Posted on 06/14/2020 6:46:14 AM PDT by SeekAndFind
Let’s touch on a few points regarding Social Security retirement benefits that are coming into sharper focus in the current economic crisis.
In general, one should avoid beginning benefits prior to Full Retirement Age (FRA), which is age 66 for persons turning 66 this year and which will gradually increase in future years. While benefits can begin as early as age 62, the cost of doing so is a permanent 25% lifetime reduction of benefits.
Unless one is under tremendous financial or medical distress, drawing benefits prior to FRA can be a costly and irreversible mistake. Second, one can defer benefits to age 70, and the benefit will increase by 8% per year. The point at which the cumulative higher monthly benefits starting at age 70 are equal to the cumulative lower monthly benefits beginning at age 66 may be referred to as the “break-even point.” Putting aside inflation adjustments and time value of money considerations, the break-even point is around 85 years of age. If one has parents who lived well into their 90s, one might be tempted to consider deferring to age 70, especially if one has sufficient current income and no debt. On the other hand…
People taking income at FRA will have more income during the years when they are more active and more likely to travel and otherwise expend discretionary income, as opposed to later years when health care costs tend to increase and people lead less active lives.
The most optimistic projections of the Social Security trust fund indicate that it will be out of money in 14 years. The current economic difficulties could accelerate its bankruptcy. A proposed cut in payroll taxes would inflame the problem further, if enacted. If no action is taken, all benefits will be reduced by 21%
(Excerpt) Read more at americanthinker.com ...
“The bottom line: waiting for age 70 may yield more in pretax “paper” income, but far less in real after-tax income.”
I respectfully disagree. Take out SS as soon as you can and invest it. A) I’d rather be in charge of more of my money than broke govt be in charge of it. B) When you die your SS check ends, but your investments are still around for your heirs.
So SS fund is going bankrupt, but...
“In general, one should avoid beginning benefits prior to Full Retirement Age (FRA), which is age 66...”
Pffft.
Is there any way to get SS before age 62?
“””About that Social Security trust fund running out...””
No mention of the welfare fund ever running out of money.
“”Is there any way to get SS before age 62?””
Not unless you are disabled.
“Not unless you are disabled.”
I identify as disabled.
Will that work?
To be clear...I didn’t “pay in”. It’s been taken from me without any choice.
I mean, if boys can declare they're girls...why can't we declare what age we identify with.
Oh, and for life insurance I'm 21!
I started mine at 62 for two reasons.
I got the money when I was most able to enjoy those things that I will not be able to enjoy at 90. Travel, hiking, camping, competitive swimming, etc.
The second reason is when SS reform comes around the Gov. will issue the following statement: “Do not worry. If you are already receiving benefits, SS will not change for you.” Any change will not be for the better, for those not in the program.
Taking soc sec before 65 has a problem:
What to do for medical insurance, if one doesn’t have a spouse so they could be on their plan.
The “trust fund” never was real.
Certainly not since Slick Willie’s days as POTUS.
LOL.
The National Debt just soared by $4 trillion this year.
NOBODY is going to cut Social Security. It is political death. NOBODY. They will just print and print until the coming financial collapse, and then hit RESET, after all of the suffering the financial collapse causes.
Buy gold.
There will be a huge voting block of people on SS.
Any attempt to reduce what is due will be met by throw the bums out
mentality.
To be clear...I didn’t “pay in”. It’s been taken from me without any choice.
—
Referred to as “contributions”. Makes it sound like a charity or a church. I guess it sounds better than “extortion”.
“Take out SS as soon as you can and invest it”
I have never consider doing that before. Good Idea.
Oh Wow! Another idiot to tell us about the Ponzi scheme. I’m confused. When does “know your enemy” turn into constant assault from the bolsheviks?
While benefits can begin as early as age 62, the cost of doing so is a permanent 25% lifetime reduction of benefits....
True but then you have to weigh the benefits. I started taking SS at 63. It would take me 9+ years to make up that difference in $$ I received from SS if I retired at 66. So I’d be 75 before I started seeing that benefit.
No mention of congressmen retirement running out.
The wife and I both started taking SS when we turned 62...it would have taken a long time to break even by waiting extra years and then waiting for it to catch up...and we aren’t guaranteed the time that would entail...if we live long enough to “regret” it, we won’t have that sort of regrets....We stashed enough away that, with current retirements, we could conceivably be comfortable into our 90s and expect the grand-kids will end up having a small bit to buy a few pizzas in lieu of us experiencing being nonagenarians.
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