re: Taking Social Security early vs. later

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My wife went on medicare this month and the premiums are the same for someone that is on medicare and not working.

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There is a charge called an IRMAA if you make a certain about of money you pay more for medicare, like double. Single people hit it at $105K and married at $210K, but that is combined income: SS, pensions/401K/IRA, and investment income.

LINK

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Thanks for the numbers. Yeah, we aren't impacted.

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The nasty part of it is that if you have really planned well and have plenty of money for retirement, and decide now would be a great time to buy that boat you always wanted with part of your retirement funds, now there's this extra fee you have to pay.

It's not a terrible amount, but it's kind of insulting. Every time you hear a politician talking about the rich paying their fair share, just think of the average guy wanting to pay off his mortgage from his IRA, and suddenly BIG GOV demands a bigger piece of that.

Medicare does not go up if you are still working (though income amount may come into play), My wife went on medicare this month and the premiums are the same for someone that is on medicare and not working. She does fall below the $22320 yearly threshhold which may have something to do with the premium amount.
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It does go up. We are paying an extra $350/month in Medicare premiums due to my income. We also are being taxed a good bit on her social security. She wanted to start taking hers in case of early death. I am holding out partially because of this.

We are also taxed on 85% of my wife’s SS. We still come out ahead.

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It does go up. We are paying an extra $350/month in Medicare premiums due to my income. We also are being taxed a good bit on her social security. She wanted to start taking hers in case of early death. I am holding out partially because of this.

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Then it appears that your MAGI is over the $210k threshold.

One thing to consider.

People here are talking about taking SS at 66 1/2. That is FRA if you were born in 1955 or sooner. If you were born after 1955 your FRA is 67.

Anyone born in 1955 is now 69 or 70 so 66 1/2 probably doesn't apply to anyone in this thread that hasn't taken SS yet.

Take it early. As early as you can.

Correct about 67. The income limit to not affect your SS payment is $22320 for the year. Every $2 over that amount reduces your SS payment by $1.

Question 1. How long do you intend to work. If you don't want to retire, wait.

Question 2: How long do you expect to live? If your parents and siblings died in their 60s or early 70s, if you have diabetes, or if you smoke, take it now and retire or cut back at work to spend time doing what you like.

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If you need SS, put it off as long as you can.
If you don't need SS, take it early.

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