It’s been about six weeks now since the last comment on my blog. Maybe I need to pay somebody to post something. Part of my slow learning process. My web host notices the metrics and keeps offering to enhance my marketing, and I will eventually take advantage of that offer. In the meantime, good thing I have a day job.
If you’re in your sixties, I’m guessing you’ve spent some time thinking about when to tap into SS, whether to start as soon as you’re age eligible (62), or when you reach “full retirement age”, or wait until you can maximize that monthly SS paycheck at 70. Or maybe consider somewhere else between 62 and 70. There are valid arguments for any of those options. And you have more options if your spouse has SS eligibility. Would love to hear your opinions. If you’ve read this blog’s comments, you’ve heard at least one person’s decision and the reason why.
Four years ago I was in a DoD course with about 60 attendees, and I was clearly the oldest person present. During one of the open discussions, an attendee made an interesting comment: “It doesn’t really matter…because we’re not going to see any of those Social Security contributions we’re making anyway.” I had to comment (knowing full well most of the audience probably didn’t care). I told the audience I remember several of my peers- as well as myself- saying the exact same thing when we were much younger, and yet here I am, eligible for SS, and the checks are going to start coming pretty soon. At least it made me feel better saying that to the crowd.
So I’m thinking most of you have done the retirement cash flow computations while considering multiple SS execution options, and some of you have tried to figure out how old you had to be before the “70 year old” option caught up- in terms of total SS money received- with the “62 year old” or “full retirement age” options. Think my crossover age was 78 (just coincidence to my USNA classmates!).
One argument for choosing the earliest option is to give oneself the best cash flow earlier in the retirement years when you are able to enjoy it most. Tough to argue with that point. What’s our health going to allow us (self and spouse) to do as we pass 70 and head towards 80? And beyond? There’s also the tax factor as we consider the other inputs to our retirement cash flow.
What else am I missing in this risk/reward calculation?
Mike, in my case I looked at the cash flow and budget that I had developed. My plan was to take SS at full retirement age (66 and 4 mon). I set aside cash (high interest savings or CD) for any monthly / annual deficit (from the budget) for the time from retirement to SS. Per my budget, when I receive SS at full retirement the budget balances (at least it does per my plan…we will see). I do not plan on delaying SS until 70 unless my financial status or budget changes significantly.
DB, thanks for your thoughts and I should owe you something for breaking my losing streak (no comments in the last 6 weeks). My plan was to wait until hitting 70 for SS, but I’m looking more and more at starting it closer to full retirement age. And it looks like I’ll be retiring from the FAA as we move to the Tennessee retirement home likely in January.
I’m also going to add one more paragraph to the SS post a little later, just FYI.
BTW, Ken Roey commented on the blog. I had not told him about it, but I think he read about it in the latest SHIPMATE, which I haven’t seen yet. Thanks again for your thoughts. I really am learning more along the way.
Mike- Great idea putting this in Shipmate. Still trying to figure it out, but like Don I’m also leaning towards the enjoy it while you can theory. The pandemic stress tested our retirement portfolio, so I’m pretty confident that our plan will work.