Would you take your SS, or wait

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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midareff
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Re: Would you take your SS, or wait

Post by midareff »

Sscritic, nice to see you back.

Your assistance here is extremely valuable to many.


+3
lethean46
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Re: Would you take your SS, or wait

Post by lethean46 »

[quote="midareff"]Sscritic, nice to see you back.

Your assistance here is extremely valuable to many.


+3[/quote]

Ditto.

+4
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VictoriaF
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Re: Would you take your SS, or wait

Post by VictoriaF »

sscritic wrote:JW:
Great chart. You have made a point I have been trying to make for years, but in a much cleaner fashion.

I have often suggested taking at 64 (with a large increase over 63) or 67 (with a large increase over 66). Taking at 63 or 70 is just waiting an extra year for no reason.
JW Nearly Retired wrote:
Image
I agree that taking at 63 in comparison to 62 is less justified than at 64 in comparison to 63. However, taking at 70 relies on a different reasoning, that is, if the utility of the Social Security payments is relatively small in comparison to the uncertainty of one's own lifespan, the age of 70 represents the maximum waiting period and is thus the best option. By this logic, if the increases in Social Security payments were extended to the age of 75, it would make sense for some of us to wait until 75 even if the annual raises between the ages of 70 and 75 were all under 7%.

Victoria
Inventor of the Bogleheads Secret Handshake | Winner of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
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bottlecap
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Re: Would you take your SS, or wait

Post by bottlecap »

To echo the comments of others, if you have enough assets to make it, you should wait. You can spend down your retirement assets, reduce your rmd and avoid higher taxes in the long run. My parents took it as soon as possible in case they didn't make it to 70, but the point is not to get as much money before you die, but to get as much money if you live. If you die before 70 with substantial assets, you are no better off for taking social security sooner.

JT
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Re: Would you take your SS, or wait

Post by JW-Retired »

In my case the SS COLA is a big deal. I have a fixed non-cola pension that will be comfortable for a while. However, joint life expectancy for a 70 year old couple is 20.6 years. Meaning the odds are 50/50 that at least 1 of us, probably dear wife, will still be alive at age 90. At a typical sort of 3%/year inflation rate, that fixed pension at age 90 will be worth only 55% as much in real dollars as it was as age 70. IMO, the inflation rate could be even greater. Waiting until age 70 to claim a bigger SS payment with the COLA lowers our inflation risk.
JW
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2beachcombers
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Re: Would you take your SS, or wait

Post by 2beachcombers »

sscritic,

Glad you are back. And you help in very foxxy ways. You have helped me with my SS.

Wife---62 on her record
me-----66 spousal(2011)
wife----66 spousal
me-----68 file and delay to 70
1st death--higher of two SS incomes
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Allocationist
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Re: Would you take your SS, or wait

Post by Allocationist »

sscritic:

Thank you for your continued input. I really value your information and insights!
fsrph
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Re: Would you take your SS, or wait

Post by fsrph »

midareff wrote:Sscritic, nice to see you back.

Your assistance here is extremely valuable to many.


+3
Yes, nice to see you posting again sscritic. I'm nowhere near the age for SS but your posts are still very useful to me. Thanks for your contributions.

Francis
"Success is getting what you want. Happiness is wanting what you get." | Dale Carnegie
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heirloom
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Re: Would you take your SS, or wait

Post by heirloom »

Thanks JW:

Really helps to see the figures. Age 64 looks good, but as I see 70 it makes me get greedy.
I'll see when I turn 64. But I will keep the chart for reference when my mind starts to "want a little more".
supersharpie
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Re: Would you take your SS, or wait

Post by supersharpie »

2beachcombers wrote:sscritic,

Glad you are back. And you help in very foxxy ways. You have helped me with my SS.

Wife---62 on her record
me-----66 spousal(2011)
wife----66 spousal
me-----68 file and delay to 70
1st death--higher of two SS incomes
Your wife can't receive spousal benefits until you file and suspend at 68. Your spousal benefits on your wife's record will terminate once you file and suspend.
supersharpie
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Re: Would you take your SS, or wait

Post by supersharpie »

Keep in mind that you are essentially paying the government X number of dollars in return for an annuity when you delay filing after you become eligible. Using the chart posted above it is useful to think in terms of whether, at age 62 an insurance salesman came to your door and offered you the following deal whether you would take it:

"Sir, if you pay our company a total of $142,500 in installments of $1500 a month for 95 months beginning the month after you turn 62 then we will provide you with a guaranteed, inflation adjusted, monthly annuity of $1140 a month starting the month you turn 70, payable until death. However, if you should die before recouping all or any of the $142,500 that you paid our company, your family will only be reimbursed if you are survived by a spouse collecting a smaller annuity than you at the time of your death. That spouse will cease receiving their own annuity and inherit your own annuity in that situation. Do we have a deal?"
2beachcombers
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Re: Would you take your SS, or wait

Post by 2beachcombers »

supersharpie wrote:
2beachcombers wrote:sscritic,

Glad you are back. And you help in very foxxy ways. You have helped me with my SS.

Wife---62 on her record
me-----66 spousal(2011)
wife----66 spousal
me-----68 file and delay to 70
1st death--higher of two SS incomes
Your wife can't receive spousal benefits until you file and suspend at 68. Your spousal benefits on your wife's record will terminate once you file and suspend.
correct--but her spousal will still be greater than the current two SS incomes(in our case) we are receiving today. Each person needs to figure this out as there are many variables.
2beachcombers
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Re: Would you take your SS, or wait

Post by 2beachcombers »

heirloom wrote:Thanks JW:

Really helps to see the figures. Age 64 looks good, but as I see 70 it makes me get greedy.
I'll see when I turn 64. But I will keep the chart for reference when my mind starts to "want a little more".
What helps in the decision making is to build a spread sheet with all your incomes. With pensions, IRAs, Riras, SS you can manage your tax brackets for fed and state taxes. There is lots of info on the net that recommends liquidating the IRS incomes first to help delay SS. I also built a spread sheet to decide on which route to take for SS decisions/

Also be careful with medicare--there are also income limits that can significantly increase your payments :annoyed What ???? I thought I already paid for this over the past 30 yrs.

jerry
supersharpie
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Re: Would you take your SS, or wait

Post by supersharpie »

2beachcombers wrote:
heirloom wrote:Thanks JW:

Really helps to see the figures. Age 64 looks good, but as I see 70 it makes me get greedy.
I'll see when I turn 64. But I will keep the chart for reference when my mind starts to "want a little more".
What helps in the decision making is to build a spread sheet with all your incomes. With pensions, IRAs, Riras, SS you can manage your tax brackets for fed and state taxes. There is lots of info on the net that recommends liquidating the IRS incomes first to help delay SS. I also built a spread sheet to decide on which route to take for SS decisions/

Also be careful with medicare--there are also income limits that can significantly increase your payments :annoyed What ???? I thought I already paid for this over the past 30 yrs.

jerry
You can thank this:

http://en.wikipedia.org/wiki/Medicare_P ... zation_Act

for that.
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