Collecting Social SecurityBenefits Early

[Tina52]

Hello,

I need some insights from those who are already retired, and chose to accept social security benefits early, before their full retirement age. I have been reading Larry Kotlikof's PBS informative blog on social security; there he insists that overall one should take their social security benefits, not at 62, nor 66, but at 70, if one can.

Viscerally, I am having difficulty in accepting this because, I don't know how long I will live. I have tried the life expectancy calculators, but, there is always the unexpected, like accidents. I have been looking at the local obituary in my community newspaper, and there are a lot of folks that die well before 70. My rationale is that between the ages of 62 and 70, I will most likely have the energy to do a few fun things before I am bedridden. I realize that my monthly allowance will be 25% less; on the other hand if I die before age 76, my break even point, I at least enjoyed some of my benefits.

Thanking all in advance.

[lorraineb]

Nobody knows how long they are going to live and even the life expectancy calculator is just an estimate and doesn't apply directly to you. You seem to be focusing on if you live shorter. On the flip side, you may also live longer.

I think what it really comes down to is need. If you can get by without the money earlier, it's in your best financial interest to take it later as it will be more. If you can't, you take it early, but there is a chance that doing that will mean you'll have to live on that smaller amount as you get older and older.

[jIM_Ohio]

It is about financial planning

This means weighing decisions based on performance, risks, needs and wants.

If you live a long time, delaying until age 70 will be a great decision. However that variable is unknown, and lots of people cannot find solitude in the unknown.

If you have the assets to delay, it makes sense
If you have a spouse you can collect off of, look up "claim and suspend".

[snafu]

There are too many variables no matter what life expectancy calculator you look at. Such a small number of people buy obits for their family members that's not a credible base to make an important decision. Isn't part of the answer genetics, what is the family history of longevity? Isn't this a decision best made closer to eligibility date? If you don't need the benefit when you initially retire, why not delay knowing you'll get a larger monthly sum later?

I think it's more about you. Have you been in good health? No serious medical issues, no serious surgeries? Do you maintain a reasonable weight and make it a point of getting some type of regular exercise that you enjoy?

[Tina52]

Nobody knows how long they are going to live and even the life expectancy calculator is just an estimate and doesn't apply directly to you. You seem to be focusing on if you live shorter. On the flip side, you may also live longer.

I think what it really comes down to is need. If you can get by without the money earlier, it's in your best financial interest to take it later as it will be more. If you can't, you take it early, but there is a chance that doing that will mean you'll have to live on that smaller amount as you get older and older.

Thank you, lorraineb, for your response. Yes, it comes down to need, I agree. Does someone at 82 have need for more money than someone at 62, who is more active and the need for social interaction is greater,likely to travel more and engage in more activities?

[Retired To Win]

I took Social Security early, even though I did not need the money, because in my book a bird in the hand is worth more than 2 in the bush. I calculated that I would collect nearly $100,000 in Social Security between my early retirement age (well, it was 65 because that's when I woke up and smelled the coffee) and 70. And I figured I could invest that $100K and be just as well off or better than if I had waited to start collecting.

One man's approach, anyway.

[Tina52]

It is about financial planning

This means weighing decisions based on performance, risks, needs and wants.

If you live a long time, delaying until age 70 will be a great decision. However that variable is unknown, and lots of people cannot find solitude in the unknown.

If you have the assets to delay, it makes sense
If you have a spouse you can collect off of, look up "claim and suspend".

Thank you, for your post, jIM_Ohio,

It was my understanding that the government is going to end the "claim and suspend" option, for couples. Am I wrong?