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latest numbers (2017) show more at 62 taking it . 48% of woman take it at 62 and 42% of men . at fra 34% of men take it and 24% of women . at 70 4% of women , 2% of men . but keep in mind many took advantage of spousal ploys so one will file earlier . just the fact at 62 more women take it and at fra more men says their are more spousal strategies being used .
I think women are influenced to take it at 62 because their spouse is usually a few years older and they are wanting to retire at about the same time...and hey, maybe hers is a small amount anyway that won't change all that much by waiting. But that is just one situation.
I don't think anyone regrets taking it at 62 when they are only 65 or 70 - they MIGHT regret it if they live to 80, 85, or 90! THAT'S when I want to hear back from all those taking it early but not many of them are online to tell us...so we hear a very one-sided conversation on the topic.
That is an interesting question. Funny thing, though, is that every study I could find on the topic reveals that overwhelmingly, older retirees that retired early do not regret the decision. That the studies are statistically consistent seems important to me. Unfortunately I don't have a feel about any bias in their data one way or another. Is that because elders are afraid to admit mistakes? I don't actually suspect this is the case; the responders that were in a bind were eager to commiserate.
it really depends on the study and the make up of the people .
remember most americans only have have two choices , take ss early or keep working .
the majority don't have the funds to delay so asking them if they regret not delaying is a moot point , they would have to have kept working so of course they don't regret it .
Well said. I am planning on hanging it up in 2020 at 62 years old. Work has changed dramatically and it’s affecting my health with stress so glad finish line is almost there.
I was convinced to use some of my 401k to wait out to FRA at 66.8 but after doing further analysis plus taking a serious look at my health plus my family history changed my mind and will probably take mine at 62 when I retire.
I did an excel file calculator and realized that even at a 4% return it would take until I’m 83 to make up for the upfront money I would have to put up.
I rather retire early enjoy my life as best I can while healthy and thankfully my investments will keep me financially stabled should I live past 83.
MJ made some very solid points when we were discussing annuities. As the rate of return by delaying exceeds the annuity payout it make sense to delay filing and draw down from the 401. There are a ton of reasons why this is a good idea and some are not specific to people considering annuities.
The SS increase exceeds the payout on an annuity and is a guaranteed increase unlike investment returns, the larger SS benefit also means a larger COLA, in addition it could have tax ramifications as SS is only taxed once you exceed an income threshold, so it's better to have a larger SS check and smaller income from 401 distribution.
All of this makes perfect sense mathematically. But the emotional toll of watching your balance dwindle down when you just know you can stop the bleeding by simply filing for a check that's just waiting for you is huge.
there certainly is a mental aspect of it . the good thing was though , while i was not collecting markets were doing very well so while technically you had less , the fact you had more the following year even after the spending made it less noticeable mentally
My numbers between age 62 and FRA at 66,8 months is almost $10K extra per year. 62 to 70 is almost $19K extra per year.
If you're born in 1960, you have a bigger penalty for collecting early than someone born in 1954 since FRA bumped from age 66 to age 67. You also have a smaller reward for deferring to age 70 since you have a year less of deferral.
I figure I'll collect at 70 unless my circumstance change. I'm fortunate to have that option.
That's kind of where I'm at. I will wait till as close to 70 if my situation allows it at the time (like health and staying employed), and if not, so be it. But I'll wait as long as possible, at least till 67. I don't plan on working that long though, so I will need a 401K and/or a part time job to carry the gap. My wife is younger so it's better for her too.
The yearly income projections of collecting at 62 vs 70 are pretty large being on the upper end of the SS income range. I tend to think of SS as a security blanket in the event you live long. If you wait and don't live longer- you won't know any better anyways.
I’m waiting to take it at 70, I looked up my SS at 70 is over $41,000 in today’s dollar. If I take it at 62, it will be less than $24,000. My state doesn’t tax SS, the larger it is the better for my tax situation, provided my federal tax bracket stays neutral. I look at the whole picture, both federal and state tax situation. I too do some spreadsheet calculation on different scenarios to help me formulate my strategy. Lately, some events happened made me think my strategy is rock solid for my own situation.
combined ours was 40k at 65 and 50k at 70 , my wife has a low record . .. but once i looked at the fact we would be spending down so much in invested assets or money that could be invested , that is gone forever , not waiting beyond 65 was the better choice . she just would not get 4500 a year in spousal alone .
That is an interesting question. Funny thing, though, is that every study I could find on the topic reveals that overwhelmingly, older retirees that retired early do not regret the decision. That the studies are statistically consistent seems important to me. Unfortunately I don't have a feel about any bias in their data one way or another. Is that because elders are afraid to admit mistakes? I don't actually suspect this is the case; the responders that were in a bind were eager to commiserate.
Methinks the media is being slanted on this topic. Unfortunately, from the from the studies I read- I can't tell which direction!!
It's hard for me to evaluate the study....personally I don't care for their use of focus groups - since the majority of people take SS early, dissenters would have already been in the minority having to defend their position.
And as was said, for those who felt they didn't have a choice (the majority) it's easier to just accept the decision since it can't be changed anyway.
I also didn't see a mention of how long these people had been collecting so yes, it makes a big difference if it has been 5 years or 15.
Maybe there are more quantitative studies out there but most of what I saw wasn't based on actually asking people anything - it was all supposition.
Something seems off with those numbers.
Is it even possible that if you are replacing 8 years of very low income with let’s say $100k/yr that the difference would result in +$17k a year in ss?
Quote:
Originally Posted by NewbieHere
I’m waiting to take it at 70, I looked up my SS at 70 is over $41,000 in today’s dollar. If I take it at 62, it will be less than $24,000. My state doesn’t tax SS, the larger it is the better for my tax situation, provided my federal tax bracket stays neutral. I look at the whole picture, both federal and state tax situation. I too do some spreadsheet calculation on different scenarios to help me formulate my strategy. Lately, some events happened made me think my strategy is rock solid for my own situation.
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