Posted on 05/03/2020 8:49:19 PM PDT by SeekAndFind
I’d rather be biking in France. ;-)
if you start at age 62 and you get 1500 a month (a pittance, for a lifetime of work) then you can collect $54,000 by age 65.
If you wait until age 65 your income goes up by 500 a month, but you would have to collect for 5 years to benefit more then $54,000
to do the math another way
at age 62 to age 71
9 yrs times 12 months/year time 1500 $/month = 162,000
at age 65 to age 71
6 years times 12 months/yr times 2000/month = 144,000
Like any other government program, it is stupid
what is the break even point?
(X) (12) (1500) = (y)(12)2000
(x)(1500) = (y)2000
(X)1500/2000 = y
X (3/4) = y since y = x-3
x(.75) = (x-3)
x(.75) + 3 = x [divide by x on both sides]
.75 + 3/x = 1
3/ x = .25
3 = .25 x
x = 12 (years to break even point)
Take it as soon as you can get it since you might be dead next month......
PFL
Here is a great, free social security optimizer website:
https://opensocialsecurity.com/
Be sure to checkmark the “Advanced Options” box at the top, and I recommend inputting 1% for a real discount rate (the current negative real discount is a short-term aberration, in my opinion).
Have you calculated whether you are ahead of the game versus had you delayed to pick up the 8%? Or calculate if you had started at 62, and compare to where you are now with the funds you collected and invested?
what people fail to realize is that by "retiring" early you are losing out on the most financially rewarding paycheck yrs, if you've been with one employer....there is no way SS can make up for that....
I make pretty good money for 24hrs of work and collect a good SS check to boot....no deducts....its nice...
My math subject to be checked.
So, (162000 - 144000)/(2000 - 1500) = 3 years add to the 9 years that X was collecting.
By my calculation or yours, it appears that Mr Y at age 74 pulls ahead of Mr X in amount collected. If both live to actuarial age 82 years, then Mr Y is up by 48000, or 6000/year or $16.43/day on amount paid. Mr X would have to be investing (not spending) what remains after taxes during his first 9 years at more than 3% to make up the $48000+ to extend his ability to stay up with spender Mr Y to age 82.
Of course, if My Y drops dead before 74 he loses, and SS will probably be the least of his worries at that point, depending on how he lived his life on earth.
Just don’t bike the way that decorated hero John F Kerry used to bike in France.
It's amazing how many Social Security articles fail to point out that people who file at 62 receive nearly 5 years of extra payments in exchange for that dire-sounding decrease in monthly benefits. Most people don't receive more money overall from delaying until they are at least 80. And that estimate doesn't include present value of money calculations, which are necessary since SSA COLAs don't entirely offset inflation.
While filing at 62 is not necessarily the best solution, omitting the most basic benefits of that approach has the flavor of propaganda rather than financial education.
If I am making money from stock does my SS money get reduced?
Since we don’t need SSI to retire comfortably, I don’t see the benefit of waiting. If I retire at full retirement age (66 and 10/12) the break even point is age 77, If I wait to age 70, the break even point is 80. This does not include the investment return on the SSI in my account, which will extend the break even point by a several months or more.
We live on a sailboat and dont have a lot of expenses, except fuel and food
= = = = = = = = =
Sailboat? Fuel? hmmm..
(I know, I know but had to mention it)<: <: <:
OH, notice how ‘they’ have ‘stolen’ a portion of your moneys for 50 or so years for your ‘golden years’ and then have the nerve to call it a BENEFIT.
I also thought/think a BENEFIT was a freebie which you didn’t work for.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.