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two of our friends retired from their jobs at 65 and started SS.
one died within 6 months and the other died within 17.
my wife said: take the "bird in the hand".
I wonder what percentage of people waited until 70 just to die at 69 or sooner.
So what if they did? If they didn't even have enough saved to get them to that point I doubt getting their SS would have made those years much better. Do you really think a dead man cares that he didn't collect every penny of his SS?
Why does everyone doing this math think they are the first and only person to have ever thought like this?
Maybe it's a bad idea for guys with heart trouble, but as a healthy woman I think my odds of living to 80+ are pretty high and I'd rather take the higher benefit (along with associated COLAs). Who knows what the market will do....
Does that mean you'll be working into your 70s or can you still retire early and not take your SS? If you can retire early and don't need SS to do so, then I can see waiting since it really makes little difference in your life other than being concerned about the "breaking even" issue.
Last edited by marino760; 06-08-2019 at 07:39 PM..
I'm 66 and haven't filed yet on my own record although I'm collecting Survivor benefits on DH's.
The difference in monthly benefit depending on when you file is calculated to be equivalent, on average. Naturally those who start at 62 and die at 68 did better than those who choose to wait till 70 and die at 68. I've chosen to wait because the people in my family tend to live very long lives and because I'm doing fine on Survivor benefits plus my pension and investment income. If, God forbid, I die early, I'll have achieved my 3 primary financial goals- not outliving my savings, helping with the grandkids' educations and leaving a legacy. DS and DDIL will be very wealthy.
Note also that if you file early and are counting on Survivor benefits to support your spouse after you're gone, you're permanently reducing what they'll collect after your death, which is another reason some people wait to file.
I was talking to a friend the other day about Social Security and when to take it. A family member is waiting until 70 to get the maximum benefit but my friend thinks that may not be best. He noted that you are losing 7 1/2 years of income by waiting and it would take a number of years to recoup that money.
His reasoning is this. At 62 1/2 he would get $1,900 a month from SS. At 70 the benefit would be $3,600. If he starts taking it at 62, he would earn a total of $171,000 in those years between retirement and 70 ($1,900 x 12 x 7.5 = $171,000). If he waits to 70, it will take over 8 years to break even and get that $171,000 back ($3,600 - $1,900 = $1,700; $171,000/$1,700 = 100.59 months or 8 years, 4 months).
He feels he should take that money and, assuming he does not need it, invest it to get a better return. Does this make sense? Is he missing something? Jay
I waited to age 70 because I didn't have the savings people said I should have had.
Waiting to 70 increased my social security to $3,000 a point where I could live, and somewhat comfortably, on social security alone. My condo is paid for, I have zero debt and after I pay my HOA fees, property tax, all utilities, insurance related to medical, auto and property I would still have $2,200 left over every month for food and entertainment. That comes out to $508 every week for basically food, entertainment and gasoline. I am married, my wife receives a benefit as well but I always planned retirement for being single... married we are very comfortable but what happens when God takes one of us?
Not living the grand lifestyle but in my view comfortable enough.
I had to work from 62 to FRA of 66 because social security alone, would not have been enough. I can't remember the exact figure but at 62 I seem to remember my benefit at $1,700 but because of my earnings that would have been taken back anyway.
Thought about taking it at my FRA but I seem to remember the benefit would have been around $2,300 but since I was working 85% of that $2,300 would have been subject to federal income tax. I would have lost around $400 of that $2,300 to federal income taxes so my amount would have been $1,900.
If you look at it like I did to wait four years and not working my increase was actually a bit over $1,100/month and where else can you save money like that?
Look at it this way, assuming I live 20 more years that extra $750 I get by waiting from FRA to 70 is as if I had saved an additional $180,000 but it is better than an IRA savings because I won't have to pay income tax on that when I receive it.
I want to retire without any money worries or concerns.
There are a lot of factors here. Age you expect to live, health, expenses, how much you have saved. It is all a melting pot and there is no right answer. The "take the money and run" crowd is thinking that the extra money could be used while they are healthy enough to enjoy it. Later, at 80, will you really want to travel? Or will the money just go to the nursing home or on the pile with the rest of the cash you have? I have thought long and hard about it, and I plan on about 62 and a half. That will work for me, but your situation may be different.
So what if they did? If they didn't even have enough saved to get them to that point I doubt getting their SS would have made those years much better. Do you really think a dead man cares that he didn't collect every penny of his SS?
Probably not, but a live man cares a great deal if he has to continue working until 70 when his body has worn out. Not everyone has a desk job. It's not about collecting every penny or close to it. It's about living what's left of your life without having to work 40 hours a week so you can know what it feels like to be out of the rat race and still be healthy for a few years before you become ill or die.
I'm not sure why that rubs some people the wrong way.
Does that mean you'll be working into your 70s or can you still retire early and not take your SS? If you can retire early and don't need SS to do so, then I can see waiting since it really makes little difference in your life other than being concerned about the "breaking even" issue.
Nope - not working until 70! Retiring at 62 and drawing down my investments - not concerned about that. But yes, the extra SS will DEFINITELY make a big difference to me if I live into my 90's - THAT is my main concern. If I die early, big deal.
Probably not, but a live man cares a great deal if he has to continue working until 70 when his body has worn out. Not everyone has a desk job. It's not about collecting every penny or close to it. It's about living what's left of your life without having to work 40 hours a week so you can know what it feels like to be out of the rat race and still be healthy for a few years before you become ill or die.
I'm not sure why that rubs some people the wrong way.
I already said that if your health is bad, sure - collect. Healthy people collecting early? And then they say they don't even need it? THAT makes no sense - they get a perverse joy out of feeling like they are screwing the government or something. Extra pocket money, sure, whatever.
Most everyone’s situation is different. And taking SS at 62 or FRA or 70 is a personal choice, dependent on many factors. This has been discussed ad nauseam. The search function may be your best friend.
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