Wife filed for Social Security today

[disneysteve]

Big milestone here today. My wife filed for Social Security benefits. She turned 62 in December. I ran the numbers, used the calculator at opensocialsecurity.com, ran it by our CFP and our CPA, and all sources agreed that now is the ideal time. The increased payment from waiting just mathematically doesn't offset collecting for a longer period apparently.

I won't collect until I'm 70 as long as I remain in good health. At that time, she will switch over to spousal benefits and get 50% of my much higher payment. For now, she'll be getting $870/month which is a nice little bonus to our spending.

[Drake3287]

Age wise she'll be bumping up to the expiration date of that new $12k deduction for senior couples over age 65. I'm sort of guessing that who ever the next President is will almost have to extend it or make it permanent. No one wants to rock the boat with millions of seniors who vote. Both of us still have taxes taken out of our SS though, two SS checks add's up pretty fast.

[kork13]

I think that’s the best way to view SS, as long as you’re not heavily reliant upon it — it’s a bonus, a nice-to-have that allows you to have a bit more enjoyment in life.

Of course, that’s from my perspective of being in my 30s and having low faith in the promise of SS being there for my generation to rely upon.

In any case, congrats on the milestone Steve, enjoy an extra night out for some fun with it!

[bjl584]

Nice.

An extra $870 per month is a nice little bump.

My mom took SS at 62 as well.
The math said the same thing that you figured out.

[srblanco7]

Nice milestone. Congrats. Nothing wrong with some extra cash each month!

[ua_guy]

A nod to reaching this milestone. That will be a nice little bonus in the budget.

I remember for a while there was a push to delay drawing SS until as late as possible for the larger monthly check, but it seems actual math has prevailed and now the common sense financial advice encourages to draw earlier. Honestly curious, what changed, or what factor in the equation is now receiving more value or favor?

[disneysteve]

A nod to reaching this milestone. That will be a nice little bonus in the budget.

I remember for a while there was a push to delay drawing SS until as late as possible for the larger monthly check, but it seems actual math has prevailed and now the common sense financial advice encourages to draw earlier. Honestly curious, what changed, or what factor in the equation is now receiving more value or favor?

I think the math still supports the higher earner waiting until 70. The difference for her earning history is much smaller since the numbers are much smaller. I don't pretend to understand all of the details but as I said I used the online calculator, our CFP, and our CPA and they all agreed with her claiming now and me waiting until 70.

[Fishindude77]

Good for her !

The big question nobody can answer is ..... How long are you going to live?

I'm going to start drawing mine in August 66 & 10 months and will get full amount, around $3700 / mo. Could wait till 70 and be fine but who knows what the future holds.
Pretty sure I can do a better job handling the money than Uncle Sam

[disneysteve]

Good for her !

The big question nobody can answer is ..... How long are you going to live?

Exactly. If you collect early, you get less money for more years. If you collect later, you get more money for fewer years. But it's impossible to know where the break even point is since you don't know how long you will live.