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 ...
KyCats wrote:
“62. Apply 3 months before your 62nd birthday. You become eligible first month after 62nd birthday then receive the payment for that month the month after that. Soooo....if you turn 62 in June 2020, you will receive your first check in August which will be July’s payment.”
What about health insurance?
What to do for that, if one is single or can’t get on spouses coverage?
Ge0ffrey wrote:
“That’s exactly what I did. Who knows how many years each of us has left.”
What did you do for health insurance?
I understand all that. The point is I need more money than SS will pay out so I have to work. If I take it now I’ll basically wipe out any benefit so why do so?
jjotto wrote:
“Medicare begins at 65. Health insurance has to be covered from 62 - 65. Depending on the situation, that could be cost prohibitive.”
Exactly. That’s why I am asking everyone that wants to take social security before 65:
What to do for health insurance?
Fine. But what if you are still working (6 figures +) at age 64?
And plan on working for another 6-8 years?
What is better then? (Wife already retired, state teacher's retirement plan at 50% final year's base pay.)
knarf wrote:
“I went out at 62 because obama was in office, had made a wreck of everything, democraps were WAYYY out of control and I figured I’d better get mine locked in to SOMETHING.
I wish I hadn’t, but I’m OK with my decision.”
What were the reasons?
The difference in income between your job and social security?
Not having health insurance?
.... Sounds like we are the same age and in the same position. However, Lord willing, I plan to keep going at least until I am 67 before I pull my SS. My wife is 2-1/2 years younger than me and wants to go until she is 70 before she pulls hers. Probably will need some counseling to determine our best strategy for Social Security Benefits.
I retired from teaching when I was 61. Four months short of my birthday. Collected for about 1/2 of my unused sick leave along with pension. Collected SS beginning Nov of that year. Anyway I worked it out it would take many years to collect the same amount if I collected at 67.
Although we'd all like to have the best PPO health plan, every paycheck also included deductions (FICA?) for future health care - Medicare now.
"social security payout is reduced if one is still working.""
I don't believe they actually reduce payments, but at a certain level of other income, SS is included in your tax liability. If you only live on SS there is no tax liability.
I suggest folks who are considering early SS payout to check with the Social Security website. I'm sure things have changed since I started drawing at 62. Still, draw as soon as you can. IT'S YOUR MONEY that the Fedgov confiscated from your paychecks. Again, there is no guarantee that it will be around much longer with the insane spending to counter COVID.
If you look into Medicare you will be amazed just how crappy it is. Part B and a supplement will cost you at least $200a month. Medicare has maximum lifetime benifits and the average Medicare recipient spends $280,000 in out of pocket costs before they die. You need to do your research, most of what friends and family tell you is wrong. My wife works in medical billing, and her favorite response is “have you read your policy.”
While you make a good point, I would counter that if you have other income sources in retirement, early SS is the best bet. Use that money while you are still active and can enjoy it.
The difference in taking at 62 and taking at 66 was $500.00 a month more fore me I was still working so I waited, I am really glad I did, my investments have taken a huge nose dive and the extra $500.00 a month right now was worth the wait!!
Turning 67 in October and have not filed yet. Still working so....would prefer to leave the money to those that need it. Guess we will see.
You’re a good man... I’ll bet you’ve though through other major choices in life too... Good for you and your wife.
But you left a lot of money on the table for 4+ years.
“ would prefer to leave the money to those that need it.”
You could always take it and give it to charity
Considering Coronavirus likes to kill people in their 70s, Overweight, diabetes high blood pressure and other conditions. If you have other heath insurance coverage to hold you over until you 65, pension, and a 401 still, it might be a good idea to retire and enjoy those Golden Years.
All my Aunts and Uncles are not in good shape in their 70s and would be vulnerable to Coronavirus. Considering that I am thinking about retiring at age 59 ½. I can make it to 70 with no cash issues. Will take SS at 62 because we are not promise tomorrow.
I get it. It depends on the financial situation.
After you pass minimum age of 62, then take SS when you stop working or reach full retirement age, whichever comes first.
Avoid depleting your 401k until you actually need the money.
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.