I will hit the magic number 62 in a couple of months and was wondering what folks here feel about early retirement and draw SS or wait to 66 and draw maximum. I realize taking early at 62 they withhold 25% of the max amount but as I understand it at 66 they refigure it. I plan to work for at least a couple more years also so I know that figures into it. For those of you that have retired what did you do and would you do anything different. For those like me getting close what are you thinking? All this of course depends on if we even have social security available to us. Lots of wisdom on this board and I look forward hearing your opinions. Hope this doesn't qualfy as being political, it isn't meant to.

You seriously misunderstand. Here's the link to the Social Security calculator.
Estimate Your Retirement Benefits

I took the SS at 62 and that locks it in at the reduced level forever. You don't get to change your mind once you make the selection. You can sign up at 62 to automatically have Medicare Part B deductions start when you reach 65, which will reduce your check.

In making my decision, I calcualted that the break-even point (same total amount whether you took early or full payments) for me was at age 81+. Given the typical age expectancy for men in my family history, there was not much statistical advantage either way. If most people in your family live to be 90, there is a clear advantage in waiting to take the maximum payment at an older age.
Conversely, if most of your male ancestors barely reached into the 70's taking the money early might be a better bet.
One factor that settles the question is if you absolutely need to have SS to live on at age 62.
Of course, it's all a game against the average statistics for the population as a whole, and statistics applied to a sample of one (you) have zero confidence factor. So you're just taking your best guess how long you will live.

ADDED: By the way, you need to see the SS office three months before you intend to start drawing payments. They don't make up the missed payments if you apply late!

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Science plus Art

Go to the govt site and do the calculation. It is a **** shoot. I took mine early as I had lost my job at 59 and needed the money. What they do, as you know, is take the $ amount at full retirement and multiply it times the expected life span which is X. Then take that total $ number and divide it by (X+4). In theory you get the same dollars but in your case you will pay a bunch more in taxes on the SSI number. That, thanks to Ronnie R. and his comprimise back when.
My wife is going to take hers early, cause life is hard.

I retired at age 62, I am 69 now. I took a couple of years to get used to it. I really missed the people at work. We worked hard but we had fun doing it. It helps if you can mix a little fun in with the work. I thought about getting another job but can't get off my lazy butt to do it. Don

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"Don't worry be happy"

I signed up at 62 - figured it would take around 7 years at this reduced amount to catch up to the 65 amount if I waited. Most people I talked to recommended doing the same - one exception was a divorced friend whose ex was getting his pension so he needed all the $ waiting until 65 would bring in.

By the way - you never need to physically step into a SS office anymore to apply - you can do it all online and it's painless!

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Lou

Thanks to all for the replies, it may just be my simple mind but this is a bit confusing. I ran the calculator on their site and I guess it really boils down to a **** shoot, darned if you do and darned if you don't. I do plan to continue working for a few more years so I guess I will just have to ponder this a bit.

I'm 56 and have been researching that question for about 5 years. If, and it's a big if, the investments continue to perform as well as they have (yesterday's blip not withstanding) I'm looking at 62. Course, I took my Dad's advice long ago when he said: "Social Security is not a retirement plan. It was intended to keep people from selling pencils on street corners."

I'm planning on selling pencils on street corners... I've already got my corner picked out...

The first year at 62 is really complex. SS and the IRS are two separate entities and one will not speak to you about the other. It's pretty easy to wind up owing income tax on your SS benefits and owing the gov some of that SS money back. If your married you personally can make $1180 a month and keep all the payments. But if you and your wifes income is over $33000 a year combined you'll have to pay tax on up to 85% of your SS benes.

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SOS USA

First, I never heard that bit about refigureing socal security at 65 if you go early at 62. I went early, and mine wasnt refigured! I dont know about that neat figure of 25% either. It`s a slideing scale on what age you retire. I was watching financhal guru suzi orman the other night. She preached to work as long as you can. Sure, from strictly a financal figure she`s right. However life is more than mathmatical. First whats your health like? Do you have other money stashed where you can retire comfortbly without depending on full social security? Do you like or hate your job? Do you hate where you live and want to relocate? There are many other questions and factors, but the basic main question is can you afford to retire young or not? If you cant, well, that sure narrows down your options!
My story: I was divoriced and single at just under 59 years old when I retired january 2,000. I had just got through many years of paying child support. I did have a good 401K. I looked the situation over. All those 35 years or the last 20 of them, I literally had to work over 40 hours a week before I made money to eat! Fortunatly, almost unresticted overtime always was available, and guard work to me, was easy. I averged 65 to 70 hours a week. I couldnt have done that roofing! I looked at my 401 K and seen I could retire at 58 1/2. I ran the numbers, saw I could retire, take some money out, pay off my house and get by. From 65 hours a week down to zero! I wanted to not exactly retire, but take the summer off, then go to truck driveing school and the next year start cross country driveing, see the country and get paid for it! So much for the plans of mice and men! First dad came down with alzheimers and I had to go live with him. Secound, I got T-boned and as a result got a pulmanary embolism, had to get on blood thinner and the doctor told me truck driveing would kill me! Third, got involved with a woman that died on me. Fourth, got married! Fifth: I retired january. In april the market took a dump and my 401K lost around 35% over night! What I am saying here is, had I forseen those things I am sure I wouldnt have thought early retirement possible. I did retire, burnt my bridges behind me! I havent worked since! God still took care of me! Life isnt always about the math.

I am 77 and I signed up to take it at 62. However i have insurance from my job that I retired from at 55, so was retired 7 years before sign up. As it has worked out if i was doing it over would not change a thing.
Glen

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NRA Life 1969
OGCA

Wow, gotta love the feds! By the way, what does a good pencil sell for these days?

I planned ahead.... Swiped two pencils and a ballpoint pen every day for 24 years while in the AF ....Now I'm fixin' to go get me a street corner....Think I'll wait till fall tho ... Here in central Texas we've had close to 60 days of 100 + temp with about 1 inch of rain since Oct 2010......I blame obama.

Frank

Take it! I've been to several different financial advisors and they all recommend taking the early retirement from Social Security.

I doubt that this option will be avaibable when I get to that point. It makes me so ANGRY! We have paid in our earnings with the promise that we would get it back. I doubt it. Or maybe only for a few years before we die. I want my money back! Its looking more and more like the biggest PONZI scheme ever.

Out
West

I took it early, partly for health reasons and partly because I was losing a job and would find it difficult to get another.

I still work three nights a week, and need it. The thing that infuriates me is that if I make over $25,000 a year (including SS), they tax that desperately needed SS! That's just not right!

I hope to sell a book series that will give me a decent income, but that's not going to be easy, and the money will probably all but negate my SS income, which might even become a liability that just causes higher taxes more than it generates income.

SS will probably not get the annual cost-of-living increases that it used to, and will not have the buying power that it did as prices rise. This gravely worries me.

I'm glad that I could get the money at 62, but would have waited and gotten several hundred a month more if circumstances had allowed. But if your life expectancy is low, you may not want to wait. There is no universal answer.

In my case, the SS counselor encouraged me to take early retirement. That has enabled me to have four days off a week, which I love. And I am still young enough to enjoy life and getting around to do things.

Well, Ponzi equals a pyramid scheme. The truth is it's more like if your BIL borrowed money and promised to make you money on your investment, then said "I used the money to support your sister, sorry". If the government hadn't xfered funds to the "general fund" and used that money elsewhere, we would all have received a reasonable return on our SS deductions. That "borrowed" money was due back last year. Fat chance.

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SOS USA

No one knows when they will die, take it asap.

Taxes on SS were started in 1983 at 50%, and increased in 1993 to 85%.

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Sure you did

They def. need a law prohibiting using the SS fund for anything else. I think getting into it for other needs should have been criminal. This country has GOT to stop wasting money.

I took mine at 62 also. I was in heavy construction work and my body was close to giving out. I signed up in November of 08 and got my first check Jan. 09. Since then I have had major back surgery and a knee replacement. As I said I was wore out. I am doing pretty good now without to many problems. When I went and talked to the SS office they advised me to sign up at 62 as it would take many years to make up the money from 62 to 65. I believe you can earn $14,610.00 per year without it affecting your SS earnings. It worked for me. Good luck and enjoy your retirement.

FWIW, I waited until age 66 and am glad I did. Depending on your income, assuming you're working now (and if filing jointly her income enters into this also), you could be paying taxes on your SS. The big question is: do you need the money now? Only you can answer that. And it's not a question of taking it at 62 or having to wait until age 66. Anytime after 62 you can apply. If you don't need the $ now considering waiting and see what happens. Remember, you get one bite of the apple, once you start collecting that's it. And every month you wait your benefits go up. Good Luck.

Regarding recalculation at age 65 :
If you take SS early AND you are still working, you will receive a reduced benefit - a so-called penalty - but when you reach your full retirement age, (not necessarily 65 ) the SS dept. will do some recalculation and bump up your calculated retirement age - which will increase your monthly benefit. It's a complicated subject, and while I did it, I would advise anyone thinking of taking this route to see a SS counselor in person.
This is the only situation I am aware of where your benefits might get recalculated.

I will say that I have found the SS dept. to be very efficient at handling your claim and paying you correctly. If they discover they owe you any money, you will get it. I have had them send me money I did not know I was due.
Nice surprise.

I took it at 63 1/2 because I couldn't carry COBRA but 18 months until Medicare started. I would do it all over again. I'm 70 now and don't miss work one bit, but I stay very busy with volunteer work (Friends of NRA, Pistol club, trap & Skeet club). What ever you do , be sure to weigh in the cost of carrying Health insurance in the years until you are 65 and covered by Medicare. Don't even think about going without coverage.

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H Richard
SWCA1967 SWHF244

My financial advisor says to wait. I am 57 and plan on retiring @ or near 62, waiting for SS @ 66 yrs 4 months. My break even point is 82 and men in my family exceed that by a good bit.

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Front sight and squeeze

I was thinking about the 63 1/2 and COBRA also...until I got there a couple of months ago. The COBRA was the killer. It would be over $700 a month. 65 ain't that far off so I'm at least gonna wait until then, maybe longer. I don't have a wife, but I'd entertain offers if she had a little money and a few other things. Anybody got a rich widow sister that wants to move South? She's got to know how to clean fish and use a lawnmower.

It's the best job you will ever have, go for it. You can always pick up part time work to have play time money. Most every one will die before they would reach full retirement age anyway so enjoy what you can while you can. I retired at age 51 with 31 yrs with ODOT and work construction part time in the summer. Best life you can have.

Another thing to think about, and I told it before on another thread. After I retired I remarried. The insurance was a HMO in california. Without checking that angle we moved to utah. Since there wasnt a HMO on my companys list here we had to get my wife a PPO (Aetna) and that is over $600s alone a month on my wife where I was paying something like $30s a month back there! There is always some details we forget to check out when we move and retire. However, you will find you can usualy deal with it.

From the Social Security Web page August 7, 2011

"You can keep working
When you reach your full retirement age, you can work and earn as much as you want and still receive your full Social Security benefit payment. If you are younger than full retirement age and if your earnings exceed certain dollar amounts, some of your benefit payments during the year will be withheld.
This does not mean you must try to limit your earnings. If we withhold some of your benefits because you continue to work, we will pay you a higher monthly benefit amount when you reach your full retirement age. In other words, if you would like to work and earn more than the exempt amount, you should know that it will not, on average, reduce the total value of lifetime benefits you receive from Social Security—and may actually increase them.
Here is how this works: after you reach full retirement age, we will recalculate your benefit amount to give you credit for any months in which you did not receive some benefit because of your earnings. In addition, as long as you continue to work and receive benefits, we will check your record every year to see whether the additional earnings will increase your monthly benefit."

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Always Stay Strong!

I also figured it both ways before I retired. How long I would collect if I retired at 62 verses 65 etc, and it came together that I would start loseing at 82 or whatever. But that doesnt take account of intrest etc. Then I was reminded what a old flight instructor said to me years ago when he saw me figureing in a notebook naunces of what flying was costing me. He said merril, throw away that @#$% notebook, or ya never will fly! Along with that I heard a story where I worked. This old boy had worked at lockheed forever. Finaly he retired. The guy who told me the story said he was helping him put his toolbox in his car that last afternoon and the guy dropped dead with a heart attack!

I'm 26 so I don't plan on ever receiving social security. I am surethe program will be exists in 40 years or my current planning for retirement will exempt me from all the money I put in.

We were told since the 80's that this was going to happen and shouldn't be surprised that it did.

I add it to the ever-growing list of "things that ain't what we was led to believe" by our school teachers way back when.

There is another option and it does take a financial planner: you can begin taking the reduced amount at 62, invest it much better than the government can, keep the interest and pay back the principal at 66 (pointwhatever your official date is). You will then begin to receive full benefits.

The key is to have the principal to pay back. Gotta sell a lot of pencils ...

That's my biggest fear. No not fear, realization. It could all end tomorrow. Or today, for that matter.

Look, even if I live to be 85 or 90, I'm thinking that anything after 75 is going to be pretty sedate. If I don't retire until I'm 66, that's about 9 "good" years. If I do it at 62, that makes it an even dozen.

Big difference. And worth the risk, IMO.

I am already able to draw SS but do not do so since my earnings are far above what SS pays and the penalty for remaining in the working world would mean I would not draw anything.

What is best, at least for me, was sign up for medicare and get a medicare supplement as soon as you turn 65 and still not sign for SS.

I'm thinking I already know the answer to this, but what happens to the rest of the money you are due if you die? Even if you retire at 62 but kick the bucket at 63 does the wife or next of kin collect your due?

Everyone's situation is different. No blanket statement about SS works. I'd recommend making an appt. at your SS office, and nailing down whats up for you. Then make an appt. with your tax person, to take a look at the IRS angle.

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SOS USA

Wait, I just got cunfused. You can make too much money to collect your SS???

So much misinformation. The truth has been presented along with a lot of falsehoods.

As for what you should do, its personal. Each of us is different. I retired at 62 1/2, but only because other factors demanded it. I was at the point where I couldn't work a 10 hour day (my normal for decades) without falling asleep. It was retire or get caught napping and fired. And I was in a management position. Bad example. So I checked out.

I had some surgery just before I turned 62, replumbing on my ticker. Family history indicated I didn't have all that long anyway. Father croaked at 69, Uncle at 75. I took the mid point of those to estimate I'd be a gonner by 75 at the outside.

The common sense approach is if you can still work and are doing well, don't claim your SS until you retire. No reason to reduce your standard of living in your 80s if you can avoid it. I don't plan on seeing my 80s.

And all those nice guns going in the trash when I die! Oh well.

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Dick Burg

Thanks so much for all the replys, a lot of info to absorb. I think my next move is to visit the ss office here and give them my financial and employment info and see what they reccomend also. I do plan on continuing working for 3 or 4 more years so the increased taxes will play a big part, plus the health insurance angle really comes into play, I hadn't considered that as my insurance is through the company I work for. My wife works also and our combined salaries are above the amount they allow.
Now...where did I put that stash of pencils?

Your wife's income does not affect your Social Security benefits.

When I retired I was single and didnt think I would get married again. Well, so much for planning, I soon got married. My wife is almost 17 years younger, never had a good regular job with benifts, always worked cleaning houses pretty much under the table and has medical problems where I dont want her working. So no socal security factor earned on her own.
While we are doing okay now, or had I stayed single I wouldnt have felt I need restrain myself financaly, now I have to preserve funds as much as possible. She could outlive me by 35 years! Everybodys situation is different and conditions change for everyone the older you get! I have two uncles that are both about 94. (One from moms side and the other dads brother). Both still drive. Both`s wives were in the convelasent hospital for quite awhile before passing. That had to be costly!
Unless you are born wealthy or have won a lotto, you better have had a good job with good benneys, or if owning your own business set aside for good insurances, and ira`s. But at the end of it all we die. One rich man that planned financaly well with long term care insurance etc, and a nere do well may die in the same convalesent hospital room the same day. They wont know the differance, but their family heirs will! This just happened to my wifes ex about a week ago. He died with cancer, broke, in a VA hospital. He was a good 10 years younger than me.

My wife died a couple of years ago. She was only 50, so not collecting. But I was still eligible for 'survivors' benefits. They ammounted to 1/2 of what she would have been eligible to collect. And they did not count against my SS payment when I did start collecting at 62. They just replaced the money I got that was from her, with my normal benefit when I did start to claim mine. No way they'll pay 2 benefits.

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Pete.

I look at it from the point of view that you are "day to day" from the day you are born. if you make it to 62 take retirement and enjoy it as you earned it. hopefully you will live a lot longer but you never know.

RULE #1: No matter how much money you make, it isn't enough! No matter how little you bring home, it will last until next payday.

Job stress ages, kills, or just wears you out. Retire at 62 and enjoy life. Your wife's income does not affect SS, but does effect the income tax you pay on your SS benefits. I paid income tax last year on 85% of my SS benefits (I earned less than $13K from a part time job) but my wife did much better from her full time job and she is 10 years younger than me.

The best benefit was having Corporate Engineering kiss my back pocket because I don't need you no mo'. Retirement is good.

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S&WHF 366

Yes, you can.

For each three dollars I earn, they take back a dollar of my SS. So if I were to get $1500 a month in SS and made $4500 a month, I would not get a dime of SS.

This stops when I turn 66 since that is the age which I am fully able to draw SS and my earnings will not have any effect on the SS.

At age 62, the SS is reduced and the retiree is penalized for their earnings.

The link: http://www.socialsecurity.gov/pubs/10069.html#howmuch
explains it much better than I.

They've thought of everything

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Sure you did

I'm 62 in a couple weeks and I plan to work as long as
physically able--I work 14 days on call and 14 days off(kinda
like retired but still get paid full time). At this point in time
my company needs me which is good, my stumbling block
is the physical part---as a ship pilot I have to get off a
moving boat and climb a rope ladder on the side of a moving
ship---you do have to be in some kind of shape to do this.
As long as I can do it,I 'll be there ---I like it! Pete
The ship in the picture is carrying 1.1 million barrel
of crude---we only discharged about 1/3 of it!In the
first picture 55' of the ship is underwater(draft)





After you pump out some LIQUID the ship gets higher but
going down is much easier!!

I'm in the thinking stage of when to do it.

We have a winnah!

Retire as soon as you can, take the SS at 62 and enjoy life as much as you can. The sun will rise tomorrow, but your attendance at the event is questionable.

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VIVERE MILITARE EST

"For each three dollars I earn, they take back a dollar of my SS. So if I were to get $1500 a month in SS and made $4500 a month, I would not get a dime of SS."

El no-o. If age 62, you can make $14160.00 (gross) from a job without it affecting your SS benefits. Pensions, 401k, etc. generally don't count. For every two dollars you earn over the limit, SSA withholds one dollar in benefits. There's also a special monthly rule, see the website below.

You can get all this and much, much more straight from the horses mouth at:

socialsecurity.gov

I know that's not as good as getting information from someone's third cousin twice removed on the internet, but hey.

I’m 32 so I’m nowhere near the point of getting too deep into this. The main reason I’m joining in is I’m trying to figure how much I have to put away in order to not have to work pretty much until I die. On the somewhat vain assumption that SS will even be around in a few more decades, I’m trying to figure with my Roth IRA, TSP, and SS what I will and will not be able to get and how I will live. The IRA is kind of in the tank right now, but I’m trying to stick with the whole “dollar cost averaging” theory. Technically I want to have the market in the tank (for my needs, not those of others, I know that sounds ugly) so I’m buying stock shares at the lowest possible price for my dollars invested. Then when my turn comes to step away from the workforce, I want the market to be ridiculous high so my shares are worth way more than I paid for them. I’m at least down with the “Buy low, sell high” theory of stocks. I was buying savings bonds and if the rates ever go back up I may do them again. I’m just not liking the fact that it seems the money you “donated” to SS seems so difficult to get back and there are any number of reasons to take it back away from you. I will very narrowly resist the urge to get all political about that. My final thought at this point is I need to save hard and save now until the day I retire or I may be that guy on the corner shining your shoes. Ugh, life.

And I HATED those Jacob ladders on the ships. Using them in the North Atlantic from small boat ops was an unholy terror. Another part of the USN that I'm glad I did but will never do again!

Maximunbob54,
You might try working a job or starting a business that you just absolutely enjoy. Many people go to work at jobs that they really can't stand and the stress is hurtful to their health. Try to stay in control of your own destiny. I was fortunate enough to work a whole career at a job and with people I enjoyed, retired early and relaunched a shooting and firearms safety teaching one that is wonderful. Good luck with your choices.