The REAL Impact of Early Retirement on Social Security
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- Опубліковано 27 січ 2024
- This video discusses Social Security payment issues you need to think about if you retire early.
Social Security is one of the most important "safety nets" that modern society has created. Part forced savings, part employer matching, part government responsibility, this benefit has successfully served hundred of millions over time.
But what happens to the Social Security payment when the "rules" are changed and someone doesn't work until retirement age? You'll find out when you watch this video!
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
Retired at 60 with a good pension. Started taking SSI benefits at 62… No regrets. I haven’t had to touch my 401 or 457 accounts. I have been retired now for four years. I found that being debt free and owning my home outright was the best thing that I did before retiring.
Health insurance drove the early retirement bus for us. Once we figured that piece of the puzzle, it was let's go! Best decision ever. I'm supposed to draw SS at 62 according to our plan, with hubs at FRA to 70. I'll probably wait, though.
I think this is a side of when to take SSI that many people don’t think about. If you can wait to take things out of certain accounts like you did, then you can avoid a lot of taxes which I think will offset taking SSI earlier. Other thing to worry about is minimum distributions from those accounts as well which can affect taxes also.
And taking those ponzi scheme benefits will aggregate the inflation even more without you realizing it courtesy of the govt and the fed reserve.
Factor in your RMD at age 75
Took social security @ 62…. $2,476.00 i have a pension , and insurance through my old company that’s paid for , work 24 hours a week to keep busy….dont regret it…not touching any money in my IRA….
40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
I fully agree; I'm 56 years old and recently retired with approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one and that should be any individuals main route into the market.
I agree, having a portfolio-advisor for investing is genius! Not long ago amidst the pandemic crash in March 2020, I was really having investing nightmare prior touching base with a license portfolio-advisor. In a nutshell, i've accrued over $550k with the help of my advisor from an initial $120k investment thus far.
@@hunter-bourke21Kudos on the effective execution of innovative ideas and tactics that lead to significant advancement. As I seek guidance from a trustworthy advisor, would you be willing to share details about the individual assisting you?
Wright promptly do a web check where you can connect with her *Gertrude Margaret Quinto* and do your research with her full names mentioned..
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Don't make yourself crazy. Make a plan, live your life and enjoy your retirement.
Wisdom.
Wisdom and experience speaks. It took me years to finally realize to value of time, peace and happiness at home vs the hustle and bustle of life.
Too late I'm crazy 🤪
With you!
40% of America PLANS to win a Powerball JACKPOT for retirement!!!
Thanks for the video, Geoff. Everyone can plan, some can execute, but no one knows when you will die.
I worked for 48 years, and that was enough. I had a target dollar amount. Based on statistics, I will not outlive my money.
A guy I know retired in 1989. He has already been retired longer than he worked. He is an inspiration.
I retired at 50 ,My company offered employees with 30 years service ,a great package to go, We recieved a incredable buyout plus they paid our health insurance till age 65 which made it easy to leave, I was able to do what I enjoyed , we traveled with family every year, ,I worked on restoring 1960,s cars for several years ,as well as Tractors and other equipment , This was the best thing I ever did because i was able to watch family grow up, attend events and help them thru their journey ,I say anyone who can retire early, go and dont look back, I am 75 now and in great health and on no medications which I attribute to a active lifestyle . Definately retire as soon as you can .
I love hearing stories like this.
Very similar. Early retirement LOCKS IN retired years of LIFE! Keep working and there are no guarantees.
You have a wildly inaccurate view of what is possible today.
From a DOPE who can’t even spell definitely!!!
@@traybern Poor spelling or not, this person did things the smart way. Good news is retirement is not an employment situation that’s heavily dependent on spelling and grammar.
You come across as kind, honest and full of integrity. Always a pleasure to watch!
I think most people in the FIRE movement don't really aspire to 'retire' so much as to retire from working a traditional 9-5 'job' and follow a different path--but still doing something, and still earning.
I'm lucky enough to have a military pension, so I retired at 44. I also bought an immediate annuity to add to my monthly check, and I've been good so far. I plan to take SS at 62 simply because my family tends not to live very long. The key is not to have any debt at all.
I like the idea of an annuity.
Yep no debt or mortgages.
@@RickMartinUA-cam Me neither, but then I'm naturally lazy. ;)
Former AWACer here, sounds like you have a solid plan👍🏼
@@SpookyEng1 Yep! It worked out well for me. Hope you're doing good, too.
Retired at 57. Started getting my SS at 62. No regrets.
Consider *'total money received',* not *'amount of monthly payment'.* I would not break even until age 78 if I wait until 65, verse 62. If I pass before 78 and waited until 65 to collect I lose money. So the real question is, did your relatives pass before 80 or live well past 80, and how lucky do you feel?
Unless you definitely have a short life expectancy, that is not logical. You will not know the “total” till the day you die.
“Break even” only makes sense for the smaller check of a couple’s checks. For a single person there is no break even age. Social Security pays until the month you die whether that is tomorrow or 30 years from now. That is called “insurance”.
The only reason to even consider doing the calculation is if your life expectancy is truly short.
Taking SS early, when you don’t have much wealth, and are not sure you will die soon, is just plain a bad idea. Most people live off of only their check, locking that low amount in at age 62 guarantees you will never have true financial security unless you have plenty of other assets.
@@randolphh8005 "locking that low amount in at age 62 guarantees you will never have true financial security" Thanks for the laugh, waiting till 65 will not achieve financial security either. I'm not most people. I think for myself, and would not depend on SSN or the Government for my well being at any point.
Yep, if you know when you will pass that is a easy choice to make on when to start drawing
@@randolphh8005Great points, nice to know.
You can collect, work and invest . Or if you're like me and is debt free and live a very modest lifestyle, you can live on your SS while taking a 3rd of it and investing in silver or gold. I'm not a stock buying type of person. I like my investments in my hand .... not someone else's.
Excellent video as always GEOFF!❤
Great video! Good pace, and informative.
The difference in waiting from age 65 to age 66.5 to draw my Social Security essentially covers my Medicare Part A & B payment. I’ve had to write checks every three months to the SSA to cover my Medicare since turning 65, but I just made my final payment out of my checking account; starting soon, that will come out of my Social Security monthly benefit. I am going to continue my part-time job until this fall.
Sounds great to me. ✌
Um you pay medicare for the entirety of your retirement. This means every month you pay like 260 per month for medicare. It is never free.
What retirement? I'll be dead before I can retire.
Retired at 63 and I am using deferred comp plan to bridge to SS at 70.
Why wouldn’t you take the ss money and invest it till 70? That way if you die, someone gets your money.
Thanks Mr Schmidt
Contemplating an early retirement, I'm curious about the potential impact on my Social Security benefits.
Some say waiting until full retirement age maximizes the payouts, while others argue that early retirement might lead to reduced benefits. The complexities make me consider seeking advice from a financial expert.
Indeed, the decision to retire early involves a nuanced understanding of Social Security dynamics. Delaying retirement can increase the monthly benefits, but retiring early may result in a reduction.
Looks efficient from what i am seeing, i will send a mail to get insights
I resonate with your concerns, user 7. As someone who retired at 62, I've navigated the intricacies of Social Security firsthand.
Your experience echoes my current dilemma. I'm intrigued by the idea of early retirement, but the Social Security puzzle adds a layer of uncertainty.
Retired at 62 and lived off cash savings for 2 years. Took SS at 64 and haven’t touched IRA or 401k. Life is good and I’m enjoying retirement
This is what I plan on doing. I did have to draw from my IRA to show income for ACA health insurance. Eight more months until I draw SS.
I would consider withdrawing $8000/yr (max. annual limit) from your 401k/IRA and transferring it to your Roth account.
To all you people I am 63 years old I just took my Social Security. I took it at 62 and eight months it’s now $1632 a month and I’m still working. I’m an independent contractor so I have the ability to write everything off and I won’t have to pay the penalty according to my CPA, if I would’ve waited till my full retirement age I would’ve not gotten at least $130,000 of my money that they would’ve paid me. I took it if I would’ve waited till I was 70 and took my Social Security. I would’ve lost about $230,000 of my money by not taking it I took it, I’m gonna come right to the point if you don’t take it and you die you don’t get any money that’s what the government wants that’s all. Have a nice day. Hope you make the right choice. I have to get up and go to work.
Thank Jeff. About a decade ago when I was still working and looking at early retirement I put together a spread sheet with all of the calculations. I know there are on line sites but doing the calcs and spreadsheet myself helps me understand it better. You are absolutely right. In my case there was very little increase to my SS benefit by working a few extra years past my planned early retirement.
I did the same when retiring at 55 in late 2018. Though I was retiring at the very best earning years of my career, working a few more years would not move the SocSec needle much at all. I did determine that divorce was the most impactful and most probable of all risks to my retirement, early or not. However, avoiding divorce was the MOST controllable risk compared to pandemics, inflation, market fluctuations and health. So I took action to ensure marriage was on solid ground. Think how splitting your SocSec, pension or retirement funds keep so many people working past their targeted retirement dates.
Very helpful information, thank you!
My father died at 49, only received a couple of years of his pension from the NYPD.
Never saw Social Security.
Look at a guy like Carl Weathers, dead at 76.
People wait to take this stuff, as if they're going to be going out hooking up boats to trailers, and hiking Yellowstone at 78.
You're not.
If you're the average American, you're obese - you've got various health issues, and your joints are shot.
You're not doing much of anything, and never DID do much of anything.
What are you going to do with the extra money you wait for?
Another angle to this is Social Security can’t be left to heirs. Whereas a Roth or IRA can. retiring at 62 and taking Social Security benefits To meet expenses while leaving the retirement accounts to the kids works better for some.
This relates to a calculation more qualitative That the financials don’t account for. Most people are still relatively strong, healthy and active in their 50s and early 60s. Towards the late 60s and beyond we start to slow down. Unless working is the most preferable thing to do with one’s life, then by all means continue to work. But if we rather travel, Spend more time with the kids or grandkids Or Play tennis in the morning better to do it while we still can.🎉
What y’all think?
Wife waited until 69 1/2 years old to start her SS which was the same age she retired from an easy job she enjoyed until the last couple of months when things started to change for the worse, so she got out. I've been retired for 3 years and waiting until I turn 70 in a few months to start collecting SS. We're both in good health. Wife gets a small pension, enough to pay for both our Medicare, Drug plan and Supplement plan. That coupled with our increased SS since we waited, we can live very comfortably without touching any of our retirement accounts. Wife's family lifespan history is past mid 90's of age. I figure I could last mid to late 80's. We did the math, considered everything including survivors benefits and decided it was in our best financial interest to wait to collect SS. Works for us.
I’m 48, and I’ve been told for years not to expect SS, to only expect 75 cents on the dollar, and lately 80 cents on the dollar. I’ve been saving as though I’ll get nothing so anything I get will be gravy. I’m leaving the workforce as soon as I can.
I’ve heard the same thing, but the older I get the more ridiculous it seems. SS isn’t going anywhere.
@@patty109109 the longer politicians kick the can down the road, the harder gets to fix.
I have received letters in the mail from the government telling me to expect only 75% on the dollar when I retire.
Can you imagine if a bank or mutual fund or broker told you that you can only expect to receive 75% of the money you sent them because of their problems??? They would be quickly under attack by multiple law enforcement agencies and mainstream news media.... but nothing happens when the government does it.
Retired at 56. Had 34 ok years and 1 low one, and some zeros. They will skip the zeros after age 56. Makes almost no difference for me. Taking at 62.
Took mine at 62 ,no regrets.
Super. But the video is about retiring in a person's 30's or 40's.
You will regret this decision everyday when you reach 70. Why did you want a small check???
@@websterhays8352Hi NOT SO BRIGHT, I took mine at 62 and I live on it while investigating 600 a month in silver. Yea, I'm going to leave almost a 100,000 dollars on the table while praying that I live to be 67. 😂
@@websterhays8352 you have to reach 70. Then, when is the breakeven point from taking @ 62 and taken 70. It's like 8-9 years down the road. The average life expectancy in the US is 76.4,
@@Vankel83 You need to consider that the life expectancy of someone who has reached the age of 65 in the US is 82 for men and 84.5 for women.
Thanks Jeff. More than any other UA-camr, you've helped me more than you could ever know. I'm newly retired and doing great. No hiccups no surprises and nothing but smooth sailing so far. Thank you. ThankYouVeryMuch.
Jeff you’re the best of all the UA-cam channels I watch. Well done. I used your knowledge to make my decision to go one year beyond my FRA to get a better payment. And since my wife will get half of mine in two years that gave her a boost. Thank you.
Thanks Michael
Makes a lot of sense to continue working a part-time job in early retirement to generate a little income, keep building SS benefits and have health insurance completely covered. I would definitely want to build at least 35 years of credits into the system, possibly more if I had a lot of low income years at the beginning of my career I can replace with high income years now.
No plans to retire until forced to by the government. At present, the government will force me to retire at 65. Considering my profession allows me to see the world and I have seniority that allows me to work when I prefer, I have no intention on retiring until I’m forced to leave. I do appreciate the insights that you provide on your channel. Thank you.
I was going to wait until 67 then I figured the total SS payments collected and I wouldn’t get ahead until I turn 81. So I took it before 65
May I ask, are you single or married?
Me to ....62.
Your LYING!!!! It NEVER takes more than 12 years to exceed not delaying!
@@traybern you need to calculate the numbers taking the COLAs into account.
@@traybern also, a break even analysis on someone doesn’t do you much good if they are married and has a spouse who collects spousal, and ultimately, survivor benefits. Use COLAs and consider the spouse and then report back.
Good information.
Thanks for sharing, where you live is a big factor also, taxes, col, etc.
Postponing for highest SS pmt. 100 weeks till I’m 70 & start my permanent vacation. Hubby retired due 2 health. My job is flexible & good & remote 4 of 5 days. Long life in my family & excllnt health. We decided to finish house projects now while I’m still earning. Completed new roof, kitchen redo , & 1 more to go. Hopefully will put a big dent in mortgage.
You still have a mortgage at age 70 ?!?? I had my house paid off at the age of 45 and will hopefully retire before 60.
Right! Why I retired at 52. Retirement is good! Haven't touched my retirement accounts. Living off my after taxed savings.
Quit at 50 with no regrets, after a 28 year career with small pension (24k/year). 58 now, living from pension and taxable accounts with no problems. plan to take SS ASAP 62yo.
I just got my first SS payment after turning 70. I am considering it inflation adjusted old age insurance. I retired at 66 1/2, making some ROTH conversions and will start RMD's at 73.
It depends.
Great content, I'm Canadian but its pretty well the same retirement game
I like that. I am a member of the Fern movement.
I think you should take SSI as soon as possible. I don’t trust our government to keep SSI solvent for long.
Another great video!. But in the draw down age spreadsheet, the first number $1490 seems to be wrong. 70% x $2281 = $1597. Not $1490.
Mahalo Jeff. I just stack up knowledge brick by brick.
Thanks for the video. I have folks ask me about when they should draw their SS....I try to give them the situation below:
Let's say a person's SS payment at full retirement age is $2k per month.
If they start drawing at age 62, they will draw 70%, for about $1400 per month, or $16.8k per year.
Let's assume they lived to be 80 years old. If they started drawing at 62, they will have earned $302,400 total. (age 62 to age 80)
If they would have waited until they turned 67, they would draw the full $2k per month, for $24k per year. That is a total of $312,000 (age 67 to age 80)
Is working the extra 5 years (from age 62 to age 67) worth getting a an extra $9,600 in total income? (Most would say no, and would gladly trade the small extra amount for the 5 years of freedom)
The advice I give to everyone is to consider a few things:
1) What does your ancestry line look like? (How old were your parents and grandparents when they passed away? Is there a history of cancer or other major issues in your blood line, etc)
2) What is your health like now? Are you healthy enough to enjoy early retirement?
3) Are you debt free? (It takes a lot less money to live if you have no debt)
4) Do you have any other income stream, like a spouse that will continue to work? (remember, if you continue to work while drawing early, you can greatly reduce your payments until you reach your full retirement age.
Ultimately, if you think you will live past 80, then it is usually smarter to wait to draw SS until you hit your full retirement age. (Or if you have a job you enjoy, perhaps even wait until you are 70)
However, if your lineage (or lifestyle) makes you think you may not live past 80, then it can make sense to draw at 62, and enjoy what years you have left. This can also be the case if you have other revenue....For example, if a spouse has a good job they enjoy and they plan to continue working, and they can provide insurance and add to a cash savings fund.
Ultimately, we cannot "un-ring" that retirement bell, so when in doubt, delay until you are sure about the decision.
This is a really intelligent and well thought out post, thanks for sharing.
What you have omitted is the fact that for some people making 2K a month their quality of life is better for the rest of their lives rather than 1.400 a month. That 600 could really make a difference
@@antoniochevalier797 This is true. Thanks for pointing it out.
However, if that $600 will make a significant difference in their quality of life, then the person is probably not financially situated to retire at 62 to start with?
SS is meant to supplement retirement and not be the only source of income.
LOL 😂, my SS increased 200 dollars in my first 2 years of collecting. Your math is so far off. You have no clue.
@@musicman7297 Yea, well that is COLA increases, which everyone gets. (Some years it is increased, others years it is not)
My sample was a simple breakdown, not an analytical breakdown of your specific SS payments.
Thanks
I fear that a lot of the FIRE advocates could be living in a van down by the river.
If they are able to find an abandoned van.
Lol
The key is to set things up assuming you'll never get a dime from SS.
Maybe they want to live in a van down by the river. I'm 62 and retired cuz I want my money the govt owes me. I bought me a little trailer, mobile home. I don't want a big house or house note. Not at all!!!
Great video.
EXCEPT for ALLLLLL the WRONG Monthly Amounts listed at 5:08!!!!!!
It is important for me to maximize survivor benefits for my wife. I would consider it a personal failure if she had to struggle after I’m gone.
That’s why I’m waiting till 67 to collect.
I've worked and saved and put the wife as beneficiary on my 457, Rollover IRA and Roth IRA. If she's careful with money (which she's not) the retirement funds should allow her to live in relative comfort for the rest of her life. The main reason I'm waiting to collect Social Security is due to having a withdrawal strategy to keep taxes low. I don't want to turn on too many income streams and end up paying more in taxes than need be. But, working longer for the spouse means you didn't do a good job managing your money in your working years. Also, having money invested means if there's a significant downturn I might use Social Security to manage and limit sequence of returns risk. If the market is fair to good I might wait on Social Security but never would I wait to benefit someone else. Not to sound harsh but there's money in other accounts to take care of loved ones. I'll take Social Security when it best fits my needs and my retirement income strategy. Keep in mind, the longer you wait the less time you will be able to draw and your social security.
Really good presentation. Thoughtful and easy to comprehend. I don't know what im going to do but would prefer retiring at 57. I just have to have a plan.
That was informative. Thank you. What I'm needing to know is will I be able to draw SS AND work part time without my SS payments shrinking because I'm "still working"? I want to keep working somewhat so I stay active and am still around people. I'm currently 56 and planning ahead.
Seems to me like most people don’t have a 401(k) love to have some good videos about people that have zero savings
Most of the folks I know that have taken SS at 62 ,have no savings. To them it was an easy to grab paycheck. With inflation the way it has been, things will be tough in the future.
Taking at 62. Govt wants us to wait and hope we die early so they do not have to pay anything out. Not me. I will use the money and enjoy life. I just don’t understand why people want to die with a lot of money. You earned it so spend it. There is also too much fear out there. Also I did retire at 54 and never regretted it. Long live retirement.
I like the way you think. I’m going to retire at 63 and draw asap. I’ll take those monthly checks and invest them in the stock market.
You will regret this decision everyday when you reach 70. Why do you want a small check???
@@websterhays8352 Who promised you that you’ll live to 70 ? The average life of American male is 77 years old. With that being said, why would I regret taking my SS of 2825 at 63. I will draw 237,000 dollars by age 70 and invest it. Meanwhile, you will just be starting to collect. How long do you think, you’ll need to live, and catch up to me? Let’s say I invest that money in the S&P 500 with a 8 percent return , you’ll never catch me. It’s all about enjoying the fruits of your labor, not stacking money for inheritance. My wife, and I, are traveling everywhere we want while we’re healthy, with no regrets.
@@william-fla-321Because stocks NEVER GO DOWN.
They go down, they go up, they go down, they go up, but over time it’s upwards at a higher return. If you can’t stand the swings, put your money in secure assets.
Started SS benefits at 64. No regrets.
Curious have you ever thought about starting a second channel that does a bit more of a deep dive into some of these topics?
Maxed contribution for 25 years then did casual on call for 10 years. Surprised that this did not lower my ss much… 95% of max payment.
35 years is big
and in my opinion worth waiting for the top payout at 70,Im three years into it now...ss over fifty k...
Good voice😊
I get a pension, but between working in college and other part-time jobs I’ll have about 27 years paid in. Unfortunately due to WEP, I won’t get much. Enough to pay for Medicare but not much more.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
keep contributing! I'd suggest you consider financial advisory at this point in time, remember you are in for the long haul
I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has just 5X in barely 5 years, summing up nearly $1m after subsequent investments to date.
bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
’Nicole Desiree Simon’. is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
I triggered social security at the earliest date possible. The reason, to manage the political risk of means testing. Because of good health I beat the financial calculus of the 25% discount. The means test which cannot be dodged is incorporated in Medicare where your insurance premium is increased based on your adjusted gross income as reflected in the prior year’s tax return.
I retired almost 3 years ago at 55. I plan on taking SS at 62. I have a Brokerage fund, 401K and Roth. I started investing in my early 20s.
Please talk about SEPPs, rule 72T
I worked intermittently through my twenties thirties and forties. Made good money but for only six months a year. Retired at 62.
And your POINT is??????
My neighbor retired at 68, died at 73 from cancer. He has over 800k in savings and 2800 month in ssn. He never get to use it. Retire early guys.
I retired at 53 (I guess I have 31 years of full time continuous work experience per SS), I strongly suggest saving for retirement with the attitude of not even considering SS. Live a modest lifestyle without debt for 20-30 years while saving 15%+ in retirement accounts and you'll be in great shape, definitely better than 95% of Americans. I'll take whatever they offer me at 62 and just consider it a bonus.
Just now at FRA and about to start SS. Waited until now because still earning a decent amount,and investments.
Great point about retiring early and not having your 35 years of credits! However I don't see subscribing to streaming with commercials as being extreme to save money or to not own a car, depending on where you live of course.
Or just own an old car. Mine is 25 years old and still runs great, I've never had a car payment (another key to financial security) and I bought a model of car that has a great history of reliability so the cost of maintenance and repairs has been minimal. Also since the car is old insurance is cheap. Actually, some of the best cars were built in the late 90's to mid 2000's, after that they got overly complicated, often less reliable and much more expensive to repair.
After age 60 they do not index your wages. It’s a simple 1.0 X factor
But COLAs are applied so it is basically a wash as indexes and COLAs are close.
The big downside or retiring early is all your friends are still working. If you have a hobby to fill that gap, big help.
What if I downshift from full time to part time work for one or two years, then retire and take SS at 62? How much of a negative impact will those couple of years at about a %25 reduction in work hours have on my early taking SS amount? Right now, according to my SS account, based on full time wages I'll be getting about $2352 at 62.
I can't foresee how a one or two year downshift- and particularly with only a 25% reduction in hours- would have any impact at all over a 35 year work history that SS takes into account.
I took mine at 63. No regrets
You will regret this decision everyday when you reach 70. Why did you want a small check???
@@websterhays8352 so you know my personal situation? Unreal
@@websterhays8352 and he’ll have collected 170,000 by the time he reaches 70. How long will it take you to make up 170,000? You’ll regret your decision if you die before 80.
Take your $$$ and run, while it is still worth something.
Exactly. At work we had a retired social security employee speak about taking social security. His exact words were when you turn 62 "Take the money and run."
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year.. Investment should always be on any creative man's heart for success in life
The first step in every successful investment is to establish your goals and risk tolerance, a task best undertaken with the assistance of a financial advisor with extensive financial market knowledge like Fergus Waylen
YES!!! That's exactly his name (Fergus Waylen) so many people have recommended highly about him and am just starting with him from Brisbane Australia
He often interacts on facebook , using the user name
Fergus waylen , that's his user name
A CNBC news host spoke highly big about this man and his loss preventing strategies. Been trying to reach him since. Thanks y'all for the info
Thank you for your videos. They help me to feel more secure. I enjoy working and hope to work for a company until age 72 then to move to consulting with fewer hours. (72 has no relation to what is financially best, just what I envision.) I expect to take SS at 70, but I work in a volatile industry so I could get laid off tomorrow at age 60. I have backup "plans "which improve the likelihood I will be employed. (Work experience, training, certifications, contacts, etc.)
One issue is that if I move to something that pays less then will it hurt me for SS? I think I have enough relatively high income years that I could work for less. Is there an easy calculator to determine this? Thanks!
The SSA uses your BEST ( indexed) 35 YEARS. ( Any years after 60 are NOT indexed.)
Hmm... Just converted my sole proprietorship to an LLC taxed as an S-Corp. There are the tax benefits getting distributions, but then I have a lower salary for the SS calculation. :(
When you speak about the 35 highest years, I am assuming you are referring to the earnings after indexing. Is this correct?
Hi yes you are correct
@@HolySchmidt. Your numbers on the list at 5:08 are COMPLETELY WRONG!!!!!!
My house will be paid off and my 35 years of working (at decent wages) will be fulfilled in 3 yrs (when I turn 62). My FRA is in 8 yrs. My biggest concern of waiting until then is that SS will be insolvent or greatly reduced by then. Is it really worth waiting??
count on them being solvent thru 2034 which is still a long time..and even if you do wait your check will be as large or larger than it would if you took it now...
Nice
A 65yr old coworker friend retired when I was 24yrs old working at Boeing. Called him 3 months later and his Widow answered. So I quit and became a builder living well below my means and "retired" at 40. Not rich at 60 but I'll be fine and I added 20+ yrs of no alarm clocks. social InSecurity is twice the poor investment/tax when self employed and I'll be getting back dollars worth 40%of contributions paid in. That's if the exponentiating Nat Debt doesn't implode the dollar's value, but I never expected to pay for much w SS paybacks anyway.
Good video but I think you missed one important point...the longer you wait, the more impact future COLA adjustments will have on your monthly SSA check for the remainder of your life.
exactly...the people wanting you to take it now..dont even figure in cola....
Took my SS at 62 and I also have an all cash business so I’m gold.
I've read that the amount shown by the calculator on the Social Security site as the amount you actually get when you file may not be correct. Can you address that? Thanks.
Because those numbers DO NOT include FUTURE COLAs!!!!!
I'm not sure what the definition of FIRE is but I'd say anyone who retires before 59.5 is basically retiring early. I'm 44 and hoping to retire around 53-55. That feels quite early iyam.
The low SSI applies to expats, as well -- I have been living and working in Europe for 10 years now, paying local taxes, and not into social security (I could do so, but it's 15% on top of the local taxes and US federal taxes). I have enough years worked to qualify for SSI, but the amount will be very low because it is based on only ~12 years of work instead of the 22 I have actually worked.
At time index 5:07, that looks like a huge jump in monthly payment between age 69 and age 70. From $2,645 to $3,279.
I appreciate you mentioning that ... more than $400 extra than it should be.
Good chance of less than ten years of life left. Enjoy that extra money
I retired at 62 and never looked back. Good pension, 403B..Also my medical benefits from my job. Not in debt.
@65 I’d get $2650, @66 it’s $2850, @67 it’s $3050. I’ll likely take it between 66 & 67. But if I wait till 70 I’d get $3800
LOL 😂 and leave over 100,000 dollars on the table and you might be gone by then or the country will be a Third World Country by then.
@@musicman7297 I figure I got maybe 20 more years in me.
There's a question I have about social security. I have not been able to find the answer anywhere. I retired at 62 and I'm not going to work all the way till 70 when I collect social security. How much does the 0 income years? Between 62 and 70 affect the social security amount. I heard it lowers it, but by how much that's the question I have.
they average your best thirty five years....if you didnt work that long the zeros will definitely hurt...
If we assume you started working before 27 yrs old and didn't have any zeroes in those years, your SS payment won't be affected at all. The only difference would be, presumably, that the last 5-8 years of salary would be a good bit higher than the first 5-8 years of salary, so your 35 yr average would be higher.
If you ALREADY have 35 years of “contributions” then no income from 62 -70 WON’T affect your benefit AT ALL!!!
All you have to do is call them and ask or go on line why take jacks word.
Also as to the "retire early" movement there are fears and risks as concerns health care possible extreme need and obtaining health insurance and/or HMO coverage. Usually unless a great amount of risk is taken health coverage will cost much more than Medicare for age 65 and up,unless there is some kind of employer bridge coverage.
It seems that some people even if not indigent are able to arbitrage Obamacare.
My wife and I went on Obamacare when I retired at 62. With the bronze plan we paid zero premiums for three years until I turned 65. We had a very high deductible but I planned ahead and stuffed my HSA with $40,000 before I retired. We got lucky and with investment returns in the HSA I still have $38,000 in the HSA. If you have everything paid off you can live quite well and still collect the full Obamacare subsidies.
For 12 years no insurance . 60 now , insurance is a scam. Obamacare is a money grab. Those policies are dirt. Will get the best Medicare supplement at 65. Stay healthy and trim. 99% of my relatives only needed insurance in there 80’s . We all take all kinds of risks in life, even going to work….It does not bother me. I did bump up my auto policy cause everyone driving are imposable to sue
Hi , Right now i am at Costco and earn 27k and looking to collect SS , I am 62 , and will be roughly 4k over the income limit , should i hold out or collect what ever the number is , thank you for your videos
I retired at 50. Took Social Security at 62. Benefits were shrinking every year due do lack of Social Security taxable income. Invested about 90% of my SS income in the market until age 70. Never looked back.
Thank you for this great info. In my case, I started Social Security at age 66 because my benefit comes from my ex. If I waited until age 70, I would not get the yearly incremental increases. And 50% of my ex’s benefit is more than 100% of mine. I am now 69 years old and retirement is not an option, but I am so grateful to have maximized my passive income with Social Security. I have friends in their late 80s who regret taking Social Security at age 62. When I asked them why they did that they said, “I thought SS wouldn’t be there, so get your money while you can.” Their mistake.
Yeah, it’s really GOOD deal for people who paid NOTHING IN!!!
If I stop working at 62 but opt to delay receiving social security benefits until 65, will my monthly benefits be higher at 65?
Are you required to start drawing off your 401(k) when retiring, or are you just saying that people probably will because they'll need a source of income?
My brother retired in his thirties. Lived frugally past thirty years. Picks up construction and excavation work for cash a few times a year. Only problem is health insurance
Your NOTHING retired?? GOOD on him? her? it? DUMB on YOU though!!!
@@traybern thanks. The notification gave me a chance to see it. The IPad is fraught with poor autofill and deletes
@@silverstar4289 Sorry, you have to do your OWN proofreading BEFORE hitting Submit!!!!
SSI is supplemental security income, totally separate from social security...remember that.
I retired on SSDI comfortably at 38 i wish you would talk about Social Security disability not just SSI
You mean SS, not SSI.
I get pension therefore no ssi. I do have 40 quarters but my earning was low so letting ssi go isn’t heartbreaking. My annual expense is about $24k. I am not yet 60. I may wait until 67 to start 457k account scheduled withdrawals. If I choose 15-year payout, I may not have to pay too much tax. After tax money not spent I can put into low risk investment account in case I live to very old age. I am single no children. I have to plan ahead about old age.
Question. My cousin left the workforce around the age of 30 she married a very successful professional and never worked again.can she still get half her husband social security .he took at 66 she will be 62 this year.
Not an expert…but yes. She can get half of his if she waits until her full retirement age. FRA makes a huge difference for spousal benifits.
Take the money that is owed to you the SECOND you qualify.
I retired 22 years ago at 45 without a pile of money. I have earned money to fund my retirement, so what defines "retired"? I worked as a software engineer for 19 years, most maxed out SS payments. Earlier I served in the Army, construction, student so lower income. I assumed I'd get almost no SS. I got estimates from SS which I assumed were computed thinking I'd be returning to work. But the estimates have not been reduced and I'm 67 now and past FRA. Current estimate is $3081/mo but I don't plan to take SS until age 70. Not going to be happy if when I collect the reality is much less than the estimate. But I'd be OK.
Good video
I’m taking SS at 62. After factoring in the time value of money and inflation, my break even age is at least 85 (where it would make sense to delay SS).