Posted on 05/09/2020 1:23:54 PM PDT by rintintin
If you’re laid off in the COVID-19 economy and you’re an older adult, you might be wondering: Am I going to have to take Social Security earlier than I planned? How much will that reduce my monthly benefits in the long run? What happens if I get a new job?
For many older adults, claiming Social Security early would be a big mistake — a mistake made by many older workers who lost jobs in the Great Recession.
“In 2008/2009, the jobs just were not there for older workers, and they had to claim Social Security early. The bad part about that is it locks you into a low monthly benefit,” says Alicia Munnell, director of the Center for Retirement Research at Boston College. In 2009, one year after the stock market plummeted, 42.4 percent of 62-year-olds signed up for their benefits, up sharply from the 37.6 percent of 62-year-olds who signed up in 2008, Center researchers found. (Sixty-two is the youngest age at which you can claim Social Security retirement benefits.)
If you do go down the road of taking Social Security early, keep in mind that you can start Social Security early and stop it later to mitigate the damage to your income stream. We’ll explain how. First, consider these options if you need cash.
(Excerpt) Read more at forbes.com ...
I worked outside the US for non-US companies from 1990 until I retired. I haven’t paid anything into Social Security since 1989. I don’t even think I qualify to receive anything.
If you’re 62 and not working, you would be crazy to not take it.
As the Government goes broke they will find a way to reduce or eliminate benefits.
Yep. Start as early as you can and if you need more income, do part-time work. SS is free money you paid for, don’t gamble on what’s behind Door #3.
By design.
“I’ve done the math, and with the early lower payout, I’ve currently gotten back more than if I waited to 65.”
That’s why I took it at 62, over the long haul you get more.
I took a look at a Social Security table. If you wait just a month after you turn 62, the break even point is around 78. If you wait three years, the break even point is again around 78.
I was convinced. But seeing as that table was put out by the federal government, it could be full of errors. Who knows?
“ I’m just thankful that I am not sweating out having to find a job as a 63-year-old in the current economy with the cost of rents and health care the way they are in the U.S.”
You should be thankful. With COVID, who’s going to hire anybody over 60 or even over 50? Hiring boomers means hiring the most COVID-vulnerable
If you are laid off, and in this economic climate reasonably do not expect to see employment again soon, then start SS immediately.
If you are still working, and take SS before full retirement age, then your work income reduces your SS income, so it doesn’t pay to take SS early while still working. It makes more sense to wait for full retirement age.
https://www.ssa.gov/pubs/EN-05-10069.pdf
“If you reach full retirement age during 2020, we must deduct $1 from your benefits for each $3 you earn above $48,600 until the month you reach full retirement age.”
It takes 20 years before you begin to lose by not taking SS at 62. Plan to take mine in a few months
I kept a record of the money we spent on him...the money helped, but we sure as heck didn't profit from it.
Looked at the numbers. Could have done it early.
Will be 65 this fall. If I wait 14 more months I’ll get $205 a month more.
I’ll wait.
I can safely estimate that 90+% of my coworkers stay there because of the insurance. It's now my primary insurance over medicare and my wife's family plan.
A younger coworker and his wife had a baby last summer, their out of pocket cost was $0.
I would not take SS until at least 66 you lose $300.00 a month if you take it at 62 if you are 65 you can get Medicare ONLY and wait on your SS
Well yes, “some” as long as you’re not planning on living very long.
Printing trillions will drive inflation and erode Social Security and pensions. Problem solved, from the payers’ standpoint. They will be bringing in more dollars (inflated wages, sales taxes, etc.)
a bird in hand is worth two in the bush ...
(3) if you don’t need the money. ... because if you wait too long then you can end up sick and debilitated and the money won’t do you any good, or if you croak early, the gov gets to keep all of your money ...
“Of course I might have a different opinion when I’m 95.”
if you make it to 95, it really won’t matter ...
Sorry, I'm a bird in the hand kind of guy. Plus, my dad and both grandfathers never made it to 60 years of age. That definitely factored into my decision.
I took SS at 63 and kept working without limiting my work hours. Sure they took back 50 cents for every “extra” dollar I made but I still had more at the end of the year.By continuing to work my SS has gone up every year because I keep paying in and they stopped taking back when I hit 65.
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