Looking at TD3550's post about how many of us seniors are on here collecting Social Security, got me thinking about when you start taking the monthly payments. The ads you see say to defer enrolling till age 70 as you get more money per month. I was just wondering if anyone ran the numbers to actually see if thats true or not. I started taking benefits at age 62, and I did run the numbers and compared what I get at the lower amount against what I would get at age 70. Comparing them side by side, year by year, it would take me till age 93 for the larger amount to catch up to the amount I took at 62. I know that everyone has different circumstances as to when they will start to take the monthly payment, but I am just curious what others thought about it. Im 73 now and Im $168000 ahead of where I would be if I waited to 70. I also was skeptical about how long social security was going to be around with the politicians sticky fingers in it is another reason I took it early.
Math is nice but unless they can tell you your expiration date it's an unsolvable equation. politicians have used SS and planted false narratives to make the people that need it the most to hate it.
Let's say you start taking SS at 62 and figure you would live 20 years more. Add up all the money you put in over your life of working. Now divide that number by 240 months. It amazed me how much I would get monthly for 20 years. SS is the governments Ponzi scheme. Although a Ponzi scheme is voluntary not the governments, it's mandatory, you don't have a choice.
When everything is coming your way, your probably in the wrong lane.
Obtw, social security means you get money if you work. Welfare means you get money if you don't work. Heck of a system we got isn't it!
When everything is coming your way, your probably in the wrong lane.
There are no guarantees! I started collecting at 62 but got hit with Ca Windfall. I have CalPers and I get less than half my SS benefit.
On the positive side I was with GM dealers for quite a while , 1546 Union. Then the dealers folded up loosing most Union support and less Union shops. 1546 have bumped up the age for retirement three times and cut our pension plan. I’m getting (@65) a fraction of what we should have received. Now hearing what they did was illegal and might get retro money? We’ll see - again , no guarantees!
Raceless in California!
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You can start taking it at 62, each year you wait you get a small percentage more until you reach your max at SS retirement age.
Running the numbers I do not see much advantage waiting for most of us. Unless you are still working, would not draw it if you still working.
Just remember if you retire before your full SS retirement date then anything you make over $17,000 a year is subject to a penalty of $1 for every $2 you make over $17,000. Now after your Social Security retirement date I think you can make as much as you want with no penalty.
And the lady said it is NOT A TAX or PENALTY but if they take half of everything you make over a whimpy $17,000 a year that is a screwing no matter what you call it.
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According to the actuaries, the total payout either way is suppose to cost the government about the same based on morbidity tables (which are amazingly accurate). Of course running the numbers for yourself is your best bet. I worked until 67 to receive the max monthly amount at the time. I had excellent health, my job was relatively easy for me and the money was very appealing. Plus I was drawing SS and working with no penalty. That was sweet! I'm glad I did it that way, however my brother retied early and never looked back. As Larry stated it is in fact a Ponzi scheme. Just think how the politicians would howl if a private insurance pulled such a trick. If one had an annuity it would pay much higher, assuming the same amount of contributions, and have a cash benefit for your heirs if you died before it's expiration. Anyone that thinks the government is the answer is delusional.
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This was published in 2016 but is still accurate today imo. Much to consider deciding at what age to claim. The Time Value of Money is worth looking at as well.
Inflation is at a record high that has not been seen in over 40 years. SS reserves are now projected to run out in 2033. And looking at what was “Installed” in the White House, What Could go Wrong……..LOL
I'm 59, so have begun thinking about SS. Basically, I think you take it when you decide to stop working. As described above, the penalties for taking it while still working are too severe. If you stop working, I think it's a no-brainer to take it early.
Took mine at 62. The earning max for 2022 is $19.560.Average loss prior to FRA is about 30%.
I am still working. All my friends took it at 62 also. Analogy>> You might not be here on Friday.
They offer a secure estimator... This is a "Time" sensitive page.
Putting some figures in the weekend for the wife
before FTA. See where they come in at. The other concern if she does it early and quits work. The health insurance cost prior to medicare. My BIL did it early. Was on a Cobra plan disability issue with the non working wife. Kidney patient.
Told me what he was paying a month for Cobra.
I about fell off the chair.
My good friend Gordon took it early at 62. He ran the numbers and was well over $200K. He passed 1.5 years ago, just shy of his 80th
RIP my friend.This message has been edited. Last edited by: TD3550,
Very interesting responses. Curly, for the life of me, I cannot remember the part where they penalized you for early distribution. I took SS at 62 and still worked till 70. I am/was self employed, dont know if that made a difference, but I sure dont remember any penalty. Maybe being senile has its benefits.LOL
Both of my parents took it at 62,and I was planning on doing the same.
But with inflation at a 40 year high and no signs of stopping,I may work a little longer.
$10 a gallon gas and $20 for a hamburger may not be that far away with this administration.
I waited until I was 66 which was required for full benefits and have worked full time with no penalty other than paying thru the nose in taxes...
You gain 8% each year in SS benefits once you reach the age for SS full benefits
If I would have waited until I was 70 I would be getting about 32% more per month. I don't regret filing at 66 one bit....
You pay taxes on your SS benefits but never more than 85% of your benefits are taxable....and it depends on your total income as to what percentage of SS benefits are taxable...
Does not take a heck of a lot of other income to get there and there is a little formula for doing the math on that and it's a little complicated but not really once you see it explained
I've become very aware of this stuff lately......Have to at my age
I took it at 62 when I retired from working, best decision I could have made. My wife started at 65 and 8 months but continued working until she was 73 (Registered Nurse). I have never regretted that decision, would do it again in a heart beat.
Left the dealership B.S. at 62 worked at home till 66 filed then and dont regret it at all am collecting now because who knows what tommarow will bring. Health is fleeting at 70 I can tell ya that fo-sure lol
The difference between ignorance and stupidity. Ignorance is lack of knowledge. Stupidity is the inability to learn. Don't be stupid
With my lifestyle in the past, mainly occupation, I didnt think I would make 50 let alone making it till SS age. I also took a small reduction in a retirement plan at age 62, with a clause that said my wife will continue to get my benefits upon my passing, which I gladly jumped on. I remember talking to my son-in-laws father, which was the same age as me, and he said he was going to wait til 70 so he could get more each month. Sadly he passed a couple of years later, which left him nothing. Tomorrow is not guaranteed to anyone, which has always stuck with me, so its live for today.
I really appreciate all you old guys posting you experiences. Someday I will reach the age of needing to make this decision.
Oh, wait. I'm turning 58 in June so it's going to be here really soon.
I expect to work to 67 which is full benefits for me because I like what I do but who knows what tomorrow holds? I wish I would have had some control over that money but that is just a pipe dream. I put up as much as I can afford into a retirement account I do have control over. I have always had a feeling that because I am the last year of the boomers that my ss money paid in won't be there when they say I can get it.
It's funny to look at the taxed earnings for the first year I worked full time. I thought I was in tall cotton and it's not much more than I make a month now. LOL
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I retired at 60, got SS at 62, I am 81 in a week. I sure would hate to depend on that for retirement. What no one has mentioned is Medicare, yes health insurance. I think they take around $170 a month for that. I don't use that either but I think it only pays 80% of what it does pay but no perscriptions , teeth, glasses, or hearing aids. How did I get by you ask, well I signed up for the Marine Corps when I was 17 so the VA takes care of my health FREE. And when everyone was heading for Canada to avoid the draft--I was already done and making money. I have been blessed having not even finished high school and have lived a pretty good life so far. Sure glad I was to dumb to listen to all the "EXPERTS" I have encountered in my life. Anyway my suggestion--get it now!
I'm on SS and Medicare. Do yourself a really big favor and go to the SS office in person and ask them the questions. I see so many wrong answers about SS and Medicare that people then repeat and spread it's really a shame. Learn what it is and how it works before you make the decision. Learn your best options for Medicare before you get to 65. Medicare can have different options depending on where you live. I have a Medicare Advantage plan that pays for eye care and glasses and also dental.
So ya beat me to 81 by 36 days, I'll try and catch ya next year.
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