Social Security

[Nyghthawk]

I retired on 06/30/2019 at 63. I wasn't willing to spend three more years working for the state. I am far less stressed.

[sdelsolray]

Originally Posted by Mr. Jelly

And life expectancy for males is like 76 yo. I'm just saying ……….

That is for a newborn male. At age 67, the male life expectancy is 84.4 years.

[RP]

Originally Posted by Nyghthawk

I retired on 06/30/2019 at 63. I wasn't willing to spend three more years working for the state. I am far less stressed.

Congrats on your decision. Retirement isn't all about maximizing finances as important as that may be. Nobody's last words on their death bed were ever "Gee, I wished I'd worked three more years and maximized my retirement income."

[Lockback]

Originally Posted by Nyghthawk

I retired on 06/30/2019 at 63. I wasn't willing to spend three more years working for the state. I am far less stressed.

Twice in 10 years, I lost jobs due to ...
1) My entire department being farmed out to a 3rd party
2) The state closing the school where I was working for political reasons.

I was pushing 65 when the school was closed. My wife and I crunched some numbers and talked to our accountant.
I literally couldn't stomach the idea of working full time anymore. Mentally, I was just done. I had checked out. Financially, it would have behooved me to work a couple more years and I looked in earnest for a few months but finally threw in the towel and took my Social Security. I have to make up a couple hundred dollars a month, which hasn't been a problem.
In a Perfect World, I would have waited a couple more years. But I've been retired for 1.5 years now and I don't regret it at all. I worked hard for over 40 years, day in and day out, hardly ever missing work due to illness, rarely even taking all the vacation I was allowed. But, man, I wouldn't go back to that workaday world now. I don't miss those 40 hours a week one bit!

[Jim Owen]

Originally Posted by sdelsolray

That is for a newborn male. At age 67, the male life expectancy is 84.4 years.

That is a very important distinction. A geezer my age has already survived those things that kill infants, adolescents, and middle-aged folk. I’m also not apt to die after turning to my buddy and saying “hold my beer and watch this.” (So family life expectancies might also be misleading if one is a North Carolinian.)

Statistics that generalize average life spans can be deceptive. None of our lives is average.

[Mr. Jelly]

Originally Posted by sdelsolray

That is for a newborn male. At age 67, the male life expectancy is 84.4 years.

As an average. Let's hope we are all above average. Though my daily obituary readings lead me to give thanks for my blessings. I see others around my age that are below average evidently.

[sevargnhoj]

My wife and I are retired teachers (2.5 years for her and 2 years for me).
We draw about 75% of our pre-retirement income in pension and are supplementing that as needed with a lifetime of savings (paying for property tax, home and auto insurance ,7 more tuition payments for a college freshman). We have 4 IRAs of varying amounts in reserve for unexpected pressing expenses.

I turn 62 next week and my wife is 18 months behind. The break even point for me waiting until FRA is age 78. My paternal grandfather lived to 104.5, maternal gf 93, gm 89. Mom was 84 (a rare cancer) Dad made 84 in spite of horrible lifestyle choices. My Dr told me at my last physical that I was "61 going on 40".

You never know, but I plan on waiting til FRA.

[bil]

This was an easy decision for me. I’m 62, men in my family typically die in their early 70’s. I’m taking mine now.

[TBman]

I'm planning on retiring 10/30/20. I will be 66 in March of 21. So I'm taking it
about 7 months early as my full retirement age is May of 21 (66 and 2 months).

I have work related reasons for this date as opposed to 12/31/20 plus this way I can take all my vacation time before I retire and still be off for Thanksgiving and Christmas!

Plus I'm just done with the stress. I have high bp and had a stroke back in 2017 plus an earlier issue that aged me a bit. Did I say I'm done?

[Mandobart]

My situation is happily a little complicated:

1. I have a defined benefit state pension coming based on total years service and top 5 consecutive years salary blended into a formula. Being over 55 with over 20 years I could retire now, for about a third of what I would get if I wait until 65. I'm also allowed to withdraw from my 401k/457 at 55 and older if I stop working.

2. I've been making the maximum 401k contribution (with a small employer match) for over 15 years.

3. I've been making the maximum 457 contribution (with a no employer match) for the past 5 years. #2 and #3 accounts combined currently are at the magic number ending in 6 zeros.

4. My wife has worked all through our 32 year marriage and also has a 401k which she maxes out and of course SS. She is 2 years older than me and 9 years away from FRA.

5. Based on my income the good folks at SSA say I'll be pretty close to the maximum monthly benefit. My wife's benefit will be less, but still more than half of mine.

6. No debts - cars, homes, kid's college etc. are all paid for. We're both in good health.

So when to draw SS is a smaller question to me than when to retire and draw my pension. Its pretty easy with a spreadsheet to find the break-even point for the SS and state pension. The bottom line for me is it will cost me several thousands both in opportunity cost (not earning a paycheck) for every year I retire early, as well as several thousands in reduced pension for every year of my retirement due to fewer years of service and a reduction factor if I retire before 65. This is my dilemma - what's it worth to me, in dollars, to stop working 5 years early?

For SS, my calculations show I would end up depleting my 401k/457 about $100k more by waiting to FRA to draw SS, though total earnings over retirement (assuming I live to 85) would be about $180 k more. This is because my nest egg would be supplying the funds that SS could. OTOH, I have marketable skills in my field that would allow me to earn twice what I can get annually with SS in about 6 months. So maybe a semi-retirement from 60 - 65 with minimum 401k/457 withdrawals and I won't touch my pension before 65 or SS before FRA (67).

[TomB'sox]

This has been a great thread. One thing I don't think I have read from anyone, but it may have been implied. Another reason to take SS early is, at least for me, I plan on being quite active early in my retirement, travel, adventures, golfing, boating etc. I need money to do all that. Once, if I am lucky enough, I get older and maybe too old to do all that, I will need less money to live, so I plan on spending more early and less as I am older.

Maybe that is what everyone thinks, I don't know, but it seems like the natural thing is to spend less early as everyone is afraid of running out of money.

[Kerbie]

Originally Posted by TomB'sox

This has been a great thread.

You're right, TB. Great responses by everyone... thank you very much! I've read and appreciated every single one. It really is interesting to read all the different thought processes, different factors, different situations. I know the key is for each of us to find the right answer for ourselves and that could be very different from our friends and neighbors.

I've been reading a lot about Social Security and Medicare, although the latter is obviously farther away for me.

I still seem to be looking at the SS decision as strictly a numbers analysis. I think the future value of money makes my break-even point pretty far out there. I'm less confident than I used to be that I'll live that long. So, I'm still leaning towards taking the distribution at 62, but I'm trying to be sure I've looked at it from every angle I can. Many, many thanks, guys! You're the ones who have made this a great thread.

[islandguitar]

Both my wife and I (9 years difference in age...she's the young one!) took SS at age 62 and have not looked back!! I'm now 72.
As so many have, we did all the calculations and saw where the break points existed, but we've always be careful to focus on lifestyle and lifestyle decisions as a high priority......maybe not THE priority, but it's certainly high on the list.

We "live where we vacation".........so the urge to always be someplace else is not there. The 403b accounts were very solid......and in a sense this allowed a thought process that essentially suggested that we've "earned" the ability to withstand the lower early withdrawal amounts while we were young enough to enjoy the lifestyle it would help provide. We both continue to work and have fun with various part-time jobs which keeps the cash drawer in good shape! We draw about 3.5% on the 403b's and at least for the time being this has kept those accounts stable or slightly increasing despite the monthly draws over the years. We landed long term care insurance when we were fairly young, so our budgeting covers this large issue with premiums that are modest and very workable.

Right now, we're in the "Go, Go" years and doing some travel and fun stuff each year....knowing that we'll eventually reach the "No, GO" years as we age or health issues crop up. The decisions feel very "right" for us and our situation....no second guessing, no looking back!! YMMV!

[Mr. Jelly]

Note, raising the retirement age is in effect lowering SS. The lower amount of money a person takes at 62 is less now then when the FRA was 65. Though the claim is that people are living longer the fact is a very large number don't work past 62 or 63. Because of events beyond their control. If they raise the FRA again it will decrease the amount people get at 62, again.

[MrDB]

Originally Posted by TomB'sox

This has been a great thread. One thing I don't think I have read from anyone, but it may have been implied. Another reason to take SS early is, at least for me, I plan on being quite active early in my retirement, travel, adventures, golfing, boating etc. I need money to do all that. Once, if I am lucky enough, I get older and maybe too old to do all that, I will need less money to live, so I plan on spending more early and less as I am older.

Maybe that is what everyone thinks, I don't know, but it seems like the natural thing is to spend less early as everyone is afraid of running out of money.

Be aware that as you get older medical expenses can eat up all the money you have and then some.