any thoughts yall?
5 GOOD REASONS to File for Social Security at Age 62
- Thread starter elkhound
- Start date
Help Support Homesteading & Country Living Forum:
My thoughts are this...... you are alive at age 62. Will you be alive at 67? Maybe, maybe not. How much money will they have paid you between age 62 and age 67? Take that number and figure against what the full payment would be at age 67. Do a little division per year or month and calculate out how many years it will take after age 67 for you to start getting "less" per month.
I did this math with my retirement from the city when I early retired at age 42, instead of waiting until age 50. The state wont start making a profit off my discounted retirement until I am about 63 or maybe even later because it has been 13 years and I forgot the math. Yes, I am getting a smaller payday each month than if I waited but I was not going to put up with the administrative or political BS another 8 years.
Will be it beneficial to wait if you KNOW you will be living into your 90's? Absolutely. But none of us actually know. And, quite frankly, the longer you wait the more money the Feds get to keep out of what you paid in to your entire working life. You can collect SS and still work a part time job as long as your annual income is below a certain level, which they will explain to you. Or, you can collect and make crafts to sell or grow veggies or fruit to sell, or raise chickens to sell eggs. All of which can be for cash and they wont know.
My opinion is to collect while you know you are alive.
I did this math with my retirement from the city when I early retired at age 42, instead of waiting until age 50. The state wont start making a profit off my discounted retirement until I am about 63 or maybe even later because it has been 13 years and I forgot the math. Yes, I am getting a smaller payday each month than if I waited but I was not going to put up with the administrative or political BS another 8 years.
Will be it beneficial to wait if you KNOW you will be living into your 90's? Absolutely. But none of us actually know. And, quite frankly, the longer you wait the more money the Feds get to keep out of what you paid in to your entire working life. You can collect SS and still work a part time job as long as your annual income is below a certain level, which they will explain to you. Or, you can collect and make crafts to sell or grow veggies or fruit to sell, or raise chickens to sell eggs. All of which can be for cash and they wont know.
My opinion is to collect while you know you are alive.
- Joined
- Dec 8, 2017
- Messages
- 293
I saw a different video on this topic and they brought up survivor benefits. If your survivor is younger/healthier than you delaying your own payout can benefit them.
I don't remember the details, and it all sounds overly complicated. I have similar crap to consider with my pension at work. I'm glad I have decades, not years, to think about it.
I don't remember the details, and it all sounds overly complicated. I have similar crap to consider with my pension at work. I'm glad I have decades, not years, to think about it.
Filing at 62 is primarily a benefit if you do not plan on continuing to work. If you continue to work your income is limited, and your Social Security will be reduced if you earn over your annual amount.
This is from the Social Security web site. You can enter your age to see what your benefits will be, and do the calculations yourself.
In 2023, we deduct $1 from your benefit payments for every $2 in wages you earn above the annual limit. If your benefits start mid-year, you generally will not be due a benefit check if you earn more than $1,770 per month. If your payment is withheld due to your earnings, we will increase your monthly benefit amount at Full Retirement Age to account for some of those withheld benefits.
https://www.ssa.gov/prepare/plan-retirement
For me it was more than beneficial, it was necessary to continue to work for longer.
This is from the Social Security web site. You can enter your age to see what your benefits will be, and do the calculations yourself.
In 2023, we deduct $1 from your benefit payments for every $2 in wages you earn above the annual limit. If your benefits start mid-year, you generally will not be due a benefit check if you earn more than $1,770 per month. If your payment is withheld due to your earnings, we will increase your monthly benefit amount at Full Retirement Age to account for some of those withheld benefits.
https://www.ssa.gov/prepare/plan-retirement
For me it was more than beneficial, it was necessary to continue to work for longer.
- Joined
- May 29, 2020
- Messages
- 5,018
Okay, here's my take on it. If you are healthy enough to work until you are a little older take it at full retirement age and keep working to build up a nest egg.
If you are planning to keep working it does not benefit you to take it at 62 because they deduct what you earn from work. After you reach full retirement age you can work and collect your full benefits. For me that means having a few months of 2 incomes... plus every year I work wipes out one of my minimum wage years....
Remember full retirement age changes with the year you were born:
And while you are at it, don't forget about Medicare, take Part A at 65 (it's free), Part B has a cost tied to it (over $150/month) they usually take it out of your social security, but if you are still working you get a bill....
If you are planning to keep working it does not benefit you to take it at 62 because they deduct what you earn from work. After you reach full retirement age you can work and collect your full benefits. For me that means having a few months of 2 incomes... plus every year I work wipes out one of my minimum wage years....
Remember full retirement age changes with the year you were born:
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
And while you are at it, don't forget about Medicare, take Part A at 65 (it's free), Part B has a cost tied to it (over $150/month) they usually take it out of your social security, but if you are still working you get a bill....
One factor I didn't notice that I considered when I got on SS. Inflation is always more than what they increase your pay by. The money I got paid at 62 bought more than what I get paid today. For example, today they say inflation is around 8%. I reality inflation is over 20%.
The minimum age when to pull my Social Security was 62 1/2. I crunched the numbers and found it beneficial to get it as soon as I could. By waiting until 65, the larger monthly allotment would take beyond my expected lifetime to balance out.
My advisors advise was to wait as long as we could. My DW is younger and healthier, so the higher my benefits are is to her advantage when my check engine. light blinks frantically and goes out.
For me, since I already had a law enforcement pension, my Social Security earnings fell under the Windfall Elimination Provision. I was estimated to receive $1800 per month at 62 1/2, or $2300 per month at 65, but because of the Windfall Elimination Provision, my Social Security earnings dropped to $600 per month. Yes, I was penalized 2/3rds of my Social Security forever because I picked up a job which carried a state pension. There is lots of talk in the Senate this year about eliminating this WEP, but I think it is highly unlikely.
Outstanding thread topic, and one of my soapbox issues!
They keep pushing the 'finish-line' further away because they know a lot of us guys will kick the bucket and they get to keep 'all that money'.
I started drawing mine at 62.
My older brother had enough money in his 401K to make it to 'full retirement' age of 66, so he could get "THE BIG CHECK".
He died as an unmarried man at 65.
Ask yourself, how much more did he get by waiting?
....I'll help you out, nobody ever drew a single dime of his social security.
Last edited:
Be sure you have the "REQUIRED" number of quarters to qualify for Medicare. I just narrowly had enough, and I did not know of that requirement. I started at 62, been sucking the teat for 14 years.
I don't see how you are sucking any thing.
It's your money.
Don't buy into the BS on SS.When anyone makes an investment they expect a return. The more the better.
- Joined
- Dec 8, 2017
- Messages
- 10,044
I can only make just under $20,000.00 annually at 62 & still get full SS.
So I would have to cut my retirement fund in half or wait till I am 65, so 65 it is, only 2 years & 10 months left.
The game is rigged, so I will play my hand & pray for the best.
So I would have to cut my retirement fund in half or wait till I am 65, so 65 it is, only 2 years & 10 months left.
The game is rigged, so I will play my hand & pray for the best.
Actually, I was making fun of the sucking at the teat. As now it is considered welfare, when I got my S.S. card in 1956 it was call, "Social Security Insurance Program".
- Joined
- Dec 8, 2017
- Messages
- 10,044
62 was the retirement age, because at the time most men died at 60-62 years old.Outstanding thread topic, and one of my soapbox issues!
They keep pushing the 'finish-line' further away because they know a lot of us guys will kick the bucket and they get to keep 'all that money'.
I started drawing mine at 62.
My older brother had enough money in his 401K to make it to 'full retirement' age of 66, so he could get "THE BIG CHECK".
He died as an unmarried man at 65.
Ask yourself, how much more did he get by waiting?
....I'll help you out, nobody ever drew a single dime of his social security.
- Joined
- Dec 8, 2017
- Messages
- 10,044
It is not welfare, because you pay into it.
I wish everyone on welfare had to pay into it & pay taxes.
As a railroader, I don't have to worry about it. We don't pay into SS. Well, actually we do, sort of, but it's kind of complicated. Anyway, we pay into a federal pension plan that pre-dates SS. SS was actually modeled after the railroad pension.
We do pay into Medicare though. Our retirement requirements are age 60 with 360 months of service. I started at age 35 so I'll actually have to work til I'm 66.5 years old. (I've missed 6 months of service due to being laid off.) For most railroaders that's a problem because they have to buy their own insurance from age 60 to 65 when Medicare kicks in.
I'm not certain what I'll do. As a Type 1 diabetic I have a shorter life expectation than average. I absolutely must have health insurance so I'm probably stuck working till 65, at the least...
We do pay into Medicare though. Our retirement requirements are age 60 with 360 months of service. I started at age 35 so I'll actually have to work til I'm 66.5 years old. (I've missed 6 months of service due to being laid off.) For most railroaders that's a problem because they have to buy their own insurance from age 60 to 65 when Medicare kicks in.
I'm not certain what I'll do. As a Type 1 diabetic I have a shorter life expectation than average. I absolutely must have health insurance so I'm probably stuck working till 65, at the least...
I did an analysis of my SS a few years ago. A large spreadsheet where I looked at "total SS payout over the entire time" vs. "what age I die at" vs. "what age I start drawing SS at".
The result (in my specific case) was that it doesn't make a bit of difference when I start drawing it if I die before I am 83. "Bit of difference" is defined as "3 thousand dollars or so".
However, once I live past my mid-80's, things change, and it is best to wait as long as possible before starting to draw SS.
It's really simple to construct a spreadsheet like I did - the government will provide you estimates of monthly payouts based on when you start drawing. Make a column from each month, starting now, until say, 100 years old. Yeah, that's a lot of columns. Then make a row for each "start drawing SS" date you want to investigate. Slide over to the appropriate start column for that date and put in the number the government gave you. Then draw/copy that amount to all columns to the right. Yeah, that's a lot of copied columns, but easy to do in a spreadsheet. Add some "running subtotal" entries every year or so, and you have what you need to easily see total payout based on start date and death date.
For me, it ended up making no difference when I start drawing unless I end up living a really long time. So then you have to look at other factors, like your expected lifespan (and that's hard to predict for most people).
My conclusion was - based on my personal data - that unless you plan on living really long, start drawing as early as you can. That way you start getting the money NOW, so if you end up dying much earlier than predicted, at least you will gotten back some of what you paid into SS over your work life. If you die the day before you start drawing, well, you lost everything.
So for people that find themselves in a situation like mine, the only real question is "Do I think I'll live a really long time?" Then, delay drawing SS. If you plan on a normal lifespan, then start drawing as soon as eligible, even if it's earlier than the standard start date. Of course, everybody's situation is not exactly like mine, but it's not terribly difficult to run the numbers for your personal situation. As long as you have access to a spreadsheet program. Calculating the numbers by hand would be super tedious and prone to error.
The result (in my specific case) was that it doesn't make a bit of difference when I start drawing it if I die before I am 83. "Bit of difference" is defined as "3 thousand dollars or so".
However, once I live past my mid-80's, things change, and it is best to wait as long as possible before starting to draw SS.
It's really simple to construct a spreadsheet like I did - the government will provide you estimates of monthly payouts based on when you start drawing. Make a column from each month, starting now, until say, 100 years old. Yeah, that's a lot of columns. Then make a row for each "start drawing SS" date you want to investigate. Slide over to the appropriate start column for that date and put in the number the government gave you. Then draw/copy that amount to all columns to the right. Yeah, that's a lot of copied columns, but easy to do in a spreadsheet. Add some "running subtotal" entries every year or so, and you have what you need to easily see total payout based on start date and death date.
For me, it ended up making no difference when I start drawing unless I end up living a really long time. So then you have to look at other factors, like your expected lifespan (and that's hard to predict for most people).
My conclusion was - based on my personal data - that unless you plan on living really long, start drawing as early as you can. That way you start getting the money NOW, so if you end up dying much earlier than predicted, at least you will gotten back some of what you paid into SS over your work life. If you die the day before you start drawing, well, you lost everything.
So for people that find themselves in a situation like mine, the only real question is "Do I think I'll live a really long time?" Then, delay drawing SS. If you plan on a normal lifespan, then start drawing as soon as eligible, even if it's earlier than the standard start date. Of course, everybody's situation is not exactly like mine, but it's not terribly difficult to run the numbers for your personal situation. As long as you have access to a spreadsheet program. Calculating the numbers by hand would be super tedious and prone to error.
As far as Medicare, you need to start "Part A" of that on your 65th birthday. Do not delay. If you delay, you are penalized for it the rest of your life. Now Part B, you do NOT have to sign up for at age 65 IF YOU HAVE OTHER HEALTH INSURANCE, say from a spouse who is still working and you are covered under their plan. But be very careful, if you do NOT have this other health insurance, you should sign up for Part B at age 65 when you sign up for Part A. If you fail to sign up for Part B (and have no other insurance to extend that date), you will be penalized, just like Part A.
You will also be penalized if you do not sign up for part D at 65
- Joined
- Sep 4, 2020
- Messages
- 9,414
I retired when I 60 and waited until 62.5 to get a nice round number and reduce my draw down of my savings. Based on the average age of my parents when they passed I may be collecting for only 10 years. The Princess on the other hand had parents that lived into their eighties. She may end up maxing out her SS and collecting more a month than I do.
So for us both answers are correct.
Ben
So for us both answers are correct.
Ben
- Joined
- Dec 8, 2017
- Messages
- 10,044
My Father worked for Sothern Railroad for 33 year, I think they where bought by someone, before he retired.
I have to chime back in because I actually watched the video in the OP
.He touched on something very important that is never mentioned:
Because I started SS early I was able to leave the funds in my IRA untouched for 3 years.
Everything that I didn't have to draw out, has been steadily perking, (compounding 6%), the whole time
.Find a way to work that into your spreadsheet, and it changes everything.
You can chase that golden carrot-on-a-string: "what if I live past 85" thing, but I won't.
This is not me:
Last edited:
part of my plan is to have a home designed exactly for me and my needs as i age and for it to fit my lifestyle as well as my pocket book both in its construction and its daily cost after construction to run.
i want a home than function on minimum money and effort.
theres a architecture school in deep south and their students are challenged in design and building on what they can find and get donated. they are trying to get a law or some such thing where they can get money and goods donated directly to that portion of school. its been going for awhile..i think its auburn u ?
heating and cooling system unique to my needs and wants. my mealmaster wood cook stove wil be the 'heart' of the home. also my ability to repair or replace things as they age and i age.
live within my means.
I am in the same situation. I worked about 8 years, some part time and some full time, prior to becoming a Police Officer, and I have worked the last 10 years, some part time and some full time. In the next few years I will stop in at the SS office to ask about my situation and to make sure I have enough time in the private sector to allow me to collect at age 62.
Not entirely correct about signing up for Part B or D at 65. The exception is if you or your spouse is still employed and has a good health care plan intact. Once it comes time for that to end, sign up right away. Your employeer must provide you a document to prove you were covered. My wife turned 65 2 years ago and we looked deeply into this and found she could wait until I retire. Perfectly legal. Part A is fully paid by the government and starts when you hit 65 regardless.
In my case I plan to retire at 65 and will start hitting out 401 taxable account (which I will transfer to an IRA prior to retirement) to delay taking my SS until my FRA at 67. At that point my wife's SS spousal and survivor benefits will be maxed out. My prime concern is to maximize what she will draw should I die before her. I will also take a 75% survivor benefit on my pension that she would draw in that case. It'll reduce what I'll get, but leave her in the best possible situation. If she goes first my pension reverts to 100%.
As I get close to 65, just over 2 years to go now, I've been digging deeply into all this stuff. Taxes are another factor to be considered in you have a large income from retirement plans (401 & IRA in particular) By reducing my taxable income while not taking SS our overall tax load will be greatly reduced. Most of what we have is in Roth accounts and thus not taxable anyway. So many things to consider when planning this out. Some stuff I'd never even thought about. Glad I'm getting into it early on. I'd hate to have to make a split second call on something important. Just watched a video tonight of a guy talking about budgets. He recommended 5, one each for pre retirement, one for your go-go years in retirement (say day 1 until 75 or so when you plan to travel or splurge on certain things), one for your slo-go year 75 to 80 when you slow down your travel and such, another for your no-go years 80 and up. The 5th one was one for what is the minimum you can get by on during periods of major downturns in the market (think severe recession or depression).
Great topic OP. I've enjoyed seeing all the different thoughts so far.
this article showed up tonight...
https://www.zerohedge.com/personal-finance/ugliness-awaits-many-boomers-nearing-retirement
https://www.zerohedge.com/personal-finance/ugliness-awaits-many-boomers-nearing-retirement
This is exactly why I planned my retirement to be without Social Security and without my pension. Only living on what I had saved and invested myself. At this point Social Security and my pension are still intact, which is icing on the cake. If they go away I won't be happy, but at least I won't be eating liver.
I'm 12 years older than Dawn; why throw away a chance to earn a good salary just so I could sit home and vegetate while she worked? I got my full SS at 65+ and the next three years was making full SSI and my regular salary plus two smaller pensions from earlier jobs in which I was vested!
Took advantage of an option to retire from Boeing with the other old pharts and got an "early" out cash payout and a pension, took a part time gig and waited until she turned 62.
With the extra cash cushion, we were able to buy a mini-farmstead (~2 acres) in rural Idaho and have been getting serious about self-sufficiency since 2018.
Hey, we all want to get there, but different people travel different paths.
Took advantage of an option to retire from Boeing with the other old pharts and got an "early" out cash payout and a pension, took a part time gig and waited until she turned 62.
With the extra cash cushion, we were able to buy a mini-farmstead (~2 acres) in rural Idaho and have been getting serious about self-sufficiency since 2018.
Hey, we all want to get there, but different people travel different paths.
Last edited:
