When to start drawing Social Security

[Jim Richards]

Originally Posted by pete3799

I filed for Medicare last week.
Plan on signing up for SS Dec 9th (30 days after my 65th birthday). Thanks for the tip Baz.

Congrats Pete! I filed for Medicare couple of months ago. I'm going to wait to draw SS until I've at least hit full-retirement age (in 2019), but hopefully I'll file for it closer to age 70. We'll see...

[Jim Richards]

Originally Posted by jamesnmlaw

My retirement will be when I don't come home and someone finds me face-planted on the desk.

One of my staff and I found the guy in the next office to mine in this condition. Our attempt to revive him with CPR was unsuccessful. Sucks.

[CurtEgerer]

That had to be horrible to see Jim. And the worst possible way to die ... at your desk working!

RE: SS - the average male lifespan in the USA is only 78. If u think you're going to live past that, you're bucking the odds That often isn't factored into the decision on when to confiscate your lifelong 'contributions' to SS.

[Jim Richards]

Yeah, it shakes you up a bit.

My thinking is that my wife will probably make it into her 90s like both her folks did, but I'm probably going to only be average. Since my SS is more than hers, especially if I wait to 70 to draw it, she can take my larger benefit instead of hers when I croak. It'll give her more to live on in her old age. Well, at least that's the plan.

[Moses]

Originally Posted by Halm

Where else can you get a guaranteed 8% growth per year between 66 and 70?

By not drawing at age 62 you’ve already left more than $100,000 on the table. If you start drawing st age 70 it will take you about 14 years to break even. . The 8% erodes pretty rapidly with inflation as well.

[Moses]

Originally Posted by Halm

and the extra guaranteed 8% per year is a really attractive return.

It’s not an 8% return. You have surrendered the principal! Gulp!

[Zeke]

Originally Posted by jamesnmlaw

I think I'm going to pull the pin at 62. I'll keep working but the money I get from SS will be dumped into a catch-up retirement plan that'll come due at 70. I'll never retire unless I have something more than $10,000,000 and that'll never happen. My retirement will be when I don't come home and someone finds me face-planted on the desk. That could happen any day so I got to keep my client files clean, billing up to date, and the computers free of porn. I definitely keep my ***** wired tight. Other than that, all's good.

You will pay a big penalty on your earnings for the first 2 years. Might be worth it given your plan, but it's like 50 cents on the dollar. Unless you plan on working for $14,000/year.

[Jim Richards]

Originally Posted by Moses

By not drawing at age 62 you’ve already left more than $100,000 on the table. If you start drawing st age 70 it will take you about 14 years to break even. . The 8% erodes pretty rapidly with inflation as well.

Yep. Whether or not it makes sense to wait boils down to "just how long you expect to live." Also, the 8% adder, per year waited, erodes with inflation just as fast as the full retirement age (66 for me) amount. At least the inflation hit is slowed a bit by any COLAs that might be provided, not that that's a guaranteed thing.

[Seahawk]

Originally Posted by Moses

By not drawing at age 62 you’ve already left more than $100,000 on the table. If you start drawing st age 70 it will take you about 14 years to break even. . The 8% erodes pretty rapidly with inflation as well.

They made it a lot harder than it has to be:

https://www.ssa.gov/planners/retire/whileworking.html

https://www.ssa.gov/pubs/EN-05-10069.pdf

Here is the specific wording:

Will you receive higher monthly
benefits later if benefits are
withheld because of work?
Yes. If some of your retirement benefits
are withheld because of your earnings,
your monthly benefit will increase
starting at your full retirement age to
take into account those months in which
benefits were withheld.
As an example, let’s say you claim
retirement benefits upon turning 62 in
2018, and your payment is $953 per
month. Then, you return to work and
have 12 months of benefits withheld.

We would recalculate your benefit at
your full retirement age of 66 and 4
months and pay you $1018 per month
(in today’s dollars). Or, maybe you earn
so much between the ages of 62 and 66
and 4 months that all benefits in those
years are withheld. In that case, we
would pay you $1,300 a month starting
at age 66 and 4 months

But yes, even if you start early and exceed the amount of income and earn zero SS, they make it up later.

It is all so confusing...one more:

https://www.ssa.gov/pubs/EN-05-10147.pdf

[pete3799]

Just signed up today. Should be rolling in cash soon

[Bob Kontak]

Originally Posted by pete3799

Just signed up today. Should be rolling in cash soon

How old? I pulled the trigger this year at 62. Apply, birthday month, waiting month then pay month.

[Baz]

Originally Posted by pete3799

Just signed up today. Should be rolling in cash soon

Originally Posted by Bob Kontak

How old? I pulled the trigger this year at 62. Apply, birthday month, waiting month then pay month.

Come on in boys....the water's fine......

[Moses]

I ran some numbers of my own and made a few assumptions.



I'm going to compare drawing at 62 vs.70. By drawing early, I will have reclaimed $196,800.00 by the time I'm 70 years old. If I save it and invest it at 5% I will tack on another $20,000. If I wait till I'm 70 to draw Social Security, I will be 91 years old before I start to get ahead of the game. But this isn't the BIG issue!

Social Security is a big investment. And you have a partner who manages your savings for you. And your investment partner is a psychotic, crack addict with big spending problems! How long do I want Uncle Sam holding onto my money?

[Crowbob]

Moses gets it.

But why even invest (at age 62+) unless it’s for the kids’ futures there’s no reason to. One kid needs new gutters for the house-done! Another kid needs $ to care for a special needs child-done.

Then die. Eventually. As eventually as possible.

[Moses]

Originally Posted by Crowbob

But why even invest (at age 62+) unless it’s for the kids’ futures there’s no reason to. One kid needs new gutters for the house-done! Another kid needs $ to care for a special needs child-done.

This. Exactly.

[Bob Kontak]

Originally Posted by Baz

Come on in boys....the water's fine......

Feels pretty good.

I must say.

[pete3799]

Originally Posted by Bob Kontak

How old? I pulled the trigger this year at 62. Apply, birthday month, waiting month then pay month.

Turned 65 Nov. 9th. Was self employed for 36 years so could write off lots. The down fall to that is my SS checks are going to be pretty wimpy.

[Crowbob]

There’s a reason SSA keeps telling people how much their benefit PER MONTH at various ages is without telling us the bottom line over various retirement life-spans. If enough people wait long enough to croak before they collect, SSA numbers look sustainable.

I bong understand why most bean counters advise to wait.

[dan88911]

Just remember Uncle Sam can change the rules they already tax up to 85% of your SS if your other income ie. pensions, investment income, or working pass FRA.
You also pay a higher Medicare part B.
And your heirs (other than your wife) can't inherit your SS

[timchar]

Originally Posted by Bob Kontak

How old? I pulled the trigger this year at 62. Apply, birthday month, waiting month then pay month.

Congrats Bob. Tim