The reason I draw my ss benefit at age 62 plus monthly employment retirement. I’m good and enjoying our retirement while we are still young and healthier.
Thank you Pops! Im turning 59 this year, and my husband 60 y.o.Your information nailed our decision to collect SSS@62, it really make sense to collect early, my husband is planning to retire this year and bridge the income with his 401k money which doing the math before collecting sss@62 will just scratch the surface of his money Also reinvesting your SSS money is a great idea, right now we are in good standing because we no longer have mortage, car loan , my son is hitting senior year this fall and because we saved for his college he is debt free when he graduates. Life is short... enjoy it while we can still run and enjoy living as healthy retired people! Great vlog!!!
it is true that your ss income is higher at older age, but you need to consider if you can still enjoy life at age after 70 like traveling, eating out, seeing movies etc. i am 65 years old and i started collecting ss income last year. i thought i am still healthy when i retired at age 64. my back pain is getting worse, my blood pressure is going high, both my heals are aching, plus more. so i suggest collect your ss income early and enjoy life while you can still walk and eat with no problem.
Please look into changing your diet, my husband had high blood pressure, really bad arthritis, sleep apnea all changed when he changed his diet, please look into it so you can enjoy your retirement! He has been on keto for the last 5 yrs.
Thank you for your presentation. I started collecting mine at age 62 because of the same exact scenario, yes you will receive more at your full retirement age but then again you might not live long enough to enjoy it. I understand everyones situation are different but the numbers don't lie. Thanks again.
also po, as far as I know, your spouse could only collect your sss when you pass away and not your offspring if they are above 18. If it so happen na you don't have a spouse who would collect, then you basically gave the government all your hard earned money. Also, I think when they quoted my pension from being 59 to 62, it's a difference of 150$ a month yata (don't quote me on it po) pero for us to delay retirement for that amount eh, para pong hindi worth it kasi dinedelay din po natin na maenjoy nmn natin yung buhay natin. opinion ko lang nmn po :) Share ko lang po sa mga naobserve ko po sa mga nagretirong co-workers ko po. I had seen at least 3 who have retired after working for at least 30 yrs, same work place only to die suddenly dahil nadiagnose ng cancer stage 4, na stroke, and yung isa nakalimutan ko na po (i think cancer din yun sya). it became a wake up call sa iba naming employees who were trying to delay their retirement dahil nga gusto nila makuha full benefits nila. right now, most of them are saying they didn't regret retiring and they are happier with their life.
Well, the numbers don't lie but we can learn the wrong lessons by not thinking the numbers through. While you might die before the breakeven age of 82, changes are really good, unless you're suffering from a significant illness at 62, you'll probably live. The government knows all this too. They look at the averages and know they'll pay you less (on average) if you take your retirement early--that's why they offer this in the first place. Since most people begin taking SSI from 62-66, the government wins.
thank you for good and clearly explanation , for me my 62 yrs old is good enough to support our need my wife well be retire early too, to enjoy our last days on our life
so true, i've been saying this for years. i work with some people who are over the age of 62. the reason they can't stop working is health care. either themselfs or a spouse needs it. to expensive to buy on the outside.
Excellent video on a complex topic. I have watched several videos on this topic and your video is the only one that I've seen that discusses the impact of the 'time value of money' which is a basic accounting principle. It certainly puts a different spin on the conventional wisdom concerning this issue.
This is the reason why I will retire at 62. Some people can't understand that. They are just looking at the amount when they reach 67 years old. Thank you for this video. Well done sir.
Hi! I pause video @ 0:32. I am healthy 60 yrs now. I will retire n get SSS at 62. My reasoning is not amount of money but the amount of time life if i ever live beyond 66 yrs. Though lower $$, enjoy my fruit of labor early. I will continue vid see if it changes my mind. Thnx ! Mabuhay !!!
This decision is highly dependent on your own set of personal circumstances. I will roll the dice and file at 62, given that longevity runs on a shorter spectrum within my family. Thanks for your insights and analysis...
I like your Retirement Dedicated UA-cam channel. I planned to retire at 63, but might retire at 62. Just turned 60 this year , I have earned close to the max amount for almost 20 years, used to surpass it until a couple years ago when currently its $135K, Only reason will work an extra year is the wife wants to stay in California, but I told her I might walk away from my $140K job at 62 years, life is more important and I am not allowed to Move out of state anyway
This is a very good topic, it hits home for me who is just a stone’s throw away from hitting retirement age, though I see myself working ‘til 65, with my savings I can bridge the gap now of about 10 or so years until I begin collecting, then use the monthly/quarterly income in the Philippines as an expat (or a snowbird) if I choose to. It’s no secret that living in the USA as a retiree (in many states) is virtually impossible even at $1,500-$1,700 monthly even if you discount incidental or emergent expenses, not to mention the cost of healthcare and pharmaceuticals (arguably the fastest growing expense for seniors in retirement). With the rough exchange rate at P50 to $USD (maybe less in some Central American countries) a retiree may be able to buy more “life” with a smaller retirement income. Cheers!
Magandang gabi sir, with those numbers you show and my pension my wife and I will live a good life in our province in Luzon I'm not a big city person (Manila or Cebu) Your videos are so informative. Salamat.
However, if you are making over 120K when I'm 65 - there's no reason for me to collect SSN - until I'm ready to retire and not work anymore. I can save more working, than quit - draw SSN and make nothing in comparison! I understand what you are saying - it works for most people with lower income - but for us that are still working and making good money for the future - it's best to keep working as long as you can without drawing SSN! Great Video.
Some state jobs like the ones in California deduct Social Security every month. Therefore, they are entitled to Social Security Pension. The ones who work under Safety Retirement are the ones who don’t contribute to Social Security. You did a very good analysis on early withdrawal at age 62 vs. waiting til full retirement age. Thanks
Thank you for this video. I'm in Canada but it is helpful for me and my husband just the same. I learned at lot from this video, and enjoy watching your other videos as well.
This is really a superb video that I concur with. and agree too. Contrary to popular opinion of waiting longer is better. You have prove to me and many others that is better collecting early is much more beneficial.
Thank you for this presentation, this is a great presentation, opened my mind to collect SS at age 62 and invest it. Before I watched your video, I was going to wait until age 65 to collect. Now I have a clear understanding and realized that is beneficial to invest the SS earnings and just enjoy life. Now I need to know how to invest it - the right mix, index funds or money market funds, low risk funds so I can make more money and not loose funds when the stock market goes down.
Married couples might consider waiting to collect; the widow/widower gets 100% of the higher earning spouse's benefit at the time of death, including the generous 8% delayed retirement credits after ones full retirement age. In any case, do what makes you happy.
The best 17 minutes I’ve spent in years. Excluding certain memories with Annie and Jessica, or that elevator ride and the shower with (names withheld) they’re still beautiful to this day and a part of the movie that is my life.
I like the video; it's well done. However, determining when to begin receiving SSI isn't quite so simple. While the numbers in themselves make sense, there are complications to be borne in mind. The median average life expectancy of 62 year old men is about 25 years and 28 years for women. What this means is that (using the 3% historic annual inflation discount), unless you have a significant illness or a family history of much shorter than average life spans, the smart move is to wait as long as you can. Why? because every year you live beyond the break even point of 81 or 82, you will have made more money, altogether, by delaying your SSI claim. Of course, if you have no other source of income, you'll have to begin collecting earlier than you'd like just to survive. Another point to consider is that in most years your social security payments will be increased by a % that offsets inflation. So, the longer you wait to collect SSI, the greater number of dollars each percentage point represents. The analysis stops at full retirement age. In my case, 66 years. for each year you wait, beyond full retirement age, to begin your payments, you get an additional 8% until age 70. So, for me (using his $$) this would be $1,320 per month at 70 rather than $1,000 at full retirement age, or $733 at 62. If you're reasonably healthy and you have other income, it really is smart to wait til 70. Finally, the penalty for working and collecting SSI ($2 for $1 I believe) ends at full retirement age (66). There is no such penalty for W2 income earned after that age. Just my $.02.
I'm applying for my spousal soon sir @ 62 ,my husband's FRA is very good , of course he retired ,getting his pay check and still working medyo ayaw pa siyang pakawalan ng company. I can still work but limited hours In a month, being in healthcare I can choose my time and schedules now. My own retirement is intact but I see to it that I don't work over the specified amount within a year. Glad and enjoying every topics being discussed here. God bless po.
Just remember that the projected SS benefit at FRA, on the statements from that you get from SSA, assumes that your latest annual income will continue until you reach FRA. SSA assumes that it will get the same amount of FICA tax from both employee and employer. If you start working less hours to stay below the SSA earnings limit, this will result in a lower amount of FICA tax. Consequently, this will reduce the benefit that you will receive at FRA, since the benefit is based on the last 35 years of FICA taxes paid. Also remember that the spousal benefit is usually 50% of the primary beneficiary’s pension if the claim is made at FRA. If the spousal benefit is claimed earlier than FRA, the percentage is reduced by a formula from the SSA and could be as low as 32%, instead of the 50%.
Thanks for such a valuable information. Explain it very well. Right to the point. Take into consideration the power of compounding interest ( Rule of 72) and Inflation.
Great video. Well explained that anyone could easily understand. Medicare will not kick in until age 65. So if you retire at age 62, you don't have medical insurance.
Here's my rule of thumb...if you need it then collect it...if you don't need it then the MORE you want to collect it...WHY??? Because no one can guarantee that you will be alive tomorrow! And here's another way of looking at it...if I start collecting at age 62 for $733 a month, I would have earned already a total of $38,116 ($733 x 52 mos.) by the time I reached my FRA of 66 and 4 months...
Love this bruh...both Devon Carroll and Josh Scandlen(UA-cam SS/retirement guys) say retire later. I agree with you..if for no other reason I dont believe the hogwash about people living longer. The length of the obits argue otherwise. Rather would enjoy the $ now(present value) than get more later and not be able to enjoy it.
Fred Ost Josh Scandlen in one of his videos said to leave your dead beat job if you’re sick and tired of it and having problems and to take your ss. In another video he said don’t ever retire early.
For those who turn 62--and have at least ONE MINOR CHILD (biological and /or adopted)--you might want to consider collecting now, depending on the age and the number of children you have. In addition to your social security benefit at age 62, EACH MINOR CHILD is eligible to receive 50% of your FRB (note: there is a cap) until they turn 18. That's a lot of money especially in the Philippines.
Wow this new to me...I just had a baby in January. I’m 52 . I have always considered retiring at 62. So I’ll have 8 years for my son. Right now we will live in the States...eventually move to Philippines maybe in 10 years. I have IRA account. So I’m not so reliant on just social security. I’m going to research this. Thanks!!!
Another great subject. One important life changing effect of retiring at age 62 is losing healthcare coverage. Just the premium of new healthcare insurance will wipe out the SS benefits. Maybe one option is to move to the Philippine where I heard it is a lot less. Also if you have other income let say from investments, social security benefits at full retirement age will not be reduced but will be taxed tax up to 80%.
I thought I knew the answer before I watched the video...break even at age 78. One thing you didn’t address is if ur better half makes much less than yourself, and she survives you, she will claim a higher amount upon your passing away assuming she is of age
very nice..i my self...have no choice..i am ret in june into disability...but the #s are still good!!!....and yes...we are not promised tomorrow...thank you ser..
One thing I failed to mention in my comment from a month earlier is …. if you collect SSA benefits before your full retirement age you will be held to a limit on earned income. If your earned income exceeds this limit then SSA will penalize you, so you must take this penalty into consideration if you plan to draw your SSA benefits prior to full retirement age PLUS you continue to have earned income as well.
This penalty may wipe out any benefit from taking SSA pension at an early age. Of course its dependent on each individuals situation. I believe the penalty is fairly steep.
I am 64 now and still working a job I really don't like here in the Deep South (I lived 30 years in California previously - dyed in the wool liberal Democrat here), and which is making me more miserable as I age. I plan on hanging on until I can file for Medicare at 65 and 91% of monthly SSA benefits and move to BGC. My 401k should take care of most of my expenses. Great St. Lukes hospital there in Taguig.
Some kababayans may not be aware that they might also be entitled to social security benefit from the PHL SSS. If you worked and contributed for at least 10 years (120 monthly contributions) before immigrating abroad, you can claim your benefit at age 60. You do not have to be a dual citizen to file the claim. If you are 60+ and have not yet filed a claim, you will receive an initial lump sum equivalent to 13 months benefit per year that you missed, plus accumulated interest. If you have less than 120 contributions (for example, you only worked for 8 years in PHL before immigrating abroad) and you are less than 65 years old, you can still pay additional contributions to make up and be eligible. More information can be found here: www.sss.gov.ph/sss/appmanager/pages.jsp?page=retirementqualifying
If you hate what you do at work everyday, it's good to quit early, but if you like what you do at work you can stay as long as you can able to move around.
Great video! You might have touched on inflation and/or dilution of the dollar, where 12 years from now, or however long you decided to defer, will have quite a significantly less value or purchasing power. I'm 60 and I will most certainly start my benefit at the earliest qualifying age at 62! ... that is of course, if the social security is still around...lol.
I worked almost 40 years in a commercial company. It the beginning, it was over 1500 employees. Towards the end it shrank to less than 150. Due to politics in the company, I was miserable going to work every day. Real estate market was high, mortgage paid, and I always had a desire to retire out of the country. While on a 6 week vacation in the Philippines, we found a great house and put a deposit, once you retire, your SS benefits will never increase because you are no longer contributing to SS. Therefore, in this case, collect immediately. My SS is deposited in my US bank and set up before retiring, i can transfer dollars to a dollar account in the Philippines.
Another factor to consider is the amount your spouse can draw when you die...max of 50% at full retirement age. If you start drawing at 62 then your spouse can only get about 33%.
it all depends how long you expect to live. i know of several that didnt even get to spend their first check at 62. and know several that didnt live till 66. so if your life span is relatively short the earlier the better
12 years are needed to break even at full retirement. Good information. That means to me that we are betting when we retire that we will live at least 12 more years to break even. So if poor health and expected short life, retire early.
For low income earners with lots of stress at work…..it’s absolutely applicable to collect early. But for those who are earning a decent amount of money like $100 K yearly and still enjoying their work it’s best to delay and wait until 67 years old.
If you are happy working and plan to continue working after 62, earning >100k, it might not be a good move to collect SS yet. If you plan to stop working at 62, go for it.
Im supposed to retire this June and got my packet of papers but with this Covid 19 pandemic I did not return my packet to my employer and will continue working at home since I cannot travel anywhere. So it most likely will be next year. If shelter in place will continue and working at home is still available then will be better for me and might work more. All the info I get to work is available in our network online so no need to go to the office.
Wow! The max social security in U.S is about $2800 U.S dollars per/M. The max benefit in Canada is around $1741 CAN dollars per/M. (That included CPP + old age) even if you worked for 40 years or more. We're screw big time.
I understand your calculations but the flaw in it is that it doesn't take into account the time value of money.......if you factor time value of money which would be discounting the cashflows back, it would be clear in your example that it would make most sense to start drawing SS at 62.
Also po, sorry dami kong comment pero one more thing po na gusto ko pa rin ishare based sa sinasabi ng mga kakilala kong nagretire. They delay their ss pension so that their tax bracket will be less. Para po lalabas na low income sila. bale ang pension na kinukuha po nila is coming from TSP and FERS po which sabi namn po nila is enough while waiting for their ss benefit. first time ko po narinig na when you have other retirement funds and you go beyond that 1470/month, then your ss pension will decrease? grabe nmn po talaga tong gobyerno natin. nahigh blood po talaga ako pag naumpisahan kong isipin yan lalo na dahil sa nawiwitness ko how they support maraming tao na hindi nagtatrabaho, or single mothers or partners who doesn't want to get married dahil yung isa is widow and receiving benefits from govt'. pasensya na po ha, I can't help na mainis dahil sa mga nakita ko na pong pang aabuso sa sistema ng ibang tao and yet the government just gives them assistance. Assistance na tayo pong hard working tax payers ang nagpoprovide. Scholarships are handed to children with low income bracket families samantalang mga taong ayaw maging pabigat sa gobyerno e walang assistance na ibibigay sa mga anak namin dahil maganda kita namin, and so on and so forth. And also po, if we retire sa pinas and we receive pension po, we still get taxed dito US along with kung meron po tayong income sa pinas (like if we have business or whatever source of income meron tayo dun dahil US citizen po tayo. At ang pinaka masaklap sa lahat if we decide to retire sa pinas e hindi natin magagamit medicare natin! Censia na po ha sa negative outlook. Ito kasing si uncle Sam masyadong unfair eh. All he want is money from us even if when we retire!
In case you don't know, you will get dollar-for-dollar credit in the U.S. for taxes paid sa Pinas. You may wind-up paying nothing. Not sure about that, but there is no intended double taxation. Ito pa ang isang link tungkol sa medical care: ua-cam.com/video/uZYTc0OGh8g/v-deo.html Hope nakatulong ito.
At the age of 62 yrs. old is an early retirement but, full retirement is different , it depend upon your age.. if you get a full retirement pension, even if you are working you will not get penalty..
Yes, I started collecting at 62. My dad passed away at 77 and I have the same medical issues as that he had. I hope to live longer than that with all the medications I'm taking. Taking care of my health, and enjoying the remaining life I have, is top priority in my book.
I retired from a state agency but we are paying or being deducted pension Their are. 2 tiers . One who are paying the ones who were hired earlier , that do not pay.
too many factors that affect the retirement age. health is the major reason why I keep on working, the good Lord blessed me with good health so I'll take mine at 66&1/2.. everyone of us has his or her own reason why.
The SSA income limitation only applies to ‘earned’ income, such as from wages, it does not apply to pension income. I’m guessing any income earned in the Philippines would have to be reported as ‘foreign income’ on U.S. tax returns.
I enjoy your straight forward explanations. However if someone worked at a lower wage job. There should be a minimum amount for each year worked for low amount earners 850.00 is just not enough. The system is good but it could be tweeked a little to help out lower wage earners. Also when the cola 8.7 payment goes out it should be a set equal amount for everyone this would also help out a lot more people. Just my two cents worth. LOL
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The reason I draw my ss benefit at age 62 plus monthly employment retirement. I’m good and enjoying our retirement while we are still young and healthier.
Absolutely right madam
I took mine at the age of 62. You will never know if you will wake up tomorrow. I have a lot of friends who hit the bucket before retirement age.
Thank you Pops! Im turning 59 this year, and my husband 60 y.o.Your information nailed our decision to collect SSS@62, it really make sense to collect early, my husband is planning to retire this year and bridge the income with his 401k money which doing the math before collecting sss@62 will just scratch the surface of his money
Also reinvesting your SSS money is a great idea, right now we are in good standing because we no longer have mortage, car loan , my son is hitting senior year this fall and because we saved for his college he is debt free when he graduates. Life is short... enjoy it while we can still run and enjoy living as healthy retired people!
Great vlog!!!
it is true that your ss income is higher at older age, but you need to consider if you can still enjoy life at age after 70 like traveling, eating out, seeing movies etc. i am 65 years old and i started collecting ss income last year. i thought i am still healthy when i retired at age 64. my back pain is getting worse, my blood pressure is going high, both my heals are aching, plus more. so i suggest collect your ss income early and enjoy life while you can still walk and eat with no problem.
My wife developed dementia so much for traveling and enjoying retirement
Please look into changing your diet, my husband had high blood pressure, really bad arthritis, sleep apnea all changed when he changed his diet, please look into it so you can enjoy your retirement! He has been on keto for the last 5 yrs.
Apply 4 months before 62 years old.
Never know how long you live. Get it early !! My 2 cents advice.
Thank you for your presentation. I started collecting mine at age 62 because of the same exact scenario, yes you will receive more at your full retirement age but then again you might not live long enough to enjoy it. I understand everyones situation are different but the numbers don't lie. Thanks again.
also po, as far as I know, your spouse could only collect your sss when you pass away and not your offspring if they are above 18. If it so happen na you don't have a spouse who would collect, then you basically gave the government all your hard earned money. Also, I think when they quoted my pension from being 59 to 62, it's a difference of 150$ a month yata (don't quote me on it po) pero for us to delay retirement for that amount eh, para pong hindi worth it kasi dinedelay din po natin na maenjoy nmn natin yung buhay natin. opinion ko lang nmn po :) Share ko lang po sa mga naobserve ko po sa mga nagretirong co-workers ko po. I had seen at least 3 who have retired after working for at least 30 yrs, same work place only to die suddenly dahil nadiagnose ng cancer stage 4, na stroke, and yung isa nakalimutan ko na po (i think cancer din yun sya). it became a wake up call sa iba naming employees who were trying to delay their retirement dahil nga gusto nila makuha full benefits nila. right now, most of them are saying they didn't regret retiring and they are happier with their life.
Well, the numbers don't lie but we can learn the wrong lessons by not thinking the numbers through. While you might die before the breakeven age of 82, changes are really good, unless you're suffering from a significant illness at 62, you'll probably live. The government knows all this too. They look at the averages and know they'll pay you less (on average) if you take your retirement early--that's why they offer this in the first place. Since most people begin taking SSI from 62-66, the government wins.
Kumusta na kayo diyan Romy, its been a long time. God bless, best regards to you beautiful wife. Remember here Oroville ?
Take it now at 62 yrs old, and enjoy , life ia too short
Began collecting at 62 . That money along with my pension helped me get out of debt nine a year ago.
thank you for good and clearly explanation , for me my 62 yrs old is good enough to support our need my wife well be retire early too, to enjoy our last days on our life
Retired at 55 with LA County (Lacera)and never regretted it.
Yeah...Best decision you ever made in your life was to work for the Ca. county. Do you get 100% of your final pay plus all those amazing benefits???
so true, i've been saying this for years. i work with some people who are over the age of 62. the reason they can't stop working is health care. either themselfs or a spouse needs it. to expensive to buy on the outside.
This is an “eye-opening” revelation. Excellent information. Thanks.
I completely agree. For most retirees, the sooner the better.
Excellent video on a complex topic. I have watched several videos on this topic and your video is the only one that I've seen that discusses the impact of the 'time value of money' which is a basic accounting principle. It certainly puts a different spin on the conventional wisdom concerning this issue.
This is the reason why I will retire at 62. Some people can't understand that. They are just looking at the amount when they reach 67 years old. Thank you for this video. Well done sir.
Yes, but consider all the earned income you're losing. Do you really hate your job that much. SSI will never make up for the lost income.
Hi! I pause video @ 0:32. I am healthy 60 yrs now. I will retire n get SSS at 62. My reasoning is not amount of money but the amount of time life if i ever live beyond 66 yrs. Though lower $$, enjoy my fruit of labor early. I will continue vid see if it changes my mind. Thnx ! Mabuhay !!!
I have been watching half a dozen Vloggs already and they are all helpful for my case. Thank you. Garry from California
This decision is highly dependent on your own set of personal circumstances. I will roll the dice and file at 62, given that longevity runs on a shorter spectrum within my family. Thanks for your insights and analysis...
true
OKAY, but you have access to much better healthcare than your family did historically. So be careful with those generalizations.
Dang! A very good and clear explanation. I am still far from 62 but started to do my due diligence. Thank you, Mang Danny. From: LESE in Arizona.
I like your Retirement Dedicated UA-cam channel. I planned to retire at 63, but might retire at 62. Just turned 60 this year , I have earned close to the max amount for almost 20 years, used to surpass it until a couple years ago when currently its $135K, Only reason will work an extra year is the wife wants to stay in California, but I told her I might walk away from my $140K job at 62 years, life is more important and I am not allowed to Move out of state anyway
I retired at age 55 from my six figure job...haven't regretted it one bit...but that is because i love golfing, biking, hiking, traveling etc...
I am going at 62 in a few months. WIll also have a pension.. Thanks for the info.
Thank you Sir. This presentation reinforced my decision when me and my wife will decide when to apply fo our SS pension...MABUHAY PO KAYO !!!
This is a very good topic, it hits home for me who is just a stone’s throw away from hitting retirement age, though I see myself working ‘til 65, with my savings I can bridge the gap now of about 10 or so years until I begin collecting, then use the monthly/quarterly income in the Philippines as an expat (or a snowbird) if I choose to. It’s no secret that living in the USA as a retiree (in many states) is virtually impossible even at $1,500-$1,700 monthly even if you discount incidental or emergent expenses, not to mention the cost of healthcare and pharmaceuticals (arguably the fastest growing expense for seniors in retirement). With the rough exchange rate at P50 to $USD (maybe less in some Central American countries) a retiree may be able to buy more “life” with a smaller retirement income. Cheers!
Magandang gabi sir, with those numbers you show and my pension my wife and I will live a good life in our province in Luzon I'm not a big city person (Manila or Cebu) Your videos are so informative. Salamat.
yes salamat too
Very informative! You explained very well. Good teacher!
He is good answering all my questions.
However, if you are making over 120K when I'm 65 - there's no reason for me to collect SSN - until I'm ready to retire and not work anymore. I can save more working, than quit - draw SSN and make nothing in comparison! I understand what you are saying - it works for most people with lower income - but for us that are still working and making good money for the future - it's best to keep working as long as you can without drawing SSN! Great Video.
Some state jobs like the ones in California deduct Social Security every month. Therefore, they are entitled to Social Security Pension. The ones who work under Safety Retirement are the ones who don’t contribute to Social Security.
You did a very good analysis on early withdrawal at age 62 vs. waiting til full retirement age. Thanks
Another small consideration if you take the early SSA, when a COLA increase occurs, the smaller amount will result in a smaller overall increase..
Thank you for this video. I'm in Canada but it is helpful for me and my husband just the same. I learned at lot from this video, and enjoy watching your other videos as well.
This is really a superb video that I concur with. and agree too. Contrary to popular opinion of waiting longer is better. You have prove to me and many others that is better collecting early is much more beneficial.
Thank you for this presentation, this is a great presentation, opened my mind to collect SS at age 62 and invest it. Before I watched your video, I was going to wait until age 65 to collect. Now I have a clear understanding and realized that is beneficial to invest the SS earnings and just enjoy life. Now I need to know how to invest it - the right mix, index funds or money market funds, low risk funds so I can make more money and not loose funds when the stock market goes down.
If you had invested in Apple on Jan 1, 2019, you would earned 102% or double your money by December 31, 2019.
Married couples might consider waiting to collect; the widow/widower gets 100% of the higher earning spouse's benefit at the time of death, including the generous 8% delayed retirement credits after ones full retirement age. In any case, do what makes you happy.
The best 17 minutes I’ve spent in years. Excluding certain memories with Annie and Jessica, or that elevator ride and the shower with (names withheld) they’re still beautiful to this day and a part of the movie that is my life.
Thank you for the great info. I think if someone is going to inherit money from a parent or parents, probably makes sense to apply early to collect.
Hi Sir, thanks so very much for this very helpful topic...great tips, & continue helping people.
I like the video; it's well done. However, determining when to begin receiving SSI isn't quite so simple. While the numbers in themselves make sense, there are complications to be borne in mind. The median average life expectancy of 62 year old men is about 25 years and 28 years for women. What this means is that (using the 3% historic annual inflation discount), unless you have a significant illness or a family history of much shorter than average life spans, the smart move is to wait as long as you can. Why? because every year you live beyond the break even point of 81 or 82, you will have made more money, altogether, by delaying your SSI claim. Of course, if you have no other source of income, you'll have to begin collecting earlier than you'd like just to survive. Another point to consider is that in most years your social security payments will be increased by a % that offsets inflation. So, the longer you wait to collect SSI, the greater number of dollars each percentage point represents. The analysis stops at full retirement age. In my case, 66 years. for each year you wait, beyond full retirement age, to begin your payments, you get an additional 8% until age 70. So, for me (using his $$) this would be $1,320 per month at 70 rather than $1,000 at full retirement age, or $733 at 62. If you're reasonably healthy and you have other income, it really is smart to wait til 70. Finally, the penalty for working and collecting SSI ($2 for $1 I believe) ends at full retirement age (66). There is no such penalty for W2 income earned after that age. Just my $.02.
Thanks Grandpa. Wish I could retire now. Always learning good stuff from you.
I'm applying for my spousal soon sir @ 62 ,my husband's FRA is very good , of course he retired ,getting his pay check and still working medyo ayaw pa siyang pakawalan ng company. I can still work but limited hours In a month, being in healthcare I can choose my time and schedules now. My own retirement is intact but I see to it that I don't work over the specified amount within a year. Glad and enjoying every topics being discussed here. God bless po.
Just remember that the projected SS benefit at FRA, on the statements from that you get from SSA, assumes that your latest annual income will continue until you reach FRA. SSA assumes that it will get the same amount of FICA tax from both employee and employer. If you start working less hours to stay below the SSA earnings limit, this will result in a lower amount of FICA tax. Consequently, this will reduce the benefit that you will receive at FRA, since the benefit is based on the last 35 years of FICA taxes paid.
Also remember that the spousal benefit is usually 50% of the primary beneficiary’s pension if the claim is made at FRA. If the spousal benefit is claimed earlier than FRA, the percentage is reduced by a formula from the SSA and could be as low as 32%, instead of the 50%.
Thanks for such a valuable information. Explain it very well. Right to the point. Take into consideration the power of compounding interest ( Rule of 72) and Inflation.
Great Vlog Sir !!! Been thinking about this for the longest. More Power !!!
Thank you much again for this very clear info. about sss retirement. Because of this i have an idea what to do in the future.
Thandie you Vlogger Grandpa for the excellent information!!!
Great video. Well explained that anyone could easily understand.
Medicare will not kick in until age 65. So if you retire at age 62, you don't have medical insurance.
That's correct. That's why my wife continued to work the last few years...because of medical insurance! 🙂
No ur incorrect, on the Obama care if ur unemployed ur medical insurance is free!
i know what about obama care
Here's my rule of thumb...if you need it then collect it...if you don't need it then the MORE you want to collect it...WHY??? Because no one can guarantee that you will be alive tomorrow! And here's another way of looking at it...if I start collecting at age 62 for $733 a month, I would have earned already a total of $38,116 ($733 x 52 mos.) by the time I reached my FRA of 66 and 4 months...
Thank you Sir, you make such a great case regarding SSI, my wife do appreciate your prospective!
Much appreciated
EXCELLENT Video..
Thank you for explaining it..
Love this bruh...both Devon Carroll and Josh Scandlen(UA-cam SS/retirement guys) say retire later. I agree with you..if for no other reason I dont believe the hogwash about people living longer. The length of the obits argue otherwise. Rather would enjoy the $ now(present value) than get more later and not be able to enjoy it.
Fred Ost Josh Scandlen in one of his videos said to leave your dead beat job if you’re sick and tired of it and having problems and to take your ss. In another video he said don’t ever retire early.
Hello grandpa. Thank you for the information Watching from Portland Oregon..
Fantastic Sir! Your advise it solid. Thank you for the wise insights.
Very informative, I’m impressed . Thank you sir.
For those who turn 62--and have at least ONE MINOR CHILD (biological and /or adopted)--you might want to consider collecting now, depending on the age and the number of children you have. In addition to your social security benefit at age 62, EACH MINOR CHILD is eligible to receive 50% of your FRB (note: there is a cap) until they turn 18. That's a lot of money especially in the Philippines.
Wow this new to me...I just had a baby in January. I’m 52 . I have always considered retiring at 62. So I’ll have 8 years for my son. Right now we will live in the States...eventually move to Philippines maybe in 10 years. I have IRA account. So I’m not so reliant on just social security. I’m going to research this. Thanks!!!
Another great subject. One important life changing effect of retiring at age 62 is losing healthcare coverage. Just the premium of new healthcare insurance will wipe out the SS benefits. Maybe one option is to move to the Philippine where I heard it is a lot less. Also if you have other income let say from investments, social security benefits at full retirement age will not be reduced but will be taxed tax up to 80%.
Rick Sanchez just be careful about the crime rates of the Philippines.
@@MBihon2000 it depends on where you plan to retire in the Philippines.
thank you Sir.. now I know when to collect my Social..
I thought I knew the answer before I watched the video...break even at age 78. One thing you didn’t address is if ur better half makes much less than yourself, and she survives you, she will claim a higher amount upon your passing away assuming she is of age
very nice..i my self...have no choice..i am ret in june into disability...but the #s are still good!!!....and yes...we are not promised tomorrow...thank you ser..
One thing I failed to mention in my comment from a month earlier is …. if you collect SSA benefits before your full retirement age you will be held to a limit on earned income. If your earned income exceeds this limit then SSA will penalize you, so you must take this penalty into consideration if you plan to draw your SSA benefits prior to full retirement age PLUS you continue to have earned income as well.
This penalty may wipe out any benefit from taking SSA pension at an early age. Of course its dependent on each individuals situation. I believe the penalty is fairly steep.
I am 64 now and still working a job I really don't like here in the Deep South (I lived 30 years in California previously - dyed in the wool liberal Democrat here), and which is making me more miserable as I age. I plan on hanging on until I can file for Medicare at 65 and 91% of monthly SSA benefits and move to BGC. My 401k should take care of most of my expenses. Great St. Lukes hospital there in Taguig.
Great way of looking at this. Different take from the usual
Some kababayans may not be aware that they might also be entitled to social security benefit from the PHL SSS. If you worked and contributed for at least 10 years (120 monthly contributions) before immigrating abroad, you can claim your benefit at age 60. You do not have to be a dual citizen to file the claim. If you are 60+ and have not yet filed a claim, you will receive an initial lump sum equivalent to 13 months benefit per year that you missed, plus accumulated interest. If you have less than 120 contributions (for example, you only worked for 8 years in PHL before immigrating abroad) and you are less than 65 years old, you can still pay additional contributions to make up and be eligible. More information can be found here: www.sss.gov.ph/sss/appmanager/pages.jsp?page=retirementqualifying
If you hate what you do at work everyday, it's good to quit early, but if you like what you do at work you can stay as long as you can able to move around.
Kobe Bryant, may he RIP, was an eye opener for me.....
Exactly. SSI will never replace your lost earned income.
@@magikerongsugarol1025 Be very careful making such important generalizations from a sample of one or two.
Great video! You might have touched on inflation and/or dilution of the dollar, where 12 years from now, or however long you decided to defer, will have quite a significantly less value or purchasing power. I'm 60 and I will most certainly start my benefit at the earliest qualifying age at 62! ... that is of course, if the social security is still around...lol.
I worked almost 40 years in a commercial company. It the beginning, it was over 1500 employees. Towards the end it shrank to less than 150. Due to politics in the company, I was miserable going to work every day. Real estate market was high, mortgage paid, and I always had a desire to retire out of the country. While on a 6 week vacation in the Philippines, we found a great house and put a deposit, once you retire, your SS benefits will never increase because you are no longer contributing to SS. Therefore, in this case, collect immediately. My SS is deposited in my US bank and set up before retiring, i can transfer dollars to a dollar account in the Philippines.
good for you..enjoy life...I can not wait myself to retire and travel around Philippines...
Very intertaining and informative video. Thank You!
Another factor to consider is the amount your spouse can draw when you die...max of 50% at full retirement age. If you start drawing at 62 then your spouse can only get about 33%.
Wow!! Thank you for this information..
That’s it! I am going to retire at age 62, this make sense.
it all depends how long you expect to live. i know of several that didnt even get to spend their first check at 62. and know several that didnt live till 66. so if your life span is relatively short the earlier the better
12 years are needed to break even at full retirement. Good information. That means to me that we are betting when we retire that we will live at least 12 more years to break even. So if poor health and expected short life, retire early.
That's correct. I wish we have a crystal ball to know the future. 🙂
Time value of money. Basic tenet of finance. You covered it well...
Also consider the life expectancy of 78 y/o! A lot of people don’t even make it to 62.
For low income earners with lots of stress at work…..it’s absolutely applicable to collect early. But for those who are earning a decent amount of money like $100 K yearly and still enjoying their work it’s best to delay and wait until 67 years old.
If you are fat, take it at 62.
I find your analysis very sensible. Very good information. Thank you
If you are happy working and plan to continue working after 62, earning >100k, it might not be a good move to collect SS yet. If you plan to stop working at 62, go for it.
Im supposed to retire this June and got my packet of papers but with this Covid 19 pandemic I did not return my packet to my employer and will continue working at home since I cannot travel anywhere. So it most likely will be next year. If shelter in place will continue and working at home is still available then will be better for me and might work more. All the info I get to work is available in our network online so no need to go to the office.
I like your explanations very clear about transferring dollar account to
Yes all better get t social security at 62, if wate 65 and if don't but a year you lose money for ever, unless there Heaven plan you can join !!
Nice video, very smart wisdom👍🏼👍🏼👍🏼
I adore u vlogger grandpa..thank u for this info
I took SS at early age. Yes less at beginning but best thing I ever did
Thank you for you info !!! I just subscribed
Wow! The max social security in U.S is about $2800 U.S dollars per/M. The max benefit in Canada is around $1741 CAN dollars per/M. (That included CPP + old age) even if you worked for 40 years or more. We're screw big time.
thank you sir for your letting us know. now i have to retire at age 62.
That’s true.However,in my case I’m retiring at 66 in 3 months.If I retired at 62,I would have lost 400k in earnings.
I hope you saved part of that 400k ....
thats not possible...thats equivalent to $7,800 a month in SS pension. the maximum SS pension is only $3,790 in 2020....
I understand your calculations but the flaw in it is that it doesn't take into account the time value of money.......if you factor time value of money which would be discounting the cashflows back, it would be clear in your example that it would make most sense to start drawing SS at 62.
Also po, sorry dami kong comment pero one more thing po na gusto ko pa rin ishare based sa sinasabi ng mga kakilala kong nagretire. They delay their ss pension so that their tax bracket will be less. Para po lalabas na low income sila. bale ang pension na kinukuha po nila is coming from TSP and FERS po which sabi namn po nila is enough while waiting for their ss benefit. first time ko po narinig na when you have other retirement funds and you go beyond that 1470/month, then your ss pension will decrease? grabe nmn po talaga tong gobyerno natin. nahigh blood po talaga ako pag naumpisahan kong isipin yan lalo na dahil sa nawiwitness ko how they support maraming tao na hindi nagtatrabaho, or single mothers or partners who doesn't want to get married dahil yung isa is widow and receiving benefits from govt'. pasensya na po ha, I can't help na mainis dahil sa mga nakita ko na pong pang aabuso sa sistema ng ibang tao and yet the government just gives them assistance. Assistance na tayo pong hard working tax payers ang nagpoprovide. Scholarships are handed to children with low income bracket families samantalang mga taong ayaw maging pabigat sa gobyerno e walang assistance na ibibigay sa mga anak namin dahil maganda kita namin, and so on and so forth. And also po, if we retire sa pinas and we receive pension po, we still get taxed dito US along with kung meron po tayong income sa pinas (like if we have business or whatever source of income meron tayo dun dahil US citizen po tayo. At ang pinaka masaklap sa lahat if we decide to retire sa pinas e hindi natin magagamit medicare natin! Censia na po ha sa negative outlook. Ito kasing si uncle Sam masyadong unfair eh. All he want is money from us even if when we retire!
In case you don't know, you will get dollar-for-dollar credit in the U.S. for taxes paid sa Pinas. You may wind-up paying nothing. Not sure about that, but there is no intended double taxation. Ito pa ang isang link tungkol sa medical care: ua-cam.com/video/uZYTc0OGh8g/v-deo.html Hope nakatulong ito.
Si Uncle Sammy, is money maker, ka ching kaching..Strictly for Business Lang po..
Excellent video. Thanks 🙏
@Silvestre Navarro My pleasure!
At the age of 62 yrs. old is an early retirement but, full retirement is different , it depend upon your age.. if you get a full retirement pension, even if you are working you will not get penalty..
So what did you do? Did you collect at 62? Can you let us know what you did and your reasoning behind it? Thanks!
Yes, I started collecting at 62. My dad passed away at 77 and I have the same medical issues as that he had. I hope to live longer than that with all the medications I'm taking. Taking care of my health, and enjoying the remaining life I have, is top priority in my book.
I retired from a state agency but we are paying or being deducted pension
Their are. 2 tiers . One who are paying the ones who were hired earlier , that do not pay.
i'm your new subscriber, great presentation very informative
Hi, Danny
I just view this video again on how to calculate the numbers via excel. I sent you an email with regards to this. Salamat Po!!
Thank you for all the information sir
too many factors that affect the retirement age.
health is the major reason why I keep on working, the good Lord blessed me with good health so I'll take mine at 66&1/2..
everyone of us has his or her own reason why.
For me 66 is the only option coz Im still working. Unless I retire at 62 and stop working. The difference is not that much.
The SSA income limitation only applies to ‘earned’ income, such as from wages, it does not apply to pension income. I’m guessing any income earned in the Philippines would have to be reported as ‘foreign income’ on U.S. tax returns.
Nice video very informative
in Australia the government changed it to 67 bugger that at my age of 56 no way i will wait for that , i will self fund .
I enjoy your straight forward explanations. However if someone worked at a lower wage job. There should be a minimum amount for each year worked for low amount earners 850.00 is just not enough. The system is good but it could be tweeked a little to help out lower wage earners. Also when the cola 8.7 payment goes out it should be a set equal amount for everyone this would also help out a lot more people. Just my two cents worth. LOL
Thank you sir for the information😊