Social security income - best time to take?

[30338]

Mom died at 62, collected 0. My wife and I, if we live that long, will start taking it on the first day of eligibility.

 

[ZDR]

Mom died at 62, collected 0. My wife and I, if we live that long, will start taking it on the first day of eligibility.

Its shocking how often I hear this, also quite sad...

 

[Brianmp01]

I am punching at 57, I work for the government and I will 37 years with them and they offer a ss supplement until you hit full retirement age.( Hopefully they still have it in 20yrs)

 

[texag10]

I just got off the phone with SS, the gentleman said I could collect SS mid year and as long as I didn’t exceed the $18,000 (after starting to collect SS) I was good to go, even though I was exceeding $1500 a month.
Phew! Plan A still in effect!

This does not jive with their own documentation. Wouldn't be the first time.

Straight from their (SSA) own brochure:

"For example, John Smith retires at age 62 on October 30, 2020. He will earn $45,000 through October. He takes a part-time job beginning in November earning $500 per month. Although his earnings for the year substantially exceed the 2020 annual limit ($18,240), he will receive a Social Security payment for November and December. This is because his earnings in those months are $1,520 or less, the monthly limit for people younger than full retirement age. If Mr. Smith earns more than $1,520 in either November or December, he won’t receive a benefit for that month. Beginning in 2021, only the annual limit will apply to him."

I had to deal with this when some of the more advanced filing strategies changed and some people were grandfathered in. SSA employees were telling people born before the cutoff date they couldn't collect a spousal benefit and switch to their own later despite SSA's own documentation on the matter saying the opposite. Trust what's in writing, not the employee.

 

[mtwarden]

Yeah I'm going to have to visit with someone else.

I'm a little confused on the "he won't receive a benefit for the month"- I was under the impression if you exceeded the limit (annual or monthly) then you would be penalized for what you went over- not losing the entire check????

 

[AKBorn]

Consult a professional! There is some genuinely bad “advice” on this thread! Any wealth advisor or financial planner worth his salt can run a detailed analysis on your unique situation with regard to your and your spouse’s work history, age, health history/life expectancy, available benefits vs pension, savings and investments, and Medicare impact, right down to the dollar. Eliminate the guesswork and get your questions answered definitively and quantitatively. Doing what Joe Schmo on the internnet did should be of no consequence to you. This is a very individual decision. Don’t shoot from the hip and don’t take advice from a nameless person on the internet.

Ask your CPA or Attorney or trusted family friend for a referral to a pro! You only get one chance to do this right.


Yes, I do this for a living. And No I will not be giving advice on the internet.

No financial professional can give you an educated estimate as to life expectancy; at BEST it's a wild guess that does not address many factors (pandemics, car accidents, surgical screwups, crippling injuries, etc. etc.). All of the other details they factor in don't matter much f you die early for some unexpected reason.

 

[SDHNTR]

It's crazy how many people work their whole lives devoted to a business or company and before they can actually retire to walk the beach or hunt Africa, they end up incapacitated in some fashion or they keel over and die.
I say take it as early as one can. Enjoy life, it's fleeting and there are no guarantees.

Being debt-free by about 45 should be the goal for everyone, imho, it alleviates all the stress of payments and financial slavery. One can concentrate on early retirement and the enjoyment of life

No financial professional can give you an educated estimate as to life expectancy; at BEST it's a wild guess that does not address many factors (pandemics, car accidents, surgical screwups, crippling injuries, etc. etc.). All of the other details they factor in don't matter much f you die early for some unexpected reason.

Fair. But to play devil’s advocate... assuming you are currently healthy and have a good family health history, why would you bet on a probably unlikely outcome, instead of planning to optimize known variables? That’s called irrationality.

I see no wisdom in picking fights with unknown and invisible opponents.

 

[roadrunner]

Take it ASAP. With what we know today, biden will be in office when you decide to take it in a postponed model.

It may not it be there in another 12 months...

 

[texag10]

Yeah I'm going to have to visit with someone else.

I'm a little confused on the "he won't receive a benefit for the month"- I was under the impression if you exceeded the limit (annual or monthly) then you would be penalized for what you went over- not losing the entire check????

This earnings test calculator has a decent explanation of how they withhold benefits, as does the Motley Fool article posted earlier in the thread.

Fair. But to play devil’s advocate... assuming you are currently healthy and have a good family health history, why would you bet on a probably unlikely outcome, instead of planning to optimize known variables? That’s called irrationality.

I see no wisdom in picking fights with unknown and invisible opponents.

Yes, and if you think about the bigger risks you face in retirement, running out of money because you lived much longer than expected is more likely for most of us than running out of money because you croaked on your way home from your retirement party. Delaying can help mitigate longevity risk.

 

[mtwarden]

the guy at SSA was either confused (could have been my fault) or gave me bad info, either way my idea of "double dipping" until I hit the $18,000 cap is out the window; the monthly cap of $1500 is what sinks my plan

 

[texag10]

the guy at SSA was either confused (could have been my fault) or gave me bad info, either way my idea of "double dipping" until I hit the $18,000 cap is out the window; the monthly cap of $1500 is what sinks my plan

Makes me wonder how many people get bad info and make decisions based off said info.

 

[SDHNTR]

Makes me wonder how many people get bad info and make decisions based off said info.

A LOT! Seen it too many times to count!