Don't Let Your Social Security Claiming Strategy Keep You From Living - Week 5

 

 

Last week we lost 3 people from the entertainment world.  Ozzy Osbourne died at the age of 76, Hulk Hogan died of an apparent heart attack at age 71 and Malcom-Jamal Warner who played Theo Huxtable on the Cosby Show drowned at the age of 54.  What strikes me as a recent retiree about these 3 deaths is that they all died at a relatively early age – although one could certainly argue that it’s a miracle that the “Prince of Darkness” made it until age 76.  Estimating how long I expect to live plays a huge role in my retirement planning.  I would make a lot of different decisions if I only expect to live until 71 like Hulk Hogan or 76 like Ozzy than if I expect to live until the age of 90 or 100.  This is especially true regarding my decision as to when I should claim Social Security – the primary topic of last week’s blog.  (https://retirementmoats.blogspot.com/2025/07/why-i-havent-started-collecting-social.html). 

I received some interesting comments on last week’s blog.  As a reminder, I’ve elected to wait until at least age 68 so that I can capture significantly more annual income when I do claim Social Security.  Tracy Lownsberry, the founder of Annuity Giants Agents Academy commented that “I want more spending in my go-go years.”  He would delay only if his primary goal was “abundance” rather than spending.  Financial Advisor, Eric Krumm shared a similar view.  Eric stated that while he always walks his clients through the math, he spends more time on “the what if’s”.  He pointed out that “however long you waited is lost life experiences and memories”. 

It’s hard to argue with their point.  Unless we all become cyborgs by replacing old body parts with the latest technology (which is not out of the realm of reality), we all only have so many active years.  While I might still be able to shuffle to first base from home plate in the St. Pete Half-Century Softball League, I’m not likely to be zip lining or climbing the Andes Mountains in Machu Picchu when I’m in my 80’s – or maybe even my 70’s.  There are certainly some experiences I want to have while I can.  Few of those are free.  I agree with both Tracy and Eric.  It is important to create a retirement income plan that makes that possible.  That alone can be a good enough reason to claim Social Security early.  In my case, my inherited IRA will be a primary source of income over the next 3 years.  While this wouldn’t otherwise be my first source of retirement income, the IRS requirement that I systematically liquidate this over the next 5 years is allowing me to delay Social Security.  If I begin to feel as though I’m missing out on life because this account is not creating enough income, I’ll re-evaluate my Social Security decision.

There are several takeaways for me on all of this.  First, while it’s never a good idea to spend frivolously and without a longer-term plan, there are far too many retirees that underspend in retirement.  Their desire to hold on to money so that they will be “OK,” can make them miss out on experiences they can indeed afford.  Second, the uncertainty of how long I’m going to live makes it important to me that I secure a comfortable protected income stream for as long as I live.  And finally, there is no one single right answer on this topic.  Each person has their own unique needs, desires, and goals.  Therefore, it is essential that you have a plan that works for you.   The key here is that you have a plan.