Usually I like to replace my PSU when I build a new system, which was previously a ~3 year cycle. This X79 system has outlived that cycle with (computing) power to spare, so no reason for me to build a new system yet, but I have had to replace the PSU in it once, and that was my first PSU failure in a long time...
Last year around this time, I had had my 295X2 for a few months. After initial installation of the 295X2 and overclock of it, things were fine for a month or so and then I started having to lower all of my system clocks a little bit at a time to maintain stability. Eventually the PC refused to boot Windows without a BSOD, and the 12V rail was measuring ~11V via DMM, so I pulled out the 1200W PSU that was in before and replaced it with this monster PSU I picked up for dirt cheap on Black Friday last year. Sure, 1600W is overkill, but my average usage falls right into this PSU's peak efficiency range, the PSU scored a 9.5/10 on JonnyGuru, it's fully-modular, I didn't have to pay even half price for it, and the fact that I killed a quality 1200W PSU by pulling too much current unnerved me a bit. What really upset me was that the 1200W was just a couple of months out of warranty.
So, overall, I would have to say that, this 1600W beast aside, I tend to follow what
@Bill_Bright does. IMO, waiting for the PSU to go "poof" is a bad idea, since a PSU can easily take other hardware with it.