I am very happy with my life, my work, and financial disposition, better than any of my siblings and my parents ever were. But thr fact that I participate in a retirement forum, almost daily, tells me that I really am looking forward to that next stage!
I think just the fact that the people on this forum are AWARE of the ramifications for taking early SS or waiting, the various filing scenarios, and spousal/survivor benefits shows that most of us will make an educated choice and probably be fine. It proves that we are thinking it through, regardless of what we choose to do. So many people just blindly sign up when they are eligible or don't have any idea what they are eligible for and when. Or they keep working out of fear of not having enough without really running the numbers.
Fear is a big part of it. A very common fear is that there is some hitch in the process I haven't thought of or something is going to be changed before I start or one of any number of other "something is going to ********** up for me" fears will come to pass. I have that fear myself. I know the odds are very small that there will be a problem, but I can tell you that I will feel some sense of relief when the time comes and I get that first check and can say for sure that this part of the plan is actually working. I am nowhere close to letting that tiny sliver of doubt consume me and drive my plans, but I understand how some people do give in to it.
Absolutely true, and the less you have, the more fearful you become as you get older. It is a learning process. It's not like I didn't also fall in to the "break even" fallacy trap as well. It wasn't until I ran multiple scenarios with various spend down options that I noticed the higher overall income from the start, with less taxes paid for any longevity I chose, that I realized the true value of delaying SS.
If one depends too much on withdrawal from savings every single year of retirement, because of a smaller fixed income, then reduction of principle is much higher on the avoid list. When savings is a small part of income required (or in many cases, including my own, not needed at all from 71 to 81 according to the calculators) or only needed for emergencies and fun things, because of a higher fixed income ($21k higher in my example) it can be allowed to grow with a bit more risk, as it doesnt affect your normal quality of life. Reduction of principle is allowed because you don't NEED the savings to live.
It is a big difference between just "saving more money" for the future and turning that saved money in to lifetime income. That's where the real value lies.
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It depends on your desired lifestyle...
