Taking SS early (62)

[Boarmaster]

One thing to think about if you keep working and take SS while still working - if you are younger than full retirement age, your SS benefits will be reduced if you earn more than the yearly earnings limit (and I don't think the yearly earnings limit is all that much).

I am certain I would definitely be over that limit without even working very hard. I have residual income year after year and existing clients with on going concerns.

 

[cnelk]

One thing to think about if you keep working and take SS while still working - if you are younger than full retirement age, your SS benefits will be reduced if you earn more than the yearly earnings limit (and I don't think the yearly earnings limit is all that much).

This year [2024] the limit is $22,320.

With my pension, SS and working PT, theres a real comfortable income. Even without working PT

 

[BBob]

This year [2024] the limit is $22,320.

With my pension, SS and working PT, theres a real comfortable income. Even without working PT

That’s where I’m at. I don’t know why I just don’t do it. I’ve got a CNC shop that’d love to have me work part time and there always Lowe’s and HD. I could use the knowledge of building code and past experience to potentially help people. I could scale back my own business to part time but I’m past due for a change.

 

[gonhunting247]

I will take it at 62. I am 58 now. Family history of longevity isn't great My wife will wait probably. She is 62 and wants to work until I'm done So probably 4 more years for both of us. I have been at my FandW job for over 22 years and have a lot of PTO and get decent amount of comp. If this wasn't the case I'd leave earlier

 

[rayporter]

retired back on 03 at 51 and took SS at 62.

no regrets of any of my decisions. in fact i should have retired sooner.

if possible, do it!!

 

[5MilesBack]

I ran the numbers a couple years ago and it made sense to take it at 62, but I'll run the numbers again in two years when I'm 61 and see how it looks. The males in my family have a history of longevity like well into 90's, so I have to take that into account too. I won't need the SS but I'll still do whatever to maximize it.

 

[Natebonebusta]

That’s the plan I’m going with. I’m going to grab that money asap; when I’m 90 I’m not going to need it that’s for sure. And I’ve done a good job saving; if you don’t NEED the SS money-invest it aggressively and you will make a lot more then letting the scum in Washington keep stealing it.

Thats kinda my angle however I’m 18 years out. My thought is take it at 62, and let the snowball of compounding in our retirement rollover again and be way bigger, while spending the 62 SS check to keep it that way. Won’t know till I’m much closer. Longevity is likely mid 80’s

 

[cnelk]

Looks like a 2.57% COLA for SS in 2025

Social Security COLA 2025 update is disappointing news for seniors

The Senior Citizens League released a new estimate Wednesday for the 2025 COLA based on current inflation levels.

www.newsweek.com

 

[teamwhitebelly]

Looks like a 2.57% COLA for SS in 2025

Social Security COLA 2025 update is disappointing news for seniors

The Senior Citizens League released a new estimate Wednesday for the 2025 COLA based on current inflation levels.

www.newsweek.com

"in the bu** Bob" grrrr

 

[Legend]

Any input for anyone that has taken SS at 62 instead of waiting?

(If you aren’t close to be eligible for SS, there isn’t any reason to reply)

I believe there is a funny little loophole. Here is my best attempt at explaining:

Draw your SS at 62 but have it direct deposited into a seperate acount. And do not touch this money unless you really need it. Then at a later age you can reevaluate your health. If you decide you will benefit you can turn over all of the money you drew from SS in that special acount back to the government. Then reapply for SS at your new age.

I know a guy who did this. It's worth looking into if you don't need the SS money.

 

[KenLee]

I believe there is a funny little loophole. Here is my best attempt at explaining:

Draw your SS at 62 but have it direct deposited into a seperate acount. And do not touch this money unless you really need it. Then at a later age you can reevaluate your health. If you decide you will benefit you can turn over all of the money you drew from SS in that special acount back to the government. Then reapply for SS at your new age.

I know a guy who did this. It's worth looking into if you don't need the SS money.

SS probably have some sort of interest requirement?

 

[Jason Snyder]

The government has already run the numbers and it's a wash for them or they wouldn't give you the options. Everyone's situation outside the numbers is different.

This

 

[Weldor]

Just remember that the projected SS at each age is based on you working til that age with annual raises to your income. If you retire at 58 or 60 and you are not paying into SS the projected payment will be less and probably only based on the Cola's for those years. Food for thought. Just went through this with my Financial guy.

 

[long hunter]

Retired at 58 1/2 started SS at 62 if you can do it with all the hype about SS going broke,being cut back and who knows what else why wait. I am now living very well and not dealing with the rat race of work. Ever wonder why when certain factions of the government talk about things like this and usually blame it on the oposing side it eventually happens. Nothing is guaranteed now of days. Eventually if we stick around long enough we all will be pickin shit with the chickens.

 

[cnelk]

Just remember that the projected SS at each age is based on you working til that age with annual raises to your income. If you retire at 58 or 60 and you are not paying into SS the projected payment will be less and probably only based on the Cola's for those years. Food for thought. Just went through this with my Financial guy.

The Social Security office printed out my benefits based on todays dollars.
I retired 4 years ago.
Im not working anymore and paying into SS. If I do, the benefit will be more.

 

[flathead#2]

Retired at 58 1/2 started SS at 62 if you can do it with all the hype about SS going broke,being cut back and who knows what else why wait. I am now living very well and not dealing with the rat race of work. Ever wonder why when certain factions of the government talk about things like this and usually blame it on the oposing side it eventually happens. Nothing is guaranteed now of days. Eventually if we stick around long enough we all will be pickin shit with the chickens.

58 1/2 sounds great. I've already had personnel send me the retirement package. I need to get on it
and get them to run the numbers.
I'll be 58 1/2 and have 24 years in current job come February.
Have no debt and the financial advisor says i could retire now but will take a 15% penalty if I touch my 401K before 59 1/2. Is there any way around that penalty?
Rollover to IRA??

 

[Natebonebusta]

58 1/2 sounds great. I've already had personnel send me the retirement package. I need to get on it
and get them to run the numbers.
I'll be 58 1/2 and have 24 years in current job come February.
Have no debt and the financial advisor says i could retire now but will take a 15% penalty if I touch my 401K before 59 1/2. Is there any way around that penalty?

You should be eligible for the Rule of 55 with your current employers 401k. I’m not a financial advisor and I didn’t stay at a Holiday Inn last night, but I do study this stuff on a regular basis.

The Rule of 55 Explained | Money Guy

In this highlight, we explain what options you have if you choose to retire at the age of 55 and if you can pull from your retirement accounts.

moneyguy.com

 

[Wapiti7]

There are a number of exceptions to the 10% early withdrawal penalty, just google IRC 72(t) and you can find some decent information. However, you mention rollover to IRA. If that is all you do...just roll over and don't actually take distributions, that is generally not going to be taxable.

 

[Wapiti7]

For those of you that retire and also haven't started drawing social security...maybe living off savings or other sources of tax free cash, I'd consider Roth conversions during those years. Converting enough Roth dollars to get to the top of the 12% bracket is pretty cheap tax wise and everybody would be better off having a pool of tax free Roth dollars to give flexibility in retirement. Gets harder to do Roth conversions once you start drawing SS because of the increasing taxability of SS benes.

 

[BBob]

Rollover to IRA??

If your 401K is not a Roth there will be taxes that will have to be paid if rolling it into a Roth IRA. It’s because that would be pre tax dollars rolling into post tax dollars. If it’s a Roth to Roth then no taxes.