Retirement appears less and less likely for many people. Wages have barely improved in decades and the cost of living is going up, tempting some people to retire overseas. It could be done, but there are a ton of plans one has to make first. One can always retire abroad for much less. It's good to think that Social Security still pays benefits to overseas retired persons, though taxes on that income in a new home country may apply as well as to the United States.

That's exactly what I thought, kudzu. You refuse to accept the math simply because you don't trust the government. That's fine if it makes you feel good because, you think, you've managed to outsmart those sneaky old federal bureaucrats. I sincerely hope you're enjoying your retirement and the SS checks you've been receiving for these past years . What bothers me is that you're misleading others with bad advice about something that's very important for their futures. For example, you claim that the math is so complicated that neither you nor I can figure it out and that the breakeven point may somehow really be later than 78 because of "the time value of money" -- the fact that a dollar today is worth more than a dollar some years down the road. That's certainly true but a deferred SS benefit grows at the guaranteed rate of 7% interest each year for four years -- the rate is 8% for those who hold off four more years until they're 70 -- PLUS whatever rate the COLA is for that year. COLAS have averaged 2.5% for the last 10 years, BTW. Since the deferred benefits is larger each year, the COLA on the growing benefit will also be larger than the COLA for the static early benefit. Considering that, the real breakeven point is probably somewhat less than 78 years not more. The real truth is that the government knows that, no matter what it tells people about waiting to take SS, most (about two-thirds) will take it as soon as they can. Many of them have no choice because they truly need the money. Others may have serious medical problems that are likely to shorten their lives. But many just can't wait to finally get something back from SS after paying in for so many years. Or they're afraid SS will run out of money. Or, like you, they refuse to believe that the government's advice to wait could possibly be true. Of course, each one of the 66% who start taking at 62 costs the government less in lifetime benefits than any and all of those who hold off. The relatively few who hold off until 66 will cost it more and the even fewer (like me) who hold off until 70 will cost it the most. That's why the breakeven point can be set at a lower age than actual life expectancy. The majority who take early collectively create a large enough surplus to fund those of us who hold off taking until later. So I thank you for the contribution, however tiny, you will likely make to help fund the later stages of my retirement.

Hi Yoda who uses a ruler, Not being familiar with your system, I can't give any suggestions as to what reasons there may be to have separate bank account for taxable and non-taxable assets. In Canada we have accounts looking toward retirement where deposits are tax-deductible and the income over the years is, as well ... but every dollar coming out is taxable, and, after about age 70, there are minimum amounts required to be withdrawn annually. They must be in different accounts, of course. When I borrow for regular living expenses, consumer loans, which I plan almost never to do, I have one line of credit that I use for that. I was a personal financial consultant for years and recommended to folks that they have 3 - 6 months' worth of income as a financial cushion, available when needed, and in recent volatile times in the economy am more inclined to suggest 9 months' equivalent to a year's worth of income available in case of need, emergency, layoff, or whatever. I didn't always have such myself, which I told a number of clients, having used much of that fund for investments ... but had a credit card which I rarely used, which could be used in case of emergency, or whatever (I was self-employed, so could usually see an equivalent to a "layoff" coming before it happened). I had a line of credit, fully secured by stocks/mutual funds, some of them that I'd purchased with the "emergency fund", at the bank or, preferably, credit union, which I could draw on in an emergency. I would make a loan using that consumer line of credit to pay off the amount owing on the credit card for the emergency, just after the first billing, to avoid paying their high interest rate (about 4 times the rate on the line of credit, or 6 times if it were a store-issued card: I don't have any of them!). Then I'd make extra savings strenuously for a time to pay off the loan on the line of credit. I don't like using someone else's money to live on now ... and having to pay it back, later ... with (non-deductible) interest. Sometimes, after a bad time in the stock market, when things began to improve, I might make a loan to make further investments, and, as the interest paid on most investment loans is deductible, I'd set up a separate line of credit for that use, using the investments that I'd purchased using the "emergency fund" (along with some others, as the financial institution will only loan about half of the value of the security held), so that the interest rate on the loan would be lower. That's a place where I keep my deductible and non-deductible financial issues separate. Good wishes as you plan your retirement .. and implement the plan: I hope that you have no/few unpleasant surprises. Which you can usually reduce by careful planning, preferably ahead of time. ole joyful

"I really hate how the government creates such havoc in people's lives!" Just thank your lucky stars there is even such an agency as Social Security to provide those who really need it with some sort of meager retirement income. I doubt it will be around long enough for our children and grandchildren to benefit from this program. Yes, it's bureaucratic and complicated to deal with but it sure as heck beats the alternative......which is nothing!!