Taking SS early (62)

[RyanT26]

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.

Because most won’t make it to 78. That’s the break even point for 62 and 70. It’s not that hard to figure out.
I few extra bucks at 78+ is pointless.

 

[SDHNTR]

Pointless? Far from it. Many analyses will easily show six figure advantages to waiting.

 

[RyanT26]

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.

Why??? Your savings/investments can actually make money. Even a simply 6 month Cd is should net 3-4%.

 

[RyanT26]

Pointless? Far from it. Many analyses will easily show six figure advantages to waiting.

Sure thing.. if you live to 98

 

[180ls1]

Sure thing.. if you live to 98

Not quite. There is a 50% chance one spouse in a married couple makes it to 90. It's very real money that should be carefully considered, even if you're not an outlier.

 

[RyanT26]

Not quite. There is a 50% chance one spouse in a married couple makes it to 90. It's very real money that should be carefully considered, even if you're not an outlier.

View attachment 950922

60% of the time it works every time.

Apparently, there’s also a 50% chance neither of you make it.
Of that 50% chance that one of you do there’s only a 50% chance that it’s you and given that women in general live longer than men do. It’s probably a lot lower than 50%.

 

[180ls1]

60% of the time it works every time.

Apparently, there’s also a 50% chance neither of you make it.
Of that 50% chance that one of you do there’s only a 50% chance that it’s you and given that women in general live longer than men do. It’s probably a lot lower than 50%.

You are just making things up and do not understand how percentages or probability works. The numbers you are throwing around are way off.

 

[SDHNTR]

Why??? Your savings/investments can actually make money. Even a simply 6 month Cd is should net 3-4%.

Because waiting to take social security pays 3x that! Even more if you’re considering taking it prior to FRA.

 

[49ereric]

Spousal benefit maxes out at your full retirement age & if you drop dead shortly thereafter @67 at least your spouse gets the max benefit so good enough reason there to wait unless she won’t need the extra coins.
I’m more concerned with the SS cuts coming @2033. Waiting until 70 if you can means you’ll get approximately the full retirement amount then. Take SS at 67 and benefit gets cut to close to your benefit amount at age 62. Take SS at 62 and you take a 30% cut then if funding isn’t fixed then come @2033 another roughly 25-30% cut.
Inflation is another reason I am delaying claiming the SS benefit until 70.
If I drop dead after 70 then no worries cuz I won’t need money and the wife’s spousal benefit is maxed.

 

[texag10]

60% of the time it works every time.

Apparently, there’s also a 50% chance neither of you make it.
Of that 50% chance that one of you do there’s only a 50% chance that it’s you and given that women in general live longer than men do. It’s probably a lot lower than 50%.

If you don't live into your 80s, what do you think your chances of running out of savings looks like compared to living into your 90s? Which social security claiming strategy is a better hedge against longevity risk?

 

[KnightExtreme]

There is several things that will need to be mention, one is one's health, A family member barely made it to 65 as he had Cancer so he only lasted til 66 and 7 months. Unless you are in "decent" health that might be a reason as well as your finances. If you can "hold out" I was advised to try and wait to your FRA. I held out till 4 months after my FRA it gave me a little extra to help cover the increases in CMS, Part B Provider and the ever chnaging Part D Provider (being these costs go up each year & CMS is Medicare's Admin Costs that review your medical billing which was never mention until I retired). If you did apply at 62 you would lose a large amount (maybe 30% of these benefits) which can be some $ (as nothing stays the same as to costs). When you have a little saved it takes so sacrfices at least for me. Each has different things to make their choice. My Benefits start Oct 22 2025... Also when you apply the App ask when you want to start receiving these benefits (another unknown) I selected September yet that is not how SS works for some reason it starts the month After. I applied back in June thinking I would get these starting Sept 22 learned that was not correct. Also my SS Office does not want you to apply at that Office and stated it was best to apply online. I requested a copy of that App to have all the info on hand so when I was ready I have the answers that were on the Application they also provide what the actual Amount would be as my Statements were lower as to what I will be getting but then you need to substract the CMS Cost as they take tha each month out of the benefits amount... Some unknowns. PLus they want someone that could take over your finances if for some reason you could no longer handle that person would be able to interface for you with Social Security if you were to get ill and need the bills tp get paid as I understood it. That was after getting call that they review my app. (You can add that name anytime.)
KnightExtreme

 

[North of 60]

It is a gamble either way depending upon one's current health, genetics for longevity, and degree of need for SS $.

 

[KnightExtreme]

Not sure genetics can be known, as my brother passed at 66 & 7 months and my Dad is still here at 95.
Maybe more due to the Enviromment one works in and exposure to stuff. At least what I have seen so far. And my brother was very active and a golfer. Very different as I am no golfer never played but been Hunting since I was 19 YO. Very different also my brother was into Boy Scounts and was a leader helping others obtain Eagle Scout Rank.