Posted on 05/16/2020 9:47:35 AM PDT by rintintin
The coronavirus pandemic is wreaking havoc on Americans’ financial situations, which may cause some older Americans to consider collecting Social Security benefits before they had planned to.
About 33 million Americans have filed for unemployment since mid-March. Considering one-third of the U.S. labor force is 50 or older, some older Americans may be forced out of the labor force years earlier than they had anticipated.
Social Security is a tool that is available to people who have worked for a sufficient number of years: For most Americans who haven’t started collecting, the full retirement age will either be between ages 66 and 67. Age 62 is the earliest you can begin collecting, while 70 is the latest.
While delaying when you collect, if possible, can actually increase your benefit by as much as 32 percent, some reasons that people may need to file early include paying for health care or paying for other immediate living expenses, particularly in light of job loss.
Chad Parks, founder and CEO of Ubiquity Retirement + Savings, told FOX Business that given the circumstances, collecting benefits early could be “the right move,” even for people who were planning to wait until age 67 or 68.
“It’s a very personal decision,” Parks added.
(Excerpt) Read more at google.com ...
I like it! Me too...why live on the dole when you can earn your way and be the richer for it.
"The Social Security earnings limit is $1,470 per month or $17,640 per year in 2019 for someone age 65 or younger. If you earn more than this amount, you can expect to have $1 withheld from your Social Security benefit for every $2 "earned above the limit." Jun 5, 2019
How is the availability of health insurance not one of the top factors?
“Those who receive Social Security benefits and are still younger than their full retirement age sometimes have to have their benefits reduced. As you’ll see below, the amount of that reduction varies according to your age and your income...
The Social Security earnings limits are established each year by the SSA. For 2020, those who are younger than full retirement age throughout the year can earn up to $18,240 per year without losing any of their benefits. After that, you’ll lose $1 of annual benefits for every $2 you make above the threshold.”
https://www.fool.com/retirement/2020/01/24/your-2020-guide-to-working-while-on-social-securit.aspx
Two years and seven months to go
Till 62 or 65? Or if you’d rather not say, never mind
I’m 65 years 4 months old. I am self-employed and still have a going business; I’ve been really lucky to largely work from my house and I don’t have any employees.
As I understand the social security law, once I reach 66 years 2 months, which will be in March, 2021, I can start taking the full SS benefit and still earn as much as I can from my business. Therefore, I am going to wait another 10 months.
You mean Medicare?
I wish I hadn't, but I'm OK with my decision.
I think you can earn up to $17,000 a year and it does not impact SS payment.
Lot’s of 62 year old’s take SS and then work part time job.
If you invest the amount you obtain at age 62, and collect interest on it, you get the same income as you would by taking it later. Arguably, the return is likely to be higher.
The big difference is when you die, the money you invested from 62- to whatever date you take SS, belongs to your heirs, not the government. For three years, from 62-65, this is likely to be about $60K. It depends on individual circumstance.
If you are comfortable from other investments/pensions, without working more, it is better to take the SS at 62 and invest it.
Apart from this, I don’t see a value in FRA (full-retirement age). You can start at 62 and must start at 70. The longer you wait, the more you get per month. So you have to consider estimated life span, program solvency, quality of life, financial need, other income sources, etc.
Medicare begins at 65. Health insurance has to be covered from 62 - 65. Depending on the situation, that could be cost prohibitive.
60, as DSSI. When I was 56 applied for Disability, had to, no physical way I could work, took 4 yrs. When I turned 66 they switched it to regular SS/Medicare.
Exactly. Get it while you can. Takes about 15 years to break even. My MIL waited until the last minute to take it ...and passed away a couple of years later.
Check my post 24 and read the info at the link. I don’t think I’m wrong.
My Preacher waited until 65, applied 3 months early. He was a thin, healthy man. Had all his medical which ran great. At a ministers meeting he went to his car for something, DIED OF MASSIVE HEART ATTACK. 1 months before he drew the 1st check. His widow drew off it when she turned 62. Still doing so, down side SS kept what she had paid in, as a State worker.
Now with COVID and the trillions they are spending, beware of an attack on SS.
GET YOUR MONEY BACK, SOONEST. You paid into that ponzi scheme with every paycheck.
KyCats wrote:
“Easiest decision imaginable. Take it the second you turn 62.”
It won’t help if someone needs to stay working in order to have health insurance; social security payout is reduced if one is still working.
L
“Easiest decision imaginable. Take it the second you turn 62.”
Our CPA was a good friend. My wife was against me taking the SS early..
I had early retirement and had a good paying gig as an independent contractor. I paid both sides of my social security and health insurance as well as state and federal income tax.
My wife actually came up with the concept of depositing every other gig check into an escrow acct to pay federal taxes, the above and state taxes.
However, she didn’t want me to stop the consulting gig. I was about to turn 62.
Our CPA told us before our next appt in a few days, to go to an ATM and take out the maximum/$300 and bring it to the meeting.
Our CPA had an empty Homer Bucket on her desks.
She told my wife to count out $180 from the ATM’s $300 and put it in the bucket.
My wife did that, and the acct. said okay sit in the back seat of your Bronco have Dave drive down main street where the bums live on your way home.
Then, she told my wife to throw out the $180 into the street so the bums could have it.
My wife told our CPA she was crazy. The CPA said she was the crazy one.
I started taking my SS when I turned 62.
I’m 81 now, so that turned out well.
Our CPA helped my wife to negotiate with her bosses to put what was $’s designated to her health insurance into maximizing her 401k and to start a SEP IRA with her original boss. Maximizing her health savings acct and some nice gift cards versus raises. That little SEP IRA been sending a monthly $120 check since my wife turned 65. She is now 80.
There is an 8% increase every year from 66 till 70. It’s hard to find 1% interest rate now., let alone 8%. Depending on your health, habits, genes, weight and Covid antibody status it usually pays to wait as long as possible. It’s more complicated if you have a spouse, and the wrong decision there can cost the surviving spouse thousands over their lifetime. It’s smart to get all the facts. Taking the minimum benefit early usually favors the government.
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