Based on what I wrote before, the question came up as to why I was planning on waiting for 70 to apply for SSI (Social Security Income). (BTW, I didn't mean for this to be so wordy, but I started typing and well... it got very long.)

Little primer first to make sure we are all on the same page.  SSI is based on the amount of income that was taxed during your working years.  The more you earned and were taxed, the more you get.  And the calculations to determine what you will get monthly is based on you starting receiving your SSI at 65.  However, when SSI was created, it was likely that many people would only be alive for a small number of years after 65 so the option was added to start earlier, at 62.  But giving you the same amount at 62 that you would get if you started at 65 made no sense, so a discount was added for the amount of time you get SSI before 65.  And then it was also added to SS that you could get it later and if you did you would get more per month.  

Well over the years the date of SSI starting changed, as well as discount and bonus percentages.  Right now for me, instead of 65 I would need to start at 67 to get my full base SSI amount.  For every year I start early I would be dinged 5% of my SSI amount for life.  And every year I start SSI after 67 I am given a 8% bonus to my SSI payment, again for life.  Two other points, normal SSI can start no earlier than 62, and I can get no more bonus on my SSI than 24%, thus 70 is the max age to apply.

If you read financial sites, as well as finance videos, they usually say the cutoff for waiting / taking early is around the age of 81/82.  If you were to die before that, taking early makes sense.  If you die later, taking SSI later makes sense.

So given all that, what do you do regarding SSI?  

Wait for 70, start at 62, or something in between?  Currently I am planning to wait until 70.  Why?  Well.... a couple of reasons.

1) My health: I try to keep myself healthy by going to the gym 5 days a week, and doing a hard workout when there.  I don't have any major medical issues, but at this age there are certain things that start nagging, and I am no exception.  So far the pains have been minor, I go for yearly physicals, and I think everything has been ok for me.  Hopfully it will stay that way.

2) Genes (aka DNA): I don't have tons of ancestors to compare to, so this is a bit tough.  Those that died early all had extenuating circumstances (grandfather/suicide, aunt/extreme weight, father/smoking cancer, uncle/extreme weight, uncle/auto accident).  All the others died well after 80 (1 great grand parent I know of, 3 grand parents, 2 uncles, and my mother is going strong at 80) and even some of these were heavy smokers and didn't try to keep themselves healthy.  So I'm guessing I have good genes and should expect longer life.

3) Statistics: The data shows that once you get to my age, your life expectancy isn't the baseline (75 for men) which applies to when you are born.  Instead it is 82 for my age.  So the data is neutral for me (as it should be if actuarially correct).

4) Wealth/Longevity: There is a direct correlation between wealth and longevity, especially at older ages.  Extra money means more ability to use medical services to improve / prolong life.  Not that I am super wealthy (YET!), but with a good pension and decent health insurance from the old employer, along with a high SSI amount used for calculations (past the second SSI bend point for me), as well as not needing tons of things in my life, I think I am in the top (5%? 10%? 20% at least), so my wealth should be a positive going forward.  And not that I am counting on it, but most likely I will get a large inheritance from my mother (could be 7 figures by the time she dies), of course by that time I won't need the money, so ?shrug?.

5) Wealth/Needs: Given my ability to live frugally, and my pension, I don't have any big need to rush and apply for SSI.

Given all of the above, it sounds like waiting until later, maybe 70, would make the most sense.  And it does, but there is one more thing I didn't go over.

6) TAXES!: Ok, here is the big bugaboo for me.  Taxes.  Yeah, I know the saying, don't let the tax tail wag the income dog (or something like that).  Nonetheless I want to try to optimize this if possible.  So what is the issue exactly?  Well first there is an extra tax, the IRMAA on Medicare for high earners.  No details here, but my income is such that IRMAA is a concern, so I want to try and "lower" my income.  Of course I want higher income, so what to do?  Roth conversions, as they won't count against my taxes when taken out in my 70s and later, but will increase taxes today.  Also, tax rates are supposed to go up in 2026, so paying today makes more sense than later.  Yes, I know tax laws can easily change, but I am going with what we have on the books as its the best bet for now.  Soooo... by waiting for SSI I will have more years to get more money into Roth accounts at lower tax rates, as well as have an income low enough today to not get hit with IRMAA (or minimally), and the when I get SSI (at 70+) my money in Roth will be avilable but won't get taxed.

So that's the plan.  Wait until 70 for SSI unless something changes (tax laws or my health are the most likely things to change).  It's my plan, and I think it's a good one.

Over the years as I have gone and worked on my finances sometimes I have hit milestones that aren't really milestones per se, but are ... I'm not sure what to call them ... milestones that don't add much but do give you much extra security.  Yeah, that's probably the best way to call it, an Extra Security financial milestone.

Soooooo.... this month I will be turning not only older (as we all do 😒), but I will be of age where I can apply to start Social Security benefits.   I have a cousin that recently started benefits at 62 and at first I thought he made a bad choice, but I have reconsidered that viewpoint.  Yes, his SSI will be much less than mine even if he were to wait to get benefits like me.  However his health seems to be going downhill and already had a heart attack.  Given that, maybe he made the right choice.  He certainly seems happy enough with his choice.  In any case my plan is to wait until 70 for benefits to start and do smaller Roth conversions during those years (except for next year which will be a extra large Roth conversion!).

For now no changes, but I have more potential money available to me in off chance I would need it, so yay me I guess.