A friend of mine who works for Boeing saw this on the counter at a tool room. There was a chart about Boeing retirees and if you waited until sixty-five to retire the average payout was only for eighteen months meaning the retiree died a year and a half after retiring. If they retired at fifty-five the payout went over twenty years. Think about it.
Just because I’ve been defrauded of my means to provide illegitimate benefits to others doesn’t give me the right to see others defrauded in turn for my benefit.
People’s circumstances aren’t enumerations of power.
Bookmarked
> if you wait until age 66 to take Social Security instead of taking it at age 62, you’ll come out ahead as long as you live to at least age 77-78 <
For me, that’s a key point. A person who’s 62 is still young enough to enjoy travel, etc. A person at 78, not so much.
They’ve already screwed those born 1960 and later. They want to raise it to 70. Just how much more can they rob us? I guess a lot more. Raise the cap to 250,000 and put it back to 65 years old. This is not welfare. It’s money we put into the system. In the 80’s they decided to borrow from the account which is why it’s screwed up.
Take the money! Anyone who Waits for 8 years without an ironclad guarantee from God that they’re going to live to make up what they will have lost if they died the day before the 70th birthday is nuts.
Even if you don’t need the money take it and invested the stock market historically goes up two days out of every three and the average return is 8%. No one with a brain ever refuses money unless it is a critical tax situation which in most cases this would not be since most States and the government exempt social security income at least partially.
Its just a bet against the mortality table. unless, of course, you need the money. Then you have to take it period.
but, if its just about the numbers on the paper (your net worth statement) you have an edge. At agee 66 are you healthier than the average 66 year old? If so, hold off. If not, take the money now.
Take it as early as you can. You don’t know when you will die.
The first retirement dates were 62 years old and the government expected you to die at 57 years. Your wife could then draw and she was expected to die at 65.
Then came Penicillin.
Illegalos & Illeaglas get much more!
Thank you. I’m 61 and hoping to hold onto my sanity long enough to retire at 66. That’s slightly less than “full retirement age” but well within the 36-month window.
The Bottom Line...
One ironic problem for me. I understand you can start collecting your new birthday rate in the January you reach that age. In my case, since my birthday is in January, I have to wait until I actually turn 70.
Could be worse. My draft lottery number was 59.
Just a re-write of the BS the Social Security Administration puts out.
Anyone who has even a little education in finance knows about the “time value of money”. A simple concept that a dollar today is worth more than a dollar a year from today. For secure transactions it usually shows up as an interest rate.
The break-even tables are calculated ignoring the time value of money, almost as if the government skipped class that day. But, if I am even one day late paying them a tax, that department knows all about the time value of money and I am charged interest for making a late payment.
If one accounts for any realistic interest rate, the break even dates get later and later...
Thanks. Good info.
We both took ours at 62 - the math said we weren’t likely to really get ahead by taking it later and it gives us more “play” cash for vacations. etc., while we’re still young enough to enjoy it.
FWIW, CPA’s have training/certification and a new title they can add to their practice to help determine when you should sign up for the benefit. They are the most honorable of the financial professions, and I intend to utilize this service w/ my CPA gnome who has this title when it is time. Nothing against Schwab, good honest firm, but numbers and calcs, come into play here, above and beyond this article. Food for thought.
This has been bantered around on every financial web site for god knows how long.
Its a personal pref and all the articles say the same thing as there is only so much that can be said on the topic. Just as this article has done.
But my opinion on the mater is and we all know about opinions and butt holes and that has been and what I did and my bro done did and that is;
Take it ASAP and if ya dont need it DCA it here:
https://personal.vanguard.com/us/funds/snapshot?FundId=0502&FundIntExt=INT&ps_disable_redirect=true
I draw full SS and work full time, started drawing at 65. I didn’t see this mentioned in the article. Wait until your old enough to hit full retirement and there’s no penalty. Almost 2500 a month on top of my current income. I say draw at full retirement and work as long as you feel good and your health holds out. I love what I do so that really is a determining factor. My wife retires early (62) in less than 2 years and plans on staying on part time at the hospital. Neither of us are ready to just shut down completely, heath matters could change that but that’s the plan at the moment.
Take the money and run before they cut it off.