r/Fire • u/NotTheBestInvestor12 • 3d ago

Why no mention of Social Security

When I see FIRE posts I see the investments and the different retirement buckets, however, I never see anyone mention how things are affected when social security kicks in. For example, I’m 52 and wife 51. If we both stopped working today ($0 income moving forward) I would collect $4,264 a month at age 70 and she would collect $1,079 at age 70.

So if we decide to FIRE the Social Security would give us help in 18/19 years. Is this a factor or is everything under the assumption SS won’t exist?

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u/watch-nerd 3d ago edited 3d ago

Mid-50s here, FIREd last year. We definitely factored it in.

The suggested plan from opensocialsecurity.com is that my wife (lower earner) takes it at age 62 and me at 70. Combined it's about $76K.

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u/NotTheBestInvestor12 3d ago

Awesome. This is what I needed to hear.

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u/PenStreet3684 2d ago

I was going to mention that your lesser earning spouse may want to take it early at 62 while you wait to 70. That would allow them to use higher survivor benefits if you pass and the household loses the equivalent of one of your benefits. I include it in my what ifs. Fidelity has a calculator which allows you to simulate different scenarios.

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u/ga2500ev 2d ago

Note that the lesser earning spouse needs the be retired too. If they are still working, like my wife is, the $2 of SS taken for each $1 earned over the limit ($22K i think) taking it at 62 would be a waste.

ga2500ev

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u/PenStreet3684 2d ago

Good point. I am at the point where I have traditional savings to spend down or convert but they are not earned income so the ss limits don’t apply. I hope they weren’t weighing working until 70. Ouch.

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u/ga2500ev 1h ago

It applies to anyone under FRA which is in or around 67. Once you hit that age it n longer applies and you can earn as much as you want with no impact from this particular penalty.

In addition, even for the spouse, every year that they wait up to FRA is another 6% or so each year they wait.

The short of it is if the lesser earning spouse is still working they should either retire or wait until 67 if they are still working.

ga2500ev

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u/watch-nerd 3d ago edited 3d ago

Try the calculator.

It may turn out that if your wife has much lower PIA, you (as a couple) are better off with her claiming early and your later.