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Started By
Message
re: Taking Social Security early vs. later
Posted on 1/23/25 at 8:33 am to TigerBR1111
Posted on 1/23/25 at 8:33 am to TigerBR1111
I will probably take at 67 (full retirement) only because I am 45 now with my youngest child being only 11 months, so I will be working later than originallyl expected. Got remarried to a younger woman (9 years younger) and we had 2 kids to add to our 14 and 9 year old.
62 $2106
65 $2657
67 $3089
70 $3861
I also expect those monthly estimates to increase as I just started hitting my peak earning.
I may be able to swing 65 if my rental portfolio does well and my side hobby of live crawfish sells continues as is. I will never stop those 2 forms of income. My kids (all girls) can take over the rentals eventually and hopefully they give me some grand sons to take over the crawfish gig.
62 $2106
65 $2657
67 $3089
70 $3861
I also expect those monthly estimates to increase as I just started hitting my peak earning.
I may be able to swing 65 if my rental portfolio does well and my side hobby of live crawfish sells continues as is. I will never stop those 2 forms of income. My kids (all girls) can take over the rentals eventually and hopefully they give me some grand sons to take over the crawfish gig.
This post was edited on 1/23/25 at 9:26 am
0
Posted on 1/23/25 at 8:37 am to Bow08tie
quote:
Take SS as soon as you can. None of the entitlement programs are guaranteed tomorrow
Interest expense+entitlement pay goes are >100% tax receipts. Take it now before purchasing power erodes further.
Posted on 1/23/25 at 10:03 am to TigerBR1111
There’s no right answer unless you have some pretty telling indicators about your health. You’ve probably waited long enough. Take it.
Posted on 1/23/25 at 11:11 am to TigerBR1111
Social Security at age 62 versus 67 typically boils down to one thing - prior investments of some type.
If a person is solely relying on SS to make ends meet, you may be forced to wait until 67 just to make ends meet/pay bills.
If you have invested wisely for a somewhat lengthy period of time and have other sources of income, you can take SS at 62.
If a person is solely relying on SS to make ends meet, you may be forced to wait until 67 just to make ends meet/pay bills.
If you have invested wisely for a somewhat lengthy period of time and have other sources of income, you can take SS at 62.
Posted on 1/23/25 at 11:43 am to VABuckeye
quote:
Will you still be earning? If so you need to do some research.
Absolutely. I almost made a very costly mistake.
Posted on 1/23/25 at 2:11 pm to TigerBR1111
At what age did your parents and grandparents live to? Genetics is a large part of determining your longevity. Generally, you will draw the same amount of money from SS if you start at age 64 vs delaying to draw at age 72 to 82 years old. You have to give 50 cents back for every dollar you make over $19k/yr. (check with SS) if you are not at full retirement age when you start drawing SS. The rule of thumb is you can draw 3% income from your retirement per year to make it to age 92.
Posted on 1/23/25 at 2:17 pm to RedlandsTiger
quote:
You have to give 50 cents back for every dollar you make over $19k/yr.
Correction, the amount is currently $22320.
Posted on 1/23/25 at 2:37 pm to VABuckeye
quote:correct. You may go early, get very little, then be stuck w reduced payments for years after.
Will you still be earning? If so you need to do some research.
Posted on 1/23/25 at 3:29 pm to TigerBR1111
No fukin brainer…..
Posted on 1/23/25 at 5:37 pm to redfish99
SS hopes u die before full retirement age or 70.... then they get 100% of your money (if ur not married)
Posted on 1/23/25 at 8:51 pm to TigerBR1111
I retired At 63.5 and, based on calcs by my CFP, I started drawing my SS at 67.
Posted on 1/23/25 at 10:52 pm to VABuckeye
quote:
Not only tax implications. For evey $2 you earn above $22320 your annual SS is decreased by $1. Make $72000 and you get zero SS payments even though you're "taking" SS early.
This is not one size fits all. People need to do their research.
OP absolutely needs to do his research. Academics that study retirement income planning highly recommend waitng to claim benefits for as long as possble.
Posted on 1/24/25 at 7:18 am to La Place Mike
quote:
Academics that study retirement income planning highly recommend waitng to claim
Doesnt necessarily mean waiting is usually optimal. By waiting one can drastically reduce risk of ruin which is more heavily weighted than optimized total $ collected. Most retirees have insufficient savings so the extra monthly income is vital and waiting also keeps those underprepared earning longer.
This post was edited on 1/24/25 at 7:41 am
Posted on 1/24/25 at 7:30 am to OTIS2
If you make a mistake drawing early, there is a 1 year window when you can pay it all back and reset. SSA.gov withdraw application
Or, you can pause payments even after 1 year and start accruing more SS credits. SSA.gov Suspend
This can be useful if you return to work or realize you dont need the SS $ just yet.
Not sure if this is a good tactic but I've considered drawing at full retirement age for 10-11 months and paying it back if I'm in good health at end of 1st year.
Tried getting my mom to do this but she is concerned she wont live long enough to make it worth delay. I'm more concerned she will out live her nest egg. She claimed SS last year and has it all just sitting in savings account (not even HYSA) procrastinating about investing it.
Or, you can pause payments even after 1 year and start accruing more SS credits. SSA.gov Suspend
This can be useful if you return to work or realize you dont need the SS $ just yet.
Not sure if this is a good tactic but I've considered drawing at full retirement age for 10-11 months and paying it back if I'm in good health at end of 1st year.
Tried getting my mom to do this but she is concerned she wont live long enough to make it worth delay. I'm more concerned she will out live her nest egg. She claimed SS last year and has it all just sitting in savings account (not even HYSA) procrastinating about investing it.
Posted on 1/24/25 at 7:59 am to TorchtheFlyingTiger
quote:
Doesnt necessarily mean waiting is usually optimal.
I didn't say it was optimal. I was just passing on information that might be useful. Sometimes circumstances will dictate that SS be taken early but taking it early just because you can isn't the best thing to do IMO.
Posted on 1/24/25 at 8:37 am to TorchtheFlyingTiger
quote:Thanks for the info, I had no idea.
If you make a mistake drawing early, there is a 1 year window when you can pay it all back and reset. SSA.gov withdraw application
Or, you can pause payments even after 1 year and start accruing more SS credits. SSA.gov Suspend
Posted on 1/24/25 at 8:51 am to TorchtheFlyingTiger
How does it work if I’m collecting SS and yet still working and paying into it?
Will my monthly benefits continue to increase since I’m still paying into SS?
Will my monthly benefits continue to increase since I’m still paying into SS?
Posted on 1/24/25 at 9:36 am to baldona
I see 0 reason not to take it immediately and invest 100% worst case. Why would you let someone else keep your money for you?
___________
I am guessing you don't know that if you are still earning money when you start taking it, then you will get hit with extra taxes on it, and also pay higher premiums for medicare (IRMAA).
Also, the government pays a guaranteed 8% for the period that you wait. Most will not invest it, but beyond that earning above 8% is not a guarantee. Historical average of the 500 is 10%, so there is an argument that one can do better, but the value of the guarantee is an individual decision.
___________
I am guessing you don't know that if you are still earning money when you start taking it, then you will get hit with extra taxes on it, and also pay higher premiums for medicare (IRMAA).
Also, the government pays a guaranteed 8% for the period that you wait. Most will not invest it, but beyond that earning above 8% is not a guarantee. Historical average of the 500 is 10%, so there is an argument that one can do better, but the value of the guarantee is an individual decision.
Posted on 1/24/25 at 10:12 am to KWL85
quote:
I am guessing you don't know that if you are still earning money when you start taking it, then you will get hit with extra taxes on it, and also pay higher premiums for medicare (IRMAA).
This is a completely different scenario. OP mentions nothing about still working.
In that case, absolutely its different and likely worth waiting.
Yes, its a 8% ROI guarantee but the principle is not guranteed. If you die in your late 60s or early 70s that ROI doesn't mean a damn thing.
Posted on 1/24/25 at 10:25 am to baldona
Ok and agree. I read your response as general advice.
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