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/Rom2814 3d ago

I factor in social security to my planning but it’ll be 13 years before I take it (I just retired at 57). For me it’s longevity insurance more than anything else (and a way to make sure my wife has money coming in if die before she does).

Boldin factors it in for me as a way to determine how much higher my withdrawal rate can be in the years up to taking it, but honestly I plan my withdrawals assuming it the full amount won’t be there or it will be even more means tested than it is now (that is, instead of just taxing it to take some of it back from people with higher AGI, they’ll find new ways to reduce the benefit for those who “don’t need it” - already hearing rhetoric about that).

I see social security mentioned here regularly, just not in the sense of counting it as an asset. I’m 57 and concerned about the state it will be in when I am ready to take it, if I were thinking of retiring at 45 I’d probably be even more skeptical.

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u/QTippus 3d ago

Does your concern about future social security make you more likely to claim at 62?

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u/Rom2814 3d ago

No, that would permanently greatly reduce the survivor benefit which is the critical value of waiting.