Claiming SS just a bit earlier than 70

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BarbBrooklyn
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Re: Claiming SS just a bit earlier than 70

Post by BarbBrooklyn »

" and with the recent downturn our IPS has that as a potential trigger for FRA claiming so as to not deplete the portfolio when stocks are down"

This (in addition to doing my taxes) is also part of my thinking. I'd rather not withdraw anything from my portfolio right now, the better to let it simmer.

But my inclination is still to wait the 16 months until I"m 70.
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willthrill81
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Re: Claiming SS just a bit earlier than 70

Post by willthrill81 »

BarbBrooklyn wrote: Fri Mar 18, 2022 12:01 pm " and with the recent downturn our IPS has that as a potential trigger for FRA claiming so as to not deplete the portfolio when stocks are down"

This (in addition to doing my taxes) is also part of my thinking. I'd rather not withdraw anything from my portfolio right now, the better to let it simmer.

But my inclination is still to wait the 16 months until I"m 70.
Keep in mind that selling a very small portion of one's stocks when they are down around -10% from their all-time high but still in the black over the last 12 months shouldn't be a big deal at all.

I'm not saying that you meant this, but many here have an irrational fear of selling a very small portion of their stocks when they aren't at or very close to their ATH.
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Nestegg_User
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Re: Claiming SS just a bit earlier than 70

Post by Nestegg_User »

BarbBrooklyn wrote: Fri Mar 18, 2022 12:01 pm " and with the recent downturn our IPS has that as a potential trigger for FRA claiming so as to not deplete the portfolio when stocks are down"

This (in addition to doing my taxes) is also part of my thinking. I'd rather not withdraw anything from my portfolio right now, the better to let it simmer.

But my inclination is still to wait the 16 months until I"m 70.
as was noted above, the numbers between the Jan start and your age 70 start aren't really that far apart, since you are drawing spousal right now and your other numbers show that it's not likely to be an issue for either as survivor, certainly no need to start any earlier

For us, as I'm the slightly lower PIA but older, it's reasonable

We've already been doing Roth conversions, can't come close to doing them all or be way up the IRMAA tier if we did.

For us, it's a better deal to pull some from the 401k now at the lower rates before I start SS versus selling long-held shares (gotta pull from the 401k sometime, might as well be at as low of a rate as possible)... we've done decent at converting but will use regular withdrawals as needed to supplement any high spend irregular needs, but without getting to the next bracket. When we both are on SS our deferred comp (SS + pension) alone will be more than high enough ... then adding in any from taxable and 401k/IRA will be pushing us somewhere in the lower IRMAA world but we're in a lower COL area so will have more as discretionary.
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Re: Claiming SS just a bit earlier than 70

Post by chipperd »

JoeRetire wrote: Fri Mar 18, 2022 6:30 am
chipperd wrote: Fri Mar 18, 2022 6:08 amYes, there is math behind every position, and the numbers should be part of the decision making process, but it's difficult to incorporate math into ones value system and thus, IMHO, shouldn't be the primary driver behind the "when to collect social security" decision.
It's difficult? I don't think I understand.

Can you explain a bit more about your personal value system, when you claimed (or will claim) your benefits, and how it makes it hard to incorporate math?
I'll pass. Don't want to derail the threat that far.
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JoeRetire
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Re: Claiming SS just a bit earlier than 70

Post by JoeRetire »

chipperd wrote: Sat Mar 19, 2022 3:48 pm
JoeRetire wrote: Fri Mar 18, 2022 6:30 am
chipperd wrote: Fri Mar 18, 2022 6:08 amYes, there is math behind every position, and the numbers should be part of the decision making process, but it's difficult to incorporate math into ones value system and thus, IMHO, shouldn't be the primary driver behind the "when to collect social security" decision.
It's difficult? I don't think I understand.

Can you explain a bit more about your personal value system, when you claimed (or will claim) your benefits, and how it makes it hard to incorporate math?
I'll pass. Don't want to derail the threat that far.
(shrug)
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BarbBrooklyn
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Re: Claiming SS just a bit earlier than 70

Post by BarbBrooklyn »

OP here.

I decided to sort of split the difference and I applied for my benefit to start in January 2023. Checks will start next month; just got the email this AM.

Long processing lag, I applied back in September for a January start; I had to walk in to my local SS office to get it "unstuck" and transferred from a different office.

The benefit amount is about $100. less per month that it would be if I waited until July. I'm going to live with that.
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Re: Claiming SS just a bit earlier than 70

Post by Tom_T »

BarbBrooklyn wrote: Thu Jan 26, 2023 7:03 am OP here.

I decided to sort of split the difference and I applied for my benefit to start in January 2023. Checks will start next month; just got the email this AM.

Long processing lag, I applied back in September for a January start; I had to walk in to my local SS office to get it "unstuck" and transferred from a different office.

The benefit amount is about $100. less per month that it would be if I waited until July. I'm going to live with that.
It's not that big of a deal at this point. 62-vs.-70 is a much bigger decision than 69.5-vs.-70. :)
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Re: Claiming SS just a bit earlier than 70

Post by goblue100 »

Tom_T wrote: Thu Jan 26, 2023 7:26 am
BarbBrooklyn wrote: Thu Jan 26, 2023 7:03 am OP here.

I decided to sort of split the difference and I applied for my benefit to start in January 2023. Checks will start next month; just got the email this AM.

Long processing lag, I applied back in September for a January start; I had to walk in to my local SS office to get it "unstuck" and transferred from a different office.

The benefit amount is about $100. less per month that it would be if I waited until July. I'm going to live with that.
It's not that big of a deal at this point. 62-vs.-70 is a much bigger decision than 69.5-vs.-70. :)
True. Just to put a monkey wrench in the thread, did you know if you have reached FRA+6 months you can get up to 6 months in retroactive benefits? 8-)
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Re: Claiming SS just a bit earlier than 70

Post by Johm221122 »

123 wrote: Wed Mar 02, 2022 11:48 pm There have been people who have held out for the highest social security benefit at age 70 and have lost out because they passed away before they collected enough benefits to make up for the benefits they lost by waiting. The younger you are the more useful the income will be (and the longer it can grow by investing it if you choose to do so).
But many people live longer and the OP needs to base his decision on personal circumstances and not some people pass away early in general

Investing it involves market risk and personality when I retire I want as much guaranteed income as I can get that would have the benefits like Social Security (I'm seriously going to consider annuitizing my traditional accounts in my 70's)
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Re: Claiming SS just a bit earlier than 70

Post by BarbBrooklyn »

goblue100 wrote: Thu Jan 26, 2023 8:28 am
Tom_T wrote: Thu Jan 26, 2023 7:26 am
BarbBrooklyn wrote: Thu Jan 26, 2023 7:03 am OP here.

I decided to sort of split the difference and I applied for my benefit to start in January 2023. Checks will start next month; just got the email this AM.

Long processing lag, I applied back in September for a January start; I had to walk in to my local SS office to get it "unstuck" and transferred from a different office.

The benefit amount is about $100. less per month that it would be if I waited until July. I'm going to live with that.
It's not that big of a deal at this point. 62-vs.-70 is a much bigger decision than 69.5-vs.-70. :)
True. Just to put a monkey wrench in the thread, did you know if you have reached FRA+6 months you can get up to 6 months in retroactive benefits? 8-)
Yes, I know/knew that. Decided against it to get a higher payout. My longevity genes say I will live until my late 90s.
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Re: Claiming SS just a bit earlier than 70

Post by vested1 »

BarbBrooklyn wrote: Thu Jan 26, 2023 10:56 am
goblue100 wrote: Thu Jan 26, 2023 8:28 am
Tom_T wrote: Thu Jan 26, 2023 7:26 am
BarbBrooklyn wrote: Thu Jan 26, 2023 7:03 am OP here.

I decided to sort of split the difference and I applied for my benefit to start in January 2023. Checks will start next month; just got the email this AM.

Long processing lag, I applied back in September for a January start; I had to walk in to my local SS office to get it "unstuck" and transferred from a different office.

The benefit amount is about $100. less per month that it would be if I waited until July. I'm going to live with that.
It's not that big of a deal at this point. 62-vs.-70 is a much bigger decision than 69.5-vs.-70. :)
True. Just to put a monkey wrench in the thread, did you know if you have reached FRA+6 months you can get up to 6 months in retroactive benefits? 8-)
Yes, I know/knew that. Decided against it to get a higher payout. My longevity genes say I will live until my late 90s.
You should look into the possibility of selling those longevity jeans. You'd be surprised how much they're worth, especially if they've got holes in the knees.
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munemaker
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Re: Claiming SS just a bit earlier than 70

Post by munemaker »

123 wrote: Wed Mar 02, 2022 11:48 pm There have been people who have held out for the highest social security benefit at age 70 and have lost out because they passed away before they collected enough benefits to make up for the benefits they lost by waiting. The younger you are the more useful the income will be (and the longer it can grow by investing it if you choose to do so).
There have been people who took social security at age 62 and ran out of money later in life. So what?

So you are going to take your social security early to invest it and consistently earn enough to offset the 8%/year increase for waiting? Good luck with that!

One has to look at his/her/their individual circumstances (assets, health, potential surviving spouse, etc.). In my case, my wife has good genes and will probably live to late 90s, based on relatives. I am delaying SS until 70 so she will have the largest survivor benefit. Taking social security at age 70 is longevity insurance.

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Re: Claiming SS just a bit earlier than 70

Post by AlaskaTeach »

Interesting conversation here:

I think I know the answer to this, but thought I would throw it out anyway. I am a teacher, a victim of the GPO/WEP provisions. I have 15 years of earnings that meet the minimum substantial earnings threshold in SS. (All outside of teaching) The wife will turn 61 later this year, and I am only 58 now.

Because of the GPO/WEP stuff, her SS will easily be higher than mine.

I believe I am not allowed to get half of her social security by claiming the half of her SS. Correct?

I also have numerous years of far less than minimum substantial earnings. I predict my SS will be between $6k and $7k at FRA, 67.
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Re: Claiming SS just a bit earlier than 70

Post by Apathizer »

munemaker wrote: Thu Jan 26, 2023 4:32 pm
123 wrote: Wed Mar 02, 2022 11:48 pm There have been people who have held out for the highest social security benefit at age 70 and have lost out because they passed away before they collected enough benefits to make up for the benefits they lost by waiting. The younger you are the more useful the income will be (and the longer it can grow by investing it if you choose to do so).
There have been people who took social security at age 62 and ran out of money later in life. So what?

So you are going to take your social security early to invest it and consistently earn enough to offset the 8%/year increase for waiting? Good luck with that!

One has to look at his/her/their individual circumstances (assets, health, potential surviving spouse, etc.). In my case, my wife has good genes and will probably live to late 90s, based on relatives. I am delaying SS until 70 so she will have the largest survivor benefit. Taking social security at age 70 is longevity insurance.
That's presumptuous. Having long-lived parents/relatives certainly doesn't guarantee someone will live comparably long. For example, my dad's parents died in their early 80s. His mom was overweight and a smoker. My dad didn't smoke, and while he was a little overweight, his lifestyle was much healthier than his parents. My dad died at age 78.

I think the most important thing to consider for SS is likely total benefit and guesstimating the likely break-even age. While the figures vary depending on each person, generally the break-even age if you take SS in the 62-67 age range the break even age is about 80, which is also about the average US life expectancy, give or take a few years. But if you wait until age 70, the break-even age rises to almost 90.

I had originally intended to take SS at age 65, but now I'm thinking I might take it even earlier like at age 62. This would enable me to retire earlier while I'm still hopefully reasonably healthy and can actually enjoy retirement. I don't want to live beyond 80 anyway.
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Re: Claiming SS just a bit earlier than 70

Post by blimp »

If you are in good health, my vote is waiting until 70.

An inflation adjusted annuity is nice longevity insurance and cannot be purchased on the free market.

With this in place covering most necessary expenses, you can be slightly more aggressive with the rest of your portfolio.

-Blimp
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