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Why I Will Start Social Security At Age 62
SeekingAlpha ^ | 26 Aug 2014 | Robert Allan Schwartz

Posted on 09/01/2014 7:52:57 AM PDT by shove_it

Summary

When should I start Social Security? How will I receive the highest annual income? How will I receive the highest cumulative income? When will I be able to retire?

Every year, more than 2 million people turn 62. Many of those people will wonder, "When should I start receiving Social Security benefits?"

The earliest age of eligibility is 62. The benefit increases each year you delay starting, until age 70, after which point there is no additional increase.

When should I start - age 62 or age 70?

[...]

(Excerpt) Read more at seekingalpha.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events
KEYWORDS: dsj02; socialsecurity
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Excellent article with many thoughtful comments following it.
1 posted on 09/01/2014 7:52:57 AM PDT by shove_it
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To: shove_it

Article requires registration. No thanks.


2 posted on 09/01/2014 7:55:58 AM PDT by TADSLOS (The Event Horizon has come and gone. Buckle up and hang on.)
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To: TADSLOS

No registration required for me.


3 posted on 09/01/2014 7:57:02 AM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: shove_it

If one is eligible for spousal survivor bennefits, they should claim that before age 62. That way you can draw that untill 66 or 70 and then draw on your own SS. Once you turn 62 you are locked in on you own.


4 posted on 09/01/2014 7:57:35 AM PDT by eastforker (Cruz for steam in 2016)
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To: TADSLOS

Cancel that - it waits 15 seconds or something and then hits me up.

My bad.


5 posted on 09/01/2014 7:57:52 AM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: shove_it

bkm and hoping something not requiring registration appears in comments.


6 posted on 09/01/2014 7:58:07 AM PDT by no-to-illegals (Scrutinize our government and Secure the Blessing of Freedom and Justice)
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To: shove_it

Did you get paid to post this? Why the registration to read the entire article?


7 posted on 09/01/2014 7:58:56 AM PDT by WildWeasel
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To: shove_it

If one starts SS at 62 then one is receiving fewer dollars per month but those dollars will buy more goods and services than the higher greater of dollars he will receive each month if he waits until a later time. Real inflation , reflected in the prices of goods and services is running at 6-10% per year. Social security cost-of-living increases are rather less than that.


8 posted on 09/01/2014 8:00:14 AM PDT by arthurus (Read Hazlitt's Economics In One Lesson ONLINE http://steshaw.org/economics-in-one-lesson/)
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To: shove_it

When 61 I ran the numbers and clearly it’s to your advantage to take it early for multiple reasons.

Waiting until 65 did not benefit until I reached age of 75, and then only marginally so. You have to live well into your 80’s for it to really pay - and who has that guarantee? No one.

If you are very active, which I am, you will need more income in late 60’s/early 70’s than in your 80’s.

Add to all that the chance that SS will either become worthless because of inflation or a complete failure of the SS system itself, and one takes a huge risk to wait instead of taking what you can at 62.

There is no guarantee of tomorrow, and the instability of our SS system’s sources of funding say - take it sooner rather than later. There may be no “later”, or “later” could be a mess.

Just my opinion, of course.......


9 posted on 09/01/2014 8:01:17 AM PDT by Arlis
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To: TADSLOS; FRiends

I did not know that. Seeking Alpha is a free, legit source of financial financial info. I have encountered no problems from my many years of registration with SA.

Otter


10 posted on 09/01/2014 8:01:48 AM PDT by shove_it (long ago Orwell and Rand warned us of Obama's America)
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To: TADSLOS

I did a quick copy and paste before it demanded a sign in.

I got the first page. Someone hit the next and copy, paste page 2.

Why I Will Start Social Security At Age 62
Aug. 26, 2014 9:01 AM ET

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Summary

When should I start Social Security?
How will I receive the highest annual income?
How will I receive the highest cumulative income?
When will I be able to retire?

Every year, more than 2 million people turn 62. Many of those people will wonder, “When should I start receiving Social Security benefits?”

The earliest age of eligibility is 62. The benefit increases each year you delay starting, until age 70, after which point there is no additional increase.

When should I start - age 62 or age 70?

Anyone can go to the Social Security web site and get an estimate for their benefit, based on when they start. I did that. I’m 58. I learned that if I start at age 62, I would receive $1965 per month, or $23,580 per year; if I start at age 70, I would receive $3486 per month, or $41,832 per year.

What is the benefit growth rate? From January 2000 to January 2014, the simple arithmetic average cost of living adjustment (COLA) was 2.47%.
Year Increase
2000 2.5
2001 3.5
2002 2.6
2003 1.4
2004 2.1
2005 2.7
2006 4.1
2007 3.3
2008 2.3
2009 5.8
2010 0
2011 0
2012 3.6
2013 1.7
2014 1.5

total 37.1
average 2.473333333

Simple arithmetic average of most recent 15 COLAs

Assuming the benefit growth rate continues at the same pace, here is a chart of what I can expect to receive.

Column 1 is the age at the beginning of a 12-month period.
Column 2 is the benefit received during that 12-month period, starting from age 62.
Column 3 is the cumulative benefit starting from age 62.
Column 4 is the benefit received during that 12-month period, starting from age 70.
Column 5 is the cumulative benefit starting from age 70.

Social Security At 70: Always A Bad Idea by ColoradoWealthManagementFund

More articles by Robert Allan Schwartz »

How Long Can High Dividend Growth Last? Fri, Jul 25
Does Higher Dividend Growth Lead To Higher Dividend Income? Tue, Jul 22


11 posted on 09/01/2014 8:01:52 AM PDT by KeyLargo
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To: shove_it

Can’t read the article unless you “register”. That is BS!
Nothing is “free”, you get their spam for life if registered.


12 posted on 09/01/2014 8:02:33 AM PDT by BatGuano (You don't think I'd go into combat with loose change in my pocket, do ya?)
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To: WildWeasel; shove_it
Why the registration to read the entire article?

Yeah. What's up with that.

13 posted on 09/01/2014 8:03:08 AM PDT by Focault's Pendulum (I live in NJ....' Nuff said!)
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To: shove_it

not registering - this looks like spam to me.


14 posted on 09/01/2014 8:06:45 AM PDT by HonkyTonkMan
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To: Izzy Dunne

Be afraid of that. It means they used your login for something else, like facebook, to record your visit.


15 posted on 09/01/2014 8:07:18 AM PDT by CodeToad (Romney is a raisin cookie looking for chocolate chip cookie votes.)
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To: Arlis

If one is on SS, works FT and puts say $20,000/yr in 401K, does that decrease the amount SS withholds for working more? I am thinking early retirement but want to continue working. I am 63, thought if so I would sign up for next year.


16 posted on 09/01/2014 8:08:38 AM PDT by libbylu
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To: shove_it

Get it while you can and while it’s still available, that’s what I did and after five years I harbor no second thoughts.


17 posted on 09/01/2014 8:08:58 AM PDT by iontheball
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To: BatGuano

Seeking Alpha is much worse than normal sites that just require you to get a login and spam you for life. Seeking Alpha requires to provide them lots of information - endless questions. I once tried to register and aborted.


18 posted on 09/01/2014 8:11:36 AM PDT by plain talk
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To: eastforker
If one is eligible for spousal survivor bennefits, they should claim that before age 62.

If you were married more than 10 years and you divorce and your ex-spouse dies, you are still considered a widow/widower and can draw widow benefits at age 60 IF you have not remarried before age 60. Most people don't know this.

19 posted on 09/01/2014 8:12:41 AM PDT by PistolPaknMama
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To: CodeToad
Be afraid of that.

Oh, I don't sign up for those things. Beg for money if you want, but the "free, but you gotta sign up" crap is not for me.

20 posted on 09/01/2014 8:13:34 AM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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