From 62 to 70, what are those 8 years worth? 8 years of not having to go to work, 8 years of spending time with family, friends, or just what you love doing? Time is the one thing you cannot buy!!
I'm still working at 72 and I spend as much family time as I would if I didn't work because they're young and have to work and I'm not allowed to hangout at their workplace .
@@historybarf Obamacare...just signed up today. It's basically a super high deductible plan. Cost is $0.0 per month because they only factor in CURRENT income and once you retire that's likely not much. You can have millions in investments, and it's not counted towards income for the purposes of obtaining Obamacare.
My grandfather died at 47, my dad at 57, I turn 62 in three months and I’m getting my social security now and my pension from work and I’m very thankful that I have a pension to draw and am still kicking.
My wife took hers at 62 and died of an aggressive cancer 8 months later, my uncle died of a heart attack 2 months before his retirement, lesson here, can’t spend it when you’re dead.
My father died before he could take any SS (age 54). In those days (before "federally guaranteed" student loans), I could receive a monthly SS payment to help with my college expenses. It was enough that I split it with my mom to cover her rent. I am eternally grateful for that. The student loans are a racket, and beginning the school year before Labor Day makes it impossible to work most of the summer jobs we used to help with college costs.
I retired at 60. I’m fortunate to have a good pension after 40 years with the same company. I plan on taking SS at 62. The men in my family don’t have a long lifespan. I would rather enjoy the extra money when I’m still relatively young and in decent heath. If I live past the break even point, l still would consider that a win because I’m still alive! If I don’t live past the break even point I won’t know because I will be dead.
The one thing that is never talked about: How healthy will you be if/when you wait until 'full retirement' and was it worth it? I would rather be a little bit cold and a little bit hungry and still walk, rather than be a millionaire and in a wheelchair.
I took mine at 62 as a supplement to my pension. It’s a very personal decision as is retirement. Mine was more than the average at 62 because I worked so much over those 35 or 40 years. Great information ❤️🌵
I started collecting SS at 62 years old. I am almost 74 now and have enjoyed my time away from the rat race. I work at a small part-time job four days a week and greatly enjoy my interaction with my fellow retirees. Money is not everything...it helps!!...but it's not everything!
I tried to opt out of SS at age 9. If I had been allowed to do so I would be a Multi-Millionaire from private investing of the money stolen from me by a very wasteful failing program.
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about three years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
What they don't tell you is although you make less if you take it at 62 vs 70 is that by the time time you reach 70, you've already been drawing for 8 years.
The biggest determinant on whether to retire early should be, do you enjoy your job, and are you still fully capable of doing it? For people like me, who mainly had a job just for the wages, the chance to retire early has considerable appeal. The difference between early retirement and full retirement is 5 years, or about 25% of your remaining expected life span, give or take. Are you willing to settle for a more modest lifestyle rather than "waste" a quarter of your remaining years on a job you don't love? I started planning long ago to be able to retire early, built up retirement accounts and savings, and at 60 I've been retired for two years, living modestly. In about a year and a half I will be eligible for early retirement SS and you can bet I'll be taking it.
I took my SS at exactly on my 65 th birthday. Mainly because I had lung cancer several years before at 61 and struggled with driving 500 miles a day. I figured by waiting the extra 1 year and 2 months to draw benefits at FRA ,it would take me 13 years to catch up what I'd lost by waiting. My benefits as of this month are over $3000.00 a month , and that's before the 2.5% coming in 2025. Not sure where you're getting those averages, but since you're the pro I take your word for that. I did work full-time for over 47 years so maybe that comes into play. Even still, I'm glad I have a pension and small IRA to carry me
I started collecting benefits (this year) at my full retirement age of 66 1/2, and I only get $2,078, as I spent a good number of years not paying into Social Security, and I'm still working full time (and saving $3,300 every month).
I'm leaning towards retiring early as I worry about my long term health and would rather be a little poorer and healthy but still some more time to think on that. Thank You for the helpful videos
7:00 I didn't think much of it at the time on the full retirement age change. Now as I get close, the whole thing sucks. The whole thing sucks. One statistic that is hard to find, How many people are born say in 1959? How many of those people live to retirement age? I bet a lot of people contributed into the system and never saw a dime in return.
I retired at 62. That makes financial sense because my “break even” age is 85, where retiring at 70 equals the amount paid out since 62. That’s 23 years. I may not even reach 85.
I started Social Security at age 62 my current PIA is $2250/month and with the 2.5% increase for 2025 it will be $2306. It all starts with what does your AIME (average indexed monthly earnings) turn out to be before being run through the BEND POINTS to determine your PIA (Primary Insurance Amount) at FRA (Full Retirement Age). The more money you can earn during your working years the higher your benefit will be, to a point. There is a cap on Social Security benefits. Enjoy sooner than later, because later is not guaranteed. Also, Social Security should not be your only source of income in retirement.
@@dennistyler9852But that work is limited to the earning limit due to IRMMA until your FRA. Why wait almost a year, then pay it all back, when you reduced your work earnings limit due to IRMMA. Which means you changed from a fulltime job, leaving all of your fulltime benefits including health insurance for one that is at the earnings limit threshold because of IRMMA. For 2024 is $22,320. Any amount over the earnings limit they will deduct $1 for every 2 dollars you are over. Many reach their lifetime maximum earnings in their 50's and early 60's, enjoying extended benefits. Those years could replace many low earning years, top off retirement accounts, and savings accounts.
This is an interesting presentation. However, what is important is your net social security. I am taxed on 85% of my gross SS. In addition I had a 401k plan. The RMD goes up each year causing my Medicare premium to increase. Taking this into account my net SS is slightly over 50%. I am 89 and took SS at 64.
Thank you for a great video. It's always a personal decision, in my case just don't have the best of health, I'm working to improve that but my body is so tired not sure how long I can continue to work. I will be making 65 next month on Nov.29th, and my full retirement age is not until Sept. 2026.
I'm waiting until full retirement age (66 years, 8 months). Should be about $3200/month, and working the extra years has really bulked up my investment accounts. My health is excellent.
I work those four extra years and retired at the full age of 66. I earned about $350,000 those four years. Also it boosted my wife's spousal benefits . People never think of this.
That’s 4 years worth of money that you will need to make up for before you ever see a dime of your money! Now figure your monthly social security check, and adjust it accordingly to how much more you are receiving, and minus that amount from the 350,000 you earned working those 4 years. As far as the time you lost ‘4 years’ you cannot get that back. Now, hope you don’t die in the next 10 years, because if you do, you made a bad move, and they won. Statistically speaking a person who is 56 years old and keeps working loses a year of their life for every 2 years that they continue to work. Those odds are not on our side. Why do you think they keep changing the age of when one can collect their own money? I hope you come out ahead, I really do, but the odds are not in your favor. Read 1 John 5:1 and believe it, and regardless of how long you collect or do not collect, you will come out a winner. Also read Revelation 6:4-8 and look at the world today. When that goes down our payments will disappear along with everything else we have including our lives.
I started taking SS at age 70. During my last 18 years of work I held down one full-time and one part-time job, with my good wife's help. I also picked up a little work from a third, intermittent, source. I came close to getting the SS maximum monthly payment, which is considerably more than the average. I also stashed money into my 401k at my primary job, which was a poor investment because the owner of the company had no sense at all about investments---- but it worked for me as an income tax shelter, and immediately after retirement I moved it to a reliable bond brokerage account. We are getting along pretty nicely now. We paid off our mortgage and now have only one car (long since paid for), which will probably last longer than our ability to drive safely. No ocean cruises or foreign vacations for us. Nursing home costs could be a problem, but we will cross that bridge if we come to it. I think you should make mention of the maximum SS payment in addition to the averages.
I retired at 68 but took my SS at FRA of 66 (have been debt free for years). I was then able to collect both SS and paycheck for 2 years, in order to put more money into regular savings. I owned 2 properties when I retired in 2019 and sold one after I retired. I also have a pension and IRA. I've seen and heard too many horror stories from friends and family who retired early and with inflation, property tax increases, etc., are in tight financial situations, and some have had to go back to work. I never cared about the "break even" age people go on about, because I didn't put my life on hold while I was working. I wanted to retire with no worries and if I die before I've been retired 10+ years, I'll be well beyond caring. Here's something most people don't think about: Your Medicare Supplemental plan premiums (if you take regular Medicare at 65, and not the crappy Advantage plans), will increase dramatically as you age (doesn't matter if you're in good health). At 73, my Supplemental is now $195.65 per month (was $135. when I started at 68), plus your prescription and dental premiums, which run me about $45. per month, along with the $174.70 for Medicare. My sister is 77 and the same Supplemental for her is now $300. a month, and our older sister, who is 84 is paying over $400. a month (we all have the G plan). The oldest sister, who passed last year at 87 never told me what she was paying (all our brothers are gone). Think about this scenario: You're getting $1700. a month in SS, then they take out the Medicare payment of (this year) $174.70 and you're 73. The Supplemental would be $195.65, dental/prescription prem $45. (separate policies), which is a total of $415.35 coming out of that 1700. That would leave you with $1284.65 a month to live on and will become less every year as your premiums increase and eats up any COLA. The older you get, and when you'll probably need healthcare the most, you won't be able to afford the Supplemental premiums and will have to go to an Advantage plan (which many doctors and even hospitals are starting to refuse), where an insurance company will control what healthcare you do or don't receive. Thinking only in terms of gross income can be very deceiving.
I joined the Military and did 20 years. The VA PAYS for my Medical (SO FAR OVER $80,000 USD for two Medical Operations..... So do you, Paid my benefits in your taxes. Been there. Done that though. Almost killed 7 times in 172 attacks on our FOB in Baghdad (CAMP VICTORY). SERVED in Korea 5 years and OKINAWA 6 years, Pentagon and many other sites also. Moving overseas for more deductions. I have INTERNATIONAL TRICARE. Military MEDICAL, DENTAL and EYE CARE insurance. AND a MILITARY PENSION too, SS is just "A cake walk on top". FLY HIGH. WORKED 7 years in IRAQ with ITT Over $130,000 a year and AT&T for 5 years. The IRS takes your top earning years and determines your retirement payout. It is my turn.
We have been taking Medicare Advantage through Kaiser Permanente (which has its own hospitals) and it has been excellent; I have heard many stories of the troubles of people who take regular Medicare.
Took mine at FRA 66.6 months still working another year since no penalty gave myself a raise paying off bills. Will also adjust upward when recalculated.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Most folks would love to retire at 62, but as you are probably well aware, according to the latest statistics, almost half will run out of money in their later years. If you can hang on to your job a few more years it would really help your future. We waited until 70 as we didn't need the money and we loved our medical careers. Yes our health is great so it worked for us.
Many people in their 50's and 60's are being forced out. They struggle to work after that because of age discrimination. My position was eliminated and I am trying to hang on but it's clear they want me out after 20+ years. My union has helped but it's bad for many older workers.
The MAJORITY of retiring Americans are OBESE. And haven’t done 30 MINUTES of exercise since HIGH SCHOOL. NOT to mention ALL the BOOZE and CIGARETTES they’ve consumed in the last 45 years! They’re DOPES!!!
@@davidperry5631 Never meant for my comment to be a win/lose scenario. No matter what socioeconomic status you are in you must learn to live within or below your means to catch up.
I retired from my job last year at 64 years old in June of 2023 and haven’t earned any money since then except for pension. I haven’t started drawing any social security yet thinking that it will just keep going up the more I delay. By not working and showing any income will it draw down my social security amount since I’m not paying in anymore?
I mean some people have to keep working full-time so they can have the health insurance that their company helps pay for. So, many people can't stop working until they are 65 when they can get Medicare .
As you get older a big chunk of your ss goes to healthcare on top of medicare which pays a big chunk of doctor and hospital fees but your still required to pay what medicare dosent cover.Healthcare is extremely expensive even with medicare or insurance.A lot of procedures done in the hospital are done by outside specialists and bill separately from a hospital fee.
I hear the same thing over and over. Take it early and ENJOY life?? I enjoy life everyday. Whever I am, whatever I am doing enjoyment is an Attitude. It is not determined by whether I work or not.
Nah, another election ploy. Sounds like lying Biden's $200 a month social security recipients increase he promised while running over 4 years ago and never happened. It's all BS.
I assume that the numbers you are reporting are the nominal/gross benefit amounts. Not the net amount after Medicare and federal taxes have been withheld.
I lost my job at 60,scratched to get to 62,been getting by various means,and now I'm 70,planning to live to 90 or so,in hindsight my plan worked for me ,getting all the bendfits i can as a low income individual.My dear brother and his best friend were confidently going to work till 70 for full benefit,well he got his first s/s deposit,at 66 the day before he died of cancer, his friend is in good shape financially, but in our last conversation he is going out a few months after 66,he was lamenting to me that he only has around 400 thousand in his investment portfolio and his advisor tells him he needs at least 500...i wish i had that problem!!!the point im trying to make is it is different for individual cases, and a lot of it has to do with family history,both physical and psychologically.I am single and my case is a lot different from someone whose wife wants to take the grandkids to Disney...
I was born in 1956. I retired a few years early (57). I was under the impression that they took your 10 highest consecutive years of earnings and based it off of that. Nothing to do with averaging out 35(?) years of earnings? I started taking mine at 65 the same year as Medicare kicked in. You need to figure how many years it takes to break even when taking it early vs waiting, it’s been awhile since I looked at it but it’s like 7 years? Lots of factors to consider. I’m happy I took it when I did but everyone is in a different position, especially health wise!
Retired at age 65. Took SS at my FRA (age 66.2). We are now waiting for my wife to hit her FRA and she will get 50% of mine as her work record is lower. We have 3 years to go. The goal is to protect her survivor benefit and ensure it will be 100% of mine should something happen to me. SS is a critical part of our retirement plan. When there is an age gap and lower earner is younger, you must also plan against the potential impact on the lower earner's survivor benefits when planning when you take SS and your spouse takes SS. What is also a challenge when SS makes up a significant part of your retirement plan is there is a double penalty when a spouse passes. You lose the second SS check and you lose the second tax exemption.
The "Spousal Benefit" is what makes many high earners claim early. It turns on the 50% Spousal benefit... This additional $ MORE than makes up for waiting to turn a married couples Primary Earner SS benefit... This is why the Government is looking at eliminating "Spousal Benefit" choices... This would be a good video to make.
I feel you’ve just posted the basics that one cannot see what the actual results mean, especially when considering lifespan. For an honest comparison, I would have like to have seen a comparison showing that if you wait and take SS later, how long it will take you to reach what you would have by taking it as early as you can. On top of that, include the gains you might make with the payments you are receiving early. Then post the average lifespan of a man and woman.
You aren't making sense. If someone is 70 y.o., that automatically indicates that they delayed retirement because the earliest age to collect s.s. is 62. So, I have no idea what you are referring to in your chart. 70 years-old means they delayed retirement so what are you talking about?
Im taking mine at 62. If I wait till 70 I will have misses out on 168,000 . Yes. They dont want you to focus on that. They want you to focus in the monthly amount. I do receive a pension. If you take it at 62 you can still work but you can only make 22,00 a year. Once you turn 65 you can work as much as you want. Im already retired and have no intension of ever working again.
In cases like this, it would be nice to see the median benefit by age, although it's possible the range of benefits isn't great enough to make a significant difference.
Female longevity runs in my family. My mom is 94 and lives alone with few health problems. So I waited until 70 to take social security. I'm glad I did. I'm healthy and have that added money.
As a former CFP, I helped my clients play the percentages (which is what you have to do when planning for the future). Statistically, at the time I was active, people in their 60s had a 90% chance of NOT living past age 93. In other words, a 10% chance of living TO the age of 93. That's the kind of safety margin one should be planning for in retirement, when your options for generating additional income are very limited. So 93 becomes the planning age. It's ALMOST ALWAYS the case that delaying the onset of SS benefits as late as possible is the safest course -- i.e., the one that minimizes risk. Of course, each situation is different, so no rule of thumb is perfect.
Without calculation inflation or assuming you invest all the money-if you took it at 70 it would take you 15 years to catch up to the guy that took it at 67- you would then be 85 and current life expectancy is 75
It would be useful to see a set of charts or spreadsheets weighing early SS agains retirement savings. If I need X$ a month to live on and I start retirement at 62 does it make more sense to take SS and not draw down my retirement savings or wait to take SS because it will be like leaving money in the bank to collect interest.
I lost a leg at work and left permanently 2015 twelve years after the accident I'm recovering social security disability since 2015. I worked a total of 35 years. I'm I eligible for social security at 62 are am I only getting social security disability for the reminder of my life or may also get regular social security at 62? Thanks
Most people that are at their FRA and have an SSA.GOV account and have not yet started taking their SS benefits probably do not fully realize that the projected amounts are low estimates and will be higher than what they are showing for 2 reasons. The 1st reason is the yet to be seen COLA's and the 2nd reason is that the estimates shown are adding in the 8% per year that you gain by delaying from FRA up until 70. And that is where the estimate is low. To get your estimate correctly (w/o COLA's added) you need to add .667% to your FRA total TO EVERY MONTH that you delay after your FRA. That is similar to compounding interest every month. It's not a mammoth gain even over 36 months, but it can add up to being over $125 more per month than the SSA estimate shows at your full retirement age at 70. And to clarify, the figure of .667% is 8% divided by 12 months. For someone like me that is delaying until 70, that extra money that does not show on the benefit chart at age 70 is a very nice boost that I did not know about until I did the math.
That’s not quite accurate. Social Security doesn’t add your delaying credits to your benefit until January 1st of each year at the same time the COLA for that year is added. The only exception to this is when you collect at age 70. Then you get everything added to your first check. So if your birthday is say , in October, you would get the COLA added to your benefit amount in January but the delaying credit of 2/3 of one percent per month (8% per year) would not be added until the following January. If you decided at 68 or 69 to go ahead and draw your benefit on your birthday in October (like in the example) then you would get all of the credits as of January 1st of the year you are in and then on January 1st of the next year the 10 months of delaying credits would be added to your benefit. So you eventually get everything you have coming to you but they don’t credit it to you on a monthly basis while you are waiting to collect. Hope this helps .
@johnscott2746 you are proably correct with what you stated. I was trying to explain that the amount shown at your FRA on your SSA account up until 70 have not been calculated by adding .667% to each month up until age 70 because you gain .667% each for each month that you delay past FRA. That number will end up being a higher amount than just adding 8% to your FRA amount for a 12 month period.
But it won’t! The additional amounts are only added in once per year in January. There is very little compounding effect from doing so. The delaying credits themselves do not compound AT ALL. It is a straight line computation of 2/3 of one percent of whatever your FRA benefit amount is for each month you delay. If your FRA benefit is $2400, then your delaying credit each month until 70 would be $16 or $192 per year and the $192 for the previous year would be added in January of the next year.
@@johnscott2746 I was thinking the calculation of .667% was added in each month, with each month after taking the calculation from the previous month and adding the .667% to that number. Thanks for straightening that out for me.
My wife worked her entire life and began drawing her Social security at 72 and was dead 18 month's later.She was receiving 2,200,22 per month.This is not a comfy cozy retirement for anyone who has worked since they were 17 years of age.
@RussCR5187 Sorry, I don't play % ages.Her parents lived into their late 90s.Not sure where you get that logic from.Your obviously not of age or experience.
@@avalon1rae I"m a 79-year-old former CFP. You don't play percentages off family history, you start with national statistics, and only then consider individual situation (including family history).
Nobody in the 1960+ cohort will reach full retirement age for a few more years. I suspect many more people will take early retirement among these than in the past. I'm planning on being employed until 68 anyway for pension reasons. My parents died in their 70s so I can only hope i won't do the same. I have a younger wife and she won't retire for a while so retiring for me is pointless if I'm sitting around while she works. (She enjoys her work and is well compensated). Anyway. We will just pile up money for our kids.
it's more complicated decision for married vs. single, or if there are children in either category. Part of the reason to work longer is for your wife if you're the higher earner. She's younger, so she will "inherit" your higher amount if you predecease her. You're providing additional protection for her the longer you delay collecting. On the flip side, many may decide to collect earlier as opposed to draining resources as they want more to leave to leave to their children. The math becomes a little trickier for a single person, who may be fine taking the lower amount as their financial decision is based solely on themselves. I don't have the answer myself. I'm retired at 65, but I've yet to take Social Security, yet I'm fully aware my father passed at 68, my mother at 72. Blended age is 70, and my older brother just passed at...you guessed it, 70!
Did you show any calculations on if you take retirement early at 62 even though the amount that you get per month you have more life possibility left to live getting it then if you don't take it till 70 how much left do you have for those added dollars not very much in most cases take it early
I retired at age 58 and can afford it. Holding off on drawing SS till 65-67 years old. I do not recommend retiring because your friends have. Living day to day is very expensive and will not get cheaper either. MAKE SURE YOU CAN AFFORD TO RETIRE FIRST. Social security will not save you.
You left out 2 million state and federal retirees who had their SS reduced under windfall elimination provision Instead of 1500.00 at 65 I got 284.00 . Even though I worked second and third jobs that paid SS. They felt it unfair to get federal pension and SS.
Pension is 2825.00 32yrs service. 2025 insurance goes to 8900.00 from current 7211.00 then you got state and federal tax. Worked 2 yrs after retirement made little over 7000.00 a yr. Got 2.00 added to my monthly social security check. My 93 yr old mom gets 2300.00 no state or federal income tax just Medicare.
If I wait till my full retirement age to collect my social security and my ex dies. Can I switch over to his full amount as a survivor? We were married for 13 yrs. If so how much would I get? I believe he started collecting at 65 yrs of age.
I was divorced started collecting SS at 66 on my ex husband's SS delayed collecting on my own until 70 as my own increased 8% ayear and now my benefit is about $3500
I have read that the calculations are based on the assumption you will live to 83. If you do, it doesn't matter when you start as you would make the same amount. If you are lucky enough to live beyond 83 then starting later would earn you more.
No. Disability Insurance (DI) pays you what your full retirement age claim would have been had you not experienced injury. That amount is based on what you were earning at the time of your injury, so you are not losing anything.
I think everyone who retires early do struggle with health issues, suffer depression, and need to retire due to limited options. Maybe live mostly under the poverty level, lack of savings, having worked lower income jobs, no other retirement, and need further assistance and at risk for homelessness. In the end the government ends up paying much more with other programs: HUD housing, medicare, and welfare. They get paid less because their need is greater. I think you'll find many early retirees die sooner.
Using your numbers, if a person draws $1300 per month at 62, that is about $78k they would draw and bank instead of waiting until 67, and then getting the extra $1k per month. If I am doing my math correct, it would take a little more than 6 years to be at the break even point. (1300x60months=78,000 then 78,000/60months=6.5 years) So, what I normally tell folks is, if you are in good health and do not absolutely hate your job, and think you will live to be over 72, then usually a person is better off to wait on drawing it. However, if you have poor health, and think you may not live past 72-75, then it can be best to file at 62, assuming you have your financial house in order and the $1300 will be enough to supplement your lifestyle. (Also, if you were fortunate enough to have made a fair wage over at least half of your working years, your monthly payment will be higher than that average, as the video points out. Mine is actually more than double that average of $1300, so I am blessed by the good Lord!) Also, if a person is in poor health, there may be an advantage to drawing at 62 so they can get Medicare. While it is not great coverage, it certainly is better than nothing. Lastly - if a person delays until 67, in addition to having the extra each month, they will have the extra income of five years to further build their retirement nest egg. The takeaway - if you can afford it, and/or your health is failing, drawing early may let you have the time off to enjoy the last of your life instead of hitting that daily grind. (But keep in mind, your health may improve and you will still be stuck with that lower payment. You cannot un-ring the bell, so be looking at all potentials before you make the decision) I am already drawing, and my wife has a work from home job that she does not mind doing, so she will work at least to 67, and if nothing changes, she will likely stay with it to 70 so she gets the even higher rate. We use her job for our health insurance, groceries, travels, savings, etc. We use my SS income to pay our monthly basic living costs and this plan works great for us. If her job plays out, or she gets to the point of not liking it anymore, then she will retire at that point. (she is 63 currently, so she could retire at any time and we would have no financial issues, barring a catastrophic event) The ultimate key, is to be debt free. Get rid of all CC debt, car payments, etc....Hopefully, you will not even have a mortgage by then (or if you do, it will be very small like ours is). It is amazing how little money you need to live on when you do not carry debt. Thanks for the video
my dad collected early at 62 put it all in the bank because he did not need it died at 66,,, so my mom had some $$$ because she did not work had no benefits,,, if he had waited he would have had a few thousand in the bank but because he took it early he as my mom had quite a nest egg,,,
I’ve never heard anyone under 55-60 say anything other than never take SS early…wait!. I’ve also never heard anyone who took it early say they regretted it. I trust the latter group (I’m in it) If you can possibly afford to live, take it.
If I understood well, every of the 35 prior years is adjusted for inflation, is there a general formula that considers it? I used the formula suggested in the SS documents, but I don't see those adjustments and have been unable to figure out if the numbers are right.
@@RussCR5187 ...I have my complete income history, I'd like to have the inflation index for each year in a 2nd column and the adjusted amount in a 3rd column, but I have not seen this even though I looked in many places.
Is there an year/age over time in your retirement where the funds catches up to the amount of full social security even if you start receiving social security at your first eligible age.
If I retire at 56 but I’m collecting a pension and pulling money from a deferred account will that income be calculated as income earned until I start collecting SS at full retirement age?
No, it’s only earned income that you pay FICA taxes on. If you already have 35 years of income that you have paid FICA taxes on then they will use those years to figure your eventual benefit.
IMHO take your SS retirement benefit as soon as you’re eligible. I retired at age 62, my net monthly SS retirement income is $2,020. The program will be bankrupt by 2035. Get what $ you can, wile you can.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@FlorentGulliver Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. MARGARET MOLLI ALVEY, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
SS online projections by month change after FRA and only update by year. I’m not sure why they don’t program it by month after FRA, it can’t be that difficult and come on, we are talking about millions of taxpayers using it and they deserve better.
@@MattFrankelCFPthat’s pretty easy to calculate but you need to remember that delaying credits are added in January each year so if a 68 year old files in the middle of the year then the credits they have earned for THAT year won’t be added until the next January.
From 62 to 70, what are those 8 years worth? 8 years of not having to go to work, 8 years of spending time with family, friends, or just what you love doing? Time is the one thing you cannot buy!!
AMEN!!! you said a mouthful
💯❤
I'm still working at 72 and I spend as much family time as I would if I didn't work because they're young and have to work and I'm not allowed to hangout at their workplace .
Get it while the getting is good
Your right. Well said
Im retiring at 62..I don't give a shit.
By the time I'm 62 I will have been working 55 years i guarantee you I will be retiring
Me too!!!
What will you do for health insurance?
I said 55… that was 10 years ago.
@@historybarf Obamacare...just signed up today. It's basically a super high deductible plan. Cost is $0.0 per month because they only factor in CURRENT income and once you retire that's likely not much. You can have millions in investments, and it's not counted towards income for the purposes of obtaining Obamacare.
My grandfather died at 47, my dad at 57, I turn 62 in three months and I’m getting my social security now and my pension from work and I’m very thankful that I have a pension to draw and am still kicking.
My wife took hers at 62 and died of an aggressive cancer 8 months later, my uncle died of a heart attack 2 months before his retirement, lesson here, can’t spend it when you’re dead.
My father died before he could take any SS (age 54). In those days (before "federally guaranteed" student loans), I could receive a monthly SS payment to help with my college expenses. It was enough that I split it with my mom to cover her rent. I am eternally grateful for that. The student loans are a racket, and beginning the school year before Labor Day makes it impossible to work most of the summer jobs we used to help with college costs.
The government is betting on you dying young, saving MILLIONS.
@@alanjameson8664 The four year outdated college model is a racket to maintain profits for "education incorporated".....Time for it to go.
You worked hard for it. It’s your money, and your life.. Take it whenever you want.
I retired at 60. I’m fortunate to have a good pension after 40 years with the same company. I plan on taking SS at 62. The men in my family don’t have a long lifespan. I would rather enjoy the extra money when I’m still relatively young and in decent heath. If I live past the break even point, l still would consider that a win because I’m still alive! If I don’t live past the break even point I won’t know because I will be dead.
My FRA is 67...I'll be taking it early, likely at 62...while I'm sort of young and can enjoy it and while it's still there...
Go go years are the early retirement years, slow go is mid and no go are our oldest…Enjoy.
The one thing that is never talked about: How healthy will you be if/when you wait until 'full retirement' and was it worth it? I would rather be a little bit cold and a little bit hungry and still walk, rather than be a millionaire and in a wheelchair.
Tomorrow is not guaranteed.
PLANNING on being dead by age 74…is DUMB!!
@@davidsoncl1So you SHOULD retire at age 17!!!
I took mine at 62 as a supplement to my pension. It’s a very personal decision as is retirement. Mine was more than the average at 62 because I worked so much over those 35 or 40 years. Great information ❤️🌵
I started collecting SS at 62 years old. I am almost 74 now and have enjoyed my time away from the rat race. I work at a small part-time job four days a week and greatly enjoy my interaction with my fellow retirees. Money is not everything...it helps!!...but it's not everything!
Took mine at 62 and happy I did.
I tried to opt out of SS at age 9. If I had been allowed to do so I would be a Multi-Millionaire from private investing of the money stolen from me by a very wasteful failing program.
While I agree with your math, most would just squander it away .
SS is an actuarial program that depends on everyone participating. Of course, its administration is a different topic.
@@RussCR5187 SS is a Ponzi scheme administered by drunks and incompetent featherbedded disconnected elites.
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about three years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I retired at 65 but waited to collect until age 68.5. The delayed benefits do pay for all my required monthly expenses.
What they don't tell you is although you make less if you take it at 62 vs 70 is that by the time time you reach 70, you've already been drawing for 8 years.
The biggest determinant on whether to retire early should be, do you enjoy your job, and are you still fully capable of doing it? For people like me, who mainly had a job just for the wages, the chance to retire early has considerable appeal. The difference between early retirement and full retirement is 5 years, or about 25% of your remaining expected life span, give or take. Are you willing to settle for a more modest lifestyle rather than "waste" a quarter of your remaining years on a job you don't love? I started planning long ago to be able to retire early, built up retirement accounts and savings, and at 60 I've been retired for two years, living modestly. In about a year and a half I will be eligible for early retirement SS and you can bet I'll be taking it.
I took my SS at exactly on my 65 th birthday. Mainly because I had lung cancer several years before at 61 and struggled with driving 500 miles a day. I figured by waiting the extra 1 year and 2 months to draw benefits at FRA ,it would take me 13 years to catch up what I'd lost by waiting. My benefits as of this month are over $3000.00 a month , and that's before the 2.5% coming in 2025. Not sure where you're getting those averages, but since you're the pro I take your word for that. I did work full-time for over 47 years so maybe that comes into play. Even still, I'm glad I have a pension and small IRA to carry me
I started collecting benefits (this year) at my full retirement age of 66 1/2, and I only get $2,078, as I spent a good number
of years not paying into Social Security, and I'm still working full time (and saving $3,300 every month).
It depends on what our situation is. I have 4 aneurysms. And I didn't have a choice about retiring. Health issues don't have an age🤬
Financial planning is ALWAYS situation-dependent.
I'm leaning towards retiring early as I worry about my long term health and would rather be a little poorer and healthy but still some more time to think on that. Thank You for the helpful videos
7:00 I didn't think much of it at the time on the full retirement age change. Now as I get close, the whole thing sucks. The whole thing sucks. One statistic that is hard to find, How many people are born say in 1959? How many of those people live to retirement age?
I bet a lot of people contributed into the system and never saw a dime in return.
A lot more people never contributed a single dime and are drawing off it for their whole families. Not to mention the illegals…
I'm retiring at 62, what's the point of waiting a few extra bucks? I'd rather have my life.
I retired at 62. That makes financial sense because my “break even” age is 85, where retiring at 70 equals the amount paid out since 62. That’s 23 years. I may not even reach 85.
I started Social Security at age 62 my current PIA is $2250/month and with the 2.5% increase for 2025 it will be $2306. It all starts with what does your AIME (average indexed monthly earnings) turn out to be before being run through the BEND POINTS to determine your PIA (Primary Insurance Amount) at FRA (Full Retirement Age). The more money you can earn during your working years the higher your benefit will be, to a point. There is a cap on Social Security benefits. Enjoy sooner than later, because later is not guaranteed. Also, Social Security should not be your only source of income in retirement.
YOU’ve made a HUGE MISTAKE!!! LOCKED yourself into the LOWEST POSSIBLE BENEFIT…..for LIFE!!!!
@@Tryp-j9d: He sounds happy, healthy, wealthy and wise
@@Tryp-j9d A person can change their mind the 1st year and repay the checks taken while continuing to work.
@@dennistyler9852But that work is limited to the earning limit due to IRMMA until your FRA. Why wait almost a year, then pay it all back, when you reduced your work earnings limit due to IRMMA.
Which means you changed from a fulltime job, leaving all of your fulltime benefits including health insurance for one that is at the earnings limit threshold because of IRMMA. For 2024 is $22,320. Any amount over the earnings limit they will deduct $1 for every 2 dollars you are over.
Many reach their lifetime maximum earnings in their 50's and early 60's, enjoying extended benefits. Those years could replace many low earning years, top off retirement accounts, and savings accounts.
This is an interesting presentation. However, what is important is your net social security. I am taxed on 85% of my gross SS. In addition I had a 401k plan. The RMD goes up each year causing my Medicare premium to increase. Taking this into account my net SS is slightly over 50%. I am 89 and took SS at 64.
Sounds like you prepared well for Retirement and have lived well.
Thank you for a great video. It's always a personal decision, in my case just don't have the best of health, I'm working to improve that but my body is so tired not sure how long I can continue to work. I will be making 65 next month on Nov.29th, and my full retirement age is not until Sept. 2026.
I'm waiting until full retirement age (66 years, 8 months). Should be about $3200/month, and working the extra years has really bulked up my investment accounts. My health is excellent.
I am taking mine early . I have watched too many family member wait and they ended up passing in their 70s, they didnt even get 10 years in retirement
A man I knew was getting ready for retirement, had a heart attack and passed. just before retiring. Had a cabin, a great retirement pension.
So YOU are planning to die in your SIXTIES!! BRILLIANT!!!
I work those four extra years and retired at the full age of 66. I earned about $350,000 those four years. Also it boosted my wife's spousal benefits . People never think of this.
@@doorguru168888 Not everyone makes $80 Gs but good for you. All the best. FRA is now 67.
That’s 4 years worth of money that you will need to make up for before you ever see a dime of your money!
Now figure your monthly social security check, and adjust it accordingly to how much more you are receiving, and minus that amount from the 350,000 you earned working those 4 years.
As far as the time you lost ‘4 years’ you cannot get that back.
Now, hope you don’t die in the next 10 years, because if you do, you made a bad move, and they won.
Statistically speaking a person who is 56 years old and keeps working loses a year of their life for every 2 years that they continue to work.
Those odds are not on our side.
Why do you think they keep changing the age of when one can collect their own money?
I hope you come out ahead, I really do, but the odds are not in your favor.
Read 1 John 5:1 and believe it, and regardless of how long you collect or do not collect, you will come out a winner.
Also read Revelation 6:4-8 and look at the world today.
When that goes down our payments will disappear along with everything else we have including our lives.
You could have died at age 63, people never think of that.
I married a retiree and worked only the minimum time to get SS.
When he died, Social Security paid me his Social Security.
@@royharper2003 could've should've would've
I started taking SS at age 70. During my last 18 years of work I held down one full-time and one part-time job, with my good wife's help. I also picked up a little work from a third, intermittent, source. I came close to getting the SS maximum monthly payment, which is considerably more than the average. I also stashed money into my 401k at my primary job, which was a poor investment because the owner of the company had no sense at all about investments---- but it worked for me as an income tax shelter, and immediately after retirement I moved it to a reliable bond brokerage account. We are getting along pretty nicely now. We paid off our mortgage and now have only one car (long since paid for), which will probably last longer than our ability to drive safely. No ocean cruises or foreign vacations for us. Nursing home costs could be a problem, but we will cross that bridge if we come to it. I think you should make mention of the maximum SS payment in addition to the averages.
we did the same and i have no regrets waiting til 70-my health is great at 73
Smart choices! You were obviously paying attention.
I retired at 68 but took my SS at FRA of 66 (have been debt free for years). I was then able to collect both SS and paycheck for 2 years, in order to put more money into regular savings. I owned 2 properties when I retired in 2019 and sold one after I retired. I also have a pension and IRA. I've seen and heard too many horror stories from friends and family who retired early and with inflation, property tax increases, etc., are in tight financial situations, and some have had to go back to work. I never cared about the "break even" age people go on about, because I didn't put my life on hold while I was working. I wanted to retire with no worries and if I die before I've been retired 10+ years, I'll be well beyond caring.
Here's something most people don't think about: Your Medicare Supplemental plan premiums (if you take regular Medicare at 65, and not the crappy Advantage plans), will increase dramatically as you age (doesn't matter if you're in good health). At 73, my Supplemental is now $195.65 per month (was $135. when I started at 68), plus your prescription and dental premiums, which run me about $45. per month, along with the $174.70 for Medicare. My sister is 77 and the same Supplemental for her is now $300. a month, and our older sister, who is 84 is paying over $400. a month (we all have the G plan). The oldest sister, who passed last year at 87 never told me what she was paying (all our brothers are gone). Think about this scenario: You're getting $1700. a month in SS, then they take out the Medicare payment of (this year) $174.70 and you're 73. The Supplemental would be $195.65, dental/prescription prem $45. (separate policies), which is a total of $415.35 coming out of that 1700. That would leave you with $1284.65 a month to live on and will become less every year as your premiums increase and eats up any COLA. The older you get, and when you'll probably need healthcare the most, you won't be able to afford the Supplemental premiums and will have to go to an Advantage plan (which many doctors and even hospitals are starting to refuse), where an insurance company will control what healthcare you do or don't receive. Thinking only in terms of gross income can be very deceiving.
The biggest mistake is thinking you can live on ss alone. It was never meant to be lived on, its meant to be supplemental.
I joined the Military and did 20 years. The VA PAYS for my Medical (SO FAR OVER $80,000 USD for two Medical Operations..... So do you, Paid my benefits in your taxes. Been there. Done that though. Almost killed 7 times in 172 attacks on our FOB in Baghdad (CAMP VICTORY). SERVED in Korea 5 years and OKINAWA 6 years, Pentagon and many other sites also. Moving overseas for more deductions. I have INTERNATIONAL TRICARE. Military MEDICAL, DENTAL and EYE CARE insurance. AND a MILITARY PENSION too, SS is just "A cake walk on top". FLY HIGH. WORKED 7 years in IRAQ with ITT Over $130,000 a year and AT&T for 5 years. The IRS takes your top earning years and determines your retirement payout. It is my turn.
We have been taking Medicare Advantage through Kaiser Permanente (which has its own hospitals) and it has been excellent; I have heard many stories of the troubles of people who take regular Medicare.
Took mine at FRA 66.6 months still working another year since no penalty gave myself a raise paying off bills. Will also adjust upward when recalculated.
are there any charts for people on survivor benefits for breakeven points when to switch to your own benefits?
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
Well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this amazing tip. I just looked the name up and wrote her.
Most folks would love to retire at 62, but as you are probably well aware, according to the latest statistics, almost half will run out of money in their later years. If you can hang on to your job a few more years it would really help your future. We waited until 70 as we didn't need the money and we loved our medical careers. Yes our health is great so it worked for us.
Many people in their 50's and 60's are being forced out. They struggle to work after that because of age discrimination. My position was eliminated and I am trying to hang on but it's clear they want me out after 20+ years. My union has helped but it's bad for many older workers.
The MAJORITY of retiring Americans are OBESE. And haven’t done 30 MINUTES of exercise since HIGH SCHOOL. NOT to mention ALL the BOOZE and CIGARETTES they’ve consumed in the last 45 years! They’re DOPES!!!
@@katt-w2dunion?? Then layoffs are SUPPOSED TO BE ONLY by SENIORITY!!! You have a CRAPPY UNION!!!
Congratulations! You’re the winner! If you would have worked a low paying grunt job you wouldn’t have waited.
@@davidperry5631 Never meant for my comment to be a win/lose scenario. No matter what socioeconomic status you are in you must learn to live within or below your means to catch up.
I retired from my job last year at 64 years old in June of 2023 and haven’t earned any money since then except for pension. I haven’t started drawing any social security yet thinking that it will just keep going up the more I delay. By not working and showing any income will it draw down my social security amount since I’m not paying in anymore?
I mean some people have to keep working full-time so they can have the health insurance that their company helps pay for.
So, many people can't stop working until they are 65 when they can get Medicare .
As you get older a big chunk of your ss goes to healthcare on top of medicare which pays a big chunk of doctor and hospital fees but your still required to pay what medicare dosent cover.Healthcare is extremely expensive even with medicare or insurance.A lot of procedures done in the hospital are done by outside specialists and bill separately from a hospital fee.
I hear the same thing over and over. Take it early and ENJOY life?? I enjoy life everyday. Whever I am, whatever I am doing enjoyment is an Attitude. It is not determined by whether I work or not.
Will federal taxes be eliminated on SS in 2025?
Nah, another election ploy. Sounds like lying Biden's $200 a month social security recipients increase he promised while running over 4 years ago and never happened. It's all BS.
I assume that the numbers you are reporting are the nominal/gross benefit amounts. Not the net amount after Medicare and federal taxes have been withheld.
I lost my job at 60,scratched to get to 62,been getting by various means,and now I'm 70,planning to live to 90 or so,in hindsight my plan worked for me ,getting all the bendfits i can as a low income individual.My dear brother and his best friend were confidently going to work till 70 for full benefit,well he got his first s/s deposit,at 66 the day before he died of cancer, his friend is in good shape financially, but in our last conversation he is going out a few months after 66,he was lamenting to me that he only has around 400 thousand in his investment portfolio and his advisor tells him he needs at least 500...i wish i had that problem!!!the point im trying to make is it is different for individual cases, and a lot of it has to do with family history,both physical and psychologically.I am single and my case is a lot different from someone whose wife wants to take the grandkids to Disney...
We never know if we will see another day; all we can do is what seems best at the time.
I was born in 1956. I retired a few years early (57). I was under the impression that they took your 10 highest consecutive years of earnings and based it off of that. Nothing to do with averaging out 35(?) years of earnings? I started taking mine at 65 the same year as Medicare kicked in. You need to figure how many years it takes to break even when taking it early vs waiting, it’s been awhile since I looked at it but it’s like 7 years? Lots of factors to consider. I’m happy I took it when I did but everyone is in a different position, especially health wise!
Retired at age 65. Took SS at my FRA (age 66.2). We are now waiting for my wife to hit her FRA and she will get 50% of mine as her work record is lower. We have 3 years to go. The goal is to protect her survivor benefit and ensure it will be 100% of mine should something happen to me. SS is a critical part of our retirement plan. When there is an age gap and lower earner is younger, you must also plan against the potential impact on the lower earner's survivor benefits when planning when you take SS and your spouse takes SS. What is also a challenge when SS makes up a significant part of your retirement plan is there is a double penalty when a spouse passes. You lose the second SS check and you lose the second tax exemption.
The "Spousal Benefit" is what makes many high earners claim early. It turns on the 50% Spousal benefit... This additional $ MORE than makes up for waiting to turn a married couples Primary Earner SS benefit... This is why the Government is looking at eliminating "Spousal Benefit" choices... This would be a good video to make.
I feel you’ve just posted the basics that one cannot see what the actual results mean, especially when considering lifespan. For an honest comparison, I would have like to have seen a comparison showing that if you wait and take SS later, how long it will take you to reach what you would have by taking it as early as you can. On top of that, include the gains you might make with the payments you are receiving early. Then post the average lifespan of a man and woman.
You aren't making sense. If someone is 70 y.o., that automatically indicates that they delayed retirement because the earliest age to collect s.s. is 62. So, I have no idea what you are referring to in your chart. 70 years-old means they delayed retirement so what are you talking about?
Im taking mine at 62. If I wait till 70 I will have misses out on 168,000 . Yes. They dont want you to focus on that. They want you to focus in the monthly amount. I do receive a pension. If you take it at 62 you can still work but you can only make 22,00 a year. Once you turn 65 you can work as much as you want. Im already retired and have no intension of ever working again.
You can make more than $22K, but it will affect your benefit in the years that is the case.
In cases like this, it would be nice to see the median benefit by age, although it's possible the range of benefits isn't great enough to make a significant difference.
Female longevity runs in my family. My mom is 94 and lives alone with few health problems. So I waited until 70 to take social security. I'm glad I did. I'm healthy and have that added money.
Very smart! Especially if you don't need the cash flow when younger.
My question is: how can "estimate" social security by age, when it depends on how long the person worked, & if they have the credits to qualify
ssa.gov
Social security dot gov will tell you how much you will receive
My brother retired early…… he told me that it was the best decision…. He said “ you get six Saturdays and a Sunday every week.
I retired at 62. Took SSI. Didn’t need. Tripled the amount by investing in stock market by age 70.
SSI is welfare. Retirement is SSA.
but you invested it.and did not enjoy it. so you basically waited till 70 to collect you ss! dont make much sense!
Andrew I don’t think you read her comment.
@@johnscott2746Retirement is SS. SSA is Social Security Administration.
He's talking more in line of us poor folks not the Didn't needs
As a former CFP, I helped my clients play the percentages (which is what you have to do when planning for the future). Statistically, at the time I was active, people in their 60s had a 90% chance of NOT living past age 93. In other words, a 10% chance of living TO the age of 93. That's the kind of safety margin one should be planning for in retirement, when your options for generating additional income are very limited. So 93 becomes the planning age. It's ALMOST ALWAYS the case that delaying the onset of SS benefits as late as possible is the safest course -- i.e., the one that minimizes risk. Of course, each situation is different, so no rule of thumb is perfect.
Without calculation inflation or assuming you invest all the money-if you took it at 70 it would take you 15 years to catch up to the guy that took it at 67- you would then be 85 and current life expectancy is 75
Your income history can’t be emphasized enough as it can mean big differences in monthly pay outs.
It would be useful to see a set of charts or spreadsheets weighing early SS agains retirement savings. If I need X$ a month to live on and I start retirement at 62 does it make more sense to take SS and not draw down my retirement savings or wait to take SS because it will be like leaving money in the bank to collect interest.
What you should discuss how to save social security. Maybe increase taxes on billionaires?
I lost a leg at work and left permanently 2015 twelve years after the accident I'm recovering social security disability since 2015. I worked a total of 35 years. I'm I eligible for social security at 62 are am I only getting social security disability for the reminder of my life or may also get regular social security at 62? Thanks
Most people that are at their FRA and have an SSA.GOV account and have not yet started taking their SS benefits probably do not fully realize that the projected amounts are low estimates and will be higher than what they are showing for 2 reasons. The 1st reason is the yet to be seen COLA's and the 2nd reason is that the estimates shown are adding in the 8% per year that you gain by delaying from FRA up until 70. And that is where the estimate is low. To get your estimate correctly (w/o COLA's added) you need to add .667% to your FRA total TO EVERY MONTH that you delay after your FRA. That is similar to compounding interest every month. It's not a mammoth gain even over 36 months, but it can add up to being over $125 more per month than the SSA estimate shows at your full retirement age at 70. And to clarify, the figure of .667% is 8% divided by 12 months. For someone like me that is delaying until 70, that extra money that does not show on the benefit chart at age 70 is a very nice boost that I did not know about until I did the math.
That’s not quite accurate. Social Security doesn’t add your delaying credits to your benefit until January 1st of each year at the same time the COLA for that year is added. The only exception to this is when you collect at age 70. Then you get everything added to your first check. So if your birthday is say , in October, you would get the COLA added to your benefit amount in January but the delaying credit of 2/3 of one percent per month (8% per year) would not be added until the following January. If you decided at 68 or 69 to go ahead and draw your benefit on your birthday in October (like in the example) then you would get all of the credits as of January 1st of the year you are in and then on January 1st of the next year the 10 months of delaying credits would be added to your benefit. So you eventually get everything you have coming to you but they don’t credit it to you on a monthly basis while you are waiting to collect. Hope this helps .
@johnscott2746 you are proably correct with what you stated. I was trying to explain that the amount shown at your FRA on your SSA account up until 70 have not been calculated by adding .667% to each month up until age 70 because you gain .667% each for each month that you delay past FRA. That number will end up being a higher amount than just adding 8% to your FRA amount for a 12 month period.
But it won’t! The additional amounts are only added in once per year in January. There is very little compounding effect from doing so. The delaying credits themselves do not compound AT ALL. It is a straight line computation of 2/3 of one percent of whatever your FRA benefit amount is for each month you delay. If your FRA benefit is $2400, then your delaying credit each month until 70 would be $16 or $192 per year and the $192 for the previous year would be added in January of the next year.
@@johnscott2746 I was thinking the calculation of .667% was added in each month, with each month after taking the calculation from the previous month and adding the .667% to that number. Thanks for straightening that out for me.
My wife worked her entire life and began drawing her Social security at 72 and was dead 18 month's later.She was receiving 2,200,22 per month.This is not a comfy cozy retirement for anyone who has worked since they were 17 years of age.
I’m sorry your wife passed away. I love her hard work ethic.
All you can do is play the percentages. Some people get lucky and live longer, some don't.
@RussCR5187 Sorry, I don't play % ages.Her parents lived into their late 90s.Not sure where you get that logic from.Your obviously not of age or experience.
@@avalon1rae I"m a 79-year-old former CFP. You don't play percentages off family history, you start with national statistics, and only then consider individual situation (including family history).
@RussCR5187 Yeap ,Her parents died 92 dad,mom 93 .Her father's brother 102.
That’s not true I was told by social security received benefits at 62 is 1800 a month 2800 if I wait
Nobody in the 1960+ cohort will reach full retirement age for a few more years. I suspect many more people will take early retirement among these than in the past. I'm planning on being employed until 68 anyway for pension reasons. My parents died in their 70s so I can only hope i won't do the same. I have a younger wife and she won't retire for a while so retiring for me is pointless if I'm sitting around while she works. (She enjoys her work and is well compensated). Anyway. We will just pile up money for our kids.
it's more complicated decision for married vs. single, or if there are children in either category. Part of the reason to work longer is for your wife if you're the higher earner. She's younger, so she will "inherit" your higher amount if you predecease her. You're providing additional protection for her the longer you delay collecting. On the flip side, many may decide to collect earlier as opposed to draining resources as they want more to leave to leave to their children. The math becomes a little trickier for a single person, who may be fine taking the lower amount as their financial decision is based solely on themselves. I don't have the answer myself. I'm retired at 65, but I've yet to take Social Security, yet I'm fully aware my father passed at 68, my mother at 72. Blended age is 70, and my older brother just passed at...you guessed it, 70!
I'm 61 and on SSDI. is there a point where I will be forced to give up my disability and take regular social security?
Yes at retirement age. I am in the same boat as you. I was forced onto SSDI in 2019. I am now 61. 2400 a month is a pain to live on.
Did you show any calculations on if you take retirement early at 62 even though the amount that you get per month you have more life possibility left to live getting it then if you don't take it till 70 how much left do you have for those added dollars not very much in most cases take it early
I retired at age 58 and can afford it. Holding off on drawing SS till 65-67 years old. I do not recommend retiring because your friends have. Living day to day is very expensive and will not get cheaper either. MAKE SURE YOU CAN AFFORD TO RETIRE FIRST. Social security will not save you.
You left out 2 million state and federal retirees who had their SS reduced under windfall elimination provision Instead of 1500.00 at 65 I got 284.00 . Even though I worked second and third jobs that paid SS. They felt it unfair to get federal pension and SS.
62 I only get $333.00
Government pension is much more than Social Security I believe.
You leave out how much total you received, not being honest
Pension is 2825.00 32yrs service. 2025 insurance goes to 8900.00 from current 7211.00 then you got state and federal tax. Worked 2 yrs after retirement made little over 7000.00 a yr. Got 2.00 added to my monthly social security check. My 93 yr old mom gets 2300.00 no state or federal income tax just Medicare.
If I wait till my full retirement age to collect my social security and my ex dies. Can I switch over to his full amount as a survivor? We were married for 13 yrs. If so how much would I get? I believe he started collecting at 65 yrs of age.
Yes, you will get the full benefit according to the calculations that apply to him.
Im still working at 62 , so if i take SS now i wouldn't even get a check because they hold back the money🤷♂️
I was divorced started collecting SS at 66 on my ex husband's SS delayed collecting on my own until 70 as my own increased 8% ayear and now my benefit is about $3500
That should be illegal.
Is the SS Benefits By Age chart you displayed showing before or after tax amount?
What the poverty level in the USA ??
Thank you for your help
"Wait until 70"
Not sure I have that in me. I'm 55 and am already nearly exhausted.
Social Insecurity is there as a safety net. Buy assets while you're working💪
I have read that the calculations are based on the assumption you will live to 83. If you do, it doesn't matter when you start as you would make the same amount. If you are lucky enough to live beyond 83 then starting later would earn you more.
It's safest to assume you will outlive your average life expectancy. If you think about it, half of people do.
I was hurt in the coal mine at age 58 and forced to go on Social Security disability. Is there a penalty for that?
No. Disability Insurance (DI) pays you what your full retirement age claim would have been had you not experienced injury. That amount is based on what you were earning at the time of your injury, so you are not losing anything.
I think everyone who retires early do struggle with health issues, suffer depression, and need to retire due to limited options. Maybe live mostly under the poverty level, lack of savings, having worked lower income jobs, no other retirement, and need further assistance and at risk for homelessness. In the end the government ends up paying much more with other programs: HUD housing, medicare, and welfare. They get paid less because their need is greater. I think you'll find many early retirees die sooner.
Using your numbers, if a person draws $1300 per month at 62, that is about $78k they would draw and bank instead of waiting until 67, and then getting the extra $1k per month. If I am doing my math correct, it would take a little more than 6 years to be at the break even point. (1300x60months=78,000 then 78,000/60months=6.5 years)
So, what I normally tell folks is, if you are in good health and do not absolutely hate your job, and think you will live to be over 72, then usually a person is better off to wait on drawing it. However, if you have poor health, and think you may not live past 72-75, then it can be best to file at 62, assuming you have your financial house in order and the $1300 will be enough to supplement your lifestyle. (Also, if you were fortunate enough to have made a fair wage over at least half of your working years, your monthly payment will be higher than that average, as the video points out. Mine is actually more than double that average of $1300, so I am blessed by the good Lord!)
Also, if a person is in poor health, there may be an advantage to drawing at 62 so they can get Medicare. While it is not great coverage, it certainly is better than nothing.
Lastly - if a person delays until 67, in addition to having the extra each month, they will have the extra income of five years to further build their retirement nest egg.
The takeaway - if you can afford it, and/or your health is failing, drawing early may let you have the time off to enjoy the last of your life instead of hitting that daily grind. (But keep in mind, your health may improve and you will still be stuck with that lower payment. You cannot un-ring the bell, so be looking at all potentials before you make the decision)
I am already drawing, and my wife has a work from home job that she does not mind doing, so she will work at least to 67, and if nothing changes, she will likely stay with it to 70 so she gets the even higher rate. We use her job for our health insurance, groceries, travels, savings, etc. We use my SS income to pay our monthly basic living costs and this plan works great for us. If her job plays out, or she gets to the point of not liking it anymore, then she will retire at that point. (she is 63 currently, so she could retire at any time and we would have no financial issues, barring a catastrophic event)
The ultimate key, is to be debt free. Get rid of all CC debt, car payments, etc....Hopefully, you will not even have a mortgage by then (or if you do, it will be very small like ours is). It is amazing how little money you need to live on when you do not carry debt.
Thanks for the video
my dad collected early at 62 put it all in the bank because he did not need it died at 66,,, so my mom had some $$$ because she did not work had no benefits,,, if he had waited he would have had a few thousand in the bank but because he took it early he as my mom had quite a nest egg,,,
I’ve never heard anyone under 55-60 say anything other than never take SS early…wait!. I’ve also never heard anyone who took it early say they regretted it. I trust the latter group (I’m in it) If you can possibly afford to live, take it.
My sister died unexpectedly at 61. Never collected a penny of SS. Take it as soon as you can!
If I understood well, every of the 35 prior years is adjusted for inflation, is there a general formula that considers it? I used the formula suggested in the SS documents, but I don't see those adjustments and have been unable to figure out if the numbers are right.
Yes, there is a specific formula. Keep digging to find it. You will need your complete income history, plus the adjustments to be applied each year.
@@RussCR5187 ...I have my complete income history, I'd like to have the inflation index for each year in a 2nd column and the adjusted amount in a 3rd column, but I have not seen this even though I looked in many places.
Took SS at 62, had two pensions, living good!
Pensions are the Holy Grail.
I got $2300 at 62, with the wife and two kids I get $4751 monthly, life is good.
That's true. Benefits for kids aren't well-known by many, but can be a big difference.
@$2300 @62 ?? God Bless you man..
What if you were on disability and when you turned 62, it stated as SSI!
This was very helpful for me today! Thank you very much!
Is there an year/age over time in your retirement where the funds catches up to the amount of full social security even if you start receiving social security at your first eligible age.
If I retire at 56 but I’m collecting a pension and pulling money from a deferred account will that income be calculated as income earned until I start collecting SS at full retirement age?
No, it’s only earned income that you pay FICA taxes on. If you already have 35 years of income that you have paid FICA taxes on then they will use those years to figure your eventual benefit.
Retire at 62! There’s no guarantee you’ll be 63 ! If you want to keep working and want to, Do It , !
You can't. There is a cap on how much you can earn and still collect and it's pretty low.
taking SS is an individual decision based on individual needs. not a one-size-fits- all and knowing the average... does nothing for anyone.
IMHO take your SS retirement benefit as soon as you’re eligible.
I retired at age 62, my net monthly SS retirement income is $2,020.
The program will be bankrupt by 2035.
Get what $ you can, wile you can.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@FlorentGulliver Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. MARGARET MOLLI ALVEY, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@@Elina-k0 Oh please I’d love that. Thanks!
@@FlorentGulliver MARGARET MOLLI ALVEY
Lookup with her name on the webpage
What income is the base?
SS online projections by month change after FRA and only update by year. I’m not sure why they don’t program it by month after FRA, it can’t be that difficult and come on, we are talking about millions of taxpayers using it and they deserve better.
I hear ya! My dad has the same exact complaint -- he's 68 and wants to know how much waiting a few more months would help.
@@MattFrankelCFPthat’s pretty easy to calculate but you need to remember that delaying credits are added in January each year so if a 68 year old files in the middle of the year then the credits they have earned for THAT year won’t be added until the next January.
These figures are BEFORE Part B is deducted, right?
Yes, before medicare insurance premium
If you want to know what you get at different ages just to the local SS office. They will give you a nice print out.. Make your life easy
Or stay home and go online ssa.gov and sign up.
Mine is nowhere near that, thanks to WEP/GPO
I'm 64 but I have two kids under 18, one is 13 and the other is 9. Would the kids get some form of social security if I retire now?
Yes. It's subject to a family maximum (which should be listed in your statement)
Unfortunately, yes.
so if i am on SSDI can i get half of my wife's SSI at the same time?
No, thankfully.
In my job field I will not be able to work passed 65 my body will be broken by then.
Americans worked until they die…so tragic!!
Some never work a single day…all relative.