Regret for Delaying Social Security to 70

"Tomorrow is not guaranteed." ~ old adage

Common thinking is to wait until 70 if one can afford it and is healthy in order to receive a higher Social Security payment.  Mathematically, that seems to be good advice.  However, life happens.

Below is a link to an article in which the person regrets waiting until 70 and his reasons.

I'm Retired And Regret Claiming Social Security At 70 - Here's Why

Here's a summary of the article:

• Hidden Tax Trap. That higher income pushes him into brackets where more of his Social Security gets taxed, and his Medicare premiums get hit with surcharges. He's essentially penalized for following conventional wisdom about waiting until 70.
  
  
• Health Gets Worse. He spent years in my late sixties staying healthy, exercising, and planning for a long retirement. Then at 72, he was diagnosed with a serious condition that limits my mobility and energy. Those extra years between 67 and 70 when he could have truly enjoyed his benefits are gone forever.
  
  
• Breakeven math is just theoretical.  The break-even point for waiting until 70 compared to benefits claimed at age 67 is approximately age 82. But that calculation assumes everything stays constant – your health, Medicare costs, tax brackets, and Social Security's future stability.  Life happens.
  
  
• Missed Experiences. While he was dutifully waiting until 70, his neighbor who claimed at 62 was traveling the world. She's now 67 and has already received five years of checks that someone waiting until 70 hasn't gotten, allowing her to travel and enjoy life.
  
  
• Social Security May Cut Benefits. He delayed for maximum benefits that might not even be guaranteed when potential cuts come in 2033 or 34.
  
  
• Could Have Done Well Investing. With a 4 percent real return, a person has to live to 89, instead of 78, for it to be beneficial to delay benefits from age 67 to 70, yet 77 percent of 67-year-old males and 65 percent of 67-year-old females die before 89.
  
  
• Spousal Benefits Delayed.  His spouse could have been receiving 50% of my full retirement age benefit for three additional years, but instead got nothing while he chased those delayed retirement credits. That's money they'll never get back.
  
  
• Worried More About Market Fluctuations.  During those three years he delayed Social Security, he had to rely more heavily on my 401(k) and other investments for living expenses.
  
  
• Extra Cash Would Have Been Useful.  Between ages 67 and 70, he faced unexpected expenses: home repairs, medical bills, and helping his adult children through financial challenges.
  
  
• Having Money Sooner Is Better.  Looking back, he realize he treated Social Security like a pure investment decision when it should have been a lifestyle choice. If he could do it over again, he'd claim at full retirement age and use those three extra years of benefits to truly enjoy the beginning of his retirement while he was still healthy enough to make the most of it.

I agree with many of his points since I took Social Security early at 64 and avoided experiencing many of reasons for his regret. 

For more on  Reaping the Rewards, check back every Friday  for a new segment.

This is not financial, Social Security, nor investment advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

The Curse of Easy Credit

Managing personal finances used to be simple, before the days of multiple credit cards and easy loans.  We earned money.  We paid mostly in cash, except for home and car loans.   We saved in banks.  If we couldn't afford it with cash, we didn't buy it.  Easy peasy to have good personal finance results.

Fast forward to today.   Don't have enough money to buy something.  There a lots of credit options. 

• Need money for everyday items or smaller purchases.  Max out multiple credit cards.  Buy now, pay later.    Split payments up.  Rent to own.   The temptation is that all these options are at NO cost if one pays them off on time.   People rarely pay on time which results in paying high interest rates.
  
  
• Need money for expensive items.   Can't afford to go to college.  There's money from student loans.  Car loans now go out to seven years and are often upside down on the day it's purchased.  These loans are great until one has to start paying them back.
  
  
• Need money sooner.  Get advances on one's paycheck, but at a cost.  Get a money advance on one's credit card.
  
  
• Want to gamble.  No need travel or have cash.  Go online with one's credit card.  One can go thousands of dollars into debt.

I made my daughter an authorized user on a credit card, but still had her pay her part of the bill.  She commented how much easier and quicker it was to spend money using a credit card. Managing personal finances requires good skill and discipline.  Today, there are too many temptations and opportunities to veer off a successful path.  

For more on Crossing Generations, check back every  Thursday  for a new segment.

This is not financial, credit card, nor debt advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Protecting Personally Identifiable Information

There a lots of attempts to steal people personally identifiable information (PII) and use it.   I have not subscribed to any protection services, even when it's provided for no charge due to a data breach. I feel that taking good precautions will be enough protection.  Here's what I do to protect information.

• Shred any papers that may have PII.  Bank statements, brokerage statement, pre qualification letters  with QR codes, 1099s, copies of tax returns,  W-2s and cancelled checks.
• Don't share SSN at doctor's or dentist's offices.   It is not required and you can choose to leave it blank.   In fact, you can decline sharing SSN for many applications.
• Do not send PII over e-mail.  It is not secure.
• Only use secure electronic systems to send personally identifiable information to appropriate organizations.
• Cut up expired credit cars and membership cards.
• Do not give information over the phone to unknown callers that claim to be bank, credit card, IRS, Social Security or Medicare representatives.  Call back a confirmed number, from internet or mail, to verify unknown callers.
• Check credit card statements and bank statements for unknown activities.
• Periodically, check information at credit bureaus.

Finally, I usually am on the side of being cautious rather than assume the situation is safe.  Better to not give out or shred the information than have it obtained by unscrupulous people.

For more on The Practice of Personal Finance , check back every Wednesday  for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC