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My wife and I both have lifetime pensions with full optional survivorship benefits which we will exercise. We have around $1.3 million in retirement savings, and a lifestyle that can easily be supported on our pensions and early SS with a positive delta of almost $3k per month without touching our retirement savings. Why would we not take our early SS benefits and leave our savings intact? Also, when you see your friends and acquaintances passing early, your begin to realize you can never get the time back. Never
Asked by a 62 year old man from Pasco, WA on 3/9/2018
Dear Sir,
Congratulations on doing a great job of saving and investing for you and your wife. Given your sources of income, it sounds like you can meet both your essential and discretionary needs without any issues.
At our firm, clients ask us similar questions all the time. Depending on the amount of pension income you expect to receive (and when it will begin), this may affect your decision. One reason is because of the potential tax impact this may have on you which can result in a significantly higher tax bill each year that you didn't expect.
Hence, why there may be very good reasons to still delay your benefits.
I would suggest reviewing the tax planning issues that may exist as you coordinate the timing of your income in order to maximize cash flow to you and your wife.
Best,
Marc Jimenez
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