Thank you so much for explaining! My advisor said it was better to wait but hadn’t had a chance to discuss it yet. My accountant told me to collect at 62 so as not to lose money, but I see it’s more complicated!
in looking at my social security statement it's my understanding that the projected numbers they give are contingent on me continuing to work up to that age, be it age 62, FRA, or age 70. if I retire at age 55 are those numbers overstated?
Yes, your understanding is correct. If you stop working earlier than the projected start year you see on your estimate, your actual benefit may be less than that since you won't have all of the additional years of paying into the system between now and then. But, depending how many years of high earnings you have prior to when you stop working, the difference may not be much. Also, the projections you see do not include the annual inflation adjustments that will happen between now and then. So, even if your benefit goes down because you stop working much earlier than the year shown in the projection, there will separately be at least some increase to your benefit due to what inflation will occur between now and then
@@RetirementPlanningEducation I've got two thoughts on that: 1) I started my first W2 job at age 16 so I didn't reach the minimum 35 years of AIME until age 51, so by retiring at age 55 I'm only excluding the first 4 years of low wages from the AIME calculation, but then: 2) once I go past the first bend point there isn't much gain in trying to increase the AIME because that second bend point yields about 30 cents on the dollar (and that last bend point is something like 15 cents on the dollar) so what's the point working those additional years trying to inflate the AIME when you just can't get any real traction to increase your monthly benefit?
Claimed at 62 last year.I have been receiving my hospital pension since May 2014. I researched the Social Security benefits and a reason given for claiming at 62 is if one has minor children which I do.Claiming now opened up a benefit for my daughter .
Thank you so much for explaining! My advisor said it was better to wait but hadn’t had a chance to discuss it yet. My accountant told me to collect at 62 so as not to lose money, but I see it’s more complicated!
Now that you have all the Disclaimers out of the way and any potential law suites aside. Let's get this SS Video started, Pilgrim!
in looking at my social security statement it's my understanding that the projected numbers they give are contingent on me continuing to work up to that age, be it age 62, FRA, or age 70. if I retire at age 55 are those numbers overstated?
Yes, your understanding is correct. If you stop working earlier than the projected start year you see on your estimate, your actual benefit may be less than that since you won't have all of the additional years of paying into the system between now and then. But, depending how many years of high earnings you have prior to when you stop working, the difference may not be much. Also, the projections you see do not include the annual inflation adjustments that will happen between now and then. So, even if your benefit goes down because you stop working much earlier than the year shown in the projection, there will separately be at least some increase to your benefit due to what inflation will occur between now and then
@@RetirementPlanningEducation I've got two thoughts on that: 1) I started my first W2 job at age 16 so I didn't reach the minimum 35 years of AIME until age 51, so by retiring at age 55 I'm only excluding the first 4 years of low wages from the AIME calculation, but then: 2) once I go past the first bend point there isn't much gain in trying to increase the AIME because that second bend point yields about 30 cents on the dollar (and that last bend point is something like 15 cents on the dollar) so what's the point working those additional years trying to inflate the AIME when you just can't get any real traction to increase your monthly benefit?
Claimed at 62 last year.I have been receiving my hospital pension since May 2014. I researched the Social Security benefits and a reason given for claiming at 62 is if one has minor children which I do.Claiming now opened up a benefit for my daughter .
Awesome video. Awesome information. 👍👍👍
Thank you!