Taking SS early (62)

[LostArra]

Hmmm, maybe I'll just keep on working and enjoy the extra $6500/month SS. Even taxed, it's still a nice little surcie.

I assume you are referring to your SS benefit plus the wife's SS benefit.

What is the maximum Social Security retirement benefit payable?

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2025, your maximum benefit would be $4,018. …

www.ssa.gov

Your plan is exactly what we did. We were old enough to file the restricted application when we reached full retirement age. Wife applied for full benefit and I applied for spousal benefit while my benefit continued to grow. When I reached 70 we reversed it. I took full benefit and she took spousal. This restricted application loophole was eliminated for those born after 1953.

 

[IDLassie]

We took it at 62, had a couple of friends pass away and never got to enjoy retirement or SSI.
The job we had was making a lot of pressure to get me to retire and the lack of doing any moving while of shift was physically killing us. Beside burned out and needing a change in our life was a big thing.
Everything is paid for and we live below our means and are enjoying life greatly.

 

[Mike D Texas]

I have NO plans to work past 65. I’ve been working since I was 14 years old and I’m just about done.

I want to live long enough to enjoy retirement with my wife and do the things we have put off due to other commitments over the past 37 years.

I’ll sell everything I own if I have to so I can retire. Every material thing I own doesn’t matter and can be replaced.

Time cannot.


Sent from my iPad using Tapatalk Pro

 

[Mike Islander]

I assume you are referring to your SS benefit plus the wife's SS benefit.

What is the maximum Social Security retirement benefit payable?

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2025, your maximum benefit would be $4,018. …

www.ssa.gov

Your plan is exactly what we did. We were old enough to file the restricted application when we reached full retirement age. Wife applied for full benefit and I applied for spousal benefit while my benefit continued to grow. When I reached 70 we reversed it. I took full benefit and she took spousal. This restricted application loophole was eliminated for those born after 1953.

Yes, including my wife. And we were born later than you so our max is higher than what you wrote.

Yes, the restricted loophole is gone. So wife (older than me) will start hers at 67 to collect her FRA rate, then when I start mine at 70 she'll automatically get switched to 50% of my FRA rate with no reduction, since she waits till 67. 50% of mine is a lot more than hers. If she starts early, her 1/2 of mine will be permanently reduced.

 

[omicron1792]

If you can wait till 70, that generally equates to you don't really the SS money. If that's the case, then I think it's fair to say that if someone collected SS at age 62 and invested that SS money (including any annual rates) it pushes the break even date way later.

Not rocket science math, anyone can do it (you have to make an educated guess on the annual raises and an educated guess on annual earnings investing it) to see where that break even point is. It's a lot later than some tend to think.

It was mid 80's for me (using a 2.5% annual raise and 5% annual earning); the average US male lives to the ripe old age of 74.8 yoa.

That’s not how the math works though.

If you are 62 years old and in good health, your average life expectancy is not 74.8. That’s when you are born. You already made it past infant death and car wrecks as a teenager.

A simple Google search shows your life expectancy is between 80-85.

This choice is actually a very simple one.

1. If you need the money or are unhealthy at 62, take the money.

2. If you don’t need the money and are healthy, wait.

 

[Mojave]

I was working a half time job and had turned 62, figured I’d continue to work until I hit the $25k amount, collecting a pay check and SS. Called the local SS office and they said fine.

Posted something up on this forum and someone said that’s not correct, checked further and they were right, SS office was wrong . They look at it weekly and they would have been reducing my SS by x amount; so much for that plan.

Oh, I didn't know it was weekly. So a seasonal job wouldn't work.

 

[cnelk]

Might be a good idea for some to go right to the SSA website

What happens if I work and get Social Security retirement benefits?

You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the …

www.ssa.gov

 

[cnelk]

https://www.ssa.gov/pubs/EN-05-10069.pdf

 

[Mike Islander]

Ask free AI systems for what to do and why.

Chatgpt.com & Claude.ai both have free access and will explain exactly why taking SS at 62 is a really poor choice for most people. There are special cases, but they are rare. Dying in a year and your age is 62? Might be a great time to take SS.

 

[JMitchell121]

Everybody has a different case, just do the math and decide what is best for you. I retired at 61 from being a middle school teacher. At 62 I took SS and my retirement and it was a wash, so why work. I still substitute teach a couple of days a week, which I enjoy and have some extra hunting money. I am glad I did it. I was able to watch my grand daughter one day a week and I do alot of duck hunting during the week. I beat the crowds and then have more time on the weekends for the family. My wife just turned 62 and is taking it and cutting back to part time with her job.

 

[mavinwa2]

Retired at 62 and never look back. Was smart, fortunate to put away some monies in the right funds.
In regard to the 30% $ reduction in monthly SSA benefit, I'll be age 78 when lost $ catch up, breakeven should I have waited for FRA 66 & 10 months.
For now, enjoy the freedom and time to spend enjoying the outdoors and balancing life with family. Don't miss the stress or working for or under some other boss.
Will I be able to hunt after age 80...IDK.
However, waiting until FRA66-10, I would only gain $15,000 more lifetime SSA income at age 80.

Here are the numbers example shared by a financial advisor:
Base SSA $2000 @62yo

If you live to the age of 75; taking it at age 62 will get you $358,800+ in lifetime income.
IF you take it at age 66, you'll get $270,000,
and if you delay to age 70, you'll get $198,000.

If your life expectancy extends to age 80; you'll receive $405,000+ if you take it at age 62, $420,000 if you take it at age 66, and $396,000 if you take it at age 70.

If you live until the age of 85; you'll draw $517,500+ in lifetime income if you take it at age 62, $570,000 from taking it at age 66, and $594,000 if you take it at age 70.

 

[cnelk]

^^^^^ So many ‘if’s’

 

[Mike Islander]

Retired at 62 and never look back. Was smart, fortunate to put away some monies in the right funds.
In regard to the 30% $ reduction in monthly SSA benefit, I'll be age 78 when lost $ catch up, breakeven should I have waited for FRA 66 & 10 months.
For now, enjoy the freedom and time to spend enjoying the outdoors and balancing life with family. Don't miss the stress or working for or under some other boss.
Will I be able to hunt after age 80...IDK.
However, waiting until FRA66-10, I would only gain $15,000 more lifetime SSA income at age 80.

Here are the numbers example shared by a financial advisor:
Base SSA $2000 @62yo

If you live to the age of 75; taking it at age 62 will get you $358,800+ in lifetime income.
IF you take it at age 66, you'll get $270,000,
and if you delay to age 70, you'll get $198,000.

If your life expectancy extends to age 80; you'll receive $405,000+ if you take it at age 62, $420,000 if you take it at age 66, and $396,000 if you take it at age 70.

If you live until the age of 85; you'll draw $517,500+ in lifetime income if you take it at age 62, $570,000 from taking it at age 66, and $594,000 if you take it at age 70.

Good example of differences. If I took SS at 62 I'd get $211,640 less total benefit between my wife and I if I live to 90. And we're very likely to live to age 90+. And...I enjoy working and will earn tons more work income while I wait to start SS. And...I go on 10-day surf trips every year. Camp hunts at least 20 per year. Afternoon dirt bike rides at least 40 times a year. Etc. Different strokes for sure.

And...if I happen to die at 80, it's even more dramatic. Total income if my wife lives to 90 is $309,840 more than if I filed at 62. So if you know you'll likely die before your wife, and your wife has a lot of healthy years in her, to max her income, delay SS!

And...if we both die the year I turn 80, we make over $75k LESS if I delay SS. So if you are unhealthy and both are ready to die around 80, take it early.

 

[omicron1792]

Good example of differences. If I took SS at 62 I'd get $211,640 less total benefit between my wife and I if I live to 90. And we're very likely to live to age 90+. And...I enjoy working and will earn tons more work income while I wait to start SS. And...I go on 10-day surf trips every year. Camp hunts at least 20 per year. Afternoon dirt bike rides at least 40 times a year. Etc. Different strokes for sure.

And...if I happen to die at 80, it's even more dramatic. Total income if my wife lives to 90 is $309,840 more than if I filed at 62. So if you know you'll likely die before your wife, and your wife has a lot of healthy years in her, to max her income, delay SS!

And...if we both die the year I turn 80, we make over $75k LESS if I delay SS. So if you are unhealthy and both are ready to die around 80, take it early.

Great post, and really shows the pitfalls if you just go by the basics of the post you replied to