Signed up for Social Security

[dmcummins]

I’ll be turning 62 in May, so I went ahead and signed up to start taking SS then. I retired at 50, but now I’m really feeling old.

I’ve read all the advice about when to take it, but unless you know when you are going to die and what return you get on your investments, it seems like a crap shoot.

I don’t need the money to live, so I figure id rather have it now. And longevity doesn’t really run in my family.

[KFC911]

Are you gonna get doodly....serious question? Like you, I "retired" early (48) after paying the maximum into SS for years...I figure those 15 years of nada are gonna leave me with virtually nada back....no big surprise .

[LWJ]

Hello
Here is a real question for he above two posters.

What have you been doing for health insurance?

How bad did your early retirement crater the SS?

We all want to know!

[dmcummins]

Originally Posted by KC911

Are you gonna get doodly....serious question? Like you, I "retired" early (48) after paying the maximum into SS for years...I figure those 15 years of nada are gonna leave me with virtually nada back....no big surprise .

A little over 20 grand. $1750 or so a month.

Of coarse it would be more if I waited till full retirement age. I’m not even sure what that is, but I’m taking it at 62.

[dmcummins]

Originally Posted by LWJ

Hello
Here is a real question for he above two posters.

What have you been doing for health insurance?

How bad did your early retirement crater the SS?

We all want to know!

Health insurance is expensive, but I knew that before I quit. It cost me about $1,500 per month.

It cost me a few hundred a month by not working another 10 years. The early retirement was worth it.

[KFC911]

Originally Posted by dmcummins

A little over 20 grand.

So....all those years of 0 averaged in didn't wipe it all out...hmmm. I've never counted on it....but I'll take whatever amount of MY money back I can get .

I had BCBS at the end of my corporate gig...continued on with an individual BCBS policy....now pretty much self-insure with BCBS under O'care....high deductable (I can handle), with "some" protection against a mega-bill.

[wdfifteen]

When to take SS is a complex question. Everyone's situation is different. I come from a family that has a mixed record as far as longevity is concerned, but my parents both lived into their 80s. I found a web site that calculated your "break even" age if you start taking SS at various ages. I have to make it to 82 before my decision to wait until age 70 begins to pay off. But that does not factor in what I'm not paying in taxes now. If I was taking my SS benefit now my income taxes would be higher and my medicare payment would be higher.

But that's not the only consideration.

MrsWD is planning on waiting until "full" retirement age (66). I'm waiting until I'm 70. We don't need the money right now, much of it would be drained out in taxes because of our other income. I've planned the "retirement" of a couple of my royalty payments for my 70th birthday, so my income (and taxes + medicare) will remain about the same.

We're still not sure we've made the right decisions.

[rfuerst911sc]

I retired a little over a year ago at 59 and 11 months I am now 61 . My wife retired about 4 years ago and she decided to start drawing SS at age 62 . We both have corporate pensions and 401K. I have not made up my mind when I will start drawing SS . We have private health insurance that runs us 1K a month with a 2K deductible . Everything we have we own outright so we have no bills other than groceries , utilities and property taxes . So far so good . Our financial advisor is recommending I wait on SS until 65 .

[dmcummins]

Originally Posted by wdfifteen

When to take SS is a complex question. Everyone's situation is different. I come from a family that has a mixed record as far as longevity is concerned, but my parents both lived into their 80s. I found a web site that calculated your "break even" age if you start taking SS at various ages. I have to make it to 82 before my decision to wait until age 70 begins to pay off. But that does not factor in what I'm not paying in taxes now. If I was taking my SS benefit now my income taxes would be higher and my medicare payment would be higher.

But that's not the only consideration.

MrsWD is planning on waiting until "full" retirement age (66). I'm waiting until I'm 70. We don't need the money right now, much of it would be drained out in taxes because of our other income. I've planned the "retirement" of a couple of my royalty payments for my 70th birthday, so my income (and taxes + medicare) will remain about the same.

We're still not sure we've made the right decisions.

I agree it’s different for everyone. My wife has a pension that pretty much means a very small SS payment for her. Even if she took half mine, so that had a effect. I also figured around early 80’s for a break even point. It all depends on what rate of return I get on the money.

There was also a consern about the future of SS. And taxes. As someone who has saved and invested over the years will I be penalized by those who did not? The current crop of politicians are sure promising a lot of free stuff and higher taxes.

The old bird in the hand is worth two in the bush .

[Crowbob]

Originally Posted by rfuerst911sc

I retired a little over a year ago at 59 and 11 months I am now 61 . My wife retired about 4 years ago and she decided to start drawing SS at age 62 . We both have corporate pensions and 401K. I have not made up my mind when I will start drawing SS . We have private health insurance that runs us 1K a month with a 2K deductible . Everything we have we own outright so we have no bills other than groceries , utilities and property taxes . So far so good . Our financial advisor is recommending I wait on SS until 65 .

Did your advisor explain why you should wait?

[wdfifteen]

Originally Posted by rfuerst911sc

Our financial advisor is recommending I wait on SS until 65 .

Why 65 and not your full retirement age (67 for you)?

[Bugsinrugs]

My wife turned 65 in January and applied for SS. I am 67 and will wait until I’m 70. In the mean time I will be getting half of my wife’s SS. If some of you guys or gals don’t know about this perk ask your advisor or call SS. If you were born after 1954 it doesn’t apply.

[jhynesrockmtn]

My wife is 7 years older and turned 62 in January. She'll get her first SS check this month and is now working 2 days a week which basically pays her monthly health insurance. My financial guy keeps telling me I'm ok to retire at 60 and wait to 67 to take my SS. Part of his reasoning is if I die early, my wife will get more. I paid in the max for many of my working years.

[LWJ]

Thank you for the info above. That is super useful!

[996AE]

I too was lucky and retired at 50. Serial entrepreneur with great people made it happen for me. Lots of zeros, but never thought I'd see SS check so never planned for it in retirement.

With a few great mentors in their 80s (all have now past) they drilled into me no one ever, on their death bed lamented on the one more deal they should have made, just a little more money they could have earned. They all say I wish I had spent more time with my family.

62 early retirement 2k per mo. Health insurance 1,200 a month for me and the wifey, but a 10k ded. Healthy so havent every used it but nice to know if I need it it will be there.

Life can be short.

No regrets.

[fintstone]

Originally Posted by Bugsinrugs

My wife turned 65 in January and applied for SS. I am 67 and will wait until I’m 70. In the mean time I will be getting half of my wife’s SS. If some of you guys or gals don’t know about this perk ask your advisor or call SS. If you were born after 1954 it doesn’t apply.

True dat:
"As a spouse, you can claim a Social Security benefit based on your own earnings record, or you can collect a spousal benefit that will provide you 50 percent of the amount of your spouse’s Social Security benefit as calculated at their full retirement age (FRA).

Check the Social Security website to determine your FRA, as it depends on your year of birth.

You are automatically entitled to receive either a benefit based on your own earnings or a spousal benefit based on your spouse's or ex-spouse's earnings. Social Security calculates and pays the higher amount.

If you were born on or before January 1, 1954, after you reach FRA, you can choose to receive only the spousal benefit by filing a restricted application. By doing this you delay receiving your own retirement benefits based on your earnings record, until a later date. For example, at age 70 you could switch from receiving a spousal benefit to receiving your own potentially higher benefit amount."

[Hugh R]

I missed the 1/1/1954 opportunity by a few weeks.

I started SS this January at 65. I get about $2,700/month and would have gotten about another $200/month if I'd waited until 66-1/2, so I'll be collecting $48,600 between now an then (66-1/2). It would take 20 years to make up the difference.

[fintstone]

Every time I decide not to retire yet, I read a thread on here where people retired much younger than me...and are glad they did. It really leaves me undecided..as it would be awfully hard to go back later and find as good a gig (due to age discrimination and losing your network). Anyone regret not working longer or regret not taking their SS earlier/later?

[CurtEgerer]

Originally Posted by Hugh R

I missed the 1/1/1954 opportunity by a few weeks.

I started SS this January at 65. I get about $2,700/month and would have gotten about another $200/month if I'd waited until 66-1/2, so I'll be collecting $48,600 between now an then (66-1/2). It would take 20 years to make up the difference.

Yup. And most people never catch up since the average life expectancy for men in the US is only 78 years old. If you play the Las Vegas odds, you're leaving money on the table if you don't take it as early as possible.

[Jim Richards]

I retired a few years ago, when I was in my early 60s. I’m not planning on drawing SS until age 70. My wife is drawing her SS now. Since my wife is likely to outlive me, I want to max out my monthly SS payment so she can draw that instead of hers after I croak. She’s kind’a OK, so I’m happy to do that for her.