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I'm still considering taking it at 67 or 70. I'm only 59 1/2 right now, and its likely that there will be changes (lower and/or taxed more) than what my current SS projections are by the time I start collecting. The only reason to wait is for the increased survivor benefit. My current SS estimate at 67 is $3,148 and $4,248 at 70. Eventually I'll also get a FERS pension $1,300 - $1,500.
I plan to have the house paid off in 6 years and retire. Average monthly cost (not counting the mortgage) is roughly $1,350 for utilities, HOA, streaming services, phones, pest control, alarm monitoring etc. Does not include groceries.
My wife is 4 years younger than me, and she's always been a low earner. Right now her net monthly income is only $2,200. That's $860 from her FERS pension and $1,340 from SSDI.
I've already set up the Survivor Benefit Plan for my Military pension which currently is a little over $2800. As long as I live at least another 4 1/2 years she should also get Dependency and Indemnity Compensation (DIC) from the VA since I'm 100% P&T. The current amount is $1613 plus she should also get another $342 for the 8 year provision. She may also qualify for around $600 more from the VA depending on her health and what if any help she may need.
The gross would be $4,755 - $5,355.
And all the income above has COLAs.
Now that I've written it down like this, I'm leaning towards taking SS once the house is paid off which would be 65 1/2 or so.
What do you think?
You don't say what you will do for medical insurance. If you are not working may have to apply for Medicare when you can at 65. If you were working for a company with creditable health insurance could delay to 67 or 70. Since you are 59 now makes a 7 year window to fill. Having the house paid off in 6 years is a good target. Could also be good time to do upgrades in the bathroom & other areas of the house with senior living in mind.
In this 7 years look at your 401K/IRA and see if you can convert some into Roth. Would also be good time to do HSA.
You don't say what you will do for medical insurance. If you are not working may have to apply for Medicare when you can at 65. If you were working for a company with creditable health insurance could delay to 67 or 70. Since you are 59 now makes a 7 year window to fill. Having the house paid off in 6 years is a good target. Could also be good time to do upgrades in the bathroom & other areas of the house with senior living in mind.
In this 7 years look at your 401K/IRA and see if you can convert some into Roth. Would also be good time to do HSA.
They have Tri-Care through the military/VA. So, they are set that way.
This may seem contrary, but one theory is if you have no pension and are relying on savings, delay until FRA, or beyond. And if you have a pension take it earlier. The idea is if you are relying solely upon savings you will need a higher benefit as you drawn down, in addition to being at the mercy of the markets. With a pension the benefit will always be there, and will likely raise a bit with COLAs. YMMV.
Yes I could take it at 62, but since I plan to keep working until at least 65 to pay the house, the tax hit would be huge.
Unfortunately I've never been much of a saver. We've lived paycheck to paycheck the majority of the time. Right now I only have a little over $100,000 in my TSP (401K). My saving grace is the multiple "pension" income streams I have now and will continue into retirement. All of which have COLAs. My wife has her FERS disability retirement and SSDI which will convert to regular SS at FRA. I have my military retirement and VA disability now and will eventually add my own FERS retirement and SS. Any retirement savings is just extra $.
It sounds like you are (or will be in) a very nice spot having all of your financial needs met by your pensions and annuities. Should make for a worry free (financially anyway) retirement!
You don't say what you will do for medical insurance. If you are not working may have to apply for Medicare when you can at 65. If you were working for a company with creditable health insurance could delay to 67 or 70. Since you are 59 now makes a 7 year window to fill. Having the house paid off in 6 years is a good target. Could also be good time to do upgrades in the bathroom & other areas of the house with senior living in mind.
In this 7 years look at your 401K/IRA and see if you can convert some into Roth. Would also be good time to do HSA.
Tricare requires me to sign up for Medicare at age 65 regardless of whether or not I'm still working. Tricare for Life functions as a Medigap to cover the 20% that Medicare doesn't.
Tricare requires me to sign up for Medicare at age 65 regardless of whether or not I'm still working. Tricare for Life functions as a Medigap to cover the 20% that Medicare doesn't.
In this case maybe sign up for Social Security at the same time. Have SS pay the Medicare premiums. One less bill to pay,
I have learned that each person looks at this issue differently.
In one person's mind, it makes sense to take SS benefits at the earliest opportunity. AND in another person's reasoning, it makes sense to take SS benefits at a later date. AND for a third person in his way of thinking it makes sense to hold off and take the benefits at the latest date.
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