U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-30-2018, 08:37 PM
 
1,550 posts, read 403,004 times
Reputation: 2896

Advertisements

Quote:
Originally Posted by ansible90 View Post
No that is not the only logical reason to take Social Security earlier. If you have enough savings/investments when added to the early Social Security payment to live comfortably, you can retire at that earlier age. I didn't want to spend down my savings while waiting for a higher Social Security payment. And the numbers worked out so that I didn't have to. As it happened, by not spending down my savings, they grew more since 2010 than I could ever have imagined. So now I have even more. It doesn't matter that my Social Security is lower than it could have been.
The return on SS is higher at age 70 than taking it sooner. This is simple math. Plenty of charts showing this and even on the SS website. I have had the retirement reports run many times over the years by an expert and each time it shows we are better off waiting till age 70 for SSN and using our savings if we decide to stop working before that. You might emotionally have an issue that you don't want to "spend down my savings" but that doesn't change the math of this.
Reply With Quote Quick reply to this message

 
Old 10-30-2018, 08:39 PM
 
8,859 posts, read 5,139,069 times
Reputation: 10134
Quote:
Originally Posted by rummage View Post
Every wise financial professional I've spoken with advises not to take SS until age 70. You can, of course, stop working before then and live off other assets, but it really is foolish not to wait until age 70 to take SS. The math supports that this is the best guaranteed return on investment. The only logical exception is if someone is forced into retiring sooner because of poor health.
Actually, the optimal age to begin drawing SS benefits completely depends on how long you live.
Reply With Quote Quick reply to this message
 
Old 10-30-2018, 08:43 PM
 
Location: VT; previously MD & NJ
2,205 posts, read 1,349,228 times
Reputation: 6341
Quote:
Originally Posted by rummage View Post
The return on SS is higher at age 70 than taking it sooner. This is simple math. Plenty of charts showing this and even on the SS website. I have had the retirement reports run many times over the years by an expert and each time it shows we are better off waiting till age 70 for SSN and using our savings if we decide to stop working before that. You might emotionally have an issue that you don't want to "spend down my savings" but that doesn't change the math of this.
But it's not always about the amount of money you have in the end. Because in the end, I won't need any money. Yes, it is partly an emotional decision, but also a recognition of how much is enough (that is, enough for me).
Reply With Quote Quick reply to this message
 
Old 10-31-2018, 03:28 AM
 
71,637 posts, read 71,777,271 times
Reputation: 49230
that just means what if i live is the bigger issue, not what if i die .
Reply With Quote Quick reply to this message
 
Old 10-31-2018, 03:31 AM
 
71,637 posts, read 71,777,271 times
Reputation: 49230
Quote:
Originally Posted by Petunia 100 View Post
Actually, the optimal age to begin drawing SS benefits completely depends on how long you live.
or how markets do if you take ss earlier and leave assets invested instead of spending down delaying .

or whether you want to bet more on longevity or markets ,rates and inflation for the bigger chunk of your income .

so there are other factors too .

the lines kind of intersect between average returns on a balanced fund and delaying ss to 70 at around age 90-95 . at that point you would be equal either way.
Reply With Quote Quick reply to this message
 
Old 10-31-2018, 08:07 AM
 
8,859 posts, read 5,139,069 times
Reputation: 10134
OK, the optimal age at which to begin drawing SS benefits, so that you receive the maximum amount of total SS benefits is...completely dependent on how long you live. "Experts", or simple Excel spreadsheets, can make projections based on different assumptions. However, since your future date of death is not known, the optimal age is also not known.
Reply With Quote Quick reply to this message
 
Old 10-31-2018, 09:11 AM
 
3,715 posts, read 3,125,677 times
Reputation: 7866
Quote:
Originally Posted by Petunia 100 View Post
OK, the optimal age at which to begin drawing SS benefits, so that you receive the maximum amount of total SS benefits is...completely dependent on how long you live. "Experts", or simple Excel spreadsheets, can make projections based on different assumptions. However, since your future date of death is not known, the optimal age is also not known.

And let's not forget that some of us can collect spousal benefits on a spouse who files earlier while delaying our own benefit until 70.
Reply With Quote Quick reply to this message
 
Old 10-31-2018, 09:40 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,601 posts, read 39,974,527 times
Reputation: 23736
or... follow the thread / MMM vs Suze on SS withdrawals.

https://www.cnbc.com/2018/08/24/suze...u-turn-70.html
http://www.mrmoneymustache.com/2011/...ent-revisited/


(hint... MMM was not waiting around for SS, nor factoring it into his retirement choice / plans < age 40!)

Retire early,
retire often (Today is a good day to retire!)

My expected longevity is ~ age 68. I will probably wait until 70 and see what's left (of life / finances / SS)

hint... I never factored SS into my plans either.
Reply With Quote Quick reply to this message
 
Old 11-01-2018, 05:36 PM
 
11,936 posts, read 20,396,567 times
Reputation: 19328
Quote:
Originally Posted by rummage View Post
The return on SS is higher at age 70 than taking it sooner. This is simple math. Plenty of charts showing this and even on the SS website. I have had the retirement reports run many times over the years by an expert and each time it shows we are better off waiting till age 70 for SSN and using our savings if we decide to stop working before that. You might emotionally have an issue that you don't want to "spend down my savings" but that doesn't change the math of this.
The math is simple. https://www.google.com/amp/s/www.foo...62-66-and.aspx

Using this simple chart and the death age of 85, at 62 you have 23 years to collect, and that gives you 288,696.

At 67, you have 18 years to collect 271, 944.

At 70, you have 15 years to collect 228,240.

62 wins!! In total cash.

Now, in what the checks are, yes, the single per check payout is higher if you wait till 70. And a lot of the financial pundits live to tell people to wait.

But, a bigger check isnít always the right thing. Simply put, what matters is how long you live. What matters is your comfort level. Hey, maybe waiting to 70 is the right thing for you, but I can tell you, Iím seriously considering 62. We have a very nice nest egg, and Iíd far rather keep a little more than spend it down. Iíve got a few years before decision time.

In financial matters I abide by the old adage ďThe only thing carved in stone is nothing should be carved in stone.Ē A lot of the things I hear financial pundits say is bad bad bad, Iíve not only done, Iíve wildly profited from. I donít expect that to change in retirement. I love adjustable rate mortgages, I manage my own money, I pick my own funds, and we bought our house at the near top of the market in 1987, when all our friends said we were crazy.
__________________
Solly says ó Be nice!
Reply With Quote Quick reply to this message
 
Old 11-02-2018, 07:15 AM
 
Location: R.I.
979 posts, read 606,557 times
Reputation: 4243
Quote:
Originally Posted by Tallysmom View Post
The math is simple. https://www.google.com/amp/s/www.foo...62-66-and.aspx

Using this simple chart and the death age of 85, at 62 you have 23 years to collect, and that gives you 288,696.

At 67, you have 18 years to collect 271, 944.

At 70, you have 15 years to collect 228,240.

62 wins!! In total cash.

Now, in what the checks are, yes, the single per check payout is higher if you wait till 70. And a lot of the financial pundits live to tell people to wait.

But, a bigger check isnít always the right thing. Simply put, what matters is how long you live. What matters is your comfort level. Hey, maybe waiting to 70 is the right thing for you, but I can tell you, Iím seriously considering 62. We have a very nice nest egg, and Iíd far rather keep a little more than spend it down. Iíve got a few years before decision time.

In financial matters I abide by the old adage ďThe only thing carved in stone is nothing should be carved in stone.Ē A lot of the things I hear financial pundits say is bad bad bad, Iíve not only done, Iíve wildly profited from. I donít expect that to change in retirement. I love adjustable rate mortgages, I manage my own money, I pick my own funds, and we bought our house at the near top of the market in 1987, when all our friends said we were crazy.

I did not click open the link you provided, but using my most recent Social Security statement and a my calculator granted my benefits are a bit higher than yours still my math tells me something different than what your math or that link is telling you.

My age 62 benefit is $21,300/year x 23 years (age 85) = $489,900
My FRA age 66.6 benefit is $30,132 x 18.4 years (age 85) = $554,429
My age 70 benefit is $39,648 x 15 years (age 85) = $594,720
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top