Regrets for taking SS at 62 or waiting?

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retire57
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Regrets for taking SS at 62 or waiting?

Post by retire57 » Thu Nov 23, 2017 10:52 am

The current SS discussion has made me curious. Can we hear from those of you who are collecting SS and whether you feel, for your situation, that you made the right decision to claim early or wait?

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TheTimeLord
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Re: Regrets for taking SS at 62 or waiting?

Post by TheTimeLord » Thu Nov 23, 2017 10:54 am

Probably won't get a lot of responses from people who waited then died early.That could skew the results you receive.
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Re: Regrets for taking SS at 62 or waiting?

Post by neilpilot » Thu Nov 23, 2017 11:03 am

retire57 wrote:
Thu Nov 23, 2017 10:52 am
The current SS discussion has made me curious. Can we hear from those of you who are collecting SS and whether you feel, for your situation, that you made the right decision to claim early or wait?
Not sure if I qualify to response, but I do think I made the right decision. I'm not collecting until ago 70. OTOH I am collecting; spousal against my DW, who started her's at 66.

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Re: Regrets for taking SS at 62 or waiting?

Post by AlwaysaQ » Thu Nov 23, 2017 11:28 am

I retired at age 54 with a reduced pension and a bridge to social security at 62. When I hit 62 I applied for social security because I was not in good health, had already had a bout with cancer, and both parents died in their early 60s. Also I was single so no spousal benefit. I had enough money saved to wait. Now I am 76 so, in retrospect, I probably should have waited until FRA. I don't think waiting until 70 would have been a good idea for me.

I can't say that not waiting is one of my biggest regrets though.

wabbott
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Re: Regrets for taking SS at 62 or waiting?

Post by wabbott » Thu Nov 23, 2017 11:35 am

I retired at 59, and started collecting SS at 62, which was my plan all along. Wife also retired at 59, when we could access our IRA's without penalty. We both could have worked longer, but we wanted to do some extended traveling, something not possible if we still worked. I'm now 67 and she's almost 62.

From a financial standpoint, in hindsight, I could probably have held off on the SS until 66, and drawn a little heavier from my IRA stash, especially had I known how good the stock market was going to be from 2009 through 2017. But if I could predict the market, I would be sailing the Caribbean on my Feadship.

Another factor is of course insurance. My wife continued to work until I turned 65 and was medicare eligible, and we bought a high deductible policy for her. We now are ACA compliant, and are restricting our incomes to stay under the limit. She won't draw her SS until she's medicare eligible.

Timewise, we both are glad we quit when we did. We've managed to take up amateur hiking in the Smokies, to see some of the waterfalls that require a hike. We figured we better do that now, before we get too decrepit for that sort of thing. So time and health will in the future be our limiting factors.

I suppose what kind of work one does is a consideration when to retire. Office job or manual labor? High stress boss, or a fun place to work?

My brother-in-law is retiring from a paper mill next February, where he's been a millwright for 40 years. Climbing ladders, fixing heavy machinery, wrenches, hammers, etc. A physically demanding job.

His wife told him she read in a book that he should wait to 65.

His reply: "The woman who wrote that book didn't work at a paper mill. She sat behind a desk all her career."

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Re: Regrets for taking SS at 62 or waiting?

Post by dbr » Thu Nov 23, 2017 11:44 am

An acquaintance is on medical assistance. The state takes all his income no matter what it is. When or even whether he has taken SS makes no difference to him. Probably they would sign him up as a matter of law in a case like this, otherwise the state is not getting its slice of the Federal benefit.

I wonder if it is possible that taking too much SS could disqualify a person from certain benefits?

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Re: Regrets for taking SS at 62 or waiting?

Post by Cheyenne » Thu Nov 23, 2017 11:55 am

I filed at age 63.9 after calculating that the total benefit I would receive up until age 80 was about the same as if I waited to file at age 70. It's a calculated risk, and I have no plans to stop working.

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Re: Regrets for taking SS at 62 or waiting?

Post by ResearchMed » Thu Nov 23, 2017 12:13 pm

We both filed for full SS at 70.
Prior to my 70th, I had filed for spousal, and then switched to "own" at 70.
DH is still working, which made the decision simple. We didn't need to use either SS or investments prior to 70, and DH will be working by choice for a few more years.
The SS income has added greatly to our travel :happy

No regrets whatsoever.

MIL is going strong and fully alert (and always in search of more bridge players) as she approaches 100 :happy
[I certainly hope DH has a lot of her "good" genes!]
My parents both lived well past their "break-even" ages.
And we are both in reasonably good health, give or take a few aging issues.

We obviously could have taken the money earlier and invested it or used it.
But given that it is COLA'd, and with higher benefit to the survivor, this is definitely a sort of "longevity insurance" for us.
The "premium" is the money we might have taken sooner.
And for similar reasons, we'll annuitize at least a portion of our holdings.
Without heirs, we'd rather take steps to avoid running out if we live long lives, and there is no real advantage to us of having a bundle left.
As it is, because we wouldn't annuitize *everything*, there will still be "something left" for a few dear friends and non-profits.

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Re: Regrets for taking SS at 62 or waiting?

Post by delamer » Thu Nov 23, 2017 12:36 pm

TheTimeLord wrote:
Thu Nov 23, 2017 10:54 am
Probably won't get a lot of responses from people who waited then died early.That could skew the results you receive.

:D

My spouse was (and is) still working when I reached age 62. If I had claimed then, we would have lost almost 40% of my benefit to federal income taxes, AMT, and state income taxes. So it just made no sense, especially since we have my pension in addition to his earnings and are living quite comfortably.

As it happens, he will retire a month before I reach my FRA and he will have the higher benefit. So the stars seem to align for me to claim at FRA.

The various calculators I've tried show a difference of about 1.5% of our joint income over the course of a 20 to 30-year retirement between the optimal and worst-case scenarios. So while the gross amount sounds like a lot, the difference in our annual income is pretty low. But my husband has a pension too, so SS isn't as critical to our base income as it is for most people.

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Re: Regrets for taking SS at 62 or waiting?

Post by itstoomuch » Thu Nov 23, 2017 12:59 pm

Nope.
We needed the money. We had planned for FRA but the GR impacted us. We don't need the funds today.
SS is a Use It or Lose It benefit of your own money.
You use your own money first (comes out first).
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Re: Regrets for taking SS at 62 or waiting?

Post by CABob » Thu Nov 23, 2017 1:47 pm

I retired and started receiving SS benefits at 63. I have no regrets although I have since come to the opinion that it might have been better to have waited. If you are married also consider that a surviving spouse might want to collect on their spouses account after the first passing.
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Re: Regrets for taking SS at 62 or waiting?

Post by littlebird » Thu Nov 23, 2017 1:48 pm

No regrets for spouse and I taking at 63 and 65 respectively. It was the only way we could finance our early (very early in my case) retirement and do the traveling and activities that the early retirement was in aid of.

We did postpone taking spouse's SS for about 1 1/2 years after retirement, and withdrew savings, but then we felt ready to start his SS. Limiting calculations to just SS, we would have done better waiting, since spouse is now 91 and looks like he could last another 10 years despite (or maybe because of?) being bed-bound, but factoring in foregone gain on the savings we would have withdrawn in those years, I think we did as well, if not better, although I never tried to do the calculations, and could be delusional, but in any event feeling happy and not the least bit regretful.

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Re: Regrets for taking SS at 62 or waiting?

Post by Cruise » Thu Nov 23, 2017 3:11 pm

No regrets. I invest my payments, and the market has been good. My spouse, three years older, upon turning 66, is using my spousal benefit, and getting 50% of my full benefit.(So, we are getting 125% or so of my benefit). This money is used to offest our high vacation costs. Meanwhile, when spouse retires between 67-70, spouse Will immediately file for own benefits. We are fortunate to not need SS to survive. But, we paid into the system and we don’t want to leave any benefits on the table.

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Re: Regrets for taking SS at 62 or waiting?

Post by heyyou » Thu Nov 23, 2017 3:14 pm

Delayed gratification has always paid well in the past, so I bet on it again.
Retired at 55 with a fair portfolio and a skimpy no-COLA pension increased by no survivor benefit, so delaying my SS to age 70 boosts her tiny SS when my pension dies with me. My greatest fear was another bout of high inflation. It may have been a wash since the pension and higher SS amounts are near equal.

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Nicolas
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Re: Regrets for taking SS at 62 or waiting?

Post by Nicolas » Thu Nov 23, 2017 3:58 pm

Wow, so far no one has any regrets either way, how can this be :confused
I'm waiting till 70 to take mine as I don't need the money right now. If I die first, and if I regret that, I'll be sure to come back here and post about it.

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tuningfork
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Re: Regrets for taking SS at 62 or waiting?

Post by tuningfork » Thu Nov 23, 2017 5:12 pm

Answering on behalf of a friend and former boglehead reader who recently passed away from a stroke at age 68. He had decided to wait until 70 for the "longevity insurance". I'm sure he would regret that he didn't factor in the fact that his father, grandfather, and nearly all the males on his father's side all died young from strokes. With that family history he would have been better off taking SS earlier and living his final years a little more extravagantly. Of course you never know your checkout date, but in this case the odds were stacked against him.

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Re: Regrets for taking SS at 62 or waiting?

Post by Copper John » Thu Nov 23, 2017 5:21 pm

Nicolas wrote:
Thu Nov 23, 2017 3:58 pm
Wow, so far no one has any regrets either way, how can this be :confused
I'm waiting till 70 to take mine as I don't need the money right now. If I die first, and if I regret that, I'll be sure to come back here and post about it.

Well given you have a sense of humor which can only prolong life right(???) - waiting until 70 seems to be a wise decision.

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Re: Regrets for taking SS at 62 or waiting?

Post by cheese_breath » Thu Nov 23, 2017 5:26 pm

No regrets. DW and I both took ours at 62 and used it for living expenses instead of pulling money from our investments during some of the worst times to do that.
The surest way to know the future is when it becomes the past.

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Re: Regrets for taking SS at 62 or waiting?

Post by Artsdoctor » Thu Nov 23, 2017 5:34 pm

Tunungfork,

I’m sorry about the situation you described. That’s unfortunate for sure.

You’d hate to think that delaying social security would result in someone’s lifestyle being needlessly austere. The idea would b easing your own money while social security increases and making up the outlay later, not being overly frugal.

Obviously, these decisions should be considered with medical history in mind.

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Re: Regrets for taking SS at 62 or waiting?

Post by itstoomuch » Thu Nov 23, 2017 5:55 pm

Took SS at 62.
prostatectomy @ 63
Radiation @ 67
Probably take hormonal treatments in 2018 since PSA is still rising.

BP @ 67, 200/85

I was betting on Mom's 97 (passed) and Dad 97 who still w/ us :oops:
GLWB annuities have a death benefit @1% fee. SPIA has a reduced benefit for return of premium of ~10%. :annoyed
I was never much of a gambler and tend to pick the known risk premium. :idea:
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Re: Regrets for taking SS at 62 or waiting?

Post by retiredjg » Thu Nov 23, 2017 6:06 pm

Retired at 57 and started SS at 62. I was aware of the possible benefits of waiting, but I didn't wish to deplete my IRA/TSP hoping that I'd live long enough to get past the "break even" age with a bigger SS check.

For me it was "known" vs "unknown". My family has not been long lived so even if I do live past the break even age, it seemed less likely than likely when I had to make the decision about when to start. Also, I'm not sure that waiting is as good a benefit for a single person as for a couple.

No regrets. Even if I live to 100, there is no point in regretting a decision made about a future that is not possible to predict. "Ya pays yo money and takes yo chances." :)

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Re: Regrets for taking SS at 62 or waiting?

Post by chabil » Thu Nov 23, 2017 7:06 pm

My husband retired at 74. By that time he was drawing a salary, pension, and SS from 62. I also filed at 62, I get much less than him, and no pension.
I wonder sometimes if we did the right thing but he is absolutely certain he did the right thing. Our investments grew, we paid off our mortgage early, we traveled a lot, and when he retired we had no worries.

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Re: Regrets for taking SS at 62 or waiting?

Post by SGM » Thu Nov 23, 2017 7:16 pm

We are delaying, but not yet taking our delayed SS. I did file and suspend and DW is receiving a spousal benefit while awaiting to take her own SS at 70. I doubt we will have any regrets.

When I discussed our decision with several widows, several chimed in that they wish their spouses had delayed taking SS so that they would have had a larger widow's benefit.

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Re: Regrets for taking SS at 62 or waiting?

Post by mfswatz9 » Thu Nov 23, 2017 7:29 pm

I retired at 63 and began taking SS a couple of months later when I turned 64. Since I took a lump sum retirement, I wanted a little "spending money" coming in every month. My father died at 45 and I didn't want to lose out on the money I had earned. I'm not sorry I did. There's certainly no right or wrong answer.

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Re: Regrets for taking SS at 62 or waiting?

Post by triceratop » Thu Nov 23, 2017 7:41 pm

TheTimeLord wrote:
Thu Nov 23, 2017 10:54 am
Probably won't get a lot of responses from people who waited then died early.That could skew the results you receive.
That's okay, as long as they didn't run out of assets before their premature demise, their retirement plan was a success. Of course, we can say that didn't happen since evidently the OP didn't find such posts ;)
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Re: Regrets for taking SS at 62 or waiting?

Post by delamer » Thu Nov 23, 2017 8:41 pm

SGM wrote:
Thu Nov 23, 2017 7:16 pm
We are delaying, but not yet taking our delayed SS. I did file and suspend and DW is receiving a spousal benefit while awaiting to take her own SS at 70. I doubt we will have any regrets.

When I discussed our decision with several widows, several chimed in that they wish their spouses had delayed taking SS so that they would have had a larger widow's benefit.
This is an important point. How well is a surviving spouse doing financially based on the SS decision, and how much input did the surviving spouse have in that decision?

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Re: Regrets for taking SS at 62 or waiting?

Post by VictoriaF » Thu Nov 23, 2017 8:55 pm

I am delaying. "No regrets" is an understatement. I consider it one of the most prudent financial decisions I have made.

Note that the period from early retirement to the commencement of the Social Security is an excellent opportunity for making Roth conversions.

If I die before the age of 70, you will hear from me.

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Re: Regrets for taking SS at 62 or waiting?

Post by flyingaway » Thu Nov 23, 2017 9:35 pm

I guess the answers will be different since the claim and delay or similar strategies are no longer available.
I will have at least 10 more years to decide and I am sure there will be some changes along the way.

Anyone claims that social security will not change can pay some attention to the current discussions about possible reforms on taxes and healthcare. Anything can change.

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Re: Regrets for taking SS at 62 or waiting?

Post by Lancelot » Fri Nov 24, 2017 2:16 am

AlwaysaQ wrote:
Thu Nov 23, 2017 11:28 am
I retired at age 54 with a reduced pension and a bridge to social security at 62. When I hit 62 I applied for social security because I was not in good health, had already had a bout with cancer, and both parents died in their early 60s. Also I was single so no spousal benefit. I had enough money saved to wait. Now I am 76 so, in retrospect, I probably should have waited until FRA. I don't think waiting until 70 would have been a good idea for me.

I can't say that not waiting is one of my biggest regrets though.
Although I'm in the wait camp, I don't blame you a bit.

Some employers will subsidize a pension to FRA, but if a person is in poor health, its a moot point. Glad you are still with us :sharebeer
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Re: Regrets for taking SS at 62 or waiting?

Post by carolinaman » Fri Nov 24, 2017 6:49 am

I retired 7 years ago at age 66. My analysis at the time indicated a breakeven point around age 82. Since no male in my family had lived past 73, I took SS at age 66 (FRA). I really did not need SS income to retire and could have deferred. In retrospect with my current understanding of SS options, that is what I should have done because it makes for nice longevity insurance.

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Re: Regrets for taking SS at 62 or waiting?

Post by mouses » Fri Nov 24, 2017 7:32 am

retire57 wrote:
Thu Nov 23, 2017 10:52 am
The current SS discussion has made me curious. Can we hear from those of you who are collecting SS and whether you feel, for your situation, that you made the right decision to claim early or wait?
When I crunched numbers and found that I would be better off taking SS early until I made it to 78, it was no question. My Dad's family was lucky if they lived into their early sixties. My Mom;s makes it to their early 80s. So for years I have had that $1500 a month rolling in. Imagine how annoyed I'd be if I had delayed and found myself dead without ever having collected a nickle.

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Re: Regrets for taking SS at 62 or waiting?

Post by vested1 » Fri Nov 24, 2017 8:53 am

Nicolas wrote:
Thu Nov 23, 2017 3:58 pm
Wow, so far no one has any regrets either way, how can this be :confused
I'm waiting till 70 to take mine as I don't need the money right now. If I die first, and if I regret that, I'll be sure to come back here and post about it.
We all steadfastly defend our right to be wrong. :wink:

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Re: Regrets for taking SS at 62 or waiting?

Post by smitcat » Fri Nov 24, 2017 8:59 am

We will likely be delaying SS until I am 70 or at least near that. After looking at more than a few possible future outcomes we will pursue that plan for the following reasons....
- best for surviving spouse
- cheapest long term cola'd insurance
- best 'spendable' amount of dollars available except if the market runs high long term
- ability to Roth convert
- we do not need it early
- have run the potential choices thro IORP and RPM with checks by tax software

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Re: Regrets for taking SS at 62 or waiting?

Post by mptfan » Fri Nov 24, 2017 9:12 am

mouses wrote:
Fri Nov 24, 2017 7:32 am
Imagine how annoyed I'd be if I had delayed and found myself dead without ever having collected a nickle.
If you found yourself dead, I doubt you would be annoyed by that.
I eat risk for breakfast. :)

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Re: Regrets for taking SS at 62 or waiting?

Post by mptfan » Fri Nov 24, 2017 9:16 am

Nicolas wrote:
Thu Nov 23, 2017 3:58 pm
Wow, so far no one has any regrets either way, how can this be :confused
Because the people who died while waiting to take it later are unable to respond.
I eat risk for breakfast. :)

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Re: Regrets for taking SS at 62 or waiting?

Post by tennisplyr » Fri Nov 24, 2017 9:26 am

Took it @62 with no regrets! We figured a bird in the hand is worth 2 in the bush.
Those who move forward with a happy spirit will find that things always work out.

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Re: Regrets for taking SS at 62 or waiting?

Post by dbr » Fri Nov 24, 2017 9:32 am

tennisplyr wrote:
Fri Nov 24, 2017 9:26 am
Took it @62 with no regrets! We figured a bird in the hand is worth 2 in the bush.
You took SS early because you worried that the benefit would cease to exist or be significantly reduced for those waiting to a later date?

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Re: Regrets for taking SS at 62 or waiting?

Post by Ron » Fri Nov 24, 2017 9:46 am

I'm delaying mine for five weeks (I turn 70 in week # 6 :mrgreen: ).

I can't say I regret it; I doubt if anybody responding to the question would admit that it was a mistake either way, even if they actually felt it was the case.

- Ron

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Re: Regrets for taking SS at 62 or waiting?

Post by vested1 » Fri Nov 24, 2017 9:56 am

Ron wrote:
Fri Nov 24, 2017 9:46 am
I'm delaying mine for five weeks (I turn 70 in week # 6 :mrgreen: ).

I can't say I regret it; I doubt if anybody responding to the question would admit that it was a mistake either way, even if they actually felt it was the case.

- Ron
And they said it couldn't be done. Congrats Ron! :sharebeer

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Re: Regrets for taking SS at 62 or waiting?

Post by cinghiale » Fri Nov 24, 2017 10:05 am

Victoria stated,
Note that the period from early retirement to the commencement of the Social Security is an excellent opportunity for making Roth conversions.
Defintely. However, some may have reasons not to Roth convert. In that case, drawing down from a non-Roth retirement account each year accomplishes the same purpose. If the amounts either Roth converted or liquidated from a retirement account are the same, the tax hit is the same. It’s a choice between a current benefit (additional funds for year-to-year expenses) and a future benefit (having a larger sum protected and available in a Roth account).
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Re: Regrets for taking SS at 62 or waiting?

Post by Artsdoctor » Fri Nov 24, 2017 10:10 am

Very, very interesting thread. We have a lot more experienced Bogleheads who started social security early than I would have expected. Very enlightening, and the stories are worth considering. All good points.

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Re: Regrets for taking SS at 62 or waiting?

Post by neilpilot » Fri Nov 24, 2017 10:21 am

cinghiale wrote:
Fri Nov 24, 2017 10:05 am
Victoria stated,
Note that the period from early retirement to the commencement of the Social Security is an excellent opportunity for making Roth conversions.
In that case, drawing down from a non-Roth retirement account each year accomplishes the same purpose. If the amounts either Roth converted or liquidated from a retirement account are the same, the tax hit is the same.
Not really the same purpose. The purpose of conversions is to pay tax on tIRA withdrawal while in a relatively low tax bracket, and to keep as much money as possible tax deferred in the Roth. If you have funds in both tax deferred and taxable account, and need to withdraw to meet an expense gap prior to SS, why not do a Roth conversion and withdraw what you need to live on from your taxable account(s)?

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Re: Regrets for taking SS at 62 or waiting?

Post by DrGoogle2017 » Fri Nov 24, 2017 11:28 am

I wish we could have waited and NOT taking my husband’s SS at 64.5, but we had planned for him to retire in December when I retired but he didn’t. But he worked at home the whole month of January. Then a month later after he retired he had a consulting gig from a law firm with lots of flexibility to travel. So after we filed tax for 2016, SS office sent us a letter informing us they overpaid us. So he didn’t get much from SS for the first year.
But the bonus of working that year allowed us to contribute to Roth IRA, Solo 401k, 401k, so it’s not totally bad. Plus his benefit might get bumped this year due to earnings for 2016.
Last edited by DrGoogle2017 on Fri Nov 24, 2017 12:58 pm, edited 2 times in total.

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cinghiale
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Re: Regrets for taking SS at 62 or waiting?

Post by cinghiale » Fri Nov 24, 2017 11:55 am

neilpilot asked,
If you have funds in both tax deferred and taxable account, and need to withdraw to meet an expense gap prior to SS, why not do a Roth conversion and withdraw what you need to live on from your taxable account(s)?
Sorry, but I skated quickly past that in stating that “some may have reasons not to Roth convert” in a way that was neither clear nor helpful. Here’s an example: Say a couple has saved diligently and has maxed out all retirement account contributions over the years. And, there’s no legacy concern... no compelling need to leave behind an estate. The size of the retirement portfolio reaches the “enough” point, and then some. In all likelihood, the non-Roth accounts will never be fully tapped. So why Roth convert? That would incur a yearly tax payment to convert money into an account that will likely never be needed. And remember that anyone (who isn’t a spouse) inheriting a Roth will immediately have to take yearly RMDs.

It can be argued that it’s still better to Roth convert, just in case. But if funds are needed to meet expenses leading up to SS, it would seem better to pay taxes on those withdrawals, and skip the Roth conversions.
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Re: Regrets for taking SS at 62 or waiting?

Post by The Wizard » Fri Nov 24, 2017 12:27 pm

Seems like a slight variation on this topic comes up every 2-3 days lately.
I've not claimed my own benefit yet but I suspect I will be content with my decision to delay when I receive my first age 70 benefit check 28 months from now...
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The Wizard
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Re: Regrets for taking SS at 62 or waiting?

Post by The Wizard » Fri Nov 24, 2017 12:35 pm

cinghiale wrote:
Fri Nov 24, 2017 11:55 am

It can be argued that it’s still better to Roth convert, just in case. But if funds are needed to meet expenses leading up to SS, it would seem better to pay taxes on those withdrawals, and skip the Roth conversions.
I do both each month, now at age 67. I have an ongoing monthly Roth conversion plus additional withdrawal from tax deferred that goes to my checking account.

I have a rather modest taxable account compared to tax deferred and some of my excess income goes into my taxable account (VTSAX) which is serving as a New Car fund...
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Dasnyc
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Re: Regrets for taking SS at 62 or waiting?

Post by Dasnyc » Fri Nov 24, 2017 12:43 pm

neilpilot wrote:
Fri Nov 24, 2017 10:21 am
cinghiale wrote:
Fri Nov 24, 2017 10:05 am
Victoria stated,
Note that the period from early retirement to the commencement of the Social Security is an excellent opportunity for making Roth conversions.
In that case, drawing down from a non-Roth retirement account each year accomplishes the same purpose. If the amounts either Roth converted or liquidated from a retirement account are the same, the tax hit is the same.
...The purpose of conversions is to pay tax on tIRA withdrawal while in a relatively low tax bracket, and to keep as much money as possible tax deferred in the Roth. If you
My understanding is that Roth funds are tax free, not tax deferred. Big difference.

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Re: Regrets for taking SS at 62 or waiting?

Post by flyingaway » Fri Nov 24, 2017 12:59 pm

cinghiale wrote:
Fri Nov 24, 2017 10:05 am
Victoria stated,
Note that the period from early retirement to the commencement of the Social Security is an excellent opportunity for making Roth conversions.
Defintely. However, some may have reasons not to Roth convert. In that case, drawing down from a non-Roth retirement account each year accomplishes the same purpose. If the amounts either Roth converted or liquidated from a retirement account are the same, the tax hit is the same. It’s a choice between a current benefit (additional funds for year-to-year expenses) and a future benefit (having a larger sum protected and available in a Roth account).
The money in a Roth account grows tax free (spending the taxable account), while the money growth in a taxable account (directly spending tIRA) may be taxed.

flyingaway
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Re: Regrets for taking SS at 62 or waiting?

Post by flyingaway » Fri Nov 24, 2017 1:05 pm

mouses wrote:
Fri Nov 24, 2017 7:32 am
retire57 wrote:
Thu Nov 23, 2017 10:52 am
The current SS discussion has made me curious. Can we hear from those of you who are collecting SS and whether you feel, for your situation, that you made the right decision to claim early or wait?
When I crunched numbers and found that I would be better off taking SS early until I made it to 78, it was no question. My Dad's family was lucky if they lived into their early sixties. My Mom;s makes it to their early 80s. So for years I have had that $1500 a month rolling in. Imagine how annoyed I'd be if I had delayed and found myself dead without ever having collected a nickle.
I am curious how could you be annoyed if you were dead?

One reason for delaying is: It is much more undesirable when you are old and poor than rich and dead.

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Christine_NM
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Re: Regrets for taking SS at 62 or waiting?

Post by Christine_NM » Fri Nov 24, 2017 1:06 pm

The serious mistake would be to retire and immediately need all your income streams at once. Something has to be left alone to grow, whether SS, IRA, taxable or deferred annuity.

No serious regrets here for taking at 62. It's a gamble, but if you have meaningful savings it's pretty low-risk.

Yes, those SS deposits look pretty small, especially after IRMAA Medicare amount is deducted.

If you have a large IRA, you can choose to let that grow untouched and take SS at 62 for income. That turned out better for me than waiting till 70 for SS.
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