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Lower fixed income is almost always better to file at 62. Higher fixed income adds more flexibility and variables, which tend to favor delaying. Medicaid or ACA or any low income benefits are not even remotely a consideration for us. Based on your description my SS will be 2-3 times what yours is. Delaying, while the same percentage is a much larger absolute number. I already have many, many times what my SS would be, invested in “markets”. I don’t want anymore under that risk umbrella. If you think that the “markets” are less risk than SS, then you are already at a severe disadvantage.
None of this means this isn’t the best choice for you. The differences in absolute dollars between filing early and delaying in gross NW is miniscule for me. The larger tax advantaged income later in life is worth way more to me than the paltry returns an added $20k/yr invested would be. For you, it sounds like it is a large amount of your savings. All a matter of perspective.
Lower fixed income is almost always better to file at 62. Higher fixed income adds more flexibility and variables, which tend to favor delaying. Medicaid or ACA or any low income benefits are not even remotely a consideration for us. Based on your description my SS will be 2-3 times what yours is. Delaying, while the same percentage is a much larger absolute number. I already have many, many times what my SS would be, invested in “markets”. I don’t want anymore under that risk umbrella. If you think that the “markets” are less risk than SS, then you are already at a severe disadvantage.
None of this means this isn’t the best choice for you. The differences in absolute dollars between filing early and delaying in gross NW is miniscule for me. The larger tax advantaged income later in life is worth way more to me than the paltry returns an added $20k/yr invested would be. For you, it sounds like it is a large amount of your savings. All a matter of perspective.
Longevity does carry more risk then markets do when talking bigger balances for a spouse or heirs
For a retiree delaying , they need to see 90 to just match the typical average return of a balanced portfolio .. those odds are not great for a man ….for a couple they are 47%
They are much lower for individuals.
.
So odds are with markets vs your longevity to collect enough to beat early ss and investing..
Income could be the same in either case but odds are the left over balance will likely be bigger via early ss and investing
Some people aren't actually working longer in substantial jobs; they started later (late bloomers or divorced, etc.). It just happens that they put their time in during the most important years where age plays into all the calculations for pensions and SS to their great advantage.
I know people who were done by 50-60 and they have to invent a lot to fill their time. If you're not interested in (or too disabled) to travel far and wide and you don't see yourself teaching children in Africa or other substantial contributions to society who's to say that work is actually wasted time between 60 and 70. My BIL first retired at 60; he lasted one year. He's still working at 75 (made more in that 15 years than his entire work life) and loves what he does (and it's an unusual opportunity) There's nothing like paid employment to really challenge you intellectually.
My dream job is Starbucks Barista. Somehow I think I am better off sticking it out where I've got 20 years under my belt in a career I have 27 years into. The stress has already killed me; you can't kill a dead person.
Ha Ha! that reminded me of a very stressful job I held long ago for 14 years.
there were only 4 of us supporting too many users across too many relational databases. Users who had too many db rights that they used to do too many bad things. It was so stressful that we started calling our boss Art to say that we were too sick to come in, repeatedly. We had an amazing amount of stomach flu, migraine headaches, troublesome backs, hernias... we ate bad eggs and got sick, Art! Finally, one brave soul called Art and said, I'm not coming into today, Art, I'm dead. More of us died/were resurrected on alternating days... Miraculously we were finally healed of our ailments when we got additional co-workers... and some of those bad users found their db rights severely curtailed...
I'm going to be retiring around 62, and no, I don't plan to invest my SS. Although one thing life has taught me, especially in the last 2 years, is never say never.... things can change in a heartbeat (or the loss of a heartbeat).
Last edited by herringbone; 12-25-2021 at 04:26 PM..
I would never retire before I was eligible for Medicare. I am sure many do, but I don't know anyone that wants to retire that badly LOL.
Why not? If you have other health insurance, why would it matter if we retired before we are eligible for Medicare?
I retired at 57 from a public agency and took my health insurance with me. I wanted to retire when I was eligible at 55 but my boss dangled a promotion and money to get me to stay a little longer. (Did work part-time for a few years, so yeah, I know some consider that technically not retired but the State of New York Employees Retirement System says I am and deposits my pension every month.)
Everyone that I know who wanted to retire “early” didn’t do it due to healthcare. Here in the NYC metro area a family plan (husband/wife) runs anywhere from $16k to $24k depending on coverage, deductibles, etc. It’s a big nut to have to pay out of pocket for to stop working before 65.
This is precisely why [though I'm not in NY, o reven close], I only looked for a federal job when I was over 55 and looking for the first time.
On a HDHP, and pay $136 every 2 weeks for Self +1.
AND
I can continue in the FEHB into retirement at the same rate as any other federal worker on the same plan.
My problem is that I don't have enough money saved up in the TSP to retire at 63 like I want to. So will have to work longer, maybe up to FRA [67] before I can retire.
My dream job is Starbucks Barista. Somehow I think I am better off sticking it out where I've got 20 years under my belt in a career I have 27 years into. The stress has already killed me; you can't kill a dead person.
I pray that's not really so.
My goodness that's a negative outlook.
Please consider re-framing that thought.
Many times those who feel stressed retire , then they take what they think is a low stress job and now find they have the worst hours , no benefits , lower pay , and worst of all , ARE NOW UNDER THE MICROSCOPE OF A GRUNT SUPERVISOR WATCHING THEIR EVERY MOVE .
Before, they were not being watched at all after so many years on the job they left .
All they did is trade one stress for another and then are not even being compensated as well for it
1) Most of my friends though who want to leave their careers, only want part-time jobs -- which are a lot easier to get. AND they don't need to make their career level money. So like myself, they don't care if they only make $15-20 an hour, or if a boss is not the best...they'll just find something else.
2) They also are only working now to get to Medicare, so IF they could get another job that offered retiree healthcare before they'd get to 65, they'd be willing to make the change for that benefit.
I, myself, made that trade four years ago. Left a well-paid career to a more than 50% pay cut and got a job that offers retiree healthcare. (It took 3 1/2 years to get back to earlier career pay level.)
And while I'm stressed at the current job, it's a different stress and one that's a little more manageable. The stressors are so different though. So I don't even know if they're comparable in any way. The bottom line is however, that I don't regret the tradeoff at all.
Fine work at Starbucks.
But "the stress has already killed and you can't kill a dead person?"...I'm so saddened that someone would think that way.
It's soooo broken and defeatist.
Christmas can be a hard holiday for some, especially those without family or who are estranged from loved ones. Agreed, it's a sad thing to hear.
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Miraculously we were finally healed of our ailments when we got additional co-workers... and some of those bad users found their db rights severely curtailed...
