Social Security/Retirement?

joeintexas

joeintexas

US Veteran
Joined
Dec 31, 2010
Messages
4,388
Reaction score
7,188
Location
Pensacola, Fl
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.
 
Register to hide this ad
I realize taking early at 62 they withhold 25% of the max amount but as I understand it at 66 they refigure it.
Click to expand...

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!
 
Last edited:
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. :D:D Don
 
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!
 
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."
 
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.
 
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
 
SS Retirement

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.
 
Last edited:
Out West said:
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
Click to expand...

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.
 
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%.
 
Last edited:
JcMack said:
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.
Click to expand...

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.
 
You must log in or register to reply here.

Latest posts

Back
Top