1. I decided to take Social Security at age 63 1/2. My reason was family medical history. Over the last 100 years, the only males in my dad’s immediate family that had lived to age 60 was my dad and one cousin who is now in his mid-80’s. I am now 72. All of my uncle’s, cousin’s, grandfather, great grandfather, and all other male members of my family had all passed away well before age 60 with almost all being due to heart disease/failure. Some had passed away starting in their 20’s and all the way to their 50’s. I did have some great uncle’s who lived well past age 60. My brother passed at age 44. His kids have serious heart problems, and they are in their miod-40’s. My kids are in their 40’s with no heart problems as of today.

   1. That makes sense to customize your decision given your family health history. Hope that trend changes with you!

2. Thank you for the nuances clarification! I didn’t realize just how complex this system is, and, though we have talked about this plan for us, we, too, were planning on taking it later rather than sooner. You’ve given me some things to consider at our next retirement planning appointment!

3. I’m 2 years away from full retirement age and still trying to figure it out. My situation is a bit of an outlier. I paid into SS my entire career but my wife was a school teacher in a unique district that had their own retirement plan and was exempt from paying into social security. As such she did not pay into social security at all during her career. She was not eligible for spousal benefits and even it I died, she would receive $0.0 because of the rules at the time. I always thought that was unfair because if she was a non-working stay at home mom and never paid into the system, she would be eligible. All that changed a few months ago when the rules changed. I’m now getting different answers about if she is, or is not eligible now.
   I’m giving it a few more months to allow the powers that be to work out the details of the new ruling.

   1. She will get half of yours. Don’t need to wait for clarification. My dad is a teacher. Just got half of my mom’s. He didn’t qualify on his own. New law is a game changer. Just file by 67. Doesn’t benefit you to wait til 70.

4. Interesting, and something I’ll need to dive into more since I have a substantial age difference (6 yrs) with my spouse.

   Also your links made me dive into the details of the Social Security Amendments of 1983 thanks to your link. Interesting to see that the current administration is looking to undo some of the things that the Reagan administration put in place to save SS in 1983.

   1. Glad to hear you found the information on the 1983 situation interesting. I wish everyone – especially all the reporters – would read it just to give them some historical context.

5. We are in a similar situation. My wife is older with lower income history. She claimed SS at her FRA. Any earlier would reduce her spousal benefit and any later would give up monthly payments now for a small incremental increase only during the years she is claiming and I am not.
   I quit working at 66 and plan to claim at 70. This requires having savings and income to cover four years. We planned for this with the added funds to convert a portion of our TIRAs to Roth during this time that our taxable income is lower.
   The SSA projection programs were very helpful in confirming our strategy.

6. All great information! I retired a year ago and am now 62 1/2. I have 2 friends around my age that took SS at 62 and have not looked back. Both are financially stable and healthy (we call ourselves “low-end millionaires”) and have managed their money well over their careers as my wife and I have. Their philosophy was that they will enjoy the money more now than they would if they waited until 67 – 70 years old. Both look at it as “fun money” and use it to add to their travel budgets, etc. I know it is different strokes for different folks and there are many factors to consider. However, their method seems to be less stressful than going through all the detail and then still wondering what the right decision is in the end. Wondering if others can give their feedback if they used the “take the money early and run with it” method.

   1. I retired early six years ago at age 61, single after divorcing many years ago and mine was sole income for the last 25 years. I was fortunate to have a retiree health plan that covered me until age 65. At retirement I took a lump sum payout instead of a pension which had no COLA. For several years I planned for an early retirement and had a comfortable cash cushion/liquid investments to rely on, but I chose to start SSI at age 63. I have more than enough in taxable investment accounts, IRA and Roth IRA (have been gradually converting IRA to Roth over the years) to last my lifetime even if I live to be 100. I don’t intend to make any RMDs until mandatory age of 73. While investing over the years in my taxable accounts (in addition to maxing out 401K) I always had dividends and capital gains reinvested. After retiring I now have those amounts which are generated monthly, quarterly or annually automatically transferred to my checking account. Monthly Social Security benefit is currently at $2,600 and more than covers my living expenses — utilities, insurance, other routine expenses; I have no mortgage and no debt. So investment income covers entertainment, travel, and any other discretionary spending. I’m spending down my taxable investments first as I need or want more significant amounts to do things or plan more extensive travel, or help my children plus I plan to cover my two grandchildren’s college costs starting in 16 years.

      My rationale for taking SSI early was that the total payout amount (adjusting for estimated COLA increases) if I started early and lived another 30 years would end up the same if I waited to 70 and only lived another 23. I’m healthy and no medical concerns but if something unexpected happens SSI comes to a complete halt. Using SSI income to cover expenses allows me to keep my money invested and growing so amounts will be as high as possible for any future inheritance by my children and their families. I can honestly say I’ve never once regretted my decision to begin at 63. I would, however, completely regret waiting to start at 70 and then abruptly dying without having received any or only a year of SSI, all the while spending my own savings. I paid SSI taxes for 40 years, I wanted that benefit to begin as soon as possible to recoup as much as possible. So for me, it was the best decision. Hope that helps!

      1. Very impressive Suzette! Great example of how early planning can reduce a lot of stress in retirement. We were early planners too (which can have it’s own level of stress) and are now ready to stop worrying about the right time to start SS benefits and give ourselves an early pay raise and enjoy the benefits sooner rather than later. I now it depends on personal situations but for us your final few sentences are a great summary for us.
         There is that old saying that “Nobody on there death bed ever wishes they would have spent more time at the office”. In the same situation I don’t see us saying “I wish we would have waited on SS until 70”.

         1. Maybe “Nobody on their death bed ever wishes they would have spent more time at the office”, but I would imagine many wished they’d saved more money, which amounts to the same thing in my book. For example, many wish they could help their families financially –yes I know that has pitfalls too– but they can’t and need their families to support them when it didn’t have to be that way. I find that common platitudes about work/life balance assume wealth –that money will be available to meet our needs from somewhere. I don’t like such assumptions.

7. I have just filed for full retirement at age 66.8 are you implying that the spousal “top off” could be as much as my full monthly payout? As the major financial earner, I had assumed he would qualify for only 50% of my benefits? Can you clarify?

   1. The max amount a spouse can get is 50% of your FRA benefit amount. The top off applies if he had already applied for his own benefits at an early age, and you had not applied yet. Assuming his retirement benefit was less than his spousal benefit at such time as you file, he becomes eligible for spousal. Then the top off would kick in, adding an additional monthly amount on top of his retirement benefit so that the total equaled the spousal benefit he became eligible for when you file.

8. Thank you for sharing your experience. I do not understand the calculation for PIA in the example shown. Specifically, how is the $1,392 figure arrived at? Thank you for any explanation you can offer.

   1. I can help you with that question:
      The 2nd bend point for someone turning 62 in 2022 was $6,172 (as shown).
      However, the AIME in this example is only $5,373 (lower than the $6,172 limit), so …
      ($5,373 – $1,024) = $4,349 x 32% = $1,392.

      1. Thank you for clarifying that.

   2. The AIME starts at $5373. Note that since $5373 is not larger than the third bend point of $6173, only the first two bend points will be used for the PIA calculation.
      The first $1024 is multiplied by the 90% factor for a $922 benefit at the first bend point.
      Subtracting $1024 from the initial AIME of $5373 yields $4349 to be applied with the second bend point. $4349 is multiplied by the 32% factor for an additional benefit of $1392.
      Adding $922 and $1392 equals a PIA benefit of $2313.

9. Heath can change quickly. I retired Mar of ’23 before my FRA. I turned 65 Dec ’22. My wife is 5 yrs older than me. My FRA would have been 66.5 in Jun ’24. My wife was on SS disability since her 50s due to car accidents caught up to her. We didn’t get to save like a two earner family would save nor did I think her health would change so quickly when I did retire. I manage my feelings about what it could have been if we were, so hard to hear when others have saved so well. But, we planned to take trips right away but we haven’t since 3 or 4 surgeries later, we are still waiting for her to recover enough to travel. She is almost to the point to travel but not sure still. I kind of knew the challenges ahead of us, with the go go yrs in question. I didn’t know her turn would come just after I decided to retire, sad face. In hindsight knowing & retiring before my FRA age was hard to come to terms with. However, a joy filled life doing and being more of what I want to do, are more important than the dollars. I’m enjoying myself filling my days with fun activities but sad that I can’t do lot of it with her. I’m an eternal optimist so I see her whole, healthy and complete, once her body has been given a chance to be able to travel soon or be more herself activity wise. We will adjust and discover what things we can do as well.

   Yes I am/was the geek accountant/advisor with all the spreadsheets too. I have to laugh when you said “full geek was on,” lol. I noticed some of my geek has calmed down since retiring. I don’t have to learn about all of the updated possibilities others have to deal with and more about just our lives when I comes to finances. Unless someone asks me then they might get a blast of my geek analysis and suggestions, lol.

10. My wife and I ended up at a similar place to you folks with myself as the higher earner claiming at 70 and my wife at 67, which is next year for us. This strategy was agreed with our RMA financial planner whom we have been working with since 2017.. We retired around the same time in 2017/2018 but I went back to consulting part-time-which I am still doing-and my wife stayed fully retired. As a result, I’ve knocked off a few lower earning years while not having draw on our nest egg bridging to SS which puts us in a good place. I am a believer in using SS-OASDI-for longevity insurance and that it’s best annuity out there so we wanted to maximize it. I participate in a retirement chat group and see much the same misunderstandings and also a lot of folks seemingly making the claiming decision on their own without considering their overall financial situation and their spouse, which is a shame.

11. i guess i am much more chill about money….there really is such a thing as enough. so it really would not make a difference to me if i calculated to receive 30000 more or less from social security…..and no, our income has never exceeded 40000 in any given year

12. Disappointed that this article started as a product plug, with link furnished to where you can purchase it. Fritz, is that the idea for this blog from here on?

    1. Steve, I didn’t view it as a product plug at all, but rather Dana doing the right thing by citing her source. Neither of us have any affiliate relationship with the product, it’s simply the product her firm uses when evaluating her clients’ situations, and I agreed with her that it was appropriate to add the link for reference (she actually asked me, so rest assured “product plugs” have never been, and won’t be in the future, the “idea for this blog.” Hope that helps clarify.

       1. Fritz,

          I enjoyed the very complete analysis but I too was a bit concerned about the link to a product that purports to help determine longevity and even modify the trajectory. As a physician now retired I have to admit I am no expert on the algorithm used but when I perused the web site I could not be convinced by the limited scientific evidence presented.

          If indeed this was so well worked out, it seems that most insurance companies would line up and maybe even cover the cost of the testing to better stratify their risk pools. Wish that were true but not there yet.

          And then the takeaway is that for around 1,000 per year you can take supplements to impact your personal trajectory. Data on this is based upon mostly animal and cellular research, from what was provided. Overall the real scientific evidence for this is weak at best. What we know is what you have talked about yourself. Healthy diet and exercise with a focus on healthy weight. Even the time honored daily multivitamin has never shown conclusive evidence for benefit.

          So it just did not seem to fit with an otherwise fine analysis and in fact makes you question the author’s ability to think critically. It could just as easily been left out.

          1. Wow…. it is always fascinating to me to innocently share a passion (health and fitness) and find that it can be interpreted vastly differently than my intentions. I genuinely thought other health and fitness enthusiasts might enjoy the epigenic age report. I have no affiliation with the product. Was just trying to share a bit of my personality. That’s all.

             1. Not that it matters coming from yet another faceless online typist, but the links to the age company, nor either of the SS tools bothered me not one bit. There will always be hyper-critical folks, particularly when the interaction is not in person. One guesses they are the exception, not the rule.

                1) Even if there were an affiliate spiff, why do these folks feel entitled to unlimited “free” advice? If it is easy compensation, why not? Nobody should blindly follow the advice or links from an online source. Research it out yourself!

                2) It seems the key is to declare when there is an affiliate benefit. And perhaps this case shows… to keep the ankle-biters at bay, to explicitly declare when there is no affiliate benefit.

                Not worth losing any sleep over…

13. Thanks Dana. Agree with your case by case need for analyses. My current plan is at 99% success per Boldin. Retired at 62 after layoff. I favor “avoiding a bad decision” over “exhaustive optimizing”, but still need to analyze. Factors one may include is surprising: investment preservation, longevity, spousal benefit, time value of money, COLA, taxes, weathering program change, psychology, spending smile, sequence of return risk, IRMAA fees, and pre-65 medical. There’s probably more. I took SS at 63 and spousal at 62. My SORR was cut by 65% and investments are outpacing the SS claiming age increases. I assume I am wrong somewhere. Even if I were right, changes over the next 30 years will make me wrong (or non-optimized). I think the error bars of life are bigger than differences in claiming strategy. It will be great to see how the adventure unfolds! Thanks again.

14. One of the best summaries of the things to consider and how Social Security works that I have seen… without getting completely bogged down in the detail weeds of every single scenario. Nicely done.

    It is surprising how many professional planners on YouTube inaccurately describe how the Spousal benefit works. For example, many of them miss that the spousal beneficiary starting their SS benefit before their FRA reduces their total benefit after the Spousal top-off.

    1. Pleased to see the positive comments regarding Dana’s excellent work. She’s a great addition to the team, and we’re all fortunate to have her sharing her strong wisdom on The Retirement Manifesto.

    2. Just curious, if he worked in Canada for at least 20 years he will get a Canadian pension (like our Social Security) how will that work, when combined with her SS?
       Will she be entitled to his Canadian Social Security if he should pass? And how will taxes work with all of this?

       1. He will likely get Canada’s Old Age pension – although he did live overseas in other countries for about ten years – so we’ll have to double check to see if meets the 20 year requirement. And as I don’t live in Canada, I doubt I’ll be eligible as a survivor – but I haven’t check on any of that either. The tax piece is actually pretty easy – everything taxed as U.S. ordinary income.

          1. If he LIVED in Canada (not worked) for at least 20 years after turning age 18, he will receive half of an OAS benefit AND he can receive it overseas. There is no OAS survivor benefit; it’s based on residency alone. And don’t discount his Canada Pension Plan payment (CPP). It resembles US Social Security much more closely than OAS; i.e., both the employee and employer make contributions to the plan, and I don’t think there is any requirement similar to the “40 credits” rule under SS. He can check his earnings record and projected benefit at “My Service Canada.” The Windfall Elimination Program (WEP) was recently eliminated so he can claim & receive benefits without an offset. There is a small survivor benefit under CPP, $2500 CAD.
             I’m a retired US/Canada dual citizen and part-time finance geek, if you didn’t guess!

    3. Thank you! Much appreciated!

15. Let me comment from the perspective of someone who went through some mental gyrations (similar to you) and also wound up claiming at age 70.

    My wife is three years older than me (lesser wage earner) and retired at age 63. We decided that claiming when she retired made sense. It partially made up for the loss of income from retiring. Her retirement was three years earlier than planned but the stress level she had was worth the early retirement for her.
    I also retired at age 63 (three years after my wife). I had thought about claiming SS when I retired but got offered a nice part-time job shortly after retiring. While it was only working one day per week from home for the next six months, it still generated a nice income. I decided to hold off until the six-month task was completed (since I probably wouldn’t get paid benefits anyway given the income). That six-month task turned into a five-year consulting career, taking me to age 68. When I reached my FRA of age 66, I requested to transition from one day per week to one day per month. Now that I was at FRA, I no longer need be concerned about earning limits on benefits. Back in 2016 (when I turned 66), I was able to use the restricted application, which is no longer available, to get spousal benefits while letting my benefits continue to accrue. The spousal benefits I received during the four years (from age 66 to 70) paid me an additional $50K (half of my wife’s SS benefit at her FRA even as she claimed early). It seemed like “free money” at the time.

    Rather than look at “break even analysis,” I saw our SS benefits more as longevity insurance with some COLA thrown in. By doing the aggressive conversions, it also turned out that we reduced our RMD sufficiently to lessen the taxable portion of our SS benefits (from 85% down to 73%). With Secure 2.0, the “excess payout” from our annuity income reduces our RMD, too. For now, we continue to withdraw our regular RMD (filing MFJ with TCJA tax rates). For a surviving spouse, this revised RMD is less than 1% of our portfolio. Additional income can then come from the Roth account. This arrangement basically mitigates the widower’s tax penalty and also prevents the surviving spouse from having to pay IRMAA premiums.

    When and how to claim can impact more than just SS benefits. It influenced our Roth conversions strategy. The Roth conversions also provided a way to avoid IRMAA premiums and some potential tax reductions based on taxable portion of our SS income. Looking back, there were a few “nice” coincidences that played in our favor. That unplanned part-time job was a nice opportunity that provided more income while allowing us to travel. When we started Medicare (2015), income thresholds for IRMAA premiums were not adjusted to inflation. For us, that meant we would be paying IRMAA premiums for life (unless we could reduce our RMD significantly). That inflation adjustment started in 2020 just as I started my SS benefits at age 70, alleviating that concern going forward. The timing of the TCJA fit perfectly with our desire to convert. The “restricted application” made it possible to claim SS (using spousal benefits) while still waiting to age 70. Secure Act 2.0 allowed using “excess annuity payout” to reduce the RMD from non-annuitized T-IRA end-of-year balances. That reduced RMD also decreases the taxable portion of our SS benefits. There are many “moving parts” to this decision process.

    1. Love this approach! A fellow Vulcan way of viewing it! Highly logical.

16. Very interesting article – thanks for the thorough analysis. I’m interested to know your thoughts on the likelihood of spousal benefits being reduced and subsequently eliminated (one of the items in the Brookings Institute proposal – link + excerpt below). It’s significant enough to impact our plan, so it may factor into an early claiming decision, depending on whether it happens and when it would be implemented. It’s also challenging to model for it (most planning software includes spousal benefit calculations based on current policy, so factoring it in involves reducing PIA such that reduced PIA + spousal benefit is equal to the original PIA, which impacts other areas such as survivor benefits).

    https://www.brookings.edu/articles/fixing-social-security-blueprint-for-a-bipartisan-solution/

    “End the dependent retiree spouse benefit
    The proposal would gradually eliminate a policy for new retirement beneficiaries that currently provides up to half a partner’s benefits for spouses who are at least 62 or care for a child under 16. The benefit would be lowered by five percentage points a year starting in 2027 so that it disappeared by 2037—sooner for spouses whose partners have income in the top 25% of earnings. It would not apply to disabled spouses or widow(er)s, but this change reflects that the gap has shrunken between the labor force participation of women and men.”

    1. As with the currently predicted general SS funding shortfall in 2033/34, no sane professional politician (98% of them these days) would allow the standard benefit to get cut, nor would they dare cut the Spousal benefit upon which so many current voters rely.

       They’ll certainly wait until the very last minute to fix the basic funding (remove income cap subject to FICA + raise the FICA tax range… and potentially raise the eligibility age) like they did last time, but they’ll protect all current beneficiaries. And likely protect anyone within 8-10 years of current eligibility from the age hike.

       As an example of the professional politician class realizing where their bread is buttered, in the ‘80’s, incredibly, they dipped into the general fund to protect beneficiaries from an excessive Medicare hike. Note these were Medicare beneficiaries who were not “held harmless” from Medicare hikes in excess of the COLA on their SS benefit hike… due to those Medicare beneficiaries not yet collecting SS. It’s surprising this lack of Medicare hike “hold harmless” protection isn’t mentioned more frequently for folks who delay SS past age 65.

       However, we tell our (young adult) kids, being several decades out from collecting SS, everything’s on the table.

       1. That is a very good and often overlooked point about not being “held harmless” from Medicare hikes if not collecting S.S. benefits. Although I am only 67 5 months, halfway from 65-70, it has not been a factor, yet.

17. This was the best summary that I have ever read. Clear, concise and thorough. Thank you Dana.

    1. Sharon, so glad to hear you found it useful! I appreciate you taking the time to say so. Thank you!

18. It still seems like there is a trade-off between maximizing lifetime benefits and maximizing the insurance value. The spousal benefit is half that of the earner spouse. BUT… if the earner pre-deceases the spouse, then the spouse can choose between continuing to receive 0.5x or can give up 0.5x to get 1.0x. So if one of the couple dies, maximizing the payment from the primary earner would better protect the surviving spouse. Regardless of which is the survivor, that surviving spouse will likely have similar expenses with a lower fixed income, and be taxed at a higher rate.

19. First, I need to address this statement: “While reporters love simple axioms—Social Security and “simple” don’t belong in the same sentence.”. Mike Piper, creator of Open Social Security, published an excellent book “Social Security Made Simple”. I highly recommend this book.

    Secondly, basic retirement benefits, are not that hard to calculate. I am talking about the plain vanilla retirement benefits. I built a spreadsheet using our unique indexing and bend points to track our PIA @ FRA. From there you can easily add the calculations that track “early claims deductions” and “delay credits.” Having said this, developing a claiming strategy, that “works” best for you or you and your spouse, is anything but simple since it has more to do with certain perceptions, rather than numbers alone.

    We are following Open S.S,’s recommendations of spouse files at 66 & 4 months (FRA 66 10 months) and I delay as long as possible, which hopefully will be 70. My spouse retired this month (6/25) and will begin benefits in July. This strategy incorporates our preference of looking at S.S. as an inflation adjusted longevity annuity, extending the opportunity of spending down pre-tax qualified funds (either as income or ROTH conversions) and maximizing survivor benefits. Also, Maryland has a unique tax structure that allow an exclusion up to $40k in employer sponsored retirement distributions including 401k’s from their 8% state and local income tax. This amount gets reduced by any untaxed S.S. benefit you are receiving.

    I feel confident in our strategy knowing I can file at any time, (currently 67 5 months), if circumstance or mindset change. I do wince a little when reviewing my calculations in that I must forgo from $3,500 to $4,200 dollars a month to increase my monthly benefit by $22 – $25. Tracking the reductions in RMD’s by spending pre-tax money helps, a little.

    Another reality I learned is you must track and calculate your PIA for COLA’s after reaching FRA, as it is not available on the My S.S. site after FRA. This is beneficial for tracking spousal benefits as I delay my filing.

    The increased survivor benefit, possibly in combination with a future SPIA, will help my spouse, who is not into my spreadsheets, navigate her financial life after my passing.

20. Much like Fritz, my wife and I plan to do the split strategy where she will first take her own SS benefits early at age 62 (next year) and I will retire at age 67 (2.5 years) but delay SS until age 70. During those three years, our income will be severely reduced in the eyes of the tax man, so this will be the time to do some Roth conversions. The main reason for waiting until age 67 to retire is for the continued health insurance for my wife. Once I retire, we will only have to use the “marketplace” or some other coverage for a year before she turns 65 and is eligible for Medicare. And though I like my current job, the biggest perk is being able to workout at lunch – which the company encourages (in fact, I often see the CEO out on the running trail). Thank you for providing me with even better insight on the social security claiming maze.

21. Thank you for an excellent article that describes a painstaking analysis about your possible Social Security claiming dates, as well as a comprehensive and understandable description of the many different Social Security benefit filing options.

    I’m wondering if you ran any scenarios where your husband predeceases you and does not live to age 90?

    Using Social Security’s Life Expectancy Calculator, the life expectancy of a 57 year old male is estimated to be 82.8.

    If that 57 year old is still alive at ages 62, 67, and 70, those life expectancy figures rise to 84.0, 85.4, and 86.2, respectively.

    A male who is currently 75 years old is projected (on average) to live another 12 years, until he’s 87.0 years old.

    So I would be very interested to know how the analysis changes if you run scenarios where your husband passes away at age 80, 83, and 87, instead of surviving until he’s 90. In those hypos, I might also be interested to see how the numbers would be impacted if you live to age 95. [I know you have some extended longevity in your family!]

    I would welcome any thoughts you have about how these alternative scenarios might influence the math of your analysis and your preliminary thoughts regarding when you should file for your benefit.

    I’m guessing it might reinforce your gut feeling that waiting until 70 to claim your worker benefit is the favored approach at this time.

    BTW, I’ve followed your work for years. You a HUGE POSITIVE ADDITION to Fritz’s Blog. IMO, you’re one of the brightest lights in the Financial Planning community.

    Thank you for joining Fritz and sharing your thoughts with his readers. I look forward to the knowledge and insight you will add related to the many different aspects of Retirement Planning, which includes alternatives for when and why to file for various Social Security benefits.6

22. Thanks for discussing the situation where one spouse is not the same age as the other. It seems most analysis assume the spouses are the same age. My wife is a year younger and the spousal benefit/top off will more than double her SS benefit. I fluctuate from claim at 68 so she can get the full benefit to possibly waiting until 70 so she would get the biggest survivor benefit – it also has to do with how the market does (how much of my portfolio is used for living expenses) and how my ROTH conversions are going. I just plan on having a plan but staying flexible.

23. Dana,
    Thanks for the good and helpful article. I have a question about how to think about lower earner spouse claiming strategies in conjunction with two topics related to this: (1) IRMAA and (2) converting TIRA to Roth IRA. My wife is about 3.5 years younger than I am, and I am the higher earner. My wife’s FRA benefit is around $1,800/month, and at age 62 it is about $1,265/month. Mike Piper’s software says I should wait until 70 and my wife should claim at age 62. However, I have been thinking that my wife should wait to claim SS until 67 so that we can use those 5 lower earning years to convert (and maybe also spend) some TIRA funds to reduce RMDs down the road, as well as to reduce IRMAA if I take Medicare Part B (I’m leaning toward it but not required to do so because I have USG retiree health insurance that covers most of what Part B and Part D cover). I have not done the actual spreadsheet analysis yet, but just wondering if you think my wife waiting 5 years to claim SS is throwing away free money that is worth more than whatever the benefits are from reducing IRMAA (and possibly NIIT) and reducing RMDs after age 75? By my wife waiting to age 67 to claim, we would be giving up about $76K in total SS benefits over those 5 years, but her benefit would be permanently reduced if she claims at age 62 (my understanding is that my wife’s spousal benefit will be reduced if she claims at age 62, even if I claim after age 67). Any thoughts on how to model all of this? We have fairly significant investment income on top of SS, plus a small pension, plus some inherited IRAs that we are required to withdraw over 10 years so that noticeably effects our taxes. Thanks for your contributions to this blog!

24. If and I know that is a big word in the retirement world, you can’t live on what if this happens or that happens.
    I believe people way over think SS and when to claim, and what I mean is do your calculation on what you think you are getting at FRA (most likely it will be more, mind was) and build your retirement plan around that $$ number. Of the numerous retires I know, everyone slowed down 6 to 8 years after retirement. What happen after that, well the portfolio grew, and life became easier again. As the old saying goes, money doesn’t buy happiness, or money isn’t everything.

25. Great article- well written! You bring up and discuss alot of good topics, for such a complex decision for many. I appeciate you sharing your personal life, too.

26. I retire tomorrow, so all of this is now very real to me. I too have always assumed I would wait until age 70 to claim SS. But now my theory has changed. I plan to use an inherited IRA that has to be liquidated over the next few years to cover income until I’m at least 68 – hopefully longer if the market does OK. But last year I bought an index annuity that has a 14% simple roll up rate for 5 years. The math says that I will increase my income faster letting that sit for the full 5 years rather than taking income from it and waiting on SS. So my new plan is to start to claim SS once my inherited IRA is liquidated and then add the index annuity income when I hit the 5th anniversary. Am I missing anything from your point of view?

27. Perhaps I just missed this but another non-trivial factor to include in this decision making process and analysis is the compound interest for a lifetime on the investment funds not spent to fill the gap in expenses until age 70. This can be substantial – even if you assume perhaps only a 5% rate of return on these funds for 25 years (assuming a life expectancy to age 90).

28. The SS calculator used may calculate the best strategy on taking SS benefits GENERALLY – but it does not consider portfolio balances, taxation issues, health issues, longevity in family history or other income/expense needs. Some people waiting to age 70 to take SS when their family history shows they will not live past 75 is not a good indicator or resultwith the calculator. Go with your gut.

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