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I think you nailed it. That is why I took the money and paid the tax. It’s no longer a vulnerability for me. My main retirement plan was to own my home free and clear in a place with very, VERY low property taxes and no taxes on my SS. It’s why I moved from Seattle to KY.

I made almost the maximum that can be SS taxed for a very long time, and even surpassed the maximum a couple of years. So the payout is significant, and my wife’s payout will be half that (we both turn 66 in a few months). And now I live in a place where my annual property taxes are one month’s payment on a Toyota Corolla. When savings are applied to the payoff of my home and 32 acres, well, we’re looking at living almost for free. Factor in the garden, chickens, cows (if necessary) and it is even better.

Interestingly, the only things we really want to do is enjoy our property, do a lot of road trips around the country, visit with friends and, eventually die. We’re good! And we love where we live like never before in our entire lives. Kentucky is very beautiful and has a great climate - but you need bug spray.

I am in same boat. My car is paid off in six months (a nice Audi on a 4 year loan and I drive less than 10k miles/year) and the house is paid off. So our biggest bill is the cable-TV bill. I work till I can get medicare in a couple of more years at a data entry job for $18/hour. I too paid max into Social Security so when I retire that monthly check will equal my current salary. I lit up my pensions from my previous employer. Wife in similar situation w/ Social Security but her drive is more like 25K miles, so that car is about spent. I have the risk exposure w/ 401K funds but I feel that I will be at the legal withdraw age soon before the Govt can hatch this little plan.We stay here in OH which is a moderate tax state because we have some family here to help us we get old, crippled and stupid.