5 Really Good Reasons to File for Social Security at Age 62
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- Опубліковано 7 тра 2024
- Conventional wisdom says to delay social security benefits for as long as possible, however, that’s not the best strategy in all cases. In fact, there are several compelling reasons why collecting Social Security at age 62 could be the right decision for certain individuals.
Life Expectancy: Many financial analyses focus solely on the break-even point, usually around age 80 or 81. However, if your health history or family background indicates a shorter life expectancy, it's essential to weigh the benefits of early collection versus waiting.
Portfolio Growth: While delaying Social Security can result in a higher monthly benefit, it also means drawing more from your savings in the interim. By starting benefits early, you reduce the amount you need to withdraw from your portfolio, allowing it to continue growing. This strategy can be particularly beneficial if you plan to invest the Social Security funds, potentially pushing your break-even age further into the future.
Age Gap with Spouse: For couples with a significant age difference, collecting Social Security early can be advantageous, especially for the younger spouse. If one partner has a considerably shorter life expectancy, it may not make sense for both individuals to wait until full retirement age or beyond. By starting benefits early, you can maximize your combined income while still considering potential survivor benefits down the line.
Unlocking Family Benefits: Early collection may also unlock additional benefits for dependent children or spouses. In some cases, waiting too long to collect could mean forfeiting these benefits. By assessing your family's financial needs and eligibility for such benefits, you can make an informed decision about when to start collecting.
Immediate Financial Needs: Sometimes, life circumstances dictate the need for immediate income. If delaying Social Security means resorting to high-interest debt or other detrimental financial decisions, it may be more prudent to start benefits early. While this decision may result in a lower monthly payout, it could prevent further financial strain in the short term.
Ultimately, the decision of when to collect Social Security is deeply personal and should be based on a comprehensive evaluation of your individual circumstances.
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⏱Timestamps:⏱
0:00 - Reconsidering deferring SS benefits
1:06 - Life expectancy
2:33 - Grow portfolio
4:19 - Spousal age gap
7:11 - Family benefit
8:17- Financial need
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You left out one of the best reasons! Take it early to enjoy the money with your family, while you are still young enough to get around during your go-go years!
Heck yeah! That’s what I’m gonna do. I’m not waiting till I’ll 70 before I enjoy life.
Amen. You never know how long you have left.
Why not enjoy a larger check with your family?
YES!!!! Why do all of these "experts" ignore that?
?
Tomorrow is not promised. If you can afford to, retire and do the things that make your heart sing. No point in being the richest in the cemetery.
I was forced into retirement by the CV-19 flu. My wife and I both lost our jobs. After two years I had had enough and got another full time job. I don't really need the money, though it is nice, but I need to do something besides leisure. I go to work singing. My dad retired at 66 and played golf for the next 20 years. That is a job I don't want.
Collecting at 62 is foolish.
Amen
True Dat 👍
@@uncareid5557, I will take the golfing for twenty years!
I did the math. I break even at age 76, my life expectancy is that. Took at 62.
I ll take it 62. Life is short and unpredictable. I don’t care a big money that I have to wait another 3-8 years. I d rather enjoy it as soon as I can.
I took SS at 62. A couple of months later, I maxed out all my credit cards as well. Sold my house and am now renting. I plan to spend it all in the next 4 years. Tomorrow is not guaranteed. Life is short and unpredictable. Enjoy it all now.
I took it early and never regretted it. What was nice was when I turned 65, I automatically received my medicare cards without having to apply.
You will regret your decision later. Opting for a small check was foolish
How do you know what someone else will regret when you don't know their situation? Shutup!!!
@@richardargst157…. You know nothing of their planning or resources. 🤐🤐
@@richardargst157 He or she could be a millionaire for all you know.
I worked for 46 years and at age 62 I had enough savings on my portfolios and with SS and unions pensions I manage to paid all my bills and have some left over, and also I didn't wanted to push to full retirement age, I was a truck driver for over 38 years and the stress was getting to be a concern for my health now I feel good, better health relax and the good thing for anyone save before retirement just in case you need it. good luck all.
My uncle retired with no savings, just Social Security. At only $1,850 per month, he rents a nice 1 bedroom apt and has plenty leftover after bills. However, he retired in the Phillipines where his rent is only $350/month...including utilities!
I drove semi-tractor/trailer vehicles for a while but developed blood clots in my leg, had to quit. I know what you mean about the stress levels due to trucking. Can't *imagine* doing it for 38 years! Like I say to the military folks, thank you for your service, sir. Drivers are genuine public servants, even though they don't get the credit for it.
I am currently 55 years old. My SS at age 62 is about $2,100 a month. At age 67 is about $3,100. I will collect at age 62.
Do you live now on $2,100/month? Collecting early might be okay but think about supplemental income via part-time.
Good thoughts. I’m 54 now and had a triple bypass a couple years ago. My mom died at 62 from a heart attack so I HIGHLY doubt I’ll live past 70. So that makes sense to me to collect at 62. If my wife pulls it at 62 also, we can completely not touch our portfolio except for crazy vacations.
I applied for benefits at age 62 mainly because I just don't trust the crooks and monkeys who run the Congress to keep their hands out of it and not mess with eligibility requirements and/or other criteria (and which I'm sure is coming as the funding crisis gets worse with time) and didn't want the door slammed in my face when I needed the money. I decided to grab while the grabbing is good and don't regret it 1 bit. Also, despite what James said in this video (and his presentation here is actually pretty good), you still have NO IDEA as to exactly how long you're going to live because everyone's situation is different. I've known several individuals who had 'life expectancies' of 75 or more years, but died early due to unanticipated accidents or illness and received nothing. My true feelings are: You've paid into the fund, it's YOUR money, life is short, so eat your dessert first! And don't feel bad about doing it!
You made a very foolish decision that you will regret as each year passes and you realize you could have had a larger check.
@@jacksummer854….. The guy is working his plan which is his choice and his plan…. Good for him.
@jacksummer854 really?
Please explain
40 years of corporate America. I took mine at age 62. Then I cheated and filed for SSDI. It was a 3-year battle, but I won my SSDI. Getting FRB now. I have 1y left for my SSDI to turn back SSB. Downsize to Independent Senior Living. So I'm good.
I'll take it at 70. I won't need the money before then and I'd rather have the max amount of SS benefits for the rest of my life as I expect to live a long time. I see it as a form of "insurance" that I won't run out of money before I die. Both of my parents are in their 90's and I am in my late 50's, in excellent health, and in great shape.
Your not even promised tomorrow. My papaw liked 1 month to retire at 70 he passed away at 69 and 11 months. You will regret it if the same thing happens to you.
i refuse to take it early if my husband is making good money…why give all that back to the govt thru taxable income?
@@marty64thorntonI doubt he will regret taking social security at 70 once he’s dead.
Tomorrow isn't promised and for that reason I decided to retire at the ripe old age of 57.
Thankfully my wife and I both have State Pensions, she retired at the age of 55.
I am 2 weeks into my retirement and will wait until the end of the month before I make any major decisions such as trips, vacations, downsizing of our home, etc...
My wife and I will draw my SS as soon as I am able to.
Remember this, we can always make money but we cannot buy time.
Congrats. I retired at 52 and not a moment too soon. I say retire as soon as you can as your time alive is the most precious thing you have as it is indeed limited. You want to make that time as enjoyable as possible. You can "buy" some time though by living as healthy of a lifestyle as you can.
My Mom died at age 49. Nuf said. I'm taking it early!!!!!
5 years from 62 and ill be collecting then! Toby Keith died at 62!!! We dont know how long we have!!
That's exactly the reason I plan to wait... because I don't know how long I have!
Gene Hackman, June Lockhart, Jimmy Carter, Dick Van Dyke, Clint Eastwoord, etc., are all still alive!
If I die early, I won't regret not taking it... because I'll be dead. And yet if I live to be near 90 or more, I would most likely regret not taking it every single day, for those last ten years of my life.
@@MrEdwardCollins….. Age 62 works for me as it will allow my nest egg to grow which can be passed down to the next generation…. I have ran Monte Carlo simulations for years now and this method is what works for us.…. That is the true beauty of the system is that everyone can adjust it to their own retirement needs.
No cemetery headstone ever said, I WISH I SPENT ANOTHER DAY AT WORK.
Thanks for another informative video. I’m really impressed with the clarity and straightforward discussion about retirement topics on your channel.
Another advantage to pulling the trigger early on SS is it allows the portfolio to have more of a legacy transfer to heirs by taking pressure off earlier withdrawals from the portfolio and it allows your financial advisor to make a few extra bucks off the larger portfolio balance..
The Federal government will pay you 8% per year plus inflation until you are 70. Do not collect early
To heck with the heirs, I need mine at 62, bcs there isn't any portfolio 😂. Military retirement & SS that's it.
Very simple we never know when our time is up. I took early retirement at 62 because my 2 brothers never made it to 68 years old.
I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?
@@juangarcia8828…. You will not be getting social security as you’re not qualified.
We're analyzing this now. Great things to think about. You covered lots of angles to consider. Thank you!
Great video James. Very informative and well presented. I totally agree with all you said. One rarely sees this type of advice online.... I really agree w/ #2 - investing your monies at 62. Once one passes on - SS stops (unless spousal) but you can build a great nest egg to pass along to your heirs or favorite cause - this is what I have done for the past 5 years. Be well.
Another very informative video James! Thanks!
#2 seems to be the key. Not taking SS early puts additional stress on your portfolio early in retirement, and there's still 20 years before the SS break even.
Take SS at 70. Taking a small check is foolish.
How will you collect at 70 when you’re dead at 69?
@@jacksummer854… Everyone will have a different situation in my case after running multiple Monte Carlo simulations over the years I am confident in taking social security at age 62.
What are you living on in the meantime? Drawing down on your portfolio?
@@Me-fm9zk - That makes sense. Nobody lives past 70. Maybe 1 out of 1000.
Collecting smaller amount early versus collecting bigger amount later.
Every calculation will show that the total accumulated amount collected between the two will be even at age 75.33. After that age, a person who collected at 67 will get more.
The real question is, where will you be at age 75.5? If you pass away before the age of 75, than the person who collected at 62 beats you. And even If you’re still alive, the extra money that you will be collecting only means you will have extra money to buy more diapers in the nursing home. Or maybe, it will buy you extra massage from the nurse aide, since you will have extra money. But the years that you could have enjoyed early for leasure and travel while you can still walk and run, those years will be forever gone and you will not be able to collect those later.
Well said 😂.
I retired with a pension at 55 and no debt. I've always been active and want to enjoy my abilities while I still can. I'll be taking my SS at 62.
It almost seems like people think that taking it early, your money somehow vanishes into the ether. Take it early, spend some, save the rest/add to your portfolio. If you make it to 75 you'll still have that plus the earlier enjoyment with better mobility.
Or maybe you get hit by a bus at 67.
James would you please do some more “scenario based” social security claiming videos. My specific case is one working spouse with high lifetime earning. Non working spouse with no ss credits. Show the difference if they claim early or full retirement or 70 to illustrate the effect of the spousal benefits on the total claim value. Thanks!
I'm not taking social security until 70 for one simple reason. I've been a moderate/high earner and should predecease my wife and I want the maximum benefit for the survivor, either way.
Hopefully you live until 70!
To me, that would be even more reason to start at 62. Given you’re a high wage earner, I’d imagine you’d have a sizable retirement account(s). Starting at 62 means you leave more of that untouched. So that if you happen to go early, your wife has more of the retirement accounts available to her. And she’d be much more in control of it than SS.
Waiting to 70 is fine. But you have to consider the “spousal” strategy of your wife drawing on her PIA, or drawing 50% of your FRA PIA. She can’t draw on your FRA PIA until you draw. So waiting to 70 can mean forfeiting her 50% spousal.
You are absolutely right I did the same thing. As long as your healthy keep working. Taking it early you take a big hit in the amount you get.
100% agreed
Great points, particularly #2. If you invest the money, you’re increasing your risk but will more than likely come out ahead. It therefore comes down to the amount of risk your situation can accommodate.
Bravo on adding large captions reflecting what you are saying. It's helpful to those of us with hearing loss -- and UA-cam's captions are often wrong.
Great Video James.
Excellent point about the difference between a "period life expectancy" from birth to death, and a "cohort life expectancy" from current age to death. The first is about 79 and the later is (for my age group 61) is 84 for males and 87 for females. Not a lot of difference, but realistically speaking, no one should be planning on quality of life, or even life itself past 87. Consequently, the gap between total income from SSN by retiring at 62 and at 70, is significantly diminished when you look at from that perspective.
Great information. Thanks.
I worked in the public sector for several years and I’m working in the private sector now. I’m going to get a pension at 62, but I’m going to continue working until I hit my FRA. I’m going to invest my entire pension when I start collecting it and keep investing it until I retire.
100 percent right my man!
Great video, thanks.
I collected at 62, A year and a half later the ACA was starting. I suspended my SS until past 66. I am the second person in my family to have ever collected any SS. I have a modest but tax efficient portfolio, now only with 12% in tax infested money.
If I had it to do over, I would have done more Roth conversions first and then waited longer for my SS.
I am single, and not aware of any children.
Just my story. Outcomes will be different for others.
Interesting. I thought there was a 12 mo. limit on being able to suspend one's SS.
@@penelope5500I suspect he had the SS File and Suspend options that were eliminated April 30, 2016. Obamacare ACA was offered I think beginning on 2011, which would never pass today even if the Dems controlled both Houses. Manchin and 2 other Dem Senators would probably not vote for ACA in today’s political climate. ACA was about 1,000 pages long because the Dems were not 1 thinking, and many compromises had to be made, resulting in a very, very complex program,
My uncle retired with no savings, just Social Security. At only $1,850 per month, he rents a nice 1 bedroom apt and has plenty leftover after bills. Of course, he retired in the Phillipines where his rent is only $350/month...including utilities!
#6 Taxes. Social Security is taxed at a lower rate than say income withdrawn from your 401K or IRA which might have both state and federal income taxes due. Thus not only will your portfolio grow by not taking out money to live, it will grow by the additional amount not taken out to cover taxes. #7 You are single. You don't need to maximize your benefits for a spouse, and in most cases Social Security breaks even, it was designed to break even on average for early and late filers. #8 We spend less as we age and spend more in our earlier retirement go go years, despite the scare tactics that you will need every penny to pay for healthcare the statistics don't support that. While healthcare cost do rise with age, other expense drop more, resulting in less spending as you age. #9 You have had enough and can't stand any more. Taking Social Security may give you the opportunity to change jobs and do something you enjoy that pays less but is more fulfilling.
@jamesalias595 ….. All great points #6 thru #9 well stated and informative.👍👍
I would love to see a video on you expanding on collecting SS early and investing it and how it can extend out the brake even point assuming returns of say 4% 6% and 8% over inflation..
When I start collecting my benefits it will 100% depend on if I am still working or not. If I have retired before 62 I will start collecting at 62 If I am working beyond 67 I will start collecting at 67.
Right now I am working more because I want to than because I have to. Though that might be changing real soon as I am looking at buying some vacation property that I can not possibly afford if I retired.
The reasons I have for collecting as early as possible.
My parents both died in their mid 60s so I don't expect to have a long life expectancy.
My income from SS will be small as what I have in assets was not from earned income but other means that was not subject to SS taxes so did not help to give me a high SS pay out amount.
What little I collect from SS will save me that amount from withdrawing from my invested growing assets.
I was 61 in 2020 when Covid struck and ended up being laid off (early retirement package) from a very well paying job. I was really hoping to work at the company for 5-6 years longer but what can one do? In October of that year, I was diagnosed with prostate cancer so had to deal that and after turning 62, decided to move back to my home state to be near family. I went ahead and started collecting SS and went on a very strict budget. It truly helped keep me from going through my savings quickly and now at 65 and on Medicare, pull even less from my savings. I don’t have a ton of money saved and unless something major happens, I should be okay for 15-20 years. And who knows if I’ll even live that long. So for the time being, it is truly a godsend. Oh, btw… there have been 2 COLA increases which helped as well.
Good content! I think the big thing you might also want to weigh, if you can afford to, is whether you think you can earn the roughly 7% increase in SS you get each year by waiting…..
I thought your other videos suggest to delay the SS for Roth conversion.
Kinda bummed I’m just seeing the magic #62 since I’ll be 64 next month😂 Dang it!!
Happy Retirement to everyone!!!!
Enjoying your Golden Years is spot on.
I initially considered collecting SS early so I can invest (option 2), but few issues came up:
1. I have significant amount of Roth conversion I need to do once I retire to minimize RMD.
2. While the market on average will outperform the delayed SS benefits, that's the average, not what'll happen each year.
Would love to see a video about the details of suspending SS.
I retired at 55 (2 years ago) and been lucky enough to save and grow my 401k to over 2M during my working career. I do have money outside of my 401K but I’m using the Rule of 55 to access my 401K for living expenses and within the last 2 years, been living off the profits from the 401K without touching the principle. The biggest internal debate I have for myself is, should I take early SS so that I can use that extra money to go on more vacations when I’m younger and able to do more physical activities, and any extra can be reinvested, or spend down my 401K and postpone taking SSN until FRA to avoid higher RMD later down the line. I guess this is a good dilemma to have.
Classic case of a U-shaped retirement spending plan. You want more early to travel, then it’ll settle down after for a decade, and then it may increase due to long term care, etc.
Simple enough to run some numbers with an advisor and then see whether collecting SS early makes sense.
(I do a lot if spreadsheets myself, but I’d go to an expert for this because their spreadsheets are better and looking at all the tax consequences too.)
Roth IRA conversion is another possible strategy to reduce RMDs. Congratulation on being a good worker and saver! 57 here and dreaming about retirement 😀
I’m considering retiring at 55. With the rule of 55 is there a penalty to withdraw from your 401k early?
You need to look at your and your family health history.
Tshay..So hard to give a helpful opinion, without knowing other critical details, such as; do you have a spouse who may survive you, and if so; does he/she have their own retirement accounts? Do you have a mortgage or any other type of debt? Will you and/or your spouse (if there is one) be receiving any type of pension from a former employer? Are there any dependent children still in the picture? These issues could make ALL the difference, in determining whether or not you should wait for your maximum Social Security benefit, at age 70.
What about getting it early because what you will get at 62 will be enough to maintain a comfortable life and you want to enjoy life while your health allows you to do so. Based on my family history, I know that I won't live beyond my mid 80s and the last 10 years will be in poor health. Most of my family don't make it into their 80s. I don't have a single ancestor on either side of my family that has lived to 90 that I can find. I want to get it ASAP and enjoy the time i have left. Tomorrow is never guaranteed.
Good video!
James, great info as usual. But this one was tailored for married couples. Could you retitle it or add in for single people thinking about taking SS at 62? Thanks
Also divorced, they ended spousal benefits, totally sucks.
My son will be 8 when I hit 62, so I'm definitely retiring then. That's partly because he will also get dependent social security benefit - 50 percent of my normal age retirement benefit at 67. You should cover this topic and social security benefit for dependents.
You can thank the Liberals for getting that benefit for the poor, old people with young children.
Thank you
hi James,
is it advantageous to start collecting social security at 62 (let's say now) if we know that in 10 years or so that social security be will reduced to @ 79% because they don't have enough funds?
I plan to start taking my SS at 62 mainly for your reason #2. Every dollar I get from social security is a dollar I don't need to take from my 401K so it can keep growing. Also I plan to leave a bulk of the money I have in my 401K to my son. When I pass away my son can't benefit from my SS but he gets to have what is in my 401K. I know I need to consider my wife but she has her own income stream to keep her viable.
TAKE THE MONEY AND RUN!!! I AM 64 AND LOVE GETTING MY MONTHLY STIPEND. WOULD NOT GET MUCH MORE IF I WAITED.
What is the rush to get to the Federal welfare trough? You will collect much more SS if you wait until you are 70
According to the SSA, the average SS check at 67 is $1,883. Why is it so small? Because fools collected at 62, not their FRA or 70.
@@robertstevens2030…. If you have planned properly taking social security at 62 helps to preserve your nest egg which can be passed down to the next generation.
@@robertstevens2030you are assuming you will make it to 70. Quality of life at 64 vs 70. Take it and run.
good job James..
Another reason to take your benefit early is if you are the spouse with a significantly lower earnings history. The downside is the lower spousal benefits (about 35% less) and the potential for SS benefits to be taxed if the higher-earning spouse is still working.
I've seen many articles looking at SS breakeven based and its around 76/78yo. These are math models. Can you show us the exact math where the breakeven point is 80/81yo?
New subscriber here. I would love to hear your thoughts on this scenario: high income earner files at 65 so that low income earner can file spousal benefits, then high income earner continues working where they would essentially lose all benefits in penalty. Would lower-income earner spouse STILL get to receive the spousal benefits based on what the high income earner’s benefits are before penalties? And, isn’t there some sort of recoup of those losses after fully retiring?
awesome advise!
What is the rush to get to the Federal welfare trough? You will collect much more SS if you wait until you are 70
@@robertstevens2030… It is not welfare I have paid into the system for over 40 years….You have to qualify with both time and income for social security…. That is what will determine your benefit……
Great info again! - I think we will be starting at 62 just so we are not taking our monthly amount 100% out of our principle. Hoping that will extent it - any thoughts?
If you are a couple, one, usually the higher earner should delay somewhat, unless you are very wealthy. Remember that the highest check goes to the last one alive. Both taking early is gambling on good stock returns. The opposite is also true. Rarely does it make sense for both to delay.
I’m looking forward to retirement around 50/52 with a state retirement pension plus a 457 plan. I plan to draw SS as soon as possible because I don’t need the higher payout to make ends meet.
Plus SS is taxed advantaged compared to IRA/401k withdrawals
Yes, but depending on your income it isn’t a huge difference. For joint filers, it is 85% taxable when you go over $44k on the worksheet.
@@shawnbrennan7526… True, but we will take that 15% tax break vs none on a pension or retirement account.
James: There is a difference between getting the max SS {of 2024) and stopping work at say 63 and waiting until age 70 to collect. That max SS of 2024 is calculated by working all the way to age 70 and having at least 37 years of work history - (not just the min of 35). I say 37 because when the year the max is 147,000 - when normalized against the National Average Wage Index is not part of the top 35 - it gets wiped out. And that happens on another year also -- so 37 years continuous is what you need to the max of that year. I have to assume you know this ???? You could have stopped working at age 63 and had maxed out each year - but that will not be the same as two people (me and someone else) of which a person who works until age 70 willl get more in SS than me at 63 waiting until 70. The other person will get a larger numerator divided by the 35 and the COLA from 62 to 70. My 35 earning max years at 63 years stays stagnant at the numerator , but only grows by the COLA until 70. Again, I am assuming you know ???
If I could collect SS now at age 48 I would. I could live good on $1,000/month in a lot of other countries. Been working for 30 yrs.
This is sound advice, thank you. I would add also to your point #2 about investing the SS money, the longer the time of investing, the more time of tax-free growth if one intends on bequesting your children inherited money at the "stepped up" basis. I will add another point to consider: Our US Federal government is constantly in a debate about trimming SS benefits. Grabbing the money now may well secure a "grandffathered" status that will be of profound benefit should Uncle Sam implement SS benefit cuts, most likely by way of means testing. "A bird in the hand is worth two in the bush". 🕊
You feel strongly that the threat of cuts to SS benefits should be considered, yet you feel secure that your benefit will be grandfathered. What makes you think that if SS benefits get cut that the current benefit of recipients would be off limits? Please explain.
Once you have the money, you can control how it’s spent or invested. It’s no longer subject to changes in social security policy changes.
If you’re a competent investor taking it early makes sense. If your a horrible investor, than maybe delaying is the best option.
So the survivor benefit is the deceased spouse’s full benefit?
I knew a guy at my work he did all the math to the penny he waited till 65 he retired and less than a week later he passed away just go when you can
I am almost 65 and still working. I will not make sense collect SS or my wife who stop working 4 years ago. She worked in the health industry. We both have large retirement accounts, no debts, and healthy (big plus). If I file SS think I will not receive much of it since my salary is almost 70K. My wife is almost at the age of FRA but I am not still sure when would be the best time. We have been withdrawing funds from IRA and so far IRA accounts keep growing. I tried to keep the tax bracket in the lower end. Suggestion?
I'm taking mine at 62. I'm not waiting. I'm not going to lose out on my money
Hi,,how many days do i have to respond to a social security desabibility review? What if im few days late ? Thanks
I’m collecting ASAP. I’ve paid into it all my working life, & tomorrow isn’t guaranteed.
What is the rush to get to the Federal welfare trough? You will collect much more SS if you wait until you are 70
What if you’re divorced but was married 10+ years. I have a longer life expectancy and his is lower but we are both still working. I can’t take mine earlier because I make too much right now. But his amount will be greater than mine. Can I claim his now or do I have to wait til he passes?
On this channel and others that discuss SS strategies, I haven't come across any discussion concerning large age gaps. I''m 60 and my wife is 41. Her first job was only 20 yrs ago. I'm considering retirement in 2-4yrs. But with a pension, I likely won't file for SS until maybe 65-67. That said, there's a good chance I won't be around in when my wife hits full retirement age. Do you have any recommendations for planning purposes on when I should file?
I have a different scenario I do not see an explanation for anywhere on line. I am already retired at full retirement age. My wife is 60, 10 years younger and her retirement age is 67 and she is working. However I am not sure she will meet the retirement requirements by 67 and anyway she will not qualify for more than half of my SS pay. My question is, should she start collecting retirement at 62-63 (as I would like) and if she still chooses to work, how much from her income will be taken off from SS and is that calculated based on Gross pay, Total Reported Wages for Wages,Tips, Other comp, Total Reported for Soc Security or Medicare? She is maximizing 401K, IRA, HSA and we maximize IRA and Roth to keep taxes to a minimum.
Absolutely. I am planning to take my money out as soon as they let me (62). Decreasing my withdrawals is way more (positively) impactful to my wealth than getting more money from social security 3 or 5 years later. Which makes sense - the government doesn't exactly invest your money in a maximal way.
Life expectancy is an important consideration, but group life expectancy IS NOT individual life expectancy.
The way to think about it is that the average needs to be adjusted for your personal health and family longevity. If you are unhealthy and members of your family rarely make it to their mid 80’s, then plan on a shorter than average life and visa versa.
I got to love a guy who's young and knows everything ! WTF, your a genius!l. Lol!
You mentioned that the maximum SSS is $4873 if collected at age 70. Is this applicable to everyone or depending on how much u contributed during your working age. Like nurses for sure will collect that maximum allowed but for minimum earnings like myself I was a CNA made just a little above minimum will I qualify for max. Thank you
Taxation would be a variable also
I plan to take mine at 62, which will be next yr. I agree with most of the comments about taking it early, I need the money now. Yes waiting would increase it. I would like to enjoy it now. I'm disabled, but was unable to receive my SSDI. I would like to have my own money again without having to depend on my husband or son. Live is not promised I want to live.(I don't have problems that can take my life) but you just don't know.
I dont know when my grandfather or father started collecting social security, but they both passed away at 71. If they waited until age 70 for a higher payout, they only collected benefits for a couple months after a lifetime of work.
i retired at 52 with a small pension i have enough quarters to collect SSN so definitely going to collect at 62 to boost my current retirement income
So my ssdi benefits just automatically switch to ssi at 62? I turned 62 last month, so I won't have to do any review for disability then? Im confused, they ended divorced spousal benefits in January 2024, horrible timing 😮
Im taking my social security benifits at 62 becaus I have no idea how long i will live do to how things are in my family history some die early and some live long into there 90s thats why I'm taking my money sooner rather then wait.
Collecting at 62 means you will have a small check for the rest of your life.
@@jacksummer854… If you planned properly taking social security at 62 helps preserve your next egg. Which can be passed down to the next generations.
I will be 60 this July and my daughter is turning 13 next month. My 10 year younger spouse doesn’t have enough credits to receive her own benefit. I will probably be retiring from a NY state job at 62 and collecting both, state pension and social security to take advantage of family benefits for my spouse (several months) and my daughter (31 months). My full benefit at 67 is projected to be about $3,000 and about $2,000 at age 62. For tax purposes (my daughter will not owe any taxes on her portion of benefits and my total taxable income will be lower) and for the fact that I could invest the early collected ss benefits, I believe it makes sense to collect early. Not sure how long I’ll be around anyway, having recently lost my 18 year old son…
Sorry for your loss !
Hi where did ya get 31 months from ur daughter?? Isnt if 36 months??
My daughter will be 15 and 5 months when I get my first social security check, and since she gets her family benefit till the age of 18 it is 31 months, if I’m not mistaken, unless they pay differently, will need to confirm it with social security.
I don't have a portfolio and plan to live if my retirement benefits,what can I possibly invest?
I have several reasons to collect at age 62. First, my wife left me, second, all three children are over the age of 18, Three, the house must be sold, and the last reason is that my job is getting worst, asking me to do more every day. My actually most important reason is that I've seen a lot of people die at say 66 and didn't collect a dime of Social Security. I'm now 81 Y/O.
According to the SSA, the average SS check at 67 is $1,883. Why is it so small? Because fools collected at 62, not their FRA or 70.
I'm planning on retiring in the Fall at 64. My wife plans to work for 2 more years until she turns 62 (her job covers health ins). If I take SS then + her salary + my stock dividends = that would pretty much make up our monthly expenses now. I would not have to draw down on any investments. If I delay SS that's $2000+ per month I have to replace for 6 years ($150,000 +). That $150,000 in my portfolio could easily be $250,000 to $300,000 in 2030 when I turn 70. I will be making this decision with my advisor in a few months, but I really don't see much of a reason to delay.
Really wish someone would attack this question with the 401k tax deduction of maxing out the 401 while using SS to meet living expenses. only 85% SS is potentially taxable, meanwhile get a 30-40% tax break which could also limit the amount of SS that taxable at the same time, and potentially open the door for other tax breaks.
I did I would rather have gotten it now with the dollar now than the penny later
Social security was never intended to replace your entire income in retirement….. At best it may replace 40% of your income…. Those that spent the 44 years from age 18 to age 62 with a plan for retiring @ age 62 will most likely be fine. 🤔
I am 49, my wife is 40 and never worked a day in her life. Should I take retirement at 62? Thank you in advance.
I'm 68 earning a high salary and plan on working into my 70s. I decided to wait until age 70 because every year I wait increases the benefit by 8% which I'll appreciate when I'm no longer working. I'll also be in a lower tax bracket. Will I live to age 80 to break even? No idea. I could be dead tomorrow or live to 90.
My wife is 7 years older than me. I'm the primary breadwinner. The Spousal Benefit is one reason that I'll likely start collecting at 62, so she can go from 500 a month to 1500 a month on the Spousal Benefit.
Why are all scenarios based on collecting at 62?
Never turn down money!
Never opt for a small check. Collect at 70
@@robertstevens2030… Plan ahead you may be dead by 70.
If I waited just one year and started taking SS at age 63 it would take me 15 years just to break even for the money lost by not starting at age 62. Buried in the SS administration website is a calculator they allows you to plug in your own numbers and it will tell you your break even point.
Main reasons to collect at 62. 1. You earned it and an ACME safe could fall on you a day after your 62nd Bday. 2. At 62 you are still young enough to enjoy your SS earnings. 3. The way government seems to be interested in stopping SS, you should get it while the getting is good.
You did not earn SS. SS is Federal welfare
Yes, with a 34 trillion-dollar deficit the ponzi scheme is over, and they are now adding a trillion dollars to this every 60 days.
I want to retire at 62 but am concerned about getting health insurance coverage. I’d be too young for Medicare and not sure how expensive Obamacare would be.
Retire at 62. Collect SS at 70
Best reason I can think of is that we are never guaranteed to live until 67 or 70. The government hopes you defer and die before you can draw. Just like my pension. I am a retired cop. I when I was still on the job they required us to do annual medical screenings, blood work, and promotional physicals. When I retired I called when it was time for my annual screening and was told that i was not eligible. See as a working employee I was an asset that the PD wanted to keep working. As a retiree I was now a liability and the sooner I die the more money they save. Same here. I am taking mine at 62. It will be spending money. Under Biden it might buy a loaf of bread and a tank of gas. I have known perfectly healthy people that died young. I have known not so healthy people that lived a long life. So there is no way I will risk not getting anything that I earned.
I believe that catch-up age is based on taking SS at age 70, if you start at 67 it would be 3yrs less 76, 65 be 74.......however I think the catch-up age would be more 81.5 not counting the yearly raises and interest/ dividends ....... I've asked one that the calculator raises the amount for FRA each year
We are same age, wife started SS at 62, at 70 mine won't be anywhere near MAX but mine at 62 would have been greater than hers......our family histories are very similar with hers living a little longer, plus I'm long term terminal.....not going soon but definitely dieing before her
So I'm trying to work out my retirement time to maximize the amount she collects from my retirement and SS and still make sure I can some time that I'm still able to enjoy
Looking at 65 67 70...... possibly taking SS at 67 and retiring 70
Some people have to take there SS early like me i needed the money, it's not been easy to live on, and you know not many companies really don't want to hire a 62 year old. Seniors are going to need more help.
What portfolio?