Poll: Poll Thread: Did You Or Are You Going To Start Collecting Social Security Retirement Income At 62, Full Retirement Age or 70.

[Flopsweat]

Maybe they can package it up with a covid shot.

Get myocarditis and get it cured at the same time.

 

[Jay Walk]

One important piece left out of the discussion; if you are in a position to make this decision then you don't actually NEED* the SS money. That being the case, the argument for waiting until 70 years of age doesn't include the investment opportunity lost with the money that you would have gotten starting at age 62. In other words, at 62 take the money and invest it wisely, like you wish the government had from the beginning of their pyramid scheme, and you will always be ahead of where you would be if you waited.

* By NEED I mean having to have it to get by. Absolutely no implication that you shouldn't get it if you don't need it. It is after all your money held hostage.

That's my plan, but none of my plans ever seem to survive first contact with reality.

 

[arakboss]

A good reason to collect at 62 would be to help avoid having your social security income taxed. It's also a good reason to have non-taxable money available to tap into.

 

[arakboss]

 

[arakboss]

This method SS uses to calculate benefit was news to me. Lower income workers get the most bang for the buck.

If you wanted to get the maximum percentage (90%) of your contributions back on a monthly basis, don't have an average indexed monthly earnings of more than $1115 (for 2023).

How Social Security Benefits Are Calculated | Bankrate

The formula may seem convoluted, but it's important to know how your Social Security benefits are calculated.

www.bankrate.com

 

[flydipper]

My mom worked for SS for 34 years (retired in 2000). There is no one generic answer to the question. How you feel about your health, financial situation and work largely determine your specific path. She does advocate to all who ask her questions to make sure you file for SS at age 62. You don't have to collect until you're ready, but your name is on the rolls and in the system.

 

[arakboss]

This method SS uses to calculate benefit was news to me. Lower income workers get the most bang for the buck.

If you wanted to get the maximum percentage (90%) of your contributions back on a monthly basis, don't have an average indexed monthly earnings of more than $1115 (for 2023).

How Social Security Benefits Are Calculated | Bankrate

The formula may seem convoluted, but it's important to know how your Social Security benefits are calculated.

www.bankrate.com

I only have 31 of the 35 years so far but I already have an AIME of $2526. That means over half of my payroll tax contributions so far and any future contributions will only be credited at 32% rate. That is very disappointing and is making semi-retiring immediately sound attractive.

 

[Longwalkhome]

You can plan all you want but just make sure you have your basic needs covered. With my wife working and me working our SS together was going to make a good retirement income. Her death at 58 years old changed the financial outlook a great deal, all our plans ended and survival takes over.

Make sure one person can live on SS and it may take moving to a more affordable state to live on SS.

 

[arakboss]

 

[arakboss]

 

[arakboss]

If you made it to old age already, expect to live longer. This may be a good reason to hold off collecting SS until full retirement or later. If you are obese, diseased ridden, don't work and sit around a lot, you should consider collecting at 62 (if you make it to 62).

https://www.npr.org/sections/health-shots/2023/03/25/1164819944/live-free-and-die-the-sad-state-of-u-s-life-expectancy

 

[Caveman Jim]

I guess I'll never know, I was medically retired at 52. SSD.

 

[Alexx1401]

If you made it to old age already, expect to live longer. This may be a good reason to hold off collecting SS until full retirement or later. If you are obese, diseased ridden, don't work and sit around a lot, you should consider collecting at 62 (if you make it to 62).

https://www.npr.org/sections/health-shots/2023/03/25/1164819944/live-free-and-die-the-sad-state-of-u-s-life-expectancy

For those getting close a word of warning I found the hard way
While back I kept getting letters from SS about Medicare, sign up at 65 blah, blah. I ignored them at first till Wife was putting in her papers. She showed me where they were warning that even if you don't need or use it sign up for it as waiting they will put a penalty on. So I set up my account with SS and signed up for Part A (free). When I declined Part B warning popped up that if I wait they will penalize me for signing up late. Well I did not read it all just clicked OK. Months go by, I get a nice packet showing I signed up and my Medicare Card, which I have no use for now. Then I get a letter saying soon I will start getting a bill for part B. So now I bother to read up. So now need to cancel Part B as if all goes to plan I will not need it for years. Now the fun starts. This is like signing up for some kind of membership or time share then trying to cancel it. They made it almost impossible. Finally call SS, get some woman who I could not for the life of me understand more than every 3d word she was trying to say. She was trying to give me a web address which I finally found. Could not find what I needed. Finally called local SS office. An hour of listening to the phone tree recording some human finally comes on. Gives me the form # I needed and even offered to e-mail it to me. With the Number I was now able to find the form and download it. Fill out form, fax or mail it to them. We shall see.
Bottom line when you go to sign up for Medicare, if you are not going to use Part B decline it for now AFTER reading how it all works. I was a gov agency at its very best.

 

[pogi]

Get it while you can because it is going broke. If I can get a penny at 62 I am taking it.

 

[Alexx1401]

Get it why you can because it is going broke. If I can get a penny at 62 I am taking it.

Sad that they have made such a mess. it really is the 3d rail though. It will be the LAST thing they cut off if they cut stuff off. If voters don't change they will keep making the money you get worth a LOT less though. I have a pension from the Machinist Union that I often wonder how much of that I will ever see. To start collecting that I have to actually stop working. By then there may not be much of that left. There is a fed program to bail them out if it completely tanks but, will of course not replace all of it. I would be shocked if I got more than half.

 

[Longwalkhome]

Rate of inflation was built to keep people in poverty. If you are debt free then you can live on SS, that is the key to retirement. Just realize you will be robbed with high taxes and fees so a nest egg is needed to be comfortable.

 

[CountryGent]

My live hard and die young plan didn't work out, so I'm still at least mildly surprised I've made it to this age.

More seriously, I never really factored Social Security in retirement planning. I suspected it would be a clown show by the time I retired and, if the news is to be believed, that notion wasn't unfounded. I can't recommend enough to younger folks to get into retirement vehicles as early and with as much of your income you can do and keep at it come hell or high water. Regular (preferably automated) contributions, in good investments, plus time really works.

So will I take SS early or later? No idea. Exiting the labor force is more contingent on when I reach my retirement fund goals and/or I'm still finding my work meaningful. (Due to her occupation, my wife can, and likely will, retire before she can apply for SS, so that is a factor in our planning too.)