When to start drawing Social Security

[The Synergizer]

Medicare changes estimated.
https://www.medicareresources.org/faqs/what-kind-of-medicare-benefit-changes-can-i-expect-this-year/#partb

[Baz]

How the 2026 COLA compares to previous years

Although the 2026 COLA is higher than 2025's, it's still low compared to historical COLAs. Since COLAs became annual in 1975, the average has been 3.6%. In the past decade, the average has been around 2.8%, so 2026 is right on par with that. The only years without a COLA are 2010, 2011, and 2016.

https://www.fool.com/retirement/2025/11/09/social-securitys-2026-cola-is-official-retirees-in/

I'll take it!

[Tim Hancock]

All I dream about these days is retirement. So many hobbies and projects. Did not do too well in the early years but have been maxing my 401k for a bit now. Had planned for 65 but now really wanting to go at 62. I am 59 now in good health. Wife is 61 and will only work for another year or two at a lowish paying job.

I know there will be no clear answer but just for ****s and grins...
Anyone think it is feasible to retire at 62 in the midwest with about 1.2 million in retirement accounts and no debt? I really really really want to retire.

[rfuerst911sc]

^^^ Tim as long as you have health insurance your plan sounds solid . I retired at 60 and started drawing SS at 62.5 . Similar 401k savings with everything paid off . My wife and I are doing just fine . I will say we both have pensions from where we retired from so income stream with SS also is very good .

You can always get a part time job for beer money . Or with your skill sets can easily do side work if you want to . Without knowing our expiration date I am always a fan of getting out as early as you are comfortable with . As my dad used to say you could wake up dead tomorrow

[Seahawk]

Originally Posted by rfuerst911sc

^^^ Tim as long as you have health insurance your plan sounds solid…

That would be my only concern as well, Tim.

Other than that, running the SS options is a breeze.

[Tim Hancock]

The health insurance will likely put the stop to my dream. My wife will be 65 when I am 62 so she should be good, but I guess I would have to pay for 3 years of health insurance. Probably too costly. Oh well it is a nice dream.

[wilnj]

I'm in the midst of a divorce so that will definitely cloud this decision but it's a small part of the reason that I pursued dual citizenship.

The low cost of living would allow me to live comfortably albeit not extravagantly on my SS earnings alone, even if I started drawing well before full retirement age. As a citizen, I'll have access to nationalized healthcare and the cost of private insurance is only $150-$200 per month.

What retirement assets I'm left with post divorce will easily pay for frequent trips for my children to visit me or me to return here to visit them.

[Crowbob]

Originally Posted by Tim Hancock

All I dream about these days is retirement. So many hobbies and projects. Did not do to well in the early years but have been maxing my 401k for a bit now. Had planned for 65 but now really wanting to go at 62. I am 59 now in good health. Wife is 61 and will only work for another year or two at a lowish paying job.

I know there will be no clear answer but just for ****s and grins...
Anyone think it is feasible to retire at 62 in the midwest with about 1.2 million in retirement accounts and no debt? I really really really want to retire.

Easy peasy.

No debt is #1. Reduce spending is #2. Reduce spending is #3. Reduce spending is #4.

And don’t get sick.

[Joeaksa]

Originally Posted by Tim Hancock

The health insurance will likely put the stop to my dream. My wife will be 65 when I am 62 so she should be good, but I guess I would have to pay for 3 years of health insurance. Probably too costly. Oh well it is a nice dream.

You just posted above my exact concerns about your early retirement. If there is a way that you could get your ducks in a row INCLUDING health insurance for the years from 62 through 64.9, then you would be in good shape. Your total amount of funds saved looks good as long as you have no existing bills, so keep on plugging away.

I retired at 70 and almost two years later still have not touched a penny of my retirement. I turn 73 in January and because of this will be forced to take 5% per year of my savings, otherwise I simply have not needed it yet...

[Zeke]

Originally Posted by Tim Hancock

The health insurance will likely put the stop to my dream. My wife will be 65 when I am 62 so she should be good, but I guess I would have to pay for 3 years of health insurance. Probably too costly. Oh well it is a nice dream.

You might be able to go with a large deductible. I took the early money and at 80 I'm ahead. Do factor in the ins savings and you'll see.

Like said, don't get sick. COBRA is expensive but there are options. Medicare. not so much unless you do Medicare Advantage which I don't recommend. Lots of info out these days about MA. Of course you might be able to join something that Mayo is offering. I have no information on that, but back before some of the quality health organizations here like UCLA started offering MA, it was not a good choice even with Kaiser here which is rated 5 stars. It's all downhill from there.

[Tim Hancock]

What are some current numbers for monthly health insurance these days?

[jhynesrockmtn]

My wife was paying over $800/month through the exchange for a really crappy high deductible plan. Her hip replacement during that time cost us $12,000 out of pocket. She went on medicare in 2022.

[stevej37]

Originally Posted by Tim Hancock

What are some current numbers for monthly health insurance these days?

72 yo...Medicare..$202/month plus $39/month for Priority Advantage

[rwest]

Originally Posted by Tim Hancock

What are some current numbers for monthly health insurance these days?

I’m paying $650 a month for a $6,500 deductible plan- it went up almost $100 a month over last year- haven’t seen a quote for next year yet. I didn’t have any claims, so that wasn’t why it went up.

Luckily for me, I had a very large VEBA when I retired, so I have a lot of years worth of health care money, so I don’t have to use my other funding sources.

Tim, do it! You have so many toys that you could sell to make up the gap and still have plenty of fun things to play with.

[Tim Hancock]

Thanks for the numbers guys.

[SpyderMike]

I would say, wait until you reach your SSA full age...if you can.

Medicare Advantage plans definitely have their disadvantages.

Medicare premiums continue to go up and then there is the IRMAA factor if you make too much. I am at $200/mo Medicare G and $200/mo Part D. Then there is the IRMAA...which is high.

You can only count on less than 10% (more like 5%) yearly of your retirement fund without reducing the initial amount, factoring in taxes and inflation. And if the economy takes a decent dip (like 2008) this will be real hard on the investments for potentially some years to recover.

[cstreit]

Run the numbers. If you die at 78-80 it breaks even. If you think you will live longer is pays to wait a bit. The gov’t has done the math too.

[JackDidley]

Originally Posted by JackDidley

I took mine at 62. I want to have the extra $$$$ to play with while I am still able to play. I am 65 now and starting a drag car project. SS will fund that and it gives me activity that I need . If not for the SS I would have to tap into my IRA for this project and have to pay taxes on that. Every person has different wants and needs. Waiting for age 66 or 70 sounds good but I am not sure I will be physically able to do this project then. For the record, I had a blue collar career and do not have big retirement savings compared to many .

Now 73 and have enjoyed my SS money. Still drag racing and not really getting into that IRA.

[Crowbob]

Originally Posted by JackDidley

Now 73 and have enjoyed my SS money. Still drag racing and not really getting into that IRA.

You will soon, though.

You have until April of the year following your 73rd birthday to start taking the required minimum distribution (RMD) without taking a hit by the IRS which is 25% of the shortfall. You can minimize the hit to 10% by using a sort of ‘catch-up’ provision, though.

[JackDidley]

Originally Posted by Crowbob

You will soon, though.

You have until April of the year following your 73rd birthday to start taking the required minimum distribution (RMD) without taking a hit by the IRS which is 25% of the shortfall. You can minimize the hit to 10% by using a sort of ‘catch-up’ provision, though.

I did take $5k out but I just put it in a CD so I dont count taht as getting into the retirement. Yes I will pay taxes on it but when you have almost no income taxes are minimal.