The Hidden Social Security Math Nobody Shows Retirees

[Richard Cranium]

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.

 

[bandit67]

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 ....

 

[Dennis H]

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.

 

[Runcharger]

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.

 

[Richard Cranium]

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 ....

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.

 

[Dennis H]

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.

 

[HawkRod]

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

Thanks for sharing!

 

[WileE]

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.

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

 

[WileE]

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.

That is GREAT advice.

 

[Dennis H]

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.

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

 

[cr8crshr]

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

 

[68BabyBlue]

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.

 

[Unkle Krusty]

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.

 

[dadsbee]

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.

 

[68BabyBlue]

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.