Taking SS early (62)

[North of 60]

Another thing to remember as well is health span and life span can be (and are often) two completely different things...point being what is the goal of having a little more more money in ones 80s (or possibly 90s) if you can't physically enjoy it?

 

[JayRoot]

52 right now. When i(if) hit 62 I'm all in. I'f you do the math, time collecting equals waiting for the " right time " by a minimum amount. Time to me is way more valuable then a few extra dollars that you may not be able to enjoy. Life is to short. I feel I've missed to much already.

 

[Oldrook]

We buried my 68 year old cousin last week. He got about 12 months of retirement before the cancer hit. Retire as early as you can. Nothing is guaranteed in this life except death.

 

[ScottH]

Regardless of when we decide to take SS, thank goodness the WEP and GPO were repealed for those affected by it (me included).

+1

 

[Unknown]

I had a stroke at 61, from afib. I had no idea I had it till the stroke. I got lucky and my speech and muscles are fine, all my issues are neurological. Definitely will shorten my life. Anyway I retired soon after with a pension and started to collect SS at 62. My wife still works and carried the benifits till I turned 65 and went on Medicare. I don’t regret it one bit. I can tell you from experience you never know when life is going to throw you a curve ball. You could be here today and gone tomorrow. I fish and hunt every chance I get.

 

[tracker12]

When I quit working at 64 I started SS. At the time I was being penalized since I was pulling a Federal Government pension. It was a no brainer for me. The benefits to waiting would not kick in till I was 72. The SS fairness act passed last year took away the penalty and I am finally being compensated for the 19 years I paid into SS

 

[North of 60]

For sure, the WEP/GPO repeal is wonderful for those of us affected by it, and it is amazing that it took 40 years to fix it in D.C.

 

[DLSJR]

I turn 67 in 4 months, still work and plan to at least until I’m 70. I’ve got a great job I enjoy, it’s lucrative and I get unlimited time off to go hunting and everything else I want to do. I’m planning to start taking Social Security as soon as I turn 67. My question, if anyone knows since I haven’t yet looked into this; is whether I’ll be penalized if I’m taking Social Security at full retirement age and still working. My employment income is substantially higher than Social Security will be, but my SS will be enough to matter so I don’t want to wait beyond 67 unless it makes no sense to take it then. Anybody know?

 

[49ereric]

I turn 67 in 4 months, still work and plan to at least until I’m 70. I’ve got a great job I enjoy, it’s lucrative and I get unlimited time off to go hunting and everything else I want to do. I’m planning to start taking Social Security as soon as I turn 67. My question, if anyone knows since I haven’t yet looked into this; is whether I’ll be penalized if I’m taking Social Security at full retirement age and still working. My employment income is substantially higher than Social Security will be, but my SS will be enough to matter so I don’t want to wait beyond 67 unless it makes no sense to take it then. Anybody know?

If you are 67 and have reached your full retirement age, there is no limit to how much money you can earn from working, and your Social Security benefits will not be reduced. However, if you are under 67 for any part of the year and start receiving benefits, you must be aware of the annual earnings limit, which reduces your benefits until you reach your full retirement age.

Waiting until 70 gets you @24% higher benefit and if social security reform doesn’t happen then expect @25% cut by 2033 or 34.

 

[pacoalcracker]

Even if you earn an income and collect SS before full retirement age, any penalty you pay for earning above the limit is returned to you once you do reach full retirement age. However, it is paid back to you monthly over about a 13 year period. If I was DLS and my health was good, I would wait until 70 to grab that extra 24% as that increase carries over as a higher percentage benefit and higher % COLA every year until death or the wifes death as a survivor. That can mean many extra thousands of dollars.

 

[Colorado Cowboy]

I retired at 58 and started drawing my SS at 62. There are reasons for my early retirement. I got cancer when I was 53 and I was told I had a 10% chance of making it 5 years. When I was 58 and my cancer dr told me it looked I was one of the 10%. I told my wife, lets get the hell out of here and retire to our place in Colorado. I am 84 now and enjoying life.

Having odds like I had makes your decision process very different. I thought I had better set it up so my wife could be setup financially if I didn't make it. I was planning on working until I was 65. I loved my job, was making lots of money and totally enjoying life.

I receive a great retirement from the company I worked for and I didn't contribute anything out of my pocket for it. I also get medical coverage in addition to Medicare. I also am 50% disabled from my military service with medical there too. No financial worries at all as we live on around $100k a year. If I had it to do over, I wouldn't change a thing.

 

[Mike Islander]

I retired at 58 and started drawing my SS at 62. There are reasons for my early retirement. I got cancer when I was 53 and I was told I had a 10% chance of making it 5 years. When I was 58 and my cancer dr told me it looked I was one of the 10%. I told my wife, lets get the hell out of here and retire to our place in Colorado. I am 84 now and enjoying life.

Having odds like I had makes your decision process very different. I thought I had better set it up so my wife could be setup financially if I didn't make it. I was planning on working until I was 65. I loved my job, was making lots of money and totally enjoying life.

I receive a great retirement from the company I worked for and I didn't contribute anything out of my pocket for it. I also get medical coverage in addition to Medicare. I also am 50% disabled from my military service with medical there too. No financial worries at all as we live on around $100k a year. If I had it to do over, I wouldn't change a thing.

One of the few with a good reason and proper conditions for early SS. Definitely very rare. Terrible choice if you don't have similar retirement income in place.

 

[RWT]

I would really like to see some published actuarial tables showing the down side for taking SS early or benefit to waiting. Certainly there are tools or published data. I ask as we are all in different circumstances and I continue to get the standard answer from my CFP. Just wait. I am to close to retirement and absolutely fed up with corporate life to continue. I am 55 with plans to get out at 62 and work part time to support my hunting habit.

None of us know when we are going to go and I would like to see some benefit from paying into the system.

Assume maximum benefit starting at 62 vs waiting until 70.

 

[SDHNTR]

I would really like to see some published actuarial tables showing the down side for taking SS early or benefit to waiting. Certainly there are tools or published data. I ask as we are all in different circumstances and I continue to get the standard answer from my CFP. Just wait. I am to close to retirement and absolutely fed up with corporate life to continue. I am 55 with plans to get out at 62 and work part time to support my hunting habit.

None of us know when we are going to go and I would like to see some benefit from paying into the system.

Assume maximum benefit starting at 62 vs waiting until 70.

If your guy cannot show you the mathematical breakdown of why 70 is more financially advantageous than 62, you need to find a new one! That is elementary financial planning 101.

Again, 62 is NOT when you are eligible to receive your fully entitled SS benefits — that’s Full Ret Age and 66 or 67. It’s not just a reduced amount because you are younger, it’s a penalty and you are giving the government your hard earned money for free! Yes, you can get your hands on some funds at 62, but only after that penalty and resulting deduction of benefits you’ve already earned! Unless terminally ill, why willingly take a pay cut on money you have rightfully earned?

Under no other circumstances are people so eager to accept a financial penalty. I just don’t get it.

 

[RWT]

If your guy cannot show you the mathematical breakdown of why 70 is more financially advantageous than 62, you need to find a new one! That is elementary financial planning 101.

Agree that’s why I am asking. Validate my math. I know it’s better to wait IF I live past 80. For me that’s the question. Family history has me making it to 79. Otherwise it’s almost a push but I get out 3 years earlier and don’t touch my savings.

I honestly can’t find a CFP here I trust. Currently using the FIL’s and am not impressed with them. They all want a % and to manage ALL my $. I just want an azimuth check and am willing to pay a flat fee for it.

 

[Mike Islander]

I would really like to see some published actuarial tables showing the down side for taking SS early or benefit to waiting. Certainly there are tools or published data. I ask as we are all in different circumstances and I continue to get the standard answer from my CFP. Just wait. I am to close to retirement and absolutely fed up with corporate life to continue. I am 55 with plans to get out at 62 and work part time to support my hunting habit.

None of us know when we are going to go and I would like to see some benefit from paying into the system.

Assume maximum benefit starting at 62 vs waiting until 70.

Log into the official SS website. You can chart every situation imaginable.

Any AI with quickly pop out break even age, totals collected, etc.

 

[SDHNTR]

Agree that’s why I am asking. Validate my math. I know it’s better to wait IF I live past 80. For me that’s the question. Family history has me making it to 79. Otherwise it’s almost a push but I get out 3 years earlier and don’t touch my savings.

I honestly can’t find a CFP here I trust. Currently using the FIL’s and am not impressed with them. They all want a % and to manage ALL my $. I just want an azimuth check and am willing to pay a flat fee for it.

Sorry. Thats just not the way most planners work. There are legitimate reasons why which I won’t get into here. There are some transactional planners out there, but they are very few, and believe me when I say the inherent conflicts of interest with that one-off pricing model are actually more significant than with an asset/fee based pricing model.

 

[texag10]

I would really like to see some published actuarial tables showing the down side for taking SS early or benefit to waiting. Certainly there are tools or published data. I ask as we are all in different circumstances and I continue to get the standard answer from my CFP. Just wait. I am to close to retirement and absolutely fed up with corporate life to continue. I am 55 with plans to get out at 62 and work part time to support my hunting habit.

None of us know when we are going to go and I would like to see some benefit from paying into the system.

Assume maximum benefit starting at 62 vs waiting until 70.

In general the break even point where waiting until 67 or 70 start to pull ahead is early 80s, oftentimes 83 years old.

There isn't going to be an ironclad "Do THIS" for most people when it comes to SS. The old joke is tell me when you're going to die, and I will tell you when to take SS. That's way too simplistic.

When are you going to die, what benefits is your spouse entitled to and when will they die, what are your cash flow needs and what assets and income are available to meet those needs, and oh, by the way, what returns are you going to get every year from 62 until death?

For actionable info, look at modeling to see what your situation looks like across various filing ages and market conditions. For some people, there's a pretty clear answer. If you have a good amount of assets saved up or a really low withdrawal rate in retirement, chances are when you file for SS just isn't that important for your overall plan.

Disclaimer/Background: Not 60, just been helping people make decisions on SS for 14 years, teaching classes for advisors for 10, CFP for over a decade, and recently passed a test to be labelled an SS pro without doing any studying whatsoever. None of my post should be considered advice to anyone.

 

[SDHNTR]

If you have a good amount of assets saved up or a really low withdrawal rate in retirement, chances are when you file for SS just isn't that important for your overall plan.

And this right here is really the best suggestion of all. Do it right, and Social Security should simply be icing on the cake. Then you will have the luxury of being able to make choices, sourcing first from the best tax advantaged vehicles, and retiring when you want, on your terms.

 

[SDHNTR]

don’t touch my savings.

This is also a misunderstanding. In all likelihood, you probably should be “touching your savings” instead of taking SS early. If you compare rates of return, waiting to take SS (especially with the pre FRA penalty!) is probably a lot more advantageous and offering you a guaranteed risk free rate of return far greater than your savings. In which case it would make more sense to do exactly what you are hesitant to do and spend those savings first.