This data gives a better idea of actual life expectancy:
Actuarial Life Table
The thing to do would be to copy the table into excel, and find the number of deaths for each year but subtracting the "Number of lives" of the previous year, from the "Number of lives" in the current year. If you graph that, you'll get a nice left-skewed distribution that shows how the "average" life expectancy FROM BIRTH isn't a great way to estimate how long you'll live.
Last edited by Maricar19; 06-13-2015 at 08:38 PM.
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We are taking a look at the question of SO drawing SS at age 62 w/ 25% reduction. Based solely on math it will take 12.4 years from FRA (66 for her) to break even. This would be at age 78. I.E. She would be 78 before she would reach break even point. Even longer if the money is invested well as it is collected (even if only after tax amount is invested). I like the point raised about money set aside for heirs or for long-term care. Leaning towards drawing early and investing amounts collected as received! Thanks for the input! One of the best things about TSPTalk!
I realize everyone is different (longevity issues, spousal benefits, etc.), but the one thing most of these posts have in common is treating SS as an investment. As for me, I tend to think of it more as insurance. I figure my retirement based off of FERS, TSP, and outside investments. SS is there in case I mess those up. Given my track record, that is a distinct possibility. I therefore choose to increase my insurance because I have a spouse dependent on me for retirement as well. Just another take on it.
Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2025
Past Returns: 2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%
Here is an article addressing different scenarios for withdrawing SS at age 62 that may apply to some folks. I personally plan to withdraw mine at age 62 for investing and traveling.
When It Makes Sense To Take Social Security Income At 62
A lot depends on how much you have in your TSP. When you reach 70.5 Required Minimum Distributions apply, which are out of your control for traditional TSP and IRAs
Using TSP calculator https://www.tsp.gov/PlanningTools/Ca...alculator.html, age 62 for both, Expectancy=115(max), Earnings Rate=5% & no dependents for different balances. Below is a summary of annual withdrawal from tables and resulting balances at different ages:
Age / Starting Balances:
No matter what rate of return you achieve, traditional TSP & IRAs are designed to be spent during your lifetime. The calculator assumes 2 different IRS life expectancy tables, which is why the monthly/annual amounts generally drop (36.5%) from age 70 to 71 when RMDs kick in. Payments then increase until peaking at age 93 and decreases beyond that. If you expect to live to a ripe old age, delaying social security until 70 may be beneficial since it will offset the TSP drop from 70 to 71 due to RMDs kicking in & it is adjusted for inflation over time while your retirement nest egg will eventually decline.
Age $100K $500K $1MBalances- Annual 5% ROI 62 $4,255 $21,277 $42,553 $100K $500K $1M 66 $5,025 $25,127 $50,254 $101,429 $507,146 $1,014,291 70 $5,872 $29,362 $58,724 $98,793 $493,963 $987,926 71 $3,728 $18,640 $37,280 $99,904 $499,520 $999,040 93 $7,738 $38,689 $77,379 $70,052 $350,260 $700,520 100 $6,650 $33,249 $66,499 $37,160 $185,802 $371,604 115 $7,634 $38,168 $76,337 $353 $1,765 $3,530
Between 62 and 70 you can specify what your monthly withdrawal amount to manage your current taxable income/tax bracket and to a certain extent your future RMDs. A lot depends on your actual rate of return, interest rates and the market.
WEP and GPO's Effect on CSRS Retiree's Social Security benefits
How CSRS Employees Are Impacted by Social Security’s WEP and GPO Provisions
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