The Hidden Social Security Math Nobody Shows Retirees

Since most of us are up there in age, this is pretty interesting. For me, I'll start collecting SS at my full retirement age (66 & 10 months). Waiting until 70 just doesn't make financial sense.

My full benefit age was same as yours, 66 & 10. I started claiming at 62. My tax accountant fully advised against that, that I would be better off waiting till age 67. After I sent her some of my 'real math' calculations , she responded she did indeed see the benefits in not waiting. Remember, all your wealth, 401ks, investments, you can leave to your family member as you desire. BUT your Social Security money and any job pension money STOPS at your death. Good post ....

Going at 66 was not financial for me. If you are 66, and finances are in order, GO. Travel while you can, spend time with your Parents if fortunate enough to have them. Even at 66, I worked longer than I should have. I liked the Job and stupidly planned to keep working.

You could get run over by a Mustang anytime. Take it sooner and enjoy today because you never know. And if you have more income than you spend you can put it into something that can do more for you or your family anyway. Up here in Canaduh keeping cash hidden from excess taxation is a full time job in itself.

bandit67 said:

My full benefit age was same as yours, 66 & 10. I started claiming at 62. My tax accountant fully advised against that, that I would be better off waiting till age 67. After I sent her some of my 'real math' calculations , she responded she did indeed see the benefits in not waiting. Remember, all your wealth, 401ks, investments, you can leave to your family member as you desire. BUT your Social Security money and any job pension money STOPS at your death. Good post ....

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I was going to start collecting at 63, but I foolishly let my accountant talk me out of it. Looking looking back, I shouldn't have listened to her. I'll be 66 & 10 in January, so I might just wait the extra 3 months. My wife, who is 3 years younger than me is going to start collecting at the same time. My investment guy, who I saw earlier this week is advising all his clients to start collecting SS no later than their full retirement age.

The pile can never be too high. Now I’m getting tight and thrifty at 71. Old habits are hard to break.
I’d rather die broke to get back at the lazy kids.

Interesting, and he makes a good point that is hard to argue against.

Thanks for sharing!

Richard Cranium said:

Since most of us are up there in age, this is pretty interesting. For me, I'll start collecting SS at my full retirement age (66 & 10 months). Waiting until 70 just doesn't make financial sense.

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Absolutely. It's your money, take it as soon as you can.

Richard Cranium said:

I was going to start collecting at 63, but I foolishly let my accountant talk me out of it. Looking looking back, I shouldn't have listened to her. I'll be 66 & 10 in January, so I might just wait the extra 3 months. My wife, who is 3 years younger than me is going to start collecting at the same time. My investment guy, who I saw earlier this week is advising all his clients to start collecting SS no later than their full retirement age.

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That is GREAT advice.

Runcharger said:

You could get run over by a Mustang anytime. Take it sooner and enjoy today because you never know. And if you have more income than you spend you can put it into something that can do more for you or your family anyway. Up here in Canaduh keeping cash hidden from excess taxation is a full time job in itself.

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Stangs turn left at full throttle, don’t be on that side of the street when Cars/Coffee exits. BMW M4’s do too.

You can wait until the end requirement to start and have less time to spend, but more coming in monthly. Or, you can start as I did at 62 in 2010 and amortize it out to say 72-75, and it comes out to be about the same amount overall. Either be small at an early age or wait until a later age. Granted, I started out with a smaller stipend, but now, at 76, along with my pension and disability, I bring in over 5000/month, and that is more than enough to fund my life for however long I am taking my trips around the Sun. Take it as soon as you can, and the financial expert's advice be damned!!! JMHO is all... cr8crshr/Bill

I’m an outlier on this issue. But I have a family tree with scary longevity. My doctor and my lawyer told me to go long. I worked full time until 69, took SS at 70. Drew my investments down to make it happen.

Result is a benefit of 50k per year. Even if I live to 100, and adjusted for inflation. Not for everyone, but I’ve always been a bit of a freak, and managed accordingly.

It also gets taxed at a lower rate than income from other sources. If I predecease my spouse, she can switch to my benefit. It’s more than she made when she worked full time.

Most financial advisor folks will show all the options.
The life insurance folks will talk more about when you are going to die, when discussing the calculations. Some folks respond to maths, some to gut feelings, some to a dislike of insurance companies, and some to unknown forces. Women are usually more practical than, men. If you plan on living a long while, then later may suit you better. Indexing is also an issue and I do not know the US rules.
Some folks with money retire at 62 and promptly croak.
The kid who I transferred my business assets to died at 64.
That buggered up the business side of the retirement plan.
Simple math, and a reasonable interest rate will serve well.

It's 60 here to start if you chose and I wasn't waiting a single day later, considering my Sister that kicked the can at 49 got $2500 taxable and Daughter Jen, at 30, got a whopping $2150 that we had to pay tax on. I certainly wasn't waiting to 65 or 70 to get a higher monthly payout, I only needed to get 4 months BACK out of the pricks to be further ahead than both of them.... with my $658 a month.

Because I was born prior to January 1, 1954, I was able to take advantage of a loophole that enabled me to claim a spousal benefit while I continued to work full time. I then claimed my maximum benefit at 70.

The downside was i was born a year before the Salk vaccine was released, and I contracted polio. Some you win, some you lose.

It looks like that guy’s math is about delaying SS while already retired, without a salary and living off your savings.

Am I seeing this right?

Max Bennies are like $5,400+ (maybe it $5,600 ?)
every third Wed. direct deposit
no more paper checks now,
mine was a few hundred less than that...

IIRC you get taxed on anything over $16k
a single male with no dependents, under 18, annually now,
& now with an extra $6k 'senior citizen credit',
from the 'Big Beautiful Bill' passed recently
so you can see I pay taxes on my S/S, still even with the credits

I own everything outright so not many personal deductions/write offs
in that realm anyway

I also paid max donation, into it every month & every year, while working
for 37-ish years, (a lil' less prior from like 15-21-ish) didn't vary much each year,
it was a lil' more
the 1st 10 or so years I didn't make a bunch of money
$1.65 an hr min wage, was my 1st Job, I loved that job too
15 y/o at a Shell Station, didn't pay much tax either,
I didn't make much
started making better $$ at like 18, $6 an hr at PG&E wahoo,
that went up
pretty quick from 18-25-ish,
then I paid max donations since then until I fully retired at 62
so 37 years of max contributions...

Being self employed most my adult life I paid dearly

I signed up to receive my S/S when I was 62,
I talked with several money smart people we decided it was best to collect early
& if I waited till like 66
it comes about 'even steven' at like 67 to 70-ish, starting at 62
I will be at what I paid in, not sure the exact numbers now...

Depending on how much 'Medicare keeps raising',
it goes up every year so far
& it went up every year under the former admin.,
average like $30-ish a month more each year, past 4+ years
so they've taken an extra $400-ish annually
on-top of the org. starting level of $187 monthly ($2244 annually), for plan A&B
it's over $330 (? exact) a month now, for a medical plan I never have used,
not even 1 time 'yet'
$4k a year basically give or take $20-sh
I think it's a set % of what you receive monthly amount (?)
(but don't quote me on that) depends on if you choose their part C or D plans
I get a private company for that
& you pay automatically, your Medicare fees out of the check/monthly auto-deposits
you won't ever even see the increase,
until they send yearly statement of you benefits $$ amount
in you direct deposit, it's not voluntary
after 65, it's an auto deduction, in what they charge, no choices
& always it goes up annually to, it is the govt. ran healthcare after-all...

I'm now in my 5th years or so & at a couple hundred less, per month
then the max amount, if I waited, & still wouldn't be collecting any 'yet'

When started collecting at 62,
it starts the next month after the 62nd birthday, my 1st was in Aug 2023
I would have lost in the long run if I live past 75, if I waited started collecting at 70
just wasn't financially sound

good luck

February - March 2027.

One other thing my investment guy told me was that when my wife reaches her full retirement age (67?) her payout will be increased to half of what mine is. I did not know that.