I’ve been well aware of the significant financial advantages of waiting to start my Social Security benefits until age 70, having written and researched about the transition into retirement for the past twenty years. But until my wife and I were actually approaching our retirement years, this awareness was just in my head—I didn’t have the first-hand emotional experience that results from having to wait for a significant source of retirement income.
Like many people, just having the knowledge about what’s best for me doesn’t always convince me to make the right decision. Over the years, I’ve learned about the importance of paying attention to my emotions surrounding important financial decisions. Here I’ll share how I waited for my Social Security benefits until age 70, as well as the reasons why.
How I Waited Until Age 70 To Start Social Security
My wife and I enjoyed a fulfilling, semi-retired life through our late 60s that involved working enough to pay for our living expenses while still having plenty of time to enjoy our grandchildren, travel, work on improving our health, and pursue our interests. We didn’t miss my Social Security income, and we didn’t feel deprived.
We carefully adjusted our living expenses so that we could be satisfied with less income compared to our working years. It also helped that we had some control over the hours we worked and that our work involved helping people. Both of these conditions helped us enjoy our semi-retirement more.
We Didn’t Accept Common Reasons To Start Social Security Early
While we considered the common reasons people start Social Security early, we decided they didn’t apply to us. Here are some of these common reasons that we decided to ignore:
- Social Security will go bankrupt in the future, and at that time you’ll get nothing, so get some income while you still can. The reality is that Social Security won’t go totally bankrupt if Congress doesn’t act to address its funding challenges. The worst case is that benefits might be cut by 20% to 25% sometime in the 2030s; if that happens, after these hypothetical cuts, I’d be left with the largest possible benefit if I waited until age 70.
- It’s my money, and I want it now. Actually, I only paid for half of my Social Security benefits, and my employer paid the other half. So I’ll receive more of my money and my employer’s money over my lifetime if I wait until the optimum time to start Social Security.
- I might die before I start Social Security. If I do, I’d really regret it if I hadn’t started my benefits earlier. Actually, we don’t know how much dead people regret the decisions they made while they were alive. But I’ve seen older friends and relatives who are in their 80s, struggling financially, and regretting that they started Social Security too early. I’m much more influenced by potential regret while I’m still alive compared to regret from heaven!
- Everybody else I know started their Social Security benefits early. Well, that might work for them, but they aren’t me. I choose to do what’s best for me.
Why I Started Social Security Benefits At Age 70
The numbers say it best: Most people in average or better than average health will receive more income over their lifetime if they wait until the optimum age to start Social Security benefits. Often that optimum age is 70, but for some people, it can be an earlier age. You can get some guidance for your situation by letting a computer run the numbers for you with a Social Security optimizing calculator. One of my favorites is Open Social Security, a free online program developed by Mike Piper, an author and expert on Social Security benefits.
One important reason I decided to wait until age 70 to start Social Security benefits is that my wife will receive the highest survivor benefit if I wait until that age. Since it’s likely she’ll survive me (since women often outlive their spouses), delaying the start of my Social Security benefits is one way to show my love for her.
The ideas shared here about why and how I delayed Social Security might not work for everybody. I encourage you to think about your reasons for the best time to start Social Security, and then figure out how you can implement your plan.
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