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Thread: Just turned 62, to SS or not to SS

  1. #11
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    Sounds good

  2. #12
    Senior Member jp1's Avatar
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    I just put together a spreadsheet based on what the SSA says my benefits would be if I collected at 62(early retirement), 67 (full retirement) and 70 (max retirement age). I'm 50 now and my numbers were based on the assumption of not working any more, but that should be irrelevant since the amount of benefit is a set percentage of one's "full retirement age" benefit.

    If I stop working today my benefit is projected to be $1710 if I start collecting at 62, $2509 if I start collecting at 67, and $3163 if I hold off until 70. Using net future value calculations and assuming I could invest the money at 4% if I start collecting at 62 I'll have just over $217,000 at age 70. If I start collecting at 67 I'll have almost $93,000 by age 70.

    I haven't worked up the net future value calculations of the $217,000 or $93,000 but even assuming that I didn't earn any interest at all I could live 12.5 years from age 70 and would come out the same whether I started taking benefits at age 62 or age 70. Using the same assumptions if I start collecting at 70 instead of 67 it would take 11.8 years before I would come out behind if I start collecting at 67 but save the money. Basically social security's actuaries assume that you likely live into your early 80s. Someone who dies earlier comes out ahead with early collection. Someone who lives super old probably loses out overall if they took the early benefit.

    Assuming I would continue to earn interest will push the point of "should have held off from taking benefits" even further out. The other unknown is what rate of return I could actually expect during the years I was collecting early but just investing the money. Getting closer to 5% would make taking early benefit a no brainer. Getting closer to 3% would make holding off a better deal. One can only guess what the real return will end up being, so that kind of makes it a gamble. But at the end of the day it probably doesn't really matter since the difference seems pretty small.

  3. #13
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    It is hard for me to ever imagine retiring at 62 when my benefit would only be $1245 per month.

  4. #14
    Senior Member Ultralight's Avatar
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    Quote Originally Posted by Yppej View Post
    It is hard for me to ever imagine retiring at 62 when my benefit would only be $1245 per month.
    Well, don't do anything fun that costs money until you've saved enough for retirement.
    I came from a real tough neighborhood. I put my hand in some cement and felt another hand." -- Rodney Dangerfield

  5. #15
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    I am more in the longevity insurance camp than the breakeven camp on this.

    My wife is younger than me, and has a less robust earnings record. In our case, it makes a lot of sense for me to wait and her to take it early. I view delaying SS as a relatively cheap inflation adjusted annuity with a mild tax benefit.

  6. #16
    Senior Member Ultralight's Avatar
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    Quote Originally Posted by LDAHL View Post

    My wife is younger than me, and has a less robust earnings record.
    I am curious. Why do these things matter?

    I tend to date women who are older than me and who make more money. If I marry again, this will likely be the case. Would your strategies apply to me and why? Thanks.
    I came from a real tough neighborhood. I put my hand in some cement and felt another hand." -- Rodney Dangerfield

  7. #17
    Senior Member Ultralight's Avatar
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    Quote Originally Posted by LDAHL View Post
    It matters because when I'm dead my wife gets the larger of the two benefits.

    If you adopt the sugar mama strategy, be sure to be married at least ten years.
    Okay, good info. I appreciate it.

    May I ask, what is the age gap of you and your wife? Is worrying about you walking through the pearly gates way before your wife does seem warranted?
    I came from a real tough neighborhood. I put my hand in some cement and felt another hand." -- Rodney Dangerfield

  8. #18
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    Quote Originally Posted by Ultralight View Post
    Okay, good info. I appreciate it.

    May I ask, what is the age gap of you and your wife? Is worrying about you walking through the pearly gates way before your wife does seem warranted?
    Five years. Plus they tend to live longer due to female privilege. I want to leave this life knowing she'll be able to tip the cabana boys generously.

  9. #19
    Senior Member catherine's Avatar
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    Quote Originally Posted by LDAHL View Post
    I am more in the longevity insurance camp than the breakeven camp on this.

    My wife is younger than me, and has a less robust earnings record. In our case, it makes a lot of sense for me to wait and her to take it early. I view delaying SS as a relatively cheap inflation adjusted annuity with a mild tax benefit.
    I'm definitely waiting, although I was tempted to take it and use it to pay off the rest of my debt and then sock it all away. DH is getting his now, which helps. In terms of longevity, he has more bad habits and more medical conditions than I do, so unless I have a surprise cerebral hemorrhage like my mother, uncle and grandmother did at early ages, I'll probably outlive him. I was hoping that I could sell my house in NJ, pay off this house in VT, and live off of SS. If I can't live off of SS I can't retire. To me, a portfolio is merely a place to display all the receipts for my stupid purchases over the years.
    Last edited by catherine; 6-12-18 at 8:58am.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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  10. #20
    Senior Member Ultralight's Avatar
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    Quote Originally Posted by LDAHL View Post
    Five years. Plus they tend to live longer due to female privilege. I want to leave this life knowing she'll be able to tip the cabana boys generously.
    Thoughtful of you.

    Five years is not a huge gap, but still very thoughtful of you.
    I came from a real tough neighborhood. I put my hand in some cement and felt another hand." -- Rodney Dangerfield

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