@@FinancialFastLane My question..my age for full benefits is 66+ 2 months....I want to start getting checks then..so when do I apply? 4 months before? and assuming my birthday is mid january..is march the 2 months?
I took mine at 42.Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 50 and my wife 44 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income. Thanks to fire movement.
I'm a single dad, not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated
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I will be 62 this year and I am taking mine now! There is NO guarantee that I will live to be 66 plus a few months! Everyone in my family retired at 62 and they told me that I will be ok. So, look out social security, here I come!!!
You work all of your life to get this money so be smart and take it at 62 because you are not promised tomorrow. I'm retiring soon at age 50 due to having a pension and I'm moving full time to the Philippines............then 12 years later I pick up my S.S. at age 62. Live life, it's to short not too!
I have been paying into SSI for 35 years now (12 more to go). I have two pensions coming when I turn 65. Those two companies worked me like an ugly, red-headed stepchild through the years and I want to get every penny that will be owed me. I will take retirement at 65 and hope to live to 90 so they have to keep paying me.
I retired at 62. Lived on savings and a small pension check while watching every few months as my est. benefits increase. When the SS benefit amount was where I believed I could maintain my life style I applied for and began collecting monthly benefits. I was in Europe and was expecting a big hassle. Applied online and within another month benefits began arriving on time to my European bank. Over the past 5 years deposits have been on time and of the correct amount. Never had a problem.
I don't have Social Security. I have Civil Service. Took early retirement at 57 from the US Postal Service, now almost 70. Loving and living life like never before. For all you SS people, I wish you well.
Very well done video. Easy to follow and not a whole lot of "opinionated" ideas. I'm currently 62 1/2yo. I've decided to wait to 66.7. That gives me 3.6 years to get my finances in order, i.e. debts and start minimizing certain expenses so that I can actually retire. I also collect a military retirement pension and have an associated medical/dental insurance plan. I think one of the main items to consider is how much debt you are currently carrying before signing up for benefits. I'm going to roll the dice and bet on living past 66.7. Wish me luck!
I'm 74 and waited till 70 and glad and grateful that I waited I get 1,650 monthly which is lot better than the 600 would have been if I signed when I was 60. So glad I waited ! ! ! !
Dont wait on taking it. Tomorrow isn’t guaranteed. Enjoy it while yore younger. If you get in a nursing home the state will take it anyway. Live your life.
Take retirement at 62, because you don't know how long you have to live and you have to consider life expectancy averages. If you wait until 66-67, even though you earn more money per year, it would take approximately 15 years to make up the difference of the earlier retirement. At age 62 you'd receive approximately $1700/month or $20,400/year. If you live until your 81, you'd receive $387,600. At age 66-67, you'd receive approximately $2300/month or $27,600/year. If you live until your 81, you'd receive $386,400, less money overall than the early retirement. When retiring at 66-67 it would take 15 years, age 82, before you'd finally pass the amount of the earlier retirement.
I retired at 60 by 62 I had a stroke..Oh well, after 44 years of work l had 2 years of freedom before becoming crinkle cut. Retire early and enjoy your Golden Years.........
62 is my expected retirement date. I'll get there and see if I then want to work longer. We have well over 1mil in savings, and never debt, so might just stop working at 62. Tomorrow is never guaranteed. You will never be poor if you simply desire less material things.
In my opinion, if you're dealing with health issues, go ahead and start collecting your Social Security Benefits before FULL RETIREMENT. Many people are dying at 65 years old without receiving one penny of their SS Benefits. DO WHAT IS BEST FOR YOURSELF AND SITUATION! YOU CAN STILL WORK PART TIME.
the contributions are made to insure old people of an income. I'm curious as to weather or not you have added up how much you have contributed against how many years it will take to receive it back in your old age and what will your income look at at age 80 and your thinking... If only I had waited until I could collect my 1,300 instead of this 600 per month. learn before your grumble about your loss.
I too have died. Had a heart attack a few years ago and was flat lined for several minutes. It took two tries to get and keep my heart going again. Suffice it to say, I decided to start my social security early.
I've maxed my social security in 2015..meaning you have too work 35yrs of your life to reach the credit limitations..now I have to wait till I'm 60+ to collect, I'm 50 now, I've been working since 1984-present and the government is still taking social security tax money out of my checks..A BIG FRAUD!!!! These greedy blood suckers don't want to give shit, just take, take, take and sit down and figure out ways to get over on us hard working people.....
Based on the example provided in the video, the person who retires early and get ~$2K a month will not pay any taxes for the rest of his/her life -- assuming there are no other sources of income. ~$2K a month is less than the annual limit of $25K. However, if the person waits and makes $4K a month at age 70 then that person will pay some taxes since the SS income will be more than $25K (the limit for an individual). Something to keep in mind!!!!!
just lost a female cousin at 64, her boother a few years ago at 58, my father died at 70, my mother at 56. its about the numbers, many people will never get a check.
Same Here but have not taken SS YET MAYBE @ 65 . Also if you take it you cannot make that much yearly you’ll get penalize good and bad Huh .. waitin for a Jesus
Poor planning? I beg to differ. It's all about planning. I'm 59 and am planning on starting social security at age 62. Yes, I have done the math. There are no guarantees in life. Unfortunately, several of my friends have passed away.
My uncle died at 57 years old of a heart attack and my father his younger brother when he reached 57 years old, he died of a heart attack. When I was 54 years old, I had a heart attack but obviously I lived. I knew the symptoms and got to the hospital quickly. Since neither my uncle or my father collected any Social Security benefits guess when I'm going to take mine. Did you choose the age of 62, if you did, you're smart.
I understand, too. While there is longevity in my family (80s/90s & one even lived to 102), I am the only to have had cancer, open heart (valve) surgery, cardiomyopathy, among other things. That complicates decisions and leaves me uncomfortable making them.
@NPCs Can’t Laugh not giving up just rather collect SS as soon as possible and do things I enjoy instead of working, if I get bored then I will go back to work.
Don’t forget they’ll take Out for Medicare down the road so it won’t be $1400 a month think about that, you don’t get nothing for free no more only the air you breathe. I’ll just wait for rapture. That’s Guaranteed !!
I plan to live forever, will I ? I don’t know, I don’t have a crystal ball. I do know that I am going to start collecting at 62. If I live to start at 62. Life expectancy has nothing to do with getting hit by a truck. TOMORROW IS PROMISED TO NO ONE.
HaHa....your right. Life expectancy? For who? Let's see, I'm a working, Hispanic male (vegetarian) living in a high crime area, what is MY life expectancy?
Thanks, I enjoyed the video. However, there is more to the answer for the crossover point than simply using cumulative dollars, or more specifically the Future Value of Cumulative Dollars. Social Security can be evaluated in the same way as any annuity with survivor benefits. So IMHO, one should look at the relative differences in the NPV's of the cumulative sums. For those who can afford it and who are presumably in good health, of course your recommendation is still correct. But waiting to 70 will not be as enticing when viewed as a time discounted annuity. Waiting 1 year gives the largest relative bump in NPV. Each successive year produces smaller and smaller "bumps." Without going into specific details, my percentage increase in NPV for the cumulative sum living to age 85 and starting social security at age 67 versus 66 is only 1.5% (much smaller than the headline number). The relative bump for waiting to age 68 vs 67 is only 1.2%, decreasing to only 0.5% waiting to age 70 vs age 69.
One way to look at is if your using it to supplement your income while still working you will certainly not have enough income to support yourself with just SS when your finished working. On the other hand if you can save that amount you will have it when your ready to call it quits. The important part is to understand that is the amount plus COLA your going to have for the rest of your life however long that maybe.. So one needs to understand how much they require to live the lifestyle they are looking forward to in retirement..
This is an excellent video to get you thinking about what to do concerning SSA benefits but, like he clearly states, everyone’s situation is different and you have to make the best decision for your personal situation so there’s no sense in arguing about who is right and who is wrong.
@Mike Grayson ... but what kind of coverage and out-of-packet will you be facing at those lower rates? It might not be so risky for most of the young, but by retirement age, our healthcare needs may increase.
@Mike Grayson What you're neglecting to point out to everyone is their rate does NOT depend on their income. Their rate is determined by the subsidy paid by the government based on their income. Obamacare created an entire new class of welfare recipients by calling it a "subsidy". Easier to swallow saying you are getting a subsidy lowering your health insurance payments than saying you are collecting welfare. But that's what it is. The insurance company gets a certain rate for health insurance. Going through Obamacare exchanges brings in the government to evaluate your finances and determine how much US tax dollars will pay and how much you must pay. Then you are still responsible for deductibles. Insurance companies still get all their money. How else do you think Obama got the insurance companies to agree? Now, even Obama advisers admit the Obamacare program was doomed from the start and was never designed to succeed. And the US is only ranked 37th in the world for healthcare systems. (20 out of the top 25 systems are in Europe) That's the truth and I don't even have a horse in this race. I moved to Europe, retired and pay around $200/mo for health insurance. Easy to fund on $1900/mo US Social Security and a pension. Even pay cash for meds and simple procedures as care is so much less expensive here. We also live a more healthy life style walking, riding bikes, healthier foods and little to no fast food. But you really should be more honest about the true cost of Obamacare.
Only have a couple of years until I'm eligible but lets face it have you seen the shape our country is in ? You really think it will be there in 10 years
I disagree that people claim early because of poor planning. They realize at 62 they are probably going to live only 1 more decade, maybe 2 and they won’t be collecting anyway. Delaying it almost until death is poor planning IMO.
Thanks for the reply. I would love a video for ex spousal SS. I think I will be doing his because 50% of his will be more than mine. We were married more than 10. And I saw something recently that said I don’t have to wait for him to start too which I had originally thought. :)
I will retire next year at 62. I understand my daughter, who will be 15 when I retire, Is eligible to receive an additional 50% until age 18. This makes it worthwhile to retire at 62 and get this additional 50%.
Exactly! Yes, my free time now is worth much more than the extra money I would have gotten if I had waited. What good is extra money if you're too old and lack energy to enjoy it?
When you claim SS benefits depends on your health and the job you hold. An office worker can easily work to 70, a roofer or construction worker might not be able to work till 70.
@Jonny Laguna No one knows how long they will be alive. Close friend of mine died last month at 55. My point is there are more factors in ones decision to reite than just their age and how much money they might collect. I think the average age of most workers is 64. This does not mean they die before 70, they just retired before that due to health issues even thou they may have planned to work longer.
Its not about poor planning to take at 62. Health, life expectancy, and other matters factor in. Plus it's our money, not letting the government robb me too much longer.
Like really, as we get older we don’t hardly SPEND. Yes, to delay the amount looks good. I have so many friends/family members that waited till 65/66 yrs old and average they lived only 5 to 7 yrs which means they dragged themselves slaving more to get more social security and then collected a few years and then died. Half of them had no health problems and then bam!!! Suddenly got sick. I’ve retired early, don’t care about the 25% I’m losing. Having a pension is a plus. Don’t do 401k it’s better to do the IRA. One way is prepare in advance like your mortgage (should be paid off) you want only to pay taxes. Long in advance move out of your damn big 3 to 4 bedrooms and into a small condo (why have this big house) you’re old and need to pay a housekeeper every week to come dust! I retired early so I don’t have to travel with a cane! My sister had a hell of a time going on holiday/vacation with retired friends. They are in Europe. A total of six went. The first 3 days, one had a light stroke and into the emergency. He happened to make it okay, in the meantime - two days the rest couldn’t find it in their hearts to keep touring. He get released from the hospital and is fine and now the 2nd person gets diarrhea for two days with the 3 person getting back problems because of all the walking on that beautiful cobblestone - that’s funny but very true story. My sister being the youngest of the 5 SAID never again will she holiday with social security friends! Everyone must do their own math. You maybe healthy and if your not eating healthy EXPECT you could encounter illness soon enough. Keep in mind that our water is polluted, the air and all the damn GMO, plus the poultry/cows are not grass fed - they pump the hell out of the chickens!!! You should watch Sustainable, Cowspiracy, Forks Over Knives and then ask yourself should you work til your 70 yrs old. If you decide to work till your 67 and die at 72 the rest of your money goes to Uncle Sam - that’s okay “YOU” choose what you want to do. I don’t know but, I’ve been on so much traveling that it’s so much fun and if I get sick and die ...... I’ve had a awesome time. Keep in mind, from the time you graduated from High School and college - GOT MARRIED, raised a family - they are adults now and earning their living - it’s your turn to have fun early without the cane and all the damn medications! Or slave till your 67, 70 yrs old and collect your fortune ~
Ann Taylor : so true a friend of mine dye at 67, two years later after he retired . You work all your life and the only you worth is three feet under ground. Sorry if I was so hard on the las part...
@M Detlef Why do you find it necessary to call people names and not offer any useful comments? I think you are just an empty hateful person. BTW I took my SS at 62 because I can and want to.
Tom Truesdale Thank you, for your comment Tom. I don’t think about the haters. I actually hope that the haters have the best plan. Why I say that is because I’ve been to ESTATE SALES and it’s sad what you see that was left behind. Usually, the children are selling everything QUICKLY to get their cut after selling the house. In the meantime, everybody at the estate sales are ram sacking like running cattle going through their stuff to find a bargain (sad). I’ve been with friends that love the estate sales, looking over sometimes the person’s belongings makes me wonder about how was their life??? Anyways, each one has a right to decide when they want to retire. What works for me may not work for another. All I could say is, seek for a job that has good benefits because that means a good pension. Have your home paid off - sell it and move into a smaller place and pay that off if the price is right meaning the real estate. (you kan’t take that money to the grave) that money is useful for a senior home (who really is going to help us when we barely could walk) If we don’t own a home, don’t sweat it, it’ll be fine. For me, I don’t ever want to relocate myself unless it was to another country. I am ready mentally if I need to go to a senior citizen home (I rather not burden my grown children). Isn’t important to find somewhere that we’ll be ok and have a comfortable living? These are things we want to think about - not applying for our social security at 70 because the pay out will be highest ( May be higher but what if we die at 84) my mom at 74 was dragging her legs, by 80 she barely knew which child was which, then at 82 she started to lose her health (not ill but not strong) then at 84 she passed away. I could say that at least my mother retired at 62 which gave her 12 good yrs. then at 74 the old age kicked in and all started to go down hill. It was happy to know she did live good, collected her SS and didn’t have to work anymore. She was happy until her memory started to slip away. I want to keep being happy and no damn work for me!!! I slaved enough - love and Peace ~
Here is the decision I made 4 years ago and here's why. The first thing I did was do the math. Take the money early, or wait and get a higher amount. That sounds like an easy decision. Hold out for the higher amount right? Wrong, it's not that simple. Remember, if you take the money at 62 you do get a lesser amount per month, but you also get a 48 month head start on those who wait until 66 (my full retirement age) That means I would be 78 years old before the higher amount caught up with the lower amount. So I needed to ask myself; "Do I want to add 4 years to my retirement, or do I want to have more money after age 78?" Since as you get older the one thing you can't buy is time. I took the 4 years and at age 66 now I can tell you it was well worth it.
LOL You may want to rephrase that last sentence " I took the 4 years and at age 66 now I can tell you it was well worth it." I don't know if you meant you took early retirement at 62 and now you're 66 and you're glad you took it early or if you meant you waited the 4 years and now at 66 and you're happy you waited.
@@enufots4621 I thought Bernie meant that he took SS benefits at age 66.You take a significant hit if you start at age 62. Some people cannot afford to wait because of health conditions. I nearly had to stop working at age 63, but recovered enough to keep working. I will be 65 next month and my full retirement age is 66 and 2 months. I will probably take benefits at age 66. I am not sure if the 2 months post my birthdate will make much of an impact, but will find out before I file my papers. One thing I am concerned about is the Government changing the rules and not getting the dollar amount from Social security that I expect.
@@enufots4621 You have to read my whole post. The 4 years I am talking about is the 4 years between 62 and 66. The question you need to ask yourself is would you rather have 4 more years of retirement, or more money after turn 79? Since I wanted those 4 extra years, I took them.
@@loralieisaIf you read my whole post you will see that you don't "take a hit" by taking your money early. That's what they want you to think, but it's not that simple. Don't be fooled by the lower monthly payout. Keep in mind you are also getting 4 more years of payouts. You have to do the math. Think of it this way. Lets say I am running a race. My 62 year old self get's a 4 year head start over my 66 year old self. The point where my 66 year old self passes my 62 year old self is 78 yrs 8 months old. So I asked myself, would I rather have 4 more years of retired bliss, or more money when I'm almost 80. My dad died when he was 80. It was a no brainer to me how valuable that 4 year is so I took mine at 62. I turn 67 next month. Looking back I would make the same choice every time. There is more to life than money. Life itself is worth more than money. Those first 4 years of my retirement have been priceless to me.
One more thing to think about. The key to getting extra time, but with a smaller monthly payout is to make sure by the time you are retire is to make sure you are debt free. I'm coming up on 5 years retired I'm yet to dip into the retirement savings. Remove the debt pressure an you will have a very happy retirement. Good Luck with your choice. I hope you are happy with it. I know I am with mine. Zero regrets.
I became disabled from my lungs diabetic arthritis bones ECT I worked all my life. I'm 17 years 62 years old this year from my disability they took away 298 they took that away and now I get $8 I have been married 30 years but separated 15 years I became a widow retirement SSI and not much the total 781 a month I have to live now with a relative because I can't afford to live alone this is my first time reading this about social security really it makes me cry 💔😢 God bless 🙏
Every one of my family members died early after retiring. The earlier they retired, the sooner they died. The only exception was my paternal grandfather who was self employed as a rancher until he had a stroke at age 87. He was so opposed to the FDR programs, specifically hating the SS program. After he died, I found my father and two uncles laughing hilariously in grandpa’s office... they found bundles of uncashed SS checks - 22 years worth! He had the highest quality of life and the most money of any other family member because he never quit going to work. So, I plan on doing the same by dropping dead on the job ;-)
@@jamescalifornia2964 That's ridiculous. There are a million ways of staying active after retiring. Your greatest risk is becoming a couch potato in front of the f.v.
If you claim early, and have extra income beyond SSA, you could invest some and move the cross-over point to later. I think the bigger issue, however, is whether you want the additional income when you are age 80 and above vs.age 62 to 80. SSA is calculating that on average claimants are going to receive the same whether they collect at 62 or at full retirement age. So if you're a gambler the odds are the same for you whether you collect early or at full retirement age.
Life expectancy is 70 or 80 years, that doesn't exist any longer,, start receiving your social security at 62. President Roosevelt started this for older Americans just in case they didn't have enough income. Don't delay it, receive it...ASAP.
This video does not take into account the massive inflation that will hit the extra money from waiting to retire. By the time you hit 80 the inflation losses are absolutely massive. Best to take the money earlier and just invest it if it is extra that you don't need
@@FinancialFastLane COLA will be 2.8% for 2019. Just investing in an S&P index fund through a company like Vanguard with low fees will more than likely return 8%. Compounded, this makes much more sense.
@@FinancialFastLane ... unless you die sooner than expected. If you take the $ and invest it, and pass away early, at you can leave the $ for your beneficiaries. But if you delay taking your Social Security till later and die before you collect enough, your beneficiaries lose out.
I was going to wait until I hit 70 because I like my work and I expect to live past 100. But my wife and I both are laid off due to covid-19. Time to sell the house and move south into early retirement.
Here’s the problem. At my current age of 61 half the people I grew up with are already dead. Why does no one show us stats on how many Americans died before eligibility.
I am also 61 and at least 20 of the guys I went to high school with have been dead at least 2+ yrs. I expect that in the next 5 years at least another 15 to 20 will go
Yeah right. Half the U.S. population dies before or by age 61? I have not seen that in the news. LOL. Social Security would not be so underfunded if that is the case. What percentage would it be at for age 65, 3/4? I guess we have to make up an alternate excuse/theory for drawing social security early at age 62. Why can't people just directly admit they want their money, though smaller, "Now", instead of later instead of making up these absurd assertions (sounds like something from a B-horror movie, why is everyone dying so early?!). Are people worried that others will accuse them of being greedy by taking their SS benefit early?
I cannot even begin to count how many of my childhood friends have already passed away, not to even begin to mention those from my early adult adult life. It just does not make sense that Social Security would be underfunded.
@@zitawillingham4391 I battled cancer in my early 30s, was put on the gold standard of heart medications around the same time; and then in my early 50s, I had to have open heart surgery to correct another problem within the heart. I have (so far) beat 2 of the top killer health issues. I was going to wait till maybe 70 to collect Social Security, but I can't help but wonder if that would be unwise.
Everybody has their own circumstances for claiming their social security benefits. Taking social security at between 62 and 70 is not the issue. Keeping Social Security solvent is. In 2018 the max income somebody can make and still paid Social Security contributions is $128,000. There should be no cap on Social Security when it comes to income. If you're making over $128,000 a year you can afford to continue to contribute and your payments when you retired should be larger. And if you make under $128,000 a year what do you care that social security has no cap, all you should care about is, that Social Security will be more secure.
Ever wonder why they bate you to delay filling? Because a good percentage of us will never get to file at all or maybe only collect for a few years. Don't ever forget that a bird in the hand is worth two in the bush!!
My wife is 10 years younger, I'm 67 & working and plan to not take it till I'm 70, big increase then, plus hopefully she draws long after I'm gone sticking it to the man one more time!
I feel like it’s easy to see how to get more money, but what are you going to do in your 80’s with more money? My goal is to quit working for a company that doesn’t give a shit about me now that I’m older. I want to collect early and still work part time somewhere else and enjoy life a little bit more. How about a video on how to make the most of retiring early, and maybe a strategy to help accomplish this for people who have 401k,s and maybe some pension along with collecting earlier. I understand waiting gets you more money, but more money doesn’t get you a better quality of life when it’s time to enjoy things like grandkids and.still have some health. The biggest cost is going to be medical insurance but no one mentions it.
I claimed 1/2 my spouses until I was 70. My wife has great health and her mother lived to 105. So, for me with the highest income, waiting until 70 was a no Brainer as I also have a nice IRA. Now we are both 73 and living large.
@@birdyboyblue yes I believe the strategy does still apply if you were born before Jan. 2, 1954, if later, you are correct. www.marketwatch.com/story/taking-the-confusion-out-of-the-new-social-security-spousal-rules-2016-06-23
I was working & my company produced a Retirement Statistic's page. If I worked there 'til 65, stats said I had 8 months. If I worked there 'til 62, I had 7 years, If I worked there until 55, I had 17 years. I was 54 1/2, 6 months later I retired. That was in May 1998, I've made it 21 years. My life is OK....
the average life expectancy is 78.6 years. In my family most women, really, the longest they have lived is age 72. So...I will base it on that. But you are right....taking some time thinking about it is important. But the math in my case, probably will not wait until I am 66 and a half.
Thank-you for the analysis, my recent SS Statement notes: " Your estimated benefits are based on current law. Congress has made changes to the law in the past and can do so at any time. The law governing benefit amounts may change because, by 2034, the payroll taxes collected will be enough to pay only about 79 percent of scheduled benefits." A 21% reduction in payments is significant, shouldn't this be taken into consideration regarding expectation of collecting payments recorded on the statement?
Very informative video, but I will start taking my SS, when I retire at 63 1/2, pay COBRA for 1 1/2 yrs. until I can take Medicare. I wanted to retire at 62, but the affordable care act insurance is not affordable for me. Why does every developed country in the world provide health care for their citizens, but not the USA? Could it be GREED! I agree with Fred Jones, wait, wait, wait, and then you die! That happened to a friend, he waited until he was 65 to collect his SS, and died of a heart attack 6 months later!
There are a lot better deals then COBRA. I know a lot of people on those religious sharing ministries which qualify for health insurance. A lot cheaper and pay a lot better than regular insurance. Samaritans purse, medi-share, and I think there is one call the brotherhood.
The reason every other developed country can provide healthcare for their citizens is because the US citizens provide the military protection for all those other developed countries.
If you can manage to keep your income at $30,000 or below, (by partially living off savings instead of taxable retirement income), the government insurance is very good and very affordable. I was paying $230 a month for the Silver Plan/Capital Blue Cross for my wife and I, and had low co-payments for doctor, specialist, and ER)
If you live to between 79 and 80, it makes no difference when you take it. Do the math. 1. Take the yearly amount you'll receive at 62 and multiply it by 18 years. 2. Take the amount that you'll receive at 67 and multiply by 13 years. 3. Take the amount at 70 and multiply it by 10 years. You'll find that the 3 dollar amounts will all be about the same. It's living past 80 that makes the difference. I plan on taking mine next year at 62 even though I really don't need it. If I sock it away and die in my late 60's, my wife or kids will benefit from it. If I wait to collect, and die, they get nothing. Either way, there's always a chance that your decision will be wrong. The key, don't count on social security for a high percentage of your retirement income.
I have a question: What if I collect early and invest my ss in an investment account? Has anyone thought of that? I think ss is -4%. Our good gov't is screwing us over, as usual! I know if I claim early? And invest in say, a mutual fund, I will come out ahead, even if I delay 'till 70. Any thoughts? Lane, your thoughts? Thank you...PS: Great stuff...
Claiming SS early means you can retire spending the governments money instead of your own and gives you a bird in the hand versus 2 in the bush. The return on investing money shrinks the gap in cumulative benefits after the cross over age (time value of money) and even shift it later. You may be thousands of $ ahead by age 90 after delaying to FRA or 70, but the discounted amount will be small and not worth the stress. There are free, open source SS calculators or reasonable charge SS advisors that provide you numbers to based your decision on.
Even financial experts will say to take it at 62, nobody is promised tomorrow and if you die it all goes back into the s.s. pool. They also say it would take about 14 years or so just to make up the difference from 62 to 67 so unless you know for a fact that you will be living into your 80's or 90's by all means take it at 67.................I'm taking mine at 62!
You're saying the 74% that's receiving reduced benefits is because of poor planing. That is quite an assumption on your part. Because there are people that have planed and saved all their lives and figured I don't need to wait to 65-67 to retire.
@@FinancialFastLane I took issue with your statement of "poor Planing" There are a lot of people who plan for their retirement and decide to take a reduce amount sooner.
Take it at 62,,,life can end very quickly by auto accident in the city...I retired after work injury.. 1,800 plus 2,300 from pension isn't bad. Still have open case for injury.. what kills me is how people are ripped off in California rent.. no choice here after divorce. But soon as case is settled.. be heading to Texas or another country where ex Pat communities are...
My health isn't the best. I already have a pension and at age 55 trying for ssd. If I live longer than 62 and up, I'm still in good shape financially but I know many people don't or didn't plan ahead with saving early while still young. So I did and have my pension so there's no rules that says I can't get ssd since can no longer hold a job
I got cancer so I put in for sad they turned me down because they said my husband made to much 4 months later I turned 62 and am now happily collecting take your money as soon as you hit 62 they want you to die
Unless you are sick, have a family history of early death or you need the money, you should wait until age 70 for maximum benefit. It’s designed to break even at age 81 no matter when you take it. If you die sooner, then you won’t miss it now will you, but if you live longer, that extra money will be life altering.
It all depends how much is your time worth. Those early years while you are in better health and can do things may be worth more than the extra money later when you are less mobile and possibly just giving to the nursing home. Your choice.
S7CentNickel : as I said, if you need the money. If you have enough money to live comfortably, then wait. For me, if I would’ve taken at 62, it would’ve been $1,400, which, because my wife was working, would have made little difference. She is retiring and I’ll be 70 in a couple of months. Now it will be $3,500. Regardless of how long I live, $3,500 now makes a difference. See what I mean?
At 85 or 95 , what are you going to spend the money on....hang gliding...mountaineering... women... booze..come on mate ..it will be paying for your care home..the game's up by then
That amount of money quoted for you/us at "full retirement age" is contingent on you working from 62 to 67 or 66.5 (dependent on your DOB) at your CURRENT salary!! Remember that. If it drops or goes to zero you will make substantially less than the quoted FRA benefit. So when 62 rolls around you need to take that into account. How secure are you in your current job...are you quit certain you'll actually be making your current salary for those five years.
The best age to claim your Social security benefits is while you are alive. Tomorrow is not promised to no man. Nobody can tell you when its the right time.
I think something that is missing is what if you are retiring at 62 anyway and you'll be pulling off your investments? If you delay you pull more cash and lose out on growth. If you take it earlier, you pull less out of retirement accounts and that money is allowed to grow. So the breakeven point might actually be effected substantially.
Unfortunately, many people do NOT understand financial planning. It's a shame, because they will almost assuredly make financial mistakes along the way that have huge implications for retirement. People that are relying on social security for their retirement years, without a good pension or retirement savings, are in big trouble. Too many people wait until it's too late to change their financial condition. We are going to see a lot of poor "boomers" over the next ten years.
Social Security benefit fine print- "Your estimated benefits are based on current law. The law governing benefit amounts may change.” Yep, you can be the most unlucky person when you get the letter in the mail that says " Sorry, we are out of money. You are waiting too long"
It's not better when you're well then sick. You can't earn money when you're old. IF you need to live in assistant living you need to have a show of income to take care of you. If you're body is older then 62... I'd retire too. You can only earn about 17,500 per year after receiving SS income. Before withholding of SS income. just learn before deciding
So average us male life span 78 years . I was born 1961 Retirement is 67 at $1259.00, early is 62 $886.00 $373.00 differance $53,160.00 if I take early divide that by $373.00 it would talk almost 12 years to make up the differance 62 plus 12=74 years
So at age 74, you might wish you had waited until age 67 to collect more benefits, but would you enjoy the lesser amount more at age 62, when you have more energy and mobility, than you would enjoy the extra money at age 74? I think YES!
So, say that if I claim early at 62 and I'm suppose to get 1k, and if I wait till 66.5 just to get 1200, that means I miss out on getting 54k. And those $200 extra I get at full retirement will take me 27.5 years to make up for that 54k. Correct? Also, I can work partime and not stress out. And all things worst I die beforehand lol
@christopher hennessey That's exactly what I had figured out beforehand so I filed a couple of months before I turned 62. Lol But I'm glad you're making people aware of this.... :)
exactly. All my friends died between 55 and 65. My parents lived to 86 for my father and 90 for my mother. No one in my family has lived longer then my mother did and most died around 85. So, for me, chances are if I had the best of my family genetics, (which I do NOT), I would live to between 85 and 90. That is about 28 years after 62 at best. I already have health issues so I applied a week ago for social security. I can work part time, but a full 40 or so hours is just too much anymore. Basically, I need the income now. If I were to push it to 70, chances are I would probably not make it or end up so physically damaged that I would literally be non functional other then to eat sleep and crap and that is not living. I was fortunate enough to save up a bit so that I have reasonably secure investments that can supplement my social security. Waiting is fine, but not for me. Like he said, every person has a different set of circumstances.
Every year you delay SS past 62 requires 12 years to recoup the money forfeited. Example: If I retire at 62, it's about $20,000 per year. The increase delaying to 63 is 8%. $20,000*0.08=$1,600 additional per year. $20,000/$1,600=12 years=age 74 to recoup.
On your chart you show at age 70 you would receive $4367 per month with COLA's. How is this possible? If you were 70 and retired today, the maximum monthly benefit one could receive is $3770 per month according to AARP
Good information, sir. I think it best to take a breath, and really consider what may be best for the future, without planning too much. Like Capone’s attorney said:”want to make God laugh? Make a plan!” Best to all.
Present value tables and having the ability to invest $'s point to taking it as early as you can (62)... That's what I did and have already made up the so-called "reduction" by not waiting for the full benefit..
@@vecamiolo I have done very well investing in the stock market... Granted, you do need $'s to invest, but I saved/planned this out while I was still working... It's not for everyone, but it has worked as planned for me...
People who have planned poorly actually would have to delay taking social security benefits at 62 because 70 percent of their income would not be enough and many have no savings at all. These are the people most likely to need full benefits. Those who take it at 62 obviously do not have to keep working until full retirement age in order to secure a certain level of income. The best planners have the best option of taking it early.
This is such bullshit! There are no guarantees, I asked a man I worked for 17 years for a rhetorical question which nobody has been able to answer because it is a conundrum. "What good does money do a dead man or woman?" People can believe whatever they like but for my part when and if I hit 62 I'm out!
I'm with Truly1Tom! I am 53 and at 62-63 I am out. There is no guarantee of tomorrow. I have paid my dues. I will take what I can get before I die and get nothing.
20% of the male population does not make it to 65 and of those 80% half will live to 85. So you have an 80% chance of living to 65 and 40% chance of living to 85. If you smoke drink and are morbidly obese chances are you won't be in 40% that live to 85.
