Social security questions

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Originally Posted By: Wolf359
What if you wait til you're 70? Or is it 70 1/2 to get the max benefit. Lots of short term vs long term thinking going on here. The current math favors taking it as late as possible. If you look at the actuarial tables, you'd get the most out of SS by taking it as late as possible as people on average are living longer. But if you're in poor heath, then it makes sense to take it earlier. I forget the exact age, but the benefit is based on people living to a certain age and with people living longer, it's worth it to take it later. There are many people in their 80's and 90's walking about. Everyone saying to take it early must be thinking they're going to be dropping dead pretty soon.


I'm taking a chance just waiting until my FRA to take it. The men on both sides of my family have a history of dying young, but I'm hoping my lifestyle being better than theirs was will allow me to live longer...
 
Originally Posted By: Wolf359
What if you wait til you're 70? Or is it 70 1/2 to get the max benefit. Lots of short term vs long term thinking going on here. The current math favors taking it as late as possible. If you look at the actuarial tables, you'd get the most out of SS by taking it as late as possible as people on average are living longer. But if you're in poor heath, then it makes sense to take it earlier. I forget the exact age, but the benefit is based on people living to a certain age and with people living longer, it's worth it to take it later. There are many people in their 80's and 90's walking about. Everyone saying to take it early must be thinking they're going to be dropping dead pretty soon.


They are probably thinking to enjoy the money while you are still healthy and not in a wheelchair in poor health.
 
Sorry for bumbling into this thread. I'm still eleven years away from even early SS collection. As of today I plan to start drawing as soon as I am able. Each of us prepares our own sandwich so we have to do what we feel is correct.
 
Originally Posted By: DBMaster
Sorry for bumbling into this thread. I'm still eleven years away from even early SS collection. As of today I plan to start drawing as soon as I am able. Each of us prepares our own sandwich so we have to do what we feel is correct.


Most people are poor planners and bad at math. That's why when you look at it in the aggregate, most people take it early when they should be taking it late because most people outlive their projected lifespan. It's supposed to be neutral but it hasn't keep up with expected lifespans so the best bang for the buck is to take it late, I think each year you wait, it goes up by 8%. Still I suppose that keeps SS from going insolvent sooner. And I suppose you can thank smokers for dying sooner, they pay into it, but many die before being able to collect.
 
Originally Posted By: DBMaster
Sorry for bumbling into this thread. I'm still eleven years away from even early SS collection. As of today I plan to start drawing as soon as I am able. Each of us prepares our own sandwich so we have to do what we feel is correct.


I will plan on not taking it early, but once I retire at age 62, if I find I can live comfortably on the income I'd be drawing by taking it at 62, I might take it early. I will retire with no debt, not even a mortgage, so taking it early will be a possibility...as Mr Nice stated, it might be nicer to start enjoying retirement at an earlier age...
 
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Originally Posted By: grampi
Originally Posted By: HerrStig
Originally Posted By: grampi
Mr Nice, I do. I will also have my military pension, and my civil service pension, but I'd still rather wait until my full retirement age to collect SS so I can get the extra $800 a month...
ANd if you don't live that long how much do you collect.


None, my wife would collect it...

Exactly. Keep your options open and wait to collect...its the safest plan
 
Here's something else to consider. If you take SS early at 62, and you are still working making over $15,700 a year,Your monthly amount will be reduced depending on how much you really make.And when you hit full retirement age, you will only get the reduced 75% amount of monthly benefit. Last I checked it was reduced $2 for each dollar you earn.If you wait until full retirement age, there's no penalty, you can make all you can. If you can hold out until 70, you will get alot more. You have no choice in the matter , they will start sending you your money.,,,
 
Originally Posted By: Al
Originally Posted By: Silverado12
^^^Yes it would, but IMO it's a better decision to collect SS at 62. If you don't need the money at that time, invest it.

I disagree. Don't take it till you need it. Waiting is a guaranteed investment and you avoid taxes. I took it early and am sorry I did. In this climate investment returns may not be positive.

Think it through!!!


Exactly. How would this have worked if you retired in 1966....and then had to endure a volatile investor market over the next 16 years. Odds are you would have lost your shirt or at best, broke even....if you were lucky. People assume that 1982-2015 is the standard for all future investment markets. That's unlikely. If anything, it's atypical and very dependent on the baby boomers who are now retiring in droves. On top of that the general real estate market that rose from 1955-2007 on the backs of the boomers, is now in a 26 year downtrend until 2033.

And don't assume your SS and Pensions will remain untouched over the next 5-20 years. Nothing is certain with Washington D.C....except "change." They will be looking for more sources of income as the baby boomers retreat. And the biggest nest eggs are pensions and SS.
 
Originally Posted By: BigCahuna
Here's something else to consider. If you take SS early at 62, and you are still working making over $15,700 a year,Your monthly amount will be reduced depending on how much you really make.And when you hit full retirement age, you will only get the reduced 75% amount of monthly benefit. Last I checked it was reduced $2 for each dollar you earn.If you wait until full retirement age, there's no penalty, you can make all you can. If you can hold out until 70, you will get alot more. You have no choice in the matter , they will start sending you your money.,,,


Will that 70 figure stay the same. I'm in the 67 as full retirement age for SS benefits. If I had to go only 3 more years, it wouldn't be so bad compared to someone who had to go 5 years from 65 to 70 to get that bump.

In my family tend to either die in our 20's from some freak accident or live to 90+ years old. Since I'm in my 3rd score now, it doesn't appear I'll die 30+ years ago...

My grandfather survived the Battle of the Bulge, came home to become a father to my mother, see her alive for about 6 months and then was killed on a motorcycle.

The generation before that lived to ages ranging from 90+ to 103.

Their father was killed by lightning on the farm when they were all kids....

And so on.
 
I always tell those who ask to retire as soon as they can AFFORD to.

Watched to many go for broke for the last dollar then die.

You only live onece here on this earth.
 
Well, how much you will get depends on how long you've worked, how much you paid in, if your working right up until your 70th birthday.Those numbers change if you keep working, as your still adding money to your account. My statement said if I was 70 right now, I'd get about 650 dollars more, then at full retirement age of 66. Everyone's numbers work out differently.,,
 
If you take it early but plan on still working, you will be penalized if you make over 16000 a year.
Be careful with this cause once you start drawing you can't change your mind.
If you are turning 66 in 2017,the amount you can earn without penalty jumps up to 44880.
Go down to your social sec office and talk to them if you can't look up online.
 
You need to determine how long you think you will live, and if your currently working. If your not working then probably no reason to wait until FRA at 66+. If your working and earning over $15,000 then probably best to wait to FRA. If in good health and can afford it then wait to age 70 as your benefit will grow at 8%.

There is a break even age of about 82 or 83 (around there) and if you live less than that it would be best to have started as early as possible. If you think you will live into 90s, wait until your 70 to collect.

SS will be around for a long long time. The fix is easy, just bump up the max amount in salary you need to pay SS on. Its around $115 now. It can be fixed in a jiffy.
 
Here's a question for you tax accountant types...

If you are married filing jointly and your spouse continues working while you draw SSA, does the joint income count as the base for taxing your SSA payments or is it just on what the recipient earns?

For example, if I am drawing and I have $0 income but the wife has $50,000, will we owe income tax on SSA payments when filing jointly?
 
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Originally Posted By: Indydriver


For example, if I am drawing and I have $0 income but the wife has $50,000, will we owe income tax on SSA payments when filing jointly?

Why would you not owe more? A portion of SS is taxable.
 
Originally Posted By: BigCahuna
Here's something else to consider. If you take SS early at 62, and you are still working making over $15,700 a year,Your monthly amount will be reduced depending on how much you really make.And when you hit full retirement age, you will only get the reduced 75% amount of monthly benefit. Last I checked it was reduced $2 for each dollar you earn.If you wait until full retirement age, there's no penalty, you can make all you can. If you can hold out until 70, you will get alot more. You have no choice in the matter , they will start sending you your money.,,,


I will not be working and collecting SS at the same time...once I start collecting SS, I will done working for good...
 
Originally Posted By: Mr Nice
Yeah, retirement means no longer working at all.


When I turn 62 I will be twice retired and still working...
 
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