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The higher the pension and SS income the greater the cushion to take a hit if either is reduced. At age 70 (2 1/2) years we can take a 25% reduction and still be good. I factored that into our plans and thinking.
My point is that if I retire before taking SS and just use other funds, then I will reduce the balance of the other funds. If the interest rate were to come up enough, it is possible that I could get a fund that would pay enough to support me without reducing principal or reducing it very slowly but that would only be likely if I were taking SS. It is likely that when I get close it will be a simple decision because I think it is unlikely that rates will change that much in 6 years.
Same boat here, its fine to plan and be aware of the pros and cons, but when you are 5-6 years out, that's all it is...plans. Heck, I'm not even sure when I will retire, except 65 at the latest, and 62 at the earliest. And that all has to do with my attitude, health, desires, etc and nothing at all to do with adequate finances. Then when to collect SS is a whole other issue all together.
Food for thought about all of this. If you use Fire Calc to crunch the numbers and have a retirement spending goal you may find that by delaying SS you will never need to touch your nest egg as pensions and delayed SS may be more than enough. So from a certain age forward your nest egg could be allowed to sit and in fact you could be adding to it.
Food for thought about all of this. If you use Fire Calc to crunch the numbers and have a retirement spending goal you may find that by delaying SS you will never need to touch your nest egg as pensions and delayed SS may be more than enough. So from a certain age forward your nest egg could be allowed to sit and in fact you could be adding to it.
Key word "may". I don't have any pension; just a decent tax deferred savings balance and SS. I won't know my numbers until I get really close but my guess is I will need to withdraw over 5% per year but probably less than 8% to support myself with no SS. But things could tank and I could end up working for less in between and need to withdraw 10% or more. If that were the case, taking a smaller SS payment to keep from withdrawing as much could keep the balance from ever dropping. I just won't know until it gets close.
Key word "may". I don't have any pension; just a decent tax deferred savings balance and SS. I won't know my numbers until I get really close but my guess is I will need to withdraw over 5% per year but probably less than 8% to support myself with no SS. But things could tank and I could end up working for less in between and need to withdraw 10% or more. If that were the case, taking a smaller SS payment to keep from withdrawing as much could keep the balance from ever dropping. I just won't know until it gets close.
That's the tough part. Not knowing to you get close and then really knowing when you hit your late 60's. We are in the hindsight stage but I understand your angst at this stage. I had it also. We really had a crusher scare retiring January 1, 2008 and then the meltdown. It came back quickly and we were better off but at the bottom it was a tad scary.
Roughly 20% of US households make $100k or more, 11.8% between 100 & $150k, which is close enough to max to be effectively the same. Naturally, the number that made the inflation adjusted max for 35years is likely less, but I suspect greater than 6%, but for "close enough", say 85% of max is likely closer to the 20% number. Is the 6% number those that filed at 70 for max or collect the max at FRA and beyond?
That's household income, not individual income. Only 6% of workers max out their Social Security contribution.
The percentage of workers with earnings above the tax max ("above-max earners") fell from 15 percent in 1975 to about 6 percent in 1983 and has remained at that level since.
There simply aren't that many people who can show 35 years of 6-figure income. Certainly less than 5%.
Max used to be way under 6 figures, though. In 1991 it was 53,400. 2008 was the first year you needed 6 figures to max out.
FWIW, in 1963 and 1964, 1 & 2 years out of high school, I maxed out the SS deduction of $4800 those years. This on a $1.695 hourly pay. (How, you ask ? Lots of overtime). As such, those are years 31 & 32 of my top 35. When SSA did its AIME adjustment, they were worth $37390 & $38919. Eventually 26 of my final top 35 years were at those years max. This resulted in my receiving 86% of the max benefit for the year I started benefits at age 70 in 2014.
Same boat here, its fine to plan and be aware of the pros and cons, but when you are 5-6 years out, that's all it is...plans. Heck, I'm not even sure when I will retire, except 65 at the latest, and 62 at the earliest. And that all has to do with my attitude, health, desires, etc and nothing at all to do with adequate finances. Then when to collect SS is a whole other issue all together.
Your post and the one above yours really hit the nail on the head for me.
I am going to p/t at same employer in the late spring and I will be 62 then. We are going to adjust our spending down a bit to where the p/t work and as little as needed withdrawls will let me stretch out the applying for SS.
We probably have adequate finances but my attitude is no longer adequate.
Just the idea of going p/t has really helped. Also Jim cannot collect off my SS as he is civil service pensioner. So delaying is good, but not going to what till FRA or later.
As you said, when to collect is other issue all together.
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(How, you ask ? Lots of overtime). As such, those are years 31 & 32 of my top 35. When SSA did its AIME adjustment, they were worth $37390 & $38919. Eventually 26 of my final top 35 years were at those years max. 
This resulted in my receiving 86% of the max benefit for the year I started benefits at age 70 in 2014.
