Posted on 11/16/2019 3:43:24 PM PST by Openurmind
One of the most important decisions you'll have to make as you approach retirement is when to start Social Security benefits. The soonest you can begin claiming is 62, which remains the most popular age to start. It's not necessarily the wrong choice -- you'll still get a sizable amount of money over your lifetime -- but it might not be the best option if you're interested in maximizing your benefits. Here's a closer look at how the age you begin Social Security affects the size of your checks.
(Excerpt) Read more at fool.com ...
I went at 62.
Go AS SOON AS YOU CAN! DON”T WAIT!
You might DIE between 62 and 65!
You could be DEAD by then! DON’T WAIT!
Don’t be greedy.
Yeah right, the government wants you to wait until 70 so they can give you MORE money!
No, they are hoping you’ll be DEAD and never collect a dime.
Turning 70 next month. I have already collected (and spent) a whole bunch of money over the past EIGHT years.
“If you live past 80 it is better to wait. If you die earlier its worse.”
There you go then. All you need to know now, is WHEN are you going to die!
Magic 8 Ball says “Cannot predict now”
Take it while you can...
Don't look now, but they are already means testing SS.
When I was a kid my grandfather got SS and it was not taxed. Well, then in 1984 they started taxing 50% of SS and now they are up to taxing 85% of SS. This is nothing but a hidden means test.
If you have no other income, you are not taxed at all, if you have a lot of other income you are taxed at 85% of you marginal rate. This is a means test by another name.
* * * * * * * * * * *
The other thing to be aware of is that the SS Trust Fund will be depleted in ~2033. At that point they will only be able to pay ~70% of the benefits they now pay.
If you take it early, you will at least get some benefits at the full rate, even if they are reduced for early claiming.
We each retired when we reached 62 - ans started SS right away as it would take enough years to catch up with a later start at higher payments than we might actually have...delaying a few years for a higher payout is going those years with zero payments....we wanted to get ours while it was still a viable entity...
This is incorrect, your benefit will increase if you wait.
These calculations are based on the assumption that the benefit levels will remain unchanged or that means testing will not be introduced in a system we know is going broke.
There is definitely something to be said for the bird in the hand.
I agree with you both. My Dad retired at 62, 22 years ago and kept working and paying in. Before he was 70 he was making almost as much a month as if he had waited because he was paying in and still earning work credits along with cost of living increases. But he was able to collect for those 3 years from 62 to 65 which more than covered any difference.
I did the same thing, started SS at 62. The payouts are designed so that regardless of what age you start receiving social security, each person’s lifetime payout will be the same. At least as the actuaries figure it.
“To calculate payback time on delayed benefit add up the early payment amount and divide it by the increase you would get That’s the number of months it would take to break even.”
Yes, and using your numbers the payout is about even at 80 years old.
“My BIL died at 61. Another BIL is 64-65 and is at home on hospice. The first never drew a dime. The second has been medically retired for several years, probably on disability.”
Death panels coming up soon. Abortion of the elderly/useless eaters. Watch out for ghoulishJack Kevorkian type vans driving in the neighborhood. Probably Chinese will be given a license to drive. They have some experience, although there is no shortage of eugenicists in America.
https://www.freerepublic.com/focus/f-news/3794369/posts
Nice link.
THANKS!
Bookmark.
Much obliged for the post.
You are absolutely welcome. :)
This also assumes you will spend the money as you receive SS payments and not reinvest it into something earning +3%
I asked my in good health 87-year old parents about it. My dad said to wait as long as I can. I then asked “What if I die early?” He said “You won’t know it.” LOL.
If I anticipated being able to live on my SS, I would just defer or reduce my 401K withdrawals, and keep making more than 3%, on average, tax-free.
I'm healthy, and currently plan on working past my SS full-payment age. I plan on starting to collect my SS as a supplement to my wages at 66 1/2, and not start withdrawing my 401K until later.
Great post
I was younger twenty one years ago too...
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.