For every year that you postpone Social Security benefits, your total Social Security Benefits will increase by 8% (supplement, long-term)
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in my opinion the only people who should delay are those who can take their full draw which includes what it will be when ss kicks in day 1 at 62 if they are not working .
it makes no sense to live on less for 8 years and not enjoy your full draw while you are younger and healthier . so the only thing that should change if you delay is the make up of your income .
if you delay 8 years later it will consist of 70% more ss money and less your money and market and inflation dependency .since ss is inflation adjusted .
if you take it early it will consists of more of your money and you are more portfolio and market dependent as well as more inflation dependent . .
life is about living , when to take ss should never be about what if you die , dead is dead . we want the best stress free , life we can have while we are alive doing as much of the things as we can from our wish list .
it should not boil down to having more or less money to spend . that should be a constant regardless or you should not be delaying . you are only trading some market and inflation risk for more longevity risk . we went in the middle .
remember if your plan was to live on less while waiting for social security , i think it is a poor idea , but regardless you can take ss early , don't spend the dough just as if you were delaying , invest that ss money for 8 years and you will be pretty close to the same thing assuming average outcomes in markets .
Last edited by mathjak107; 08-03-2018 at 04:41 PM..
I try to be understanding when new people join and start a thread topic that has been beaten to death....for YEARS! (and YEARS!) I was new to CD at one time myself. And over time some rules and situations do change.
BUT, what I did was -- and what I wish new posters would do is -- use the search function to read back over thread topics to see if the topic had been discussed before.
I just can't with the "delay taking Soc. Sec." topics anymore. I just can't.
Absolutely!
Time for a refresher course in Forum Etiquette 101:
in my opinion the only people who should delay are those who can take their full draw which includes what it will be when ss kicks in day 1 at 62 if they are not working .
it makes no sense to live on less for 8 years and not enjoy your full draw while you are younger and healthier . so the only thing that should change if you delay is the make up of your income .
if you delay 8 years later it will consist of 70% more ss money and less your money .
if you take it early it will consists of more of your money and you are more portfolio and market dependent .
life is about living , when to take ss should never be about what if you die , dead is dead . we want the best stress free , life we can have while we are alive doing as much of the things as we can from our wish list .
I am planning on working until 70, so I can delay without dipping into 401(k) if I am employed.
Working while collecting gets a $1 reduction in benefits for every $2 earned after full retirement age.
I prepared our own spreadsheet to calculate the break even age for my husband years ago. His break even age was 81. His father passed away at 85 and his mother at 83.
He decided to wait until 70 to collect his. The decision was not based on the break even point or the expectation that he would have a longer life than his parents. The key factor was the fact that he was older than I. If he had collected SS payments while I was still working, the extra income will push us to higher tax brackets.
He waited for about 2 years after I retired to start his SS payment. The delay was also for tax reason. Our taxable income were still quite high in these 2 years due to Roth IRA conversions. We want to reduce his future RMDs.
I collected spousal SS when I turned 66 and will collect my much higher own SS payment at 70 (restricted filing).
Delaying SS until 70 to get higher payments works out quite well for us especially when we were applying for a mortgage. The bank did take our investment income into consideration but our fixed income (SS payments + pensions) was the key factor.
IMO, there is no single best strategy for every body. Each person just have to decide what works out the best for them based on their personal situation (married, single, financial need, expect longevity AND their FEELING/EMOTION).
that is missing a lot . like i said above, spousal benefits , uncapped medicare premiums while delaying , spending down invested assets if delaying , and tax ramifications of a larger check ,especially combined with rmd's are all part of the equation too.
we only delayed until i was 65 because my wife was not getting a 4500.00 a year spousal adder to her early check for years because i did not file until 65 . .
Okay, I'm sure this has been asked before, but I've forgotten. Hubby is 5 years older and just filed. If he passed away when I am 63 and not taking my own SS. Can I take survivor and wait til 68 or 70 than switch to my own ? Or do they make me take my own if I'm over 62, or over 65? Mine at 68 would be bigger than his at fra..
Okay, I'm sure this has been asked before, but I've forgotten. Hubby is 5 years older and just filed. If he passed away when I am 63 and not taking my own SS. Can I take survivor and wait til 68 or 70 than switch to my own ? Or do they make me take my own if I'm over 62, or over 65? Mine at 68 would be bigger than his at fra..
You can take your survivor if you are 60 or older and let yours accumulate until up to 70 to then switch to your own. This option only applies now to survivor benefits.
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