I reach my social security Full Retirement Age (66 and 10 months)in December. I'm still working, but expect to be laid off soon. I'm a construction electrician, so it's not unexpected. I don't know if I will be able to get back to work before May or June of next year (if at all), so I may just go ahead and retire, depending on what the economy does.
If I wait to start SS until age 70 (three years away), I will need to continue working at least part of the time. But it makes 841 dollars a month difference, and that sounds pretty significant to me, especially with how much costs have risen in the past few years. If the economy tanks badly (as it has before), construction is one of the first fields to be impacted, so there is no guarantee that I would even be able to work.
I have a modest pension ($3500 per month)and roughly 400K in a 401K, and my house is paid off, but needs significant work. According to my financial guy I will be OK. I just can't take as many trips as I want to.
My mother is 86 and smokes, has never exercised, and is doing ok, could live for several more years, so I have to plan for some longevity, it's in the genes, on both sides.
I need some pros and cons of taking the SS now vs waiting three years for an additional 841 a month for the rest of my life.
Posted by Julzzz_C
1 Comment
What’s your income need/monthly outflow?
Do you need to continue earning to fix up the house?
If laid off, what is your unemployment amount and for how long?
Does it pencil out to draw heavily on your 401k initially while deferring SS to 70?
Are you married and wanting to maximize spousal benefits?
Lots of cinsiderations..
At a 4% distribution rate, you’d need to have/save 252k more between now and 70 to increase your investment income by $841 per month.