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Old 09-13-2017, 08:25 AM
 
364 posts, read 125,860 times
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I did not like what I was doing and have no regrets about leaving full time employment. Currently looking for part time. My plan is not to take SS at 62 but wait until later, although probably not 66 or 70. The issue for me is that I'll have a little more income when I'm on SS. Right now I'm taking a very small withdrawal from the IRA (3%) and have a very tight budget.
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Old 09-13-2017, 09:37 AM
 
Location: Raleigh
8,047 posts, read 5,891,914 times
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Quote:
Originally Posted by Goin' Coastal View Post
The simplest answer is that if I were you, since what you're already doing is working, I would keep on with that and let the SS grow a bit.
<>
The best course of action is inaction; you can change that. Once you make a decision you are committed. You mention a divorce, can your ex tap into your SS?
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Old 09-13-2017, 10:14 AM
 
2,276 posts, read 848,557 times
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Quote:
Originally Posted by nicet4 View Post
To cover whatever expenses you have I'd use the savings and wait to 70 to take social security.

If your benefit is $891 now by waiting to 66 you should be able to receive $1,185/month or $294/month more.

What is that extra $294 worth? In my mind it is nearly exactly like you saved an extra $70,560 in your IRA accounts. That is withdrawing $294/month for for 20 years. 12*20*$294=$70,560.00. That is as if you saved $17,640.00 to your IRA account every year for the next four years.

Now if you wait another four years to age 70 your benefit will nearly double from what you would receive at age 62 to $1,564.00 monthly. That's $673 more every month or $8,076 more every year.
I know that waiting as long as possible to take SS is the prevailing wisdom among retirees but the math never seems to work when I analyze the waiting scenario. Assuming your numbers are accurate, this is what I came up with.

Age 66 - Waiting will cost the recipient about $45,000 (approx. 4 years @ 891 a month), the increased monthly payment later will be $294 so the breakeven payback point is about 74.5 years old. For each year the recipient lives past that point they will receive about $3,500 annually over the early retirement payment.

Age 70 - Waiting will cost the recipient about $90,000 (approx. 8 years @ 891 a month), the increased monthly payment later will be $673 so the breakeven payback point is about 81 years old. For each year the recipient lives past that point they will receive about $8,000 annually over the early retirement payment.

So waiting past early retirement age really only works out if you live a long time and even then the additional income is fairly minimal over the full term.
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Old 09-13-2017, 10:28 AM
 
Location: next up where ever I go
588 posts, read 344,665 times
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Quote:
Originally Posted by Crashj007 View Post
The best course of action is inaction; you can change that. Once you make a decision you are committed. You mention a divorce, can your ex tap into your SS?
Oh heavens, I wish I could tap into his....the situation was so bad I thought I was losing my mind.

He is a one percenter. That is OK. Am I happy. No, but I am not unhappy. Ah, Wisteria Lane!

TMKSarah
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Old 09-13-2017, 10:43 AM
 
Location: next up where ever I go
588 posts, read 344,665 times
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Quote:
Originally Posted by shorman View Post
I know that waiting as long as possible to take SS is the prevailing wisdom among retirees but the math never seems to work when I analyze the waiting scenario. Assuming your numbers are accurate, this is what I came up with.

Age 66 - Waiting will cost the recipient about $45,000 (approx. 4 years @ 891 a month), the increased monthly payment later will be $294 so the breakeven payback point is about 74.5 years old. For each year the recipient lives past that point they will receive about $3,500 annually over the early retirement payment.

Age 70 - Waiting will cost the recipient about $90,000 (approx. 8 years @ 891 a month), the increased monthly payment later will be $673 so the breakeven payback point is about 81 years old. For each year the recipient lives past that point they will receive about $8,000 annually over the early retirement payment.

So waiting past early retirement age really only works out if you live a long time and even then the additional income is fairly minimal over the full term.
And there is the rub...as Shakespeare opined (was it King Lear$)!

I just can't see going that far in the future. Sure if I were 66 and had left a very lucrative living and had the means since, well,

I have a "friend" who, at about 69 has a annuity of $3000 a month, plus his savings which are considerable.
He stopped work at 68 and his financial planner advised him to wait to collect SS at 70.
No brainer there.
Still acts like he is poor since his beginning was poor. He also has significant health problems given his life style....enough about that.

My point....has three kids, 4 grand kids and they don't want him marrying again. No wonder....she was much younger and she took him to the cleaners. I have no sorrow for him. Even his attorney daughter tried to get him to do a pre nup....he refused and still refuses. Believes if you do a prenup then there is no commitment.

I digress

Oh, bloody hell! It's the biggest crap shoot in the world!
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Old 09-13-2017, 10:49 AM
 
Location: next up where ever I go
588 posts, read 344,665 times
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So Shorman

It sounds like just take the friggin money an RUN!
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Old 09-13-2017, 11:23 AM
 
Location: Corvallis, Oregon
653 posts, read 1,542,086 times
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Quote:
Originally Posted by shorman View Post
So waiting past early retirement age really only works out if you live a long time and even then the additional income is fairly minimal over the full term.
For me, delaying collecting SS as long as it causes the amount per month to increase, is a sort of insurance in case I live much longer than I expect to live.

But I am not sure what the real difference will be. If the number I am seeing, for waiting until I am 70, assumes that I am going to work (at close to my current salary) until 70, then I really am not going to get that much, since I plan to retire at 65.
I might even have to retire sooner (as at 59, I am seeing a significant decrease in my ability to learn new things, which is needed for the type of job I have, where technology is continually changing).

IF I get an enhanced retirement offer at 63, that is the same as the one they offered me 18 months ago (which included 2 years of medical coverage), I will take it.
But at 58 (when it was offered to me), I was too concerned about paying for medical insurance, to take the offer.
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Old 09-13-2017, 01:13 PM
 
8,080 posts, read 13,460,711 times
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I am 60 and my 3 options are to draw on mine, a 10 year marriage I had or draw off my late husbands.
Widow SS can being at 60 but is reduced if taken early also.
The tricky part is that I would like to work the next 5 years to make enough to not use my
investments so they grow or at least don't reduce.

In trying to sort out the options one question is whether drawing on one option would allow
the other one to increase to FRA benefits?

I am thinking like Eileen that the max benefits at 67 would help if I live longer than expected and
everything else is gone. I could survive on SS and a reverse mortgage or selling my house & using that $$.
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Old 09-13-2017, 01:37 PM
 
2,276 posts, read 848,557 times
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Quote:
Originally Posted by TMKSarah View Post
So Shorman

It sounds like just take the friggin money an RUN!
Bird in the hand is my way of thinking. Waiting could result in more money, but you are gambling that you will live long enough for it to payoff.
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Old 09-13-2017, 02:24 PM
 
Location: Southern California
372 posts, read 448,200 times
Reputation: 559
Quote:
Originally Posted by shorman View Post
Bird in the hand is my way of thinking. Waiting could result in more money, but you are gambling that you will live long enough for it to payoff.
I am not worried about not having enough when I'm dead.
I'm more concerned about having enough while I'm alive. :-)
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