Quote:
Originally Posted by GTOLiam
I'm coming up on retirement at an early age, going to pull the pin around 58, and doing some research on taking SS. Would you mind sharing why you held back taking when you retired at what sounds like 62 1/2?
Tax benefits? Keeping yearly income low for ACA? Guaranteed investment at 7-8% each year you wait versus higher but risk prone market? Pushing out the bottom lower income years in the 35 average?
Whenever I run the numbers in those Monte Carlo retirement type of simulators, I'm always better off taking it early at 62.
Thanks!
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I've modeled when to take SS too and agree that it is better to take it earlier as long as you can earn 5%+ on your savings. Essentially, if you are getting SS then that is nest egg money you are not using and is earning a return. It becomes less true if you live past 90, but then the difference is marginal.
However, none of this modeling accounts for the ACA subsidies. Here you want to keep your reported income low. So with that I think taking SS when you get on Medicare is a good strategy. It is a little more complicated if there is a big age gap with your spouse.