I took mine at 68 because my daughter can’t inherit that money but she can inherit my other assets. Plus, it’s allowed me to work less and enjoy life more !
I took my Social Security at age 62 and here's why. People tend to get fooled by the higher monthly payment at age 65, or 70. My "full retirement" age was 66. My monthly payment at age 66 would have been higher than the amount I got at 62, however that's not the whole story. People tend to forget about the part where the 62 year old draws the money for 48 more months than the 66 year old. For me, the break even point (when the two lines meet) was almost 80 years old. If you know the exact date of your death the math is easy. Since I didn't have that figure I did an educated guess. Looking at my family history it's likely I will live to be 80 - 85 years old. So I asked myself, would I rather have 4 more years of no work, or more money when I was in my 80's. I took the money at 62. I turned 67 yesterday and looking back I don't think I made a good decision, I know I did. You will get to a point in your life where "time" is more valuable than "money". One side note: I have yet to touch my retirement savings. Living on Social Security alone is easy to do if you plan it right. We made sure we were "debt free" by the time we retired. There is nothing worse than being in a position where you can't afford to retire. When I was working I enjoyed my work, but make no mistake, I wasn't working because I wanted to, I was working because I had to. Now I don't work because I wanted to not work. If anybody ever tells you they are bored being retired tell them "they are doing it wrong".
Yep, I did the same thing. I have a spreadsheet that calculated the break even point. If you can retire at 62 and draw Social Security - it is wise to do it and enjoy life.
@@q-chan4764 There is an online program that can calculate the exact date of your death. I believe it is called death clock, I did it once. I know that is morbid, but I'm a curious person. Ms. L. Churchill
Per SS guidance, SS is intended to provide approx 40% of retirement funding. The remainder is supposed to be self funded. Folks can certainly decide to rely more on SS, but it can get dicey. I volunteered at a soup kitchen for a number of years. Many of our customers came to rely on us when two SS checks suddenly became one. A couple with modest means could get by okay on a combined SS of $2K - $2.5K. But, when one check stopped due to death of a spouse, $1 - $1.2K didn't cover the basics. In our moderate COLA area, rent and utilities (for a very basic apartment) would consume most of $1K easily. So, many seniors ran out of money well before they ran out of month. YMMV.
I waited until 70. My dad passed at 92, my mom at 100. My payment is above $2000.00 a month. If I had taken it at my full retirement age of 66 my payment would have been around $1500.00. That’s a fairly big difference. Next year the COLA could be as high as 6.5%. That will be a nice bounce. Good luck everybody.
Yesterday is gone like the wind, tomorrow is only forecast but not a given, but today is the here and now so set your sails and accept whatever becomes available. Even SS at 62!
You can always adjust your lifestyle to your income, but if you die before you retire you won't be enjoying any kind of lifestyle. I retired at 62 and even though I am poor it's the best decision I ever made. There have been people I know, classmates, and friends who have died and even had they waited to retire at age 67 it would have been too late.
@@joemetro352 Aren't you enjoying your work? If not, consider a different career. My wife and I lost our jobs to the commie virus and are enjoying (really enjoying!!) our early retirement, but I think we can both honestly say we miss out jobs. Being productive and really good at something is one of life's best rewards. Getting paid to do it is another.
@@joemetro352 You need to have the years to enjoy them but if you don't I reckon you wouldn't know. Also, I reckon that the younger I was when I retired that the more likely I would be able to enjoy those years. But too often people think about their health when they retire when they should have been thinking about it 10 or 20 years earlier so their health would be good when they retired. I retired when I was pretty sure I would be alive rather than hoping I would be alive years later and I've never regretted that decision.
@@uncareid5557 - I like my work but I want time to do other things. I was forced to take Fridays off all last spring and summer. Just that one extra day per week was absolutely fantastic.
I was coerced into retirement at age 69, refused to file for SS until age 70. Nice to know I'm collecting more than twice the average at age 71, as is my wife who is filing at age 70. We are among the few who are living comfortably month to month on our SS income only. The pensions and IRAs are there for out lifestyle extravagances, which in the age of Covid are few and far between. No car payments. No mortgage payments. No loan payments. No adult child support payments. Amex and Visa like me, they don't love me, because all credit card bills are paid in full, on time. And I'm looking forward to my Gubment stimulus check, ASAP! I'm entitled!
had you retired at 62 you’d have had 7 good years before covid. Now you’re retired and you wasted two years having to be covid careful. You made the case for not waiting.... Were you capable of doing more, activities-wise, at 62 thru 67 had you not worked... vs what you can do at 72 thru 77?
Those gov. Checks stimulus stuff ect. Were not free money. You have lost much more to inflation. Precisely cause of this wasteful spending. Your and my retirement have been compromised. God knows what is to come.
The truth is its the same bucket of money. Take it at 62 you get less for a longer time. Take it at 70 you get more for a shorter time. If you live longer than avg. you win. If u die early Gov. wins. I will take it at 62. Not great but over 1.6k isn't bad
I'm 71, retired and filed for SS at age 66. Now receiving $2070 from SS before deductions. Also receiving $837 from fed pension. My wife and I also get the full stimulus benefits and pay no taxes, fed or state, in Arizona. We file taxes every year, and for some reason, get a $50.00 refund from the state.
Men don't live as long as women (on average) so if you can retire at 62 - my hat's off to you. Better to collect and enjoy your leisure than to work until you're 70 and die before you even can take a vacation. 2 of my co-workers retired late and both passed away the first year, and one passed 2 months into his retirement He had SSI, 2 pensions and a military pension (whatever he got for 2 tours in Vietnam). He was my mentor and he never even got in a fishing trip. Taking less SSI and actually enjoying your late 60's is a smart choice for a lot of men.
@@paulholterhaus7084 God bless you Paul and I wish you many years of great health. I know I won't be in that club. Right now I hope I can get rid of the cancer and make it to retirement and set up my daughter financially. Luckily I work from home and have great benefits - I might just make 70 with any luck!
Thanks for the video. It would be also interesting to know what the average payment is for people at each level without the averaging impact of other brackets (for example for FRA excluding those that took it earlier)
The first person to collect a monthly Social Security check was Ida Mae Fuller. She had paid in about $25 in FICA taxes and she lived to be 100 years old. SHE is the one that beat the system! Lol
For all those commenters who say that hearing about the average isn't helpful.... For me it was very helpful. I keep assuming that my estimated ss payments are going to be much lower than everyone else. It is somewhat reassuring to know that I will at least be average. However, that still means that there are a lot of people who will be collecting a lot more than I will be!!
My dad has beat the system for sure. Started at age 62 and has been drawing for almost 32 years now. And I went out last year (thanks Covid!) and signed up at full retirement age of 66. I beat the average by almost $200.
Ok , I read some of the comments. If you think you are going to die young start at 62 but if not and you can AFFORD to wait ... I hope I didn’t jinks myself . Haha. BTW. Thanks for the video. I did subscribe.
So what? I'm retired (not by choice!) but am going to wait four more years until I hit the big 70 to collect. I expect to hit easily 100, and die at 106, in bed, shot by a jealous husband. OBTW my current expected SS benefit at 70 will be $3300. Of course that will go up due to COLAs. It has already gone up several hundred from when I started checking in my late 50's. Hmmm, 3300 X 360 months = A Lot more!
Correct, at 60 years they compute your highest 35 years and have an estimated lifespan computation with corresponding adjustments from 62 to 70 years old.
To add to this - comparing retiring at 62 versus 63 you're already one year into retirement. That money is yours. If you live to 90 you would actually be down $3,516 in total. Coincidentally, starting at 64 you'd only have $3,768 more to your total. It does make a big difference at 70, but you've lost 10 years.
@@michaels840 One thing that people don't think of is that if you don't have goals and plans for your retirement, your only plan is to die. After I retire at 70, I'm still going to be working at something-most likely farming on my acreage. I am making $100K a year now at a job I like; why would I quit? My family history says that I have at least 40 years of natural life left. What else would I do?
Payments received are capped regardless how much someone has paid in. I've been paying the max into SS for 15+ years. I won't come close to getting back what I paid in.
@@fishgutz4272 boomers built it up and government took it and now they say it’s in trouble 🤷🏻♂️and we know they will never pay it back but had no problem giving the rich tax breaks and loopholes and leave us tax payers to figure it out 🤦🏻♂️
Basically, if you retire before 72 and have use for the cash, take the money. If you are working at a job with substantial salary increases and would just save the money, leave it in the account. Otherwise, decide if investing the distributions works for your psychology.
Took early retirement to take care of elderly parents. I wanted to work as a consultant until 62-65 but would have lost my health insurance that was worked for. Too bad the new HR dingbat changed the retirement policy 3 months before I retired. The way my pension and medical benefits were structured, I had to collect my pension immediately or I didn't get medical. also was getting a increase in pension to cover the social security difference until I turned 62. I ran the numbers and collecting at 62, I'd have to live until 81, verses waiting until age 66 years and 4 months. I receive more than the figures presented in the video. The downside is the penalty social security hits you with if you work another job, as they take back benefits for exceeding $14k in wages. This penalty means that you lose job skills. It would have been nice to collect the SS benefit, pension and consulting money at the same time, but I would have lost the majority of the SS benefit. The old saying, a bird in hand beats two in the bush. Get what you can, while you can.
These averages aren't useful. If a 70 year old wants to know on average how much he might expect, you can't use someone who is 66 (for example) to compare him to as an average because it isn't relevant to a 70 year old. You have to know what the average is for only 70 year olds to effectively answer the question. Seems to me if the average by age includes people of various ages, the numbers aren't important. I think comparing all 70 year olds should be averaged by only people of that age, not people younger. If you think about it, all 70 year olds used to be 62, so the question then becomes how many 62 year olds collected early vs. those who did not. Various ages are inadvertently included in this average (previous age) and that's only one age (70) in my example. To include every age which has this trickle down age effect makes the answer quite vague and very broad. I do appreciate the intent of the video and the time spent on it.
If you were given the amount of money that you and your employer contribute to Social Security and manage it yourself in your own retirement account, you would retire with double what you will receive from Social Security Administration. The reason you don't collect what you deserve is because a great deal of Social Security money goes to people who've never paid a penny into the system
I'm blessed to be able to receive Social Security and also my State Pension....medicare and my state retirement bluecross/blueshield...my state pension is taxed, but i get a tax refund every year!.... I retired on disability 10 years ago at 54 yrears old due to an accident with drunk driver....downsized my life..... Live a nice, debt free, frugal life..... With great health, no meds, no illnesses, my mind And PEACE!!
Thank you so much for all of the wonderful information and care that you give to us. I am a 55 year old female trucker and honestly, I just started back over with my life 3 years ago and have no retirement savings other than the anticipation of Social Security. I plan, if God willing, to retire at 70.
@@wakeup6910 ...how what ? The $1890....I guess because out of 35 years my lowest year was $29000 and I had 10 years over $60000 and in my last 3 years was over $80000. I was lucky to work at Chrysler and get good pay and which I also recieve a pension from .
Nonsense. Doubt away, but SS will give you EXACT estimates based upon your actual earning history. You can do it online and it is simple. One point Schmidt does not discuss here: lost SS income the later your start taking SS. If you can take SS at 62, but wait until 71, you have 9 years of lost income and interest. If your monthly benefit at age 62 was $1400, then that would be about $1400 x12months x 9years = $151,200. If you wait until age 71, you give up $151k in lost income. For most people they will need to live into their eighties to recover that income. Do your own calcs, everyone is different.
Ate taxes he only thing that stops a person from continuing to work & collect SocialSecurity? Does a person who continues to work with more than 20 employees, collects SocislSecurity, stays on their employer health plan have to start Medicare Part B before they reach age 70?
So if I file early at 62 my SSN will be $1,782, 67 at full retirement will be $2,531 and at 70 $3,139...should I file at 62? I have a military pension that increases every year, 2020 total was $73,000🤔🤷♀️
Only if you truly can afford it at 62 AND you plan on taking advantage of the extra 5 years. If you’re going to spend that time drinking rye at the local dive then don’t bother. Keep in mind if when you’ll qualify for Medicare and where your health insurance will come from in the mean time. Good luck!!
I took my Social Security at 65 and continued working. I was getting my full SS payments while I was working. Then, I retired at 67 and began collecting my small teacher's pension as I was only a part-time teacher. Immediately my SS payments were chopped in half. That is when I found out about Reagan's Windfall Elimination Provision. I was counting on SS to take up what I wasn't going to get from my small pension. When I found that wasn't going to happen I tried to find out what was going on. Seems this Provision was not well thought out and is actually discriminatory to seniors. Only a small number of those receiving Social Security are affected by this Provision. Seems Congress knows this but will do nothing to adjust or remove it. There are many who are receiving Social Security Benefits and have not worked and contributed to it but others have to suffer to insure they are taken care of.
If you’re getting a pension…your probably didn’t pay SS during the time you worked at that job…so when you do get SS it will be reduced by 2/3 of your pension. I’m in that boat too…but my pension is quiet small as I worked there only 7 years so the reduction shouldn’t be too much.
"Windfall Elimination Provision"... What a freaking JOKE!! I guess my pension from 30 years of working is a "windfall". Not only do I have to pay federal income tax on that pension, but I also have to pay federal income tax on $9,000 of my Social Security benefit. That $9,000 is LITERALLY taxed TWICE!! 🤬🤬🤬
I worked 13-1/2 years for a local government that did not pay into SS. For this reason, I planned to work until 70 to minimize the WEP damage. If you have 30 years or more of SS earnings in addition to your non-SS earnings, the WEP does not apply. Fortunately, by the time my employer shut us down when I was 69, I had the 30+ years in. At that point, I said "the heck with it" and retired. The WEP is grossly unfair.
My wife was not able to file on her record not enough credits. She is 4 years older than me. If I waited until age 66 we would of forfeited over 140,000 dollars combine benefits since she cannot get a spouse benefit until I filed. It would of took over 20 years to break even. Even with the increase in my benefit. Spouse benefit would of not grown. We filed early when I was close to age 63. My benefit is considerable above all the numbers in the clip.
We certainly don't know when we are going to die but we might have an idea about our physical wellbeing or overall health at retirement. If you could travel, spend more time with family or go fishing that would certainly be better than sitting in a chair listening to a clock tick. I think I will wait just a little but not too much.
I used to think my SS was relatively small until I saw this. I retired early in 2011 due to medical reasons and qualified for disabily benefits. I was 58 at the time and the award was considerably more than the age 71 benefit shown here. Now I wonder why.
You must have paid more into the system, than the average retiree. Also, your check was not reduced, for drawing early, because you qualified for disability. I started drawing social security disability, as well, at age 51, in 2012. My monthly check is $3,000, before deductions. I'm 62 now, and hoping I don't get kicked off before my full retirement age of 67.
I don’t understand the logic of how the money would go down after the age of 73. Wouldn’t you have what you were going to make it 70 and then get your yearly raises so how would it go down?
I can only speculate that at that time (about 50 years ago the changes to social security from the 1983 overhaul increased contribution requirements and payouts
Here’s what they don’t tell you... it all sounds great until you put pen to paper and do the numbers.. according to this video.. assuming his numbers are right.. If you filed at age 62 and are drawing 1130 per month that totals 13,560.00 per year There is 9 years between age 62 and 71 In that 9 years that totals up to $122,400.00 I’m not going to do all the math. But the difference between the amount you would get @62 and then again @71 is about $500.00 a month So at an extra $500.00 a month how many years would it take to make up that $122,000.00 The answer is you would probably never make up that difference due to your age.and if you did manage to live long enough you would never get far enough ahead to make any kind of difference.. so here is what you really need to consider.. are you healthy enough to work until your 71? do you want to work until your 71? If you retire at 66 that might work out better for most people unless you just want to keep working.. now I’ll tell you his numbers are not accurate at least In my case they are not. I did start drawing @62 right at $1400.00 a month.. now I’m 65 and that number has gone down due to Medicare costs. I took mine at that age because I am not healthy enough to wait. So do the math for yourself and remember you can still work some if you are drawing social security if you choose to I don’t know how much you can earn though that’s something you’ll need to find out.
The break-even point usually happens around age 77, give or take a year, when deciding to file at 62 vs full retirement age. It's complicated, to say the least.
Your SS amount did not go down at 65 because of Medicare. You obviously chose to pay your $148.50/ month premium for Medicare part B taken out of your SS , which is the way most people probably handle paying that expense.
Another calculation to add to the mix. I am continuing to work to at least 71 or longer. I can earn much more than SS will give me. So. it's true that I may end up with a higher SS amt by waiting. But, I'm also earning more until then, which gives me more time to get everything else in order.
I’m not planning on retiring until I’m 70 or older. I love what I do. My SSI should be over $3,500 per month, Besides SSI, I have sock away a lot in my 401K and Roth IRA, I have been paying on Long Term Health Insurance for 20+ years, and have multiple Variable Life Insurance Plans that are mostly paid off. No Husband and No Kids to worry about, will give all my Money away to family and friends when I die......hopefully Ready. I’ve been planning and working and investing in RE since I’ve been in my 20’s.
You are doing a wise thing in planning ahead, however in your situation I would certainly take early retirement. (in fact, I did take early retirement because what you describe is exactly the position I was in when I reached 62!) My favorite meme on retirement shows a wooden lounge chair on the beach with the words "Retirement: when you stop living at work and start working at living!" I have thoroughly enjoyed retirement and know I made the right decision for me and my family.
I think one of the most, if not THE most, important decision a working class retiree can make is when to begin drawing soc sec. As such, I would love to see a video showing the average soc sec payment for those who STARTED drawing soc sec at 62/66/70. That's much more useful info for planning, in my opinion. I am in my early 50s and plan to retire no later than 62, but I am undecided on when to draw soc sec. I am inclined to wait at least until my full retirement age which is 67, but if my savings grows as I expect, I am open to waiting until 70 in order to get the maximum possible payment. I realize that waiting doesn't make sense for everyone, but I am in excellent health and expect (hope) to live a very long time. I think you only need to live past 83 or so to benefit from waiting until 70 to draw, but you need to have enough savings to live off of in the mean time.
@@PatriotSteve Of course Soc Sec is a factor, particularly if you expect to live a long time, which I do. While savings can be volatile and even run dry for many people, Soc Sec is guaranteed for life. That fact makes when to collect a critically important decision.
He said that they calculate the payment based on the highest 35 years of income. Put in more and you'll get back more. I wonder if there is a maximum ceiling amount.
I I think it would be more helpful information to state the average amount people receive when they BEGIN to receive Social Security at ages 62, 66 and 71.
@@curious1366 By lumping everyone together according to age groups, it's impossible to distinguish what the average actually is. All 67 year olds, some started collecting at 62, 63, 64 etc... Because they are all on different time lines it makes the amount they collect on average meaningless. The average they receive by age at the onset of collecting Social Security would be a more meaningful number.
@@mariannaryan456 Again, I know about the different timelines and so on. I also know what number is predicted for me as to what I would get now and what I would get if I waited. I've been thinking that my number seems not big enough to survive, so I find it helpful to know that people are surviving on the average amount, regardless of where they are in their timeline etc. I just thought that my predicted numbers seemed so low, but at least I'll be average! But.... I will live better on that amount if I leave the US... I believe!
I don't understand the usefulness of this video. What does it matter to me what the average payout to other people is? What I'm going to receive is what is important to my decisions on when to take SS.
It’s more important to some people than others. As I mentioned at the beginning people like to understand what the benchmark is. This allows them to have some idea of where they might end up.
@@HolySchmidt In reality all anyone has to do is log into(or create an account) their SS account and get payout estimates specific to them. Those average payout estimates were pretty useless especially the ones for ages 66 and 70 since it included payouts from those that took SS at 62 which reduced the average significantly. Averages at 66 and 70 would if been much more insightful if it only included those specific age groups, as those amounts would of been much higher.
I get $2350 at 62 and over $4000 at 70. I'll start collecting Jan 2023 at age 62. I'd be 81 before hitting the break-even point, so I have nearly 20 years that I'll be investing this money. At 5%, that $2350 will grow to $800,000 before taxes, but I'm anticipating being dead by then due to my family history (already have prostate cancer).
I just filed at 69 and will be getting $3580/mo. I was going to wait until 70, but the extra $120/mo would have taken around 14 years to equal the 12 months of missed payments. Should have taken retirement a few years earlier.
I really wish I could have earned enough to get $3580 per month!! My highest earning years do not count for SS. So my SS amount will be from my first 30 years of working which is when I was earning the least! (sigh)
Im in that group who has a private pension for a 26 year police career. I also have earnings prior and after that career that has me vested in S.S. Can you explain the "penalty" that people like me will experience due to that pension and how that affects our payout when we do apply for S.S. on a video?Theres a lot of us out here and its a confusing matter!
I'm confused why do you think you will be penalized. I get a pension, and SS, and I have never received a penalty concerning my income. It that because you were a police officer? Ms. L. Churchill
@@leschurchill804 Its the windfall provision for the private pension I receive. I did not pay S.S. for the 27 years I was a cop. I did however during 10 other working years. I will lose about 30% of my S.S. payout due to that very confusing rule. Ted Cruz was working toward abolishing that rule several years ago but then our world started falling apart, don't know where that went.
@@leschurchill804 How is it that your pension doesn't reduce your SS payments? The policeman here is talking about the the Windfall Exclusion Provision. I think I will also have that "penalty" because if I collect SS AND have money coming from a pension, then they deduct from the SS amount. In my book--- that is a penalty! We definitely could use another Schmidt video to clarify this!!!
@@curious1366 I started collecting my pension before I applied for my SS. SS never calculated my pension and/or asked about it. If you receive your social security early, you are only allowed a certain amount, other words, it is reduced-and will remain at that reduced rate for the rest of your life. I waited to collect and received my SS at full retirement age, thus there were no reductions. If I choose to withdrawal from my IRAs-my SS will probably be taxed at a higher rate, for income tax purposes, but I don't know. Either way, I'm going to have to start taking it some point, and pay the piper, regardless. Ms. L. Churchill
@@leschurchill804 People are penalized because the SS payments for minimal investment in SS are inflated, because they think it will be your only oncome. If you paid a lot into SS, you will be getting the normal payments and won't be penalized.
I get $2225 and Medicare parts a,b c,d .....i am not rich... Worked since I was 14 , did not file till full retirement age.......what are these people doing wrong that I did right
Can you do a video on trading often IN retirement account, no book work for taxes (1099)....transferring IRA to Roth (conversion) little buy little within the lowest tax bracket possible? NO fees now!!! Etrade is so much user friendly, I've been using both ET and AMTD since 2000.
also, what bank has the best report option to easily do a spreadsheet and report for end of the year? (BMO Harris used to have a check register input option (could group the year by category, date, withdrawals, deposits, etc)... but they changed to a more laborious option of "Total Look")>. Quicken doesn't do it for me.
I turned 62 on Feb 1... I did not take my social security yet.. I checked what my social security monthly payment would be in march.. It it was $1254.00 Dollars .. I checked again on April 1. my monthly payment would be $1262.00 Dollars.. went up $8.00 Dollars in 1 month..
@@MikeNaples It is impossible that you lost a million dollars. Taking social security at 62 reduces your benefits by 25%. In 1990 the average social security benefit was $550. 25 % of that would be $137.50 per month. You would have lost drawing $550 for 4 years or a total of $26,400 to receive an additional $137.50 after age 66. $137.50 X 32 years X 12 months is $52,800. Even with the Colas over the year, not even close to a million.
@@rickw9169 I don't dispute your numbers and of course I was exaggerating only to make a point. If you plan on living long and don't need it, take your SS more late than early. In my situation my SS would have been ~$1,500/month at 62 and now will be (not there yet) ~$3000/month at 70. These #'s are from SS, the yearly update they send you. My luck I will get run over by a truck on my 70th birthday, the day I start collecting.
Does the estimated benefits by ages provide by SSA when I requested accurate. My benefit at age 62 is about 500 dollars more than then your averages. Thanks for this video. Very helpful.
Remember: The average is just that... and probably does not mean much to you. For example, "As of June 2014, the average number of companion animals per household in the United States is 1.6 for dogs and 2.1 for cats." Can you actually find six-tenths of a dog or one-tenth of a cat in any household? Nope... and that's why your specific situation means everything to you and the "average" is meaningless. Or take your net worth and add it to Elon Musk's net worth of around $167 billion and divide by two. But do you have anywhere near that average of $83.5 billion (or a bit more, if you're a millionaire) in your net worth? But you can't argue with the "average"! While "true," it means nothing to you -- or Elon. For example, at my age, my payment is almost exactly double the number shown in the list above. So when the Motley Fool or some other "expert" puts out the average payment, it's often used to scare you into buying something (or keep working and invest with them).
He mentioned that there are three factors that determine what you draw, one of them being how much you made on your paycheck for the highest paying 35 years of your career. You must have made more than the average used in these calculations. Mine is significantly higher.
Why is Canada´s social security (OAS) payment so much bigger than that of the US while at the same time the Canadians generally give so little to charity???
The worst risk is not leaving money in the SS system if we die early, the larger risk is if you live to age 85 or older and your income has not kept up with inflation.
How does one check his S.S. if I worked 20 years contributing, then 15 years in a Govt job not contributing, then retired, adding no more to S.S. ? Is there a formula for this? And does S.S. deduct if your recieving a Govt, pension?
My wife and I retired 2 months ago at age 66yrs/2mos. We worked since we were 17. I receive 2300mo and she 1700mo. plus a 400mo. from union pension. We got the hell out of SoCal to a more economic friendly state, bought a new 3/2 home in an extremely safe neighborhood and house payments more than half less than what we were paying in SoCal. Other than that, the only bills we'll have are utilities and cable. And still have mid 5 figures in the savings.
Social Security seems like a joke. I couldn't pay my power bill with the average payment. If I'd been allowed to take all my payments and just put them in the stock market, I'd be a millionaire. What a scam, and now there is chatter that the fund will run out of cash in any event
Well it’s a socialist system for sure. You and your employer are forced to contribute and the payout scales are unfavorable the more income you’ve earned BUT most retirees would have nothing if SS wasn’t in place. Yes, I believe in personal responsibility but many people don’t have the means or intelligence to save for retirement and I don’t want to see thousands of our elderly citizens on the streets.
That chatter is the talk of morons. If you die today SS will pay out benefits to your survivors. It will also pay out to you if you become disabled. SS is not an investment tool it is INSURANCE.
@@MrSteeDoo it’s a poor return by any reasonable standard. For example Both my contributions and employer over 40 years are $300,000. If I had contributed $500 a month (average) for forty years at zero percent it would be just over $300,000 (+\- 20k) and will last about 10 years at full retirement age $3200 a month before I began to take more then I put in. But if I had the stock market rate at a below average of 5% (10% is average) I would have just over $1,000,000. I could easily take out over 6K a month and still have hundreds of thousands of dollars to give to my family after I die. Social Security is clearly a scam and financially harms more then helps the sooner society abandons this terrible idea the better off we will be in my opinion.
If you retired because of your health you should apply for social security disability your monthly social security will be as high as your payment would be at full retirement age plus
Make sure people know there is cap for two worker couples…. That’s when one needs to look a t one them to take it early, continue to work they will never get there maximum. If both of their benefits are over the total allowed.
I took mine at 68 because my daughter can’t inherit that money but she can inherit my other assets. Plus, it’s allowed me to work less and enjoy life more !
I took my Social Security at age 62 and here's why. People tend to get fooled by the higher monthly payment at age 65, or 70. My "full retirement" age was 66. My monthly payment at age 66 would have been higher than the amount I got at 62, however that's not the whole story. People tend to forget about the part where the 62 year old draws the money for 48 more months than the 66 year old. For me, the break even point (when the two lines meet) was almost 80 years old. If you know the exact date of your death the math is easy. Since I didn't have that figure I did an educated guess. Looking at my family history it's likely I will live to be 80 - 85 years old. So I asked myself, would I rather have 4 more years of no work, or more money when I was in my 80's. I took the money at 62. I turned 67 yesterday and looking back I don't think I made a good decision, I know I did. You will get to a point in your life where "time" is more valuable than "money". One side note: I have yet to touch my retirement savings. Living on Social Security alone is easy to do if you plan it right. We made sure we were "debt free" by the time we retired. There is nothing worse than being in a position where you can't afford to retire. When I was working I enjoyed my work, but make no mistake, I wasn't working because I wanted to, I was working because I had to. Now I don't work because I wanted to not work. If anybody ever tells you they are bored being retired tell them "they are doing it wrong".
Well said. I did the exact same thing and no regrets. I am as busy retired as I was working just more at peace.
Yep, I did the same thing. I have a spreadsheet that calculated the break even point. If you can retire at 62 and draw Social Security - it is wise to do it and enjoy life.
Yes, knowing the exact date of your death would be convenient for planning but terrifying at the same time. Ha-ha!
@@q-chan4764
There is an online program that can calculate the exact date of your death. I believe it is called death clock, I did it once. I know that is morbid, but I'm a curious person.
Ms. L. Churchill
@@leschurchill804 Appreciate the info but I think I will pass. Takes the fun out of not knowing when.
Per SS guidance, SS is intended to provide approx 40% of retirement funding. The remainder is supposed to be self funded. Folks can certainly decide to rely more on SS, but it can get dicey. I volunteered at a soup kitchen for a number of years. Many of our customers came to rely on us when two SS checks suddenly became one. A couple with modest means could get by okay on a combined SS of $2K - $2.5K. But, when one check stopped due to death of a spouse, $1 - $1.2K didn't cover the basics. In our moderate COLA area, rent and utilities (for a very basic apartment) would consume most of $1K easily. So, many seniors ran out of money well before they ran out of month. YMMV.
I waited until 70. My dad passed at 92, my mom at 100. My payment is above $2000.00 a month. If I had taken it at my full retirement age of 66 my payment would have been around $1500.00. That’s a fairly big difference. Next year the COLA could be as high as 6.5%. That will be a nice bounce. Good luck everybody.
At what year did you start drawing social security?
Yesterday is gone like the wind, tomorrow is only forecast but not a given, but today is the here and now so set your sails and accept whatever becomes available. Even SS at 62!
You can always adjust your lifestyle to your income, but if you die before you retire you won't be enjoying any kind of lifestyle. I retired at 62 and even though I am poor it's the best decision I ever made. There have been people I know, classmates, and friends who have died and even had they waited to retire at age 67 it would have been too late.
It's a guessing game. I want to ENJOY the years I have in retirement
@@joemetro352 Aren't you enjoying your work? If not, consider a different career. My wife and I lost our jobs to the commie virus and are enjoying (really enjoying!!) our early retirement, but I think we can both honestly say we miss out jobs. Being productive and really good at something is one of life's best rewards. Getting paid to do it is another.
@@joemetro352 You need to have the years to enjoy them but if you don't I reckon you wouldn't know.
Also, I reckon that the younger I was when I retired that the more likely I would be able to enjoy those years. But too often people think about their health when they retire when they should have been thinking about it 10 or 20 years earlier so their health would be good when they retired.
I retired when I was pretty sure I would be alive rather than hoping I would be alive years later and I've never regretted that decision.
@@uncareid5557 -
I like my work but I want time to do other things. I was forced to take Fridays off all last spring and summer. Just that one extra day per week was absolutely fantastic.
Those slick 100 year olds gaming the system.
Damn crazy kids always screwing the system.
I retired at 51, am 56 now, I want to live long enough to draw SS! I put so much into it over the years. At 62 I’m getting some back!
These are average amounts, median and/or highest or lowest amounts would be interesting.
I was coerced into retirement at age 69, refused to file for SS until age 70. Nice to know I'm collecting more than twice the average at age 71, as is my wife who is filing at age 70. We are among the few who are living comfortably month to month on our SS income only. The pensions and IRAs are there for out lifestyle extravagances, which in the age of Covid are few and far between. No car payments. No mortgage payments. No loan payments. No adult child support payments. Amex and Visa like me, they don't love me, because all credit card bills are paid in full, on time. And I'm looking forward to my Gubment stimulus check, ASAP! I'm entitled!
you could have took it at 69 for apx 4% less
had you retired at 62 you’d have had 7 good years before covid. Now you’re retired and you wasted two years having to be covid careful. You made the case for not waiting.... Were you capable of doing more, activities-wise, at 62 thru 67 had you not worked... vs what you can do at 72 thru 77?
Those gov. Checks stimulus stuff ect.
Were not free money. You have lost much more to inflation. Precisely cause of this wasteful spending. Your and my retirement have been compromised.
God knows what is to come.
I'm 73 and appreciate when you focus on the older folks as well. Thank you.
The truth is its the same bucket of money. Take it at 62 you get less for a longer time. Take it at 70 you get more for a shorter time. If you live longer than avg. you win. If u die early Gov. wins. I will take it at 62. Not great but over 1.6k isn't bad
with our National debt in the trillions I strongly suggest taking it at 62!
@@red9man2130 I still have 2 yrs to go before I can draw SS. And yeah I’m very scared of what the gov will do
If I get that much at 62 then I'm in!👍
@@wakeup6910 U can check the SS site. They will give u the amount.
@@51dbail
I got 4 years to go
The IRS needs to quit taxing SSI
You can thank Reagan and the Republicans
@@natashatomlinson4548 Reagan fucked this country up
It is congress who taxes.
If your income is below 25K you do not pay federal taxes
And start taxing Bezos.
I'm 71, retired and filed for SS at age 66. Now receiving $2070 from SS before deductions. Also receiving $837 from fed pension. My wife and I also get the full stimulus benefits and pay no taxes, fed or state, in Arizona.
We file taxes every year, and for some reason, get a $50.00 refund from the state.
My cousin who lives in Tucson tells me the $50 rebate is for those who have not been arrested (2 years) nor in a known gang.
62 was the right time for me in my situation. I have to work part time until extraneous debt is paid off. No regrets in taking it early. I'm 64 now.
I think I will do the Same at 62
But it's depends on our Health
Men don't live as long as women (on average) so if you can retire at 62 - my hat's off to you. Better to collect and enjoy your leisure than to work until you're 70 and die before you even can take a vacation. 2 of my co-workers retired late and both passed away the first year, and one passed 2 months into his retirement He had SSI, 2 pensions and a military pension (whatever he got for 2 tours in Vietnam). He was my mentor and he never even got in a fishing trip. Taking less SSI and actually enjoying your late 60's is a smart choice for a lot of men.
By 80. You will have grave regrets.........I am 80.........Paul
@@paulholterhaus7084 God bless you Paul and I wish you many years of great health. I know I won't be in that club. Right now I hope I can get rid of the cancer and make it to retirement and set up my daughter financially. Luckily I work from home and have great benefits - I might just make 70 with any luck!
@@paulholterhaus7084 i doubt he will. At 80 most people aren’t out there tearing it up.
Thanks for the video. It would be also interesting to know what the average payment is for people at each level without the averaging impact of other brackets (for example for FRA excluding those that took it earlier)
Holy smoke im getting 2300 a month Im doing grate.60 hour work weeks for 40 years has payed off
I think he meant sarcastically
Too bad you never learned to spell.
And the amount can change.
100 years old collecting social security laugh, they beat the system alright, sweet money
The first person to collect a monthly Social Security check was Ida Mae Fuller. She had paid in about $25 in FICA taxes and she lived to be 100 years old. SHE is the one that beat the system! Lol
Thanks for the common sense talk sir! I’m 65+ and contemplating when to start collecting.👍🏽
ALL those incomes levels are a disgrace. I agree with Bradley, at the very least SSI should be exempt from taxes.
For all those commenters who say that hearing about the average isn't helpful....
For me it was very helpful. I keep assuming that my estimated ss payments are going to be much lower than everyone else. It is somewhat reassuring to know that I will at least be average.
However, that still means that there are a lot of people who will be collecting a lot more than I will be!!
This is Great Schmidt!! Love your VLOGs
My dad has beat the system for sure. Started at age 62 and has been drawing for almost 32 years now. And I went out last year (thanks Covid!) and signed up at full retirement age of 66. I beat the average by almost $200.
Ok , I read some of the comments. If you think you are going to die young start at 62 but if not and you can AFFORD to wait ... I hope I didn’t jinks myself . Haha. BTW. Thanks for the video. I did subscribe.
He’s a CPA! He’s supposed to be boring! 😊👍
I really like the look he has here. I don't think it's boring at all!
I took it at 62 and beat the average by $850 a month. I’m now 70. No regrets.
Hi Jeff! I think your videos are great. Very clear, concise, and most importantly, informative and helpful. Thanks! With best wishes, John
The fact is: the longer one waits until retirement, the SHORTER one's retirement will be! EVERYONE dies on time!
So what? I'm retired (not by choice!) but am going to wait four more years until I hit the big 70 to collect. I expect to hit easily 100, and die at 106, in bed, shot by a jealous husband. OBTW my current expected SS benefit at 70 will be $3300. Of course that will go up due to COLAs. It has already gone up several hundred from when I started checking in my late 50's. Hmmm, 3300 X 360 months = A Lot more!
Correct, at 60 years they compute your highest 35 years and have an estimated lifespan computation with corresponding adjustments from 62 to 70 years old.
@@uncareid5557 Good for you! You have thought this out and are right. I'm a little biased though, I have your exact same numbers. : )
To add to this - comparing retiring at 62 versus 63 you're already one year into retirement. That money is yours. If you live to 90 you would actually be down $3,516 in total. Coincidentally, starting at 64 you'd only have $3,768 more to your total. It does make a big difference at 70, but you've lost 10 years.
@@michaels840 One thing that people don't think of is that if you don't have goals and plans for your retirement, your only plan is to die. After I retire at 70, I'm still going to be working at something-most likely farming on my acreage. I am making $100K a year now at a job I like; why would I quit? My family history says that I have at least 40 years of natural life left. What else would I do?
Ronald Regan's Administration helped change this to IRS taxing SSi. Before that the SSi was not taxed.
I didn't know that.
It does seem wrong to tax SS
Congress taxes not the president.
Bi-partisan committee recommended it. SSI is different than SS.
They need to raise the income threshold for paying into ssi
As long as people who don't pay into the system get nothing from it I'm fine with that.
Payments received are capped regardless how much someone has paid in. I've been paying the max into SS for 15+ years. I won't come close to getting back what I paid in.
@@fishgutz4272 If you live long enough, you will.
@@fishgutz4272 boomers built it up and government took it and now they say it’s in trouble 🤷🏻♂️and we know they will never pay it back but had no problem giving the rich tax breaks and loopholes and leave us tax payers to figure it out 🤦🏻♂️
Basically, if you retire before 72 and have use for the cash, take the money.
If you are working at a job with substantial salary increases and would just save the money, leave it in the account.
Otherwise, decide if investing the distributions works for your psychology.
Hey HS,
It's always good to listen in.
To make it even better, how about also including the variance whenever you touch on mean averages?
You are very kind! Thank you for informing us.
Looks like the best age for me is 67 if I can hang around for 8 more years.
How can you figure a "best age" to start collecting from that chart?
Took early retirement to take care of elderly parents. I wanted to work as a consultant until 62-65 but would have lost my health insurance that was worked for. Too bad the new HR dingbat changed the retirement policy 3 months before I retired.
The way my pension and medical benefits were structured, I had to collect my pension immediately or I didn't get medical. also was getting a increase in pension to cover the social security difference until I turned 62.
I ran the numbers and collecting at 62, I'd have to live until 81, verses waiting until age 66 years and 4 months.
I receive more than the figures presented in the video. The downside is the penalty social security hits you with if you work another job, as they take back benefits for exceeding $14k in wages. This penalty means that you lose job skills. It would have been nice to collect the SS benefit, pension and consulting money at the same time, but I would have lost the majority of the SS benefit.
The old saying, a bird in hand beats two in the bush. Get what you can, while you can.
You are the best/short & simple--great work!
Thanks for the kind words
These averages aren't useful. If a 70 year old wants to know on average how much he might expect, you can't use someone who is 66 (for example) to compare him to as an average because it isn't relevant to a 70 year old. You have to know what the average is for only 70 year olds to effectively answer the question. Seems to me if the average by age includes people of various ages, the numbers aren't important. I think comparing all 70 year olds should be averaged by only people of that age, not people younger. If you think about it, all 70 year olds used to be 62, so the question then becomes how many 62 year olds collected early vs. those who did not. Various ages are inadvertently included in this average (previous age) and that's only one age (70) in my example. To include every age which has this trickle down age effect makes the answer quite vague and very broad.
I do appreciate the intent of the video and the time spent on it.
Let's be clear about annual increases....there was none in 2009, 2010, and 2015.
Recession?
If you were given the amount of money that you and your employer contribute to Social Security and manage it yourself in your own retirement account, you would retire with double what you will receive from Social Security Administration. The reason you don't collect what you deserve is because a great deal of Social Security money goes to people who've never paid a penny into the system
I'm blessed to be able to receive Social Security and also my State Pension....medicare and my state retirement bluecross/blueshield...my state pension is taxed, but i get a tax refund every year!.... I retired on disability 10 years ago at 54 yrears old due to an accident with drunk driver....downsized my life..... Live a nice, debt free, frugal life..... With great health, no meds, no illnesses, my mind And PEACE!!
enjoy it while it lasts.
Thank you so much for all of the wonderful information and care that you give to us. I am a 55 year old female trucker and honestly, I just started back over with my life 3 years ago and have no retirement savings other than the anticipation of Social Security. I plan, if God willing, to retire at 70.
I like your no nonsense explanations, No flair just the information. Most UA-camrs try to go for the shock value and minimal information. Thank you!
You bet
And too much time spent talking while building up to the end.
If my full retirement age is 66 and 4 months, will I have to wait until 67 and 4 months or 67 to get an additional 8%.
the amount you receive goes up each month, not at yearly increments.
My dad is 62. He only gets $780. He cant talk and he’s only got one eye.
Cost of living increase is like 6 bucks and Medicare goes up so you end up with 2 bucks a month more so the numbers arent going to be that different.
Wow...i retired at 62 and collecting $1890 a month . I get my first check in 2 weeks .
How?
@@wakeup6910 ...how what ?
The $1890....I guess because out of 35 years my lowest year was $29000 and I had 10 years over $60000 and in my last 3 years was over $80000.
I was lucky to work at Chrysler and get good pay and which I also recieve a pension from .
@@toledojeeper2932
That explained it
SS will tell you what your estimated payment will be, but I doubt that the estimate will be very good unless you are fairly close to retirement age.
Nonsense. Doubt away, but SS will give you EXACT estimates based upon your actual earning history. You can do it online and it is simple. One point Schmidt does not discuss here: lost SS income the later your start taking SS. If you can take SS at 62, but wait until 71, you have 9 years of lost income and interest. If your monthly benefit at age 62 was $1400, then that would be about $1400 x12months x 9years = $151,200. If you wait until age 71, you give up $151k in lost income. For most people they will need to live into their eighties to recover that income. Do your own calcs, everyone is different.
Congratulations 100 year olds, we're gonna pay you less!
Ate taxes he only thing that stops a person from continuing to work & collect SocialSecurity? Does a person who continues to work with more than 20 employees, collects SocislSecurity, stays on their employer health plan have to start Medicare Part B before they reach age 70?
The average payment at 71 is only $1,627? There must be many foolish people who started collecting at 62 to have the number be so low.
So if I file early at 62 my SSN will be $1,782, 67 at full retirement will be $2,531 and at 70 $3,139...should I file at 62? I have a military pension that increases every year, 2020 total was $73,000🤔🤷♀️
Only if you truly can afford it at 62 AND you plan on taking advantage of the extra 5 years. If you’re going to spend that time drinking rye at the local dive then don’t bother. Keep in mind if when you’ll qualify for Medicare and where your health insurance will come from in the mean time. Good luck!!
Most seniors are living under 1000 a month I live in a senior apt most people make less than 1000
I took my Social Security at 65 and continued working. I was getting my full SS payments while I was working. Then, I retired at 67 and began collecting my small teacher's pension as I was only a part-time teacher. Immediately my SS payments were chopped in half. That is when I found out about Reagan's Windfall Elimination Provision. I was counting on SS to take up what I wasn't going to get from my small pension. When I found that wasn't going to happen I tried to find out what was going on. Seems this Provision was not well thought out and is actually discriminatory to seniors. Only a small number of those receiving Social Security are affected by this Provision. Seems Congress knows this but will do nothing to adjust or remove it. There are many who are receiving Social Security Benefits and have not worked and contributed to it but others have to suffer to insure they are taken care of.
If you’re getting a pension…your probably didn’t pay SS during the time you worked at that job…so when you do get SS it will be reduced by 2/3 of your pension. I’m in that boat too…but my pension is quiet small as I worked there only 7 years so the reduction shouldn’t be too much.
I think that I will be in the same boat that you are describing.
Does the windfall elimination apply to every month for the rest of your life?
"Windfall Elimination Provision"... What a freaking JOKE!! I guess my pension from 30 years of working is a "windfall". Not only do I have to pay federal income tax on that pension, but I also have to pay federal income tax on $9,000 of my Social Security benefit. That $9,000 is LITERALLY taxed TWICE!! 🤬🤬🤬
I worked 13-1/2 years for a local government that did not pay into SS. For this reason, I planned to work until 70 to minimize the WEP damage. If you have 30 years or more of SS earnings in addition to your non-SS earnings, the WEP does not apply. Fortunately, by the time my employer shut us down when I was 69, I had the 30+ years in. At that point, I said "the heck with it" and retired. The WEP is grossly unfair.
I retired at age 62 and I am receiving over 1800 because I worked very hard.
I have children under age that are receiving money too
My wife was not able to file on her record not enough credits. She is 4 years older than me. If I waited until age 66 we would of forfeited over 140,000 dollars combine benefits since she cannot get a spouse benefit until I filed. It would of took over 20 years to break even. Even with the increase in my benefit. Spouse benefit would of not grown. We filed early when I was close to age 63. My benefit is considerable above all the numbers in the clip.
We certainly don't know when we are going to die but we might have an idea about our physical wellbeing or overall health at retirement. If you could travel, spend more time with family or go fishing that would certainly be better than sitting in a chair listening to a clock tick. I think I will wait just a little but not too much.
My projected amount at 62 is higher than the 71 average, what should be my take away?
I wonder if the SS payouts take out for Medicare deductions? This is a very important detail which has not been explained.
My Medicare is 148 a month and that money is automatically deducted from my SS payments.
I used to think my SS was relatively small until I saw this. I retired early in 2011 due to medical reasons and qualified for disabily benefits. I was 58 at the time and the award was considerably more than the age 71 benefit shown here. Now I wonder why.
You must have paid more into the system, than the average retiree. Also, your check was not reduced, for drawing early, because you qualified for disability.
I started drawing social security disability, as well, at age 51, in 2012. My monthly check is $3,000, before deductions. I'm 62 now, and hoping I don't get kicked off before my full retirement age of 67.
I already know Congress is NOT in my corner! Arrrggghhh. Crooks.
Very interesting thank you for the Video
Wait a minute! Isn't the highest number 70, not 71?
IRS Tax on SSI is a double tax isn’t it. Taxed on the original income then SSI.
I don’t understand the logic of how the money would go down after the age of 73. Wouldn’t you have what you were going to make it 70 and then get your yearly raises so how would it go down?
I can only speculate that at that time (about 50 years ago the changes to social security from the 1983 overhaul increased contribution requirements and payouts
Here’s what they don’t tell you... it all sounds great until you put pen to paper and do the numbers.. according to this video.. assuming his numbers are right..
If you filed at age 62 and are drawing 1130 per month that totals 13,560.00 per year
There is 9 years between age 62 and 71
In that 9 years that totals up to $122,400.00
I’m not going to do all the math.
But the difference between the amount you would get @62 and then again @71 is about $500.00 a month
So at an extra $500.00 a month how many years would it take to make up that $122,000.00
The answer is you would probably never make up that difference due to your age.and if you did manage to live long enough you would never get far enough ahead to make any kind of difference.. so here is what you really need to consider.. are you healthy enough to work until your 71? do you want to work until your 71? If you retire at 66 that might work out better for most people unless you just want to keep working.. now I’ll tell you his numbers are not accurate at least In my case they are not. I did start drawing @62 right at $1400.00 a month.. now I’m 65 and that number has gone down due to Medicare costs. I took mine at that age because I am not healthy enough to wait. So do the math for yourself and remember you can still work some if you are drawing social security if you choose to I don’t know how much you can earn though that’s something you’ll need to find out.
The break-even point usually happens around age 77, give or take a year, when deciding to file at 62 vs full retirement age. It's complicated, to say the least.
Your SS amount did not go down at 65 because of Medicare. You obviously chose to pay your $148.50/ month premium for Medicare part B taken out of your SS , which is the way most people probably handle paying that expense.
Another calculation to add to the mix.
I am continuing to work to at least 71 or longer. I can earn much more than SS will give me.
So. it's true that I may end up with a higher SS amt by waiting.
But, I'm also earning more until then, which gives me more time to get everything else in order.
How long do you plan to live ?
Wouldn't you have to consider the amount of money you would make if you still worked from 62 to 71?
I’m not planning on retiring until I’m 70 or older. I love what I do. My SSI should be over $3,500 per month, Besides SSI, I have sock away a lot in my 401K and Roth IRA, I have been paying on Long Term Health Insurance for 20+ years, and have multiple Variable Life Insurance Plans that are mostly paid off. No Husband and No Kids to worry about, will give all my Money away to family and friends when I die......hopefully Ready. I’ve been planning and working and investing in RE since I’ve been in my 20’s.
You will probably die before you collect. Stupid move.
@@airmanma Not expecting to do that Thom. If so, then family members can have it :)
You are doing a wise thing in planning ahead, however in your situation I would certainly take early retirement. (in fact, I did take early retirement because what you describe is exactly the position I was in when I reached 62!) My favorite meme on retirement shows a wooden lounge chair on the beach with the words "Retirement: when you stop living at work and start working at living!" I have thoroughly enjoyed retirement and know I made the right decision for me and my family.
Everyone can sign up and get their own estimate from the federal government online.
I started collecting at age 65, I'm now 77.
I get 2280.00 a month.
Is this the average payment before part B Medicare is deducted or after it is deducted ? Would be a difference of $150 or more a month.
Well, obviously its before Medicare cause you cant get it until your 65
I think one of the most, if not THE most, important decision a working class retiree can make is when to begin drawing soc sec. As such, I would love to see a video showing the average soc sec payment for those who STARTED drawing soc sec at 62/66/70. That's much more useful info for planning, in my opinion. I am in my early 50s and plan to retire no later than 62, but I am undecided on when to draw soc sec. I am inclined to wait at least until my full retirement age which is 67, but if my savings grows as I expect, I am open to waiting until 70 in order to get the maximum possible payment. I realize that waiting doesn't make sense for everyone, but I am in excellent health and expect (hope) to live a very long time. I think you only need to live past 83 or so to benefit from waiting until 70 to draw, but you need to have enough savings to live off of in the mean time.
if you have enough money to live 8 years on savings, SS is barely a factor.
@@PatriotSteve Of course Soc Sec is a factor, particularly if you expect to live a long time, which I do. While savings can be volatile and even run dry for many people, Soc Sec is guaranteed for life. That fact makes when to collect a critically important decision.
I filed for 66 at 66. I got double what you have shown.
Average is what it means you obviously had a a higher income deserve more got more
He said that they calculate the payment based on the highest 35 years of income. Put in more and you'll get back more. I wonder if there is a maximum ceiling amount.
@@Rhaspun Yes, there is a maximum amount. Right now, if you file at age 70 it would be $ 3895 per month.
Thanks for the info Geoff
You bet
I I think it would be more helpful information to state the average amount people receive when they BEGIN to receive Social Security at ages 62, 66 and 71.
I was just thinking that. This is interesting in a voyeuristic kind of way. But it doesn’t really give helpful information.
No kidding, the information presented here is useless...... just some trivia
I thought it was helpful. Why do you all think that this video was useless? What did I miss?
@@curious1366 By lumping everyone together according to age groups, it's impossible to distinguish what the average actually is. All 67 year olds, some started collecting at 62, 63, 64 etc... Because they are all on different time lines it makes the amount they collect on average meaningless. The average they receive by age at the onset of collecting Social Security would be a more meaningful number.
@@mariannaryan456 Again, I know about the different timelines and so on.
I also know what number is predicted for me as to what I would get now and what I would get if I waited.
I've been thinking that my number seems not big enough to survive, so I find it helpful to know that people are surviving on the average amount, regardless of where they are in their timeline etc.
I just thought that my predicted numbers seemed so low, but at least I'll be average!
But.... I will live better on that amount if I leave the US... I believe!
At 62 my SS will be $2400
Sounds like a 3rd world country 🥺
I don't understand the usefulness of this video. What does it matter to me what the average payout to other people is? What I'm going to receive is what is important to my decisions on when to take SS.
It’s more important to some people than others. As I mentioned at the beginning people like to understand what the benchmark is. This allows them to have some idea of where they might end up.
@@HolySchmidt In reality all anyone has to do is log into(or create an account) their SS account and get payout estimates specific to them. Those average payout estimates were pretty useless especially the ones for ages 66 and 70 since it included payouts from those that took SS at 62 which reduced the average significantly. Averages at 66 and 70 would if been much more insightful if it only included those specific age groups, as those amounts would of been much higher.
@@HolySchmidt good answer
I get $2350 at 62 and over $4000 at 70. I'll start collecting Jan 2023 at age 62. I'd be 81 before hitting the break-even point, so I have nearly 20 years that I'll be investing this money. At 5%, that $2350 will grow to $800,000 before taxes, but I'm anticipating being dead by then due to my family history (already have prostate cancer).
I just filed at 69 and will be getting $3580/mo. I was going to wait until 70, but the extra $120/mo would have taken around 14 years to equal the 12 months of missed payments. Should have taken retirement a few years earlier.
How much did you make per year to get $3,580?
@@Quilt4Joy I exceeded the SS limit in 29 of my 35 highest years, so pretty much at the maximum anyone can get
I really wish I could have earned enough to get $3580 per month!!
My highest earning years do not count for SS.
So my SS amount will be from my first 30 years of working which is when I was earning the least! (sigh)
Im in that group who has a private pension for a 26 year police career. I also have earnings prior and after that career that has me vested in S.S.
Can you explain the "penalty" that people like me will experience due to that pension and how that affects our payout when we do apply for S.S. on a video?Theres a lot of us out here and its a confusing matter!
I'm confused why do you think you will be penalized. I get a pension, and SS, and I have never received a penalty concerning my income. It that because you were a police officer?
Ms. L. Churchill
@@leschurchill804 Its the windfall provision for the private pension I receive. I did not pay S.S. for the 27 years I was a cop. I did however during 10 other working years. I will lose about 30% of my S.S. payout due to that very confusing rule. Ted Cruz was working toward abolishing that rule several years ago but then our world started falling apart, don't know where that went.
@@leschurchill804
How is it that your pension doesn't reduce your SS payments?
The policeman here is talking about the the Windfall Exclusion Provision.
I think I will also have that "penalty" because if I collect SS AND have money coming from a pension, then they deduct from the SS amount.
In my book--- that is a penalty!
We definitely could use another Schmidt video to clarify this!!!
@@curious1366
I started collecting my pension before I applied for my SS. SS never calculated my pension and/or asked about it. If you receive your social security early, you are only allowed a certain amount, other words, it is reduced-and will remain at that reduced rate for the rest of your life. I waited to collect and received my SS at full retirement age, thus there were no reductions.
If I choose to withdrawal from my IRAs-my SS will probably be taxed at a higher rate, for income tax purposes, but I don't know. Either way, I'm going to have to start taking it some point, and pay the piper, regardless.
Ms. L. Churchill
@@leschurchill804 People are penalized because the SS payments for minimal investment in SS are inflated, because they think it will be your only oncome. If you paid a lot into SS, you will be getting the normal payments and won't be penalized.
Paid into it for years. I took it. Don't need it. I'll donate it.
I get $2225 and Medicare parts a,b c,d .....i am not rich... Worked since I was 14 , did not file till full retirement age.......what are these people doing wrong that I did right
Can you do a video on trading often IN retirement account, no book work for taxes (1099)....transferring IRA to Roth (conversion) little buy little within the lowest tax bracket possible? NO fees now!!! Etrade is so much user friendly, I've been using both ET and AMTD since 2000.
also, what bank has the best report option to easily do a spreadsheet and report for end of the year? (BMO Harris used to have a check register input option (could group the year by category, date, withdrawals, deposits, etc)... but they changed to a more laborious option of "Total Look")>. Quicken doesn't do it for me.
Have you been "Up Schmidt Creek?" 8-) cute channel name.
I filed at 62 and received $1666.00.
any regrets? how long since you were 62? Do you have other income?
Congrats! You've worked hard and paid into the system for 55 years! Here's 7 years of mortgage payments for a modest house in a Midwest small town!
I turned 62 on Feb 1... I did not take my social security yet.. I checked what my social security monthly payment would be in march.. It it was $1254.00 Dollars .. I checked again on April 1. my monthly payment would be $1262.00 Dollars.. went up $8.00 Dollars in 1 month..
Cool it will only take you 156 months to get back the 1254 dollars you passed on in march.
Glad I took mine at 62. I died when I was 64.
Opposite for me. Took mine at 62, now 98 and going strong. Probably lost a million bucks.
thanks for leaving more food for the rest of us!
@@MikeNaples It is impossible that you lost a million dollars. Taking social security at 62 reduces your benefits by 25%. In 1990 the average social security benefit was $550. 25 % of that would be $137.50 per month. You would have lost drawing $550 for 4 years or a total of $26,400 to receive an additional $137.50 after age 66. $137.50 X 32 years X 12 months is $52,800. Even with the Colas over the year, not even close to a million.
@@rickw9169 I don't dispute your numbers and of course I was exaggerating only to make a point. If you plan on living long and don't need it, take your SS more late than early. In my situation my SS would have been ~$1,500/month at 62 and now will be (not there yet) ~$3000/month at 70. These #'s are from SS, the yearly update they send you. My luck I will get run over by a truck on my 70th birthday, the day I start collecting.
Hysterical. Thanks for the laugh.
Does the estimated benefits by ages provide by SSA when I requested accurate. My benefit at age 62 is about 500 dollars more than then your averages. Thanks for this video. Very helpful.
Remember: The average is just that... and probably does not mean much to you. For example, "As of June 2014, the average number of companion animals per household in the United States is 1.6 for dogs and 2.1 for cats." Can you actually find six-tenths of a dog or one-tenth of a cat in any household? Nope... and that's why your specific situation means everything to you and the "average" is meaningless. Or take your net worth and add it to Elon Musk's net worth of around $167 billion and divide by two. But do you have anywhere near that average of $83.5 billion (or a bit more, if you're a millionaire) in your net worth? But you can't argue with the "average"! While "true," it means nothing to you -- or Elon. For example, at my age, my payment is almost exactly double the number shown in the list above. So when the Motley Fool or some other "expert" puts out the average payment, it's often used to scare you into buying something (or keep working and invest with them).
@@johnc2438 Thank you. I like the comparison to a companion animal. I have one dog and sixth tenths on another would obviously be quite odd.
He mentioned that there are three factors that determine what you draw, one of them being how much you made on your paycheck for the highest paying 35 years of your career. You must have made more than the average used in these calculations. Mine is significantly higher.
vid starts at 2:40
Why is Canada´s social security (OAS) payment so much bigger than that of the US while at the same time the Canadians generally give so little to charity???
The worst risk is not leaving money in the SS system if we die early, the larger risk is if you live to age 85 or older and your income has not kept up with inflation.
What about 67?
See the full age range in the description in the video
How does one check his S.S. if I worked 20 years contributing, then 15 years in a Govt job not contributing, then retired, adding no more to S.S. ? Is there a formula for this? And does S.S. deduct if your recieving a Govt, pension?
You are about 53 years old, and don't know how to check your social security? Very sad.
My wife and I retired 2 months ago at age 66yrs/2mos. We worked since we were 17. I receive 2300mo and she 1700mo. plus a 400mo. from union pension. We got the hell out of SoCal to a more economic friendly state, bought a new 3/2 home in an extremely safe neighborhood and house payments more than half less than what we were paying in SoCal. Other than that, the only bills we'll have are utilities and cable. And still have mid 5 figures in the savings.
nice!
Thanks 😊
Even if the members of congress don’t collect SS, which I’m sure they do, members of their families do.
Good point
their pension gives them more than ssi would
@@stonemason848 They contribute both to their federal pension and SS. Much more to their pension.
Social Security seems like a joke. I couldn't pay my power bill with the average payment. If I'd been allowed to take all my payments and just put them in the stock market, I'd be a millionaire. What a scam, and now there is chatter that the fund will run out of cash in any event
Completely agree. We get zero percent growth for 40 years.
Well it’s a socialist system for sure. You and your employer are forced to contribute and the payout scales are unfavorable the more income you’ve earned BUT most retirees would have nothing if SS wasn’t in place. Yes, I believe in personal responsibility but many people don’t have the means or intelligence to save for retirement and I don’t want to see thousands of our elderly citizens on the streets.
That chatter is the talk of morons.
If you die today SS will pay out benefits to your survivors. It will also pay out to you if you become disabled. SS is not an investment tool it is INSURANCE.
@@ad70preterist And zero risk along with that AND it serves as insurance for you and your children should you become disabled or die early.
@@MrSteeDoo it’s a poor return by any reasonable standard.
For example
Both my contributions and employer over 40 years are $300,000. If I had contributed $500 a month (average) for forty years at zero percent it would be just over $300,000 (+\- 20k) and will last about 10 years at full retirement age $3200 a month before I began to take more then I put in.
But if I had the stock market rate at a below average of 5% (10% is average) I would have just over $1,000,000. I could easily take out over 6K a month and still have hundreds of thousands of dollars to give to my family after I die.
Social Security is clearly a scam and financially harms more then helps the sooner society abandons this terrible idea the better off we will be in my opinion.
5:02? It seemed like an hour. Work on your presentation , you are boring!
It is do hard to decide when to start benefits. I am 63 had go retire due to some health issues with my eyes. Been looking at SS benefits now or wait.
Now
If you retired because of your health you should apply for social security disability your monthly social security will be as high as your payment would be at full retirement age plus
Make sure people know there is cap for two worker couples…. That’s when one needs to look a t one them to take it early, continue to work they will never get there maximum. If both of their benefits are over the total allowed.
God bless America land that I love. Please Lord protect us from Joe Biden. Long live the Republic.
If we could survive the Liar-In-Chief Trump we can survive ANYTHING.