Social Security at 62?

[Mike SC Hunter]

I actually retired at 60. Went on SS at 62. No problems and no regrets.
Those that hang on to get a slightly bigger monthly payout never think about all the money they missed while waiting.

Absolutely true. I did it too at 62.......And nobody knows their die date. So you loose $$ by waiting years for a larger amount......That's what the gov. wants you to do so's iffen you die they owe you nothing

 

[walnutred]

Way I see it is my wife and kids can inherit my CDs, 401K, IRA, etc. Other than my wife potentially collecting survivor benefits to my knowledge SSI benefits cannot be passed on to others. So I'm drawing the SSI and letting the other accounts slowly grow until I hit the mandatory withdrawal age.

 

[Wyatt Burp]

"Didn't 'need' the money. Just thought "why wait", it's my money."

The only reason for waiting, if you are not working, is to get a higher amount later. About 30% more at 67 YO then 62 YO. About 6% for each year before full SS age. Some people who don't need the money take it early anyhow, thinking they can do better investing it. You really need to know how long you will live to do the calculations!

73,
Rick

I signed up this year at 66. I didn’t mind waiting and besides that, time flew fast since I was 62. We never hurt for money in those four years and I’m just fine having waited increasing the amount.

 

[zeke]

Was very fortunate to live long enough to collect at 62, and needed it to retire. Another factor was collecting it while you can still enjoy spending it. Even if you do live long after, usually the medical necessities/gooberment take it away for what i suspect is a lot of us.

Edited to add. If waiting to collect it is such a good deal, why the heavy advertising to wait till full benefits?

 

[ladder13]

We’ve already started giving money to our heirs. Some of them need it, some of them can use it now for life necessities, so why not give it now, and not wait until we both croak.

It has no affect on our current lifestyle anyway.

 

[coltle6920]

Solely my opinion but....

If you are near retirement age and questioning when to collect SS you've waited too long. It's hard to think about financial situations when you are young but it's easier to avoid making bad decisions when you still have time to correct them.

I've been single for most of my life so this wont apply to most of you. I started a 401k in my late 20's. I was totally free of all debt by age 50. I was forced into taking retirement at age 58. I supplemented my pension with meager withdrawals from my 401k. Since I had no obligations other than to myself I waited until age 70 to collect SS. I have never had to live day to day and believe I made the right decisions for myself.

Still my opinion...

I have already collected what I and my employers have contributed to SS so I feel that any monies I now receive are what others have contributed to SS. I'm not greedy and am happy to get back at least what I paid in.

You wouldn't buy a house or car if you don't know how you will afford it. Likewise you shouldn't retire before you know you can afford to do so or will accept the change in lifestyles.

Bottom line,the time to plan for your financial future is before you come to the crossroad in your life and not after.

 

[BillBond]

IMO the thing to consider most before retiring is Medical insurance.
Medicare doesn't start until you are 65.
If you have access to a plan, great.
But if you need to buy it on your own, the price is staggering.

 

[mtgianni]

I retired at 63 and waited to take it until 66. I think it depends on your health and family histories. If your health is good and longevity runs in your family, it's probably better to wait. My parents died at 91 and 94, their parents 2 passed at mid 90's 2 others died of heart attacks in their 50's. Those heart problems would have been found and treated early today.

 

[yaktamer]

This has been an interesting thread. Several folks have mentioned the WEP, which I'm guessing a lot of people learn about the hard way. I currently am in a social security exempt position, from which I will retire at some point, but I had 28 years of "substantial earnings" in the system so I won't get hit too hard.

I'm 62 and have been thinking about when I should pull the plug a lot lately. Reading this thread makes me think earlier is better, but I'll probably stick it out until 67-70, especially since my ex will be getting a big chunk of my pension. On the bright side, the longer I work the bigger the pension (although once I get past 65 the difference starts to become inconsequential). More importantly, I still like the job, which pays well and is the easiest gig I've ever had (it's good to have minions). So the numbers say stay put, even though I'd rather be fishing. The one thing I struggle with is the longevity crapshoot. I have some health issues, but not so much that I can rule out running out of money before I run out of time.

 

[CalifEd]

There are so many moving parts to your question, find a Fiduciary Financial Planner, there is much more than just the $$$.
Best thing I ever did.
She had my wife start taking Spousal SS payment while I kept working. Set up an individual 401k for a side business and started pumping $$$ into retirement and pay for my insurances and some of my car.
Started taking SSI at 70. Unfortunately my wife passed but she helped me pivot, at least on the financial side.
Go find a Financial Planner - a FIDUCARY FP.

 

[pantannojack]

When I thought it over a decade ago, I calculated that I must wait until age 85 to realize any advantage in waiting until later than 62,

 

[Roofuss]

I have worked since I was about 14 years old , and am now 73 .
So after 31 years in the aircraft industry , and driving 160 miles a day round trip 5 to 6 days a week, I bailed at 64 1/2 years old.
I have been retired 9 1/2 years now, and never looked back, not once.
If you can financially do it, go for it !!

 

[Telecaster]

If you can financially do it, go for it !!

That’s the bottom line, here.

 

[LVSteve]

I'm another one whose finances in retirement will be complicated by the Windfall Elimination doings. I've been receiving a pension from the UK for a few years, index linked to the UK rate of inflation. It is going to dent my SS income quite a bit. But, I was getting it while working here, so I have been able to max out my 401K contributions and build up a wedge of cash. Sadly, recent inflation has dented the cash but that's life.

I'm on a little sabbatical at the moment to ride herd on contractors at the house. Whether I go back to my old job afterwards is up in the air as there is pressure to move to the work. There are two locations, neither of which have any attraction for me or my wife. Meh, maybe I'll just get some little office job close to home just to keep the wolf from the door until Medicare and SS kick in. Right now, I think a lot of planning with certain expectations will only lead to disappointment. There are too many variables beyond my control, and I suspect that applies to many of us.

 

[Rule3]

IMO the thing to consider most before retiring is Medical insurance.
Medicare doesn't start until you are 65.
If you have access to a plan, great.
But if you need to buy it on your own, the price is staggering.

Plus when eligible for Medicare, it is not free other than hospitalization

 

[llowry61]

There is another consideration (at least in my situation) taxes. The wife and I have small pensions, but the majority of our savings was held in tax deferred account which have grown nicely over the years.

I retired about a year ago (61) and the wife stopped working in 2010. Our planners have recommended we begin accessing the tax deferred plans before taking SSI while the tax rates are lower.

We have no children or heirs really for that matter and my wife is 6 years younger than I am.

We saved after tax dollars to supplement the taxable withdrawals planned between 61 and 66 my full retirement age. We purchase insurance through the exchange receiving a nice benefit since we are able to keep our income at the lowest taxable rate by managing the taxable withdrawals.

We will re-evaluate annually, but I may even push SSI off till the latest possible date since my wife will get it.

Folks here have talked about paying things with the government's money - don't forget it is YOUR money they withheld from your pay.

In my opinion, the biggest return I can get on a dollar is giving the smallest amount away aka your tax burden.

 

[Golddollar]

I took SS at 65 because I had just been diagnosed with terminal cancer, and thought I had only a couple of years at best. In the event, I survived. If I had known I was gonna be healthy, as I was, at 70, I would have waited until then to get max benefits.

Congratulations on your return to good health.

 

[Golddollar]

But for those planning retirement, get on the stick and grab a pencil & paper and do the goes-intas & goes-outtas and figure if you need SS now or if you can wait. Health and where you live have a factor on your lifespan. If you're able to wait for full SS, go for it. Most of us blue collar folks take it now; at least in my circles. I think that made a little sense. Good luck in your decision. Oh, yeah, if one can swing it, get a government job.

I received what I called an "unfavorable reassignment" at work, and that gave me the mental kick in the pants to consider retirement. I determined that I was killing myself for all of an extra $20 a month and filed the application for Social Security. I'm convinced taking early retirement saved my life.

That is exactly what I did when I got notice of the upcoming "unfavorable reassignment" that resulted in a significant pay cut. When I took out the commuting costs (90 miles a day) I calculated that keeping on the job would have netted me the princely sum of an additional $20 a month (before taxes of course). So then I told myself, "Self, you can squeeze $20 a month somewhere" and clinched the decision to retire. It wouldn't have been a fantastic retirement, but I could do it. It turned out that I underestimated my potential Social Security payment and I'm now pretty sure I would have lost money if I had kept working past when I retired.

 

[johngalt]

I think one mistake I made is maxing the 401k contributions. I should have invested it myself. My personal investments will be taxed at capital gains rates. 401k withdrawals will be taxed at full income tax rates - which I believe will be very high due to the national debt.

It would have been nice if the Roth 401k had been around when I started working!

 

[Golddollar]

The one thing I struggle with is the longevity crapshoot. I have some health issues, but not so much that I can rule out running out of money before I run out of time.

There is more than just the money in deciding whether or not to take early retirement, and that's your health. I retired at 63 1/2. I was commuting 90 miles round trip a day, and part of it was on the Baltimore Beltway. And it turned out I was developing coronary artery issues.

According to my brother, before I retired I was a wreck. The nurse practitioner who took over my case right before I retired later told me that when she met me she wasn't sure I was going to make it.

I had a real crapshoot with longevity. I had ancestors with good lifespans but I was potentially circling the drain. My full retirement age was 67. I faced a potential situation of not seeing a dime of Social Security.

Happily my health has improved over the years, and now I'm 71+. I guess my old employer did me a favor by making me consider taking early retirement.