As a fellow retiree who faced a similar decision after selling my small manufacturing business, I can't stress enough how important it is to get the Medicare timeline right alongside your Social Security decision. One thing I learned the hard way: even though you have health insurance covered through your business sale for 3 years, you still need to be strategic about Medicare enrollment. If your current coverage is considered "creditable coverage" (which it likely is), you can delay Medicare Part B without penalty, but you need to understand the rules. Also, regarding the taxation issue that @Diego Mendoza mentioned - it's worth noting that you can potentially manage this through tax-loss harvesting in your investment accounts or even municipal bonds for part of your portfolio to reduce taxable income. With $875K to invest, you have options to optimize your tax situation. The break-even analysis everyone's discussing is important, but don't forget about inflation protection. Those annual COLA adjustments are applied to your base benefit amount, so starting with a higher base at FRA means larger dollar increases over time. With current inflation concerns, that's not trivial. Sounds like you're leaning toward the right decision with waiting until FRA. The peace of mind from that higher guaranteed income stream is worth a lot when you're living off investments.

What an incredibly thorough and helpful discussion! As someone who just joined this community after recently turning 62 myself, I'm amazed by the depth of knowledge and real-world experience shared here. @CosmosCaptain - your situation really resonates with me, though I haven't had the success of selling a business for such a substantial amount. Congratulations on that achievement! One angle I haven't seen discussed much is the psychological benefit of having that business sale "cushion" during these decision-making years. Knowing you have $875K plus your 401(k) means you can make this choice from a position of strength rather than financial stress. That alone is probably worth considering in your decision framework. The consensus here seems strongly in favor of waiting until FRA, and the math certainly supports it. But I'm curious - have you considered a hybrid approach? For instance, using a portion of your business proceeds to purchase a deferred income annuity that would kick in at your FRA, essentially creating your own "bridge" strategy? This could give you some guaranteed income peace of mind while still allowing you to delay Social Security for the higher benefit. Just a thought from someone watching this discussion and thinking about my own upcoming decisions. This thread should be required reading for anyone approaching retirement with substantial assets!

I'm so sorry for your loss, Freya. Losing a spouse is devastating enough without having to navigate the SSA bureaucracy during such a difficult time. I'm glad you were able to make progress with that Claimyr service! For others reading this who might be in similar situations, I'd also recommend reaching out to local senior centers or Area Agencies on Aging - many have volunteers who are familiar with SSA processes and can help guide you through the paperwork or even accompany you to appointments. Some also have relationships with SSA offices that can help expedite things. Also, if anyone is caring for a deceased person's minor children, don't forget that survivor benefits may be available for dependent children too (up to age 18, or 19 if still in high school). The family maximum rules can be complex, but it's worth exploring if applicable. Wishing you all the best as you work through this process, Freya. Please do keep us updated!

I'm really sorry for your loss, Freya. What you're going through with SSA is unfortunately all too common these days. I went through a similar situation when my father passed last year, and the waiting times were absolutely brutal. A few additional tips that helped me: 1. If you haven't already, gather ALL your documents now - certified copy of death certificate, marriage certificate, birth certificates, your husband's W-2s or tax returns from the last 2 years, and bank statements. Having everything ready will speed things up once you do get your appointment. 2. Keep detailed records of every interaction - date, time, who you spoke with, reference numbers. SSA loses paperwork frequently and you may need to reference previous conversations. 3. Consider applying for any immediate assistance programs through your state while waiting for survivor benefits to kick in. Many states have emergency assistance for widows/widowers. 4. If you're really struggling financially, emphasize this when requesting expedited service - they do have procedures for "dire need" cases, though getting them to actually use those procedures can be challenging. The fact that you got through with Claimyr is fantastic news! Hoping the rest of your process goes smoothly and you get your benefits soon.

As someone who just went through this process myself, I wanted to add that when you contact SSA about missing earnings, be prepared for it to take some time. In my case, it took about 6 weeks for them to review my documentation and update my record. They had to verify the information with my former employer. Also, since you mentioned planning to retire next year, keep in mind that if you're born in 1960, your full retirement age is 67, not the 66 and 10 months mentioned above. The FRA gradually increases based on birth year. You can find your exact FRA on the SSA website or in your online account. One more tip: if you do decide to claim early at 62, the reduction is permanent - it doesn't go back to the full amount when you reach FRA. So make sure you're comfortable with that lower monthly payment for the rest of your life before making that decision.

Just wanted to chime in as someone who works in retirement planning - this whole thread is a perfect example of why it's so important to understand all the moving pieces with Social Security! I see this confusion all the time with clients. The survivor benefits piece that everyone identified is huge - when someone loses a spouse, they can often end up with a higher total monthly income from Social Security than they had when both spouses were alive, especially if the deceased spouse had higher earnings. One thing I'd add to the great advice already given: when you're reviewing your earnings record, pay special attention to years where you might have had multiple jobs or changed employers mid-year. Those transitions sometimes create gaps in reporting. Also, if you ever worked for tips (restaurant, salon, etc.), make sure those tip amounts were properly reported - I've seen cases where the base wage was recorded but not the tips. Since you're planning to retire next year, this is also a good time to think about Medicare enrollment timing if you're not already covered through an employer plan. The Social Security and Medicare timelines don't always align perfectly, so it's worth planning both together.

Great to see you've got a solid plan worked out! Just wanted to add one more consideration - since you mentioned you and your husband both work part-time, you might also want to factor in any state taxes on the IRA withdrawal depending on where you live. Some states don't tax retirement income at all, while others do. Also, when you do withdraw from the IRA, make sure to have taxes withheld if you think you'll owe them - nothing worse than getting hit with a big tax bill next April! Most IRA custodians will withhold 10-20% for federal taxes if you request it during the withdrawal process. Sounds like you've really thought this through carefully with everyone's input here. Best of luck with the car shopping!

Just wanted to chime in as someone who went through this exact scenario two years ago! I was 69 and needed to replace my HVAC system unexpectedly. Cashed out about $15K from my traditional IRA to cover it. Like others have said, your monthly SS benefit amount stays the same - that was my biggest concern too. The main impact was on taxes. Since my husband and I were already in the 85% taxable range for SS benefits, the IRA withdrawal just meant we paid regular income tax on that $15K (plus it made more of our SS taxable, but we were already at the max). One thing I learned after the fact - if you're going to do this regularly or have other large expenses coming up, you might want to consider doing smaller withdrawals over multiple years instead of one big lump sum. Keeps you from jumping tax brackets unnecessarily. The peace of mind from having reliable transportation was totally worth it for us. Just make sure to set aside about 25-30% of whatever you withdraw for taxes to be safe!

One thing to keep in mind is that SSA typically reviews earnings annually, not monthly. So if your mom claims early and works above the limit, she likely won't see immediate withholding - it usually happens the following year after they process her annual earnings report. This means she could receive several months of full benefits before any withholding occurs. Also, I'd suggest having her create a my.ssa.gov account if she hasn't already. She can view her earnings record, get benefit estimates, and track any changes to her account online. This makes it much easier to stay on top of everything and catch any errors early. The decision really comes down to her specific circumstances. If she's facing immediate financial hardship and the early benefits would prevent more serious consequences (like losing her home), then the permanent reduction might be an acceptable trade-off. Just make sure you're both prepared for the complexity of managing the earnings test if she continues working.

I'm also navigating this exact situation with my elderly parent! One thing our financial advisor mentioned that might be helpful: if your mom does claim early and later regrets it, she has a one-time option to withdraw her Social Security application within the first 12 months. She'd have to pay back all benefits received (without interest), but it would be like she never filed at all - wiping out the permanent reduction. This could serve as a "safety net" if her financial situation improves unexpectedly or if the earnings withholding creates more complications than anticipated. Obviously not ideal since she'd lose access to the money she already received, but it's good to know the option exists. Also, make sure she understands that only EARNED income counts toward the earnings limit - things like pension payments, 401k withdrawals, investment income, etc. don't affect her Social Security benefits at all. Sometimes people think ALL income counts when it's really just wages and self-employment earnings.