The Truth About When Should You Take Social Security to Get The Most Out of Your Benefits
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- เผยแพร่เมื่อ 27 พ.ค. 2024
- If you want to know when you should take Social Security watch this video!
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The Retirement Nerds is the no-cost educational platform and serves to offer information around Medicare, Social Security, Financial Planning, and Estate Planning.
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⏰ TIME CODES ⏰
0:00 Rules of Thumb Problem
0:14 Zacc Introduction
0:40 Beware Absolutes
3:40 What's on the Menu?
7:00 Important Terms & Acronyms
11:57 Spousal Benefits Rules
23:40 Divorced Spousal Benefit Rules
28:48 Deceased Spouse - Survivor Benefits
37:49 Survivor Benefits and Remarriage
41:50 Survivor Benefits & Ex Spouses
43:19 The Menu Recap
44:28 3 Separate Strategies Based on Time
45:53 Breakeven Analysis on Steroids
56:37 What if Social Security Disappears?
1:03:17 When Should YOU Take Social Security?
1:08:07 Still Working with SS Benefits
1:11:28 Taxing Social Security Income
1:20:22 Role of an Advisor
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#socialsecurity #90daysfromretirement #socialsecuritybenefits #socialsecurityretirement #retirement #retirementplanning #retirementinvesting #retirementadvice #retirementincome #finance #financialfreedom
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My dad worked until he was 70 and took SS at 65. He also had a pension, which he paid into all of his working life. He only received 2 years of his pension. Tragic.
I retired and took my social security two years ago at age 62. Was it a good decision from a financial standpoint, no not even close. Am I in poor health ... no. I was just sick of working. I quit work and spent my entire Roth buying a boat, and that was not a good financial decision either. But they were the BEST two decisions I have made in my life. It's not always about the money. You are going to die, sooner or later. Have as much fun as you can, as long as you can.
Thank you for sharing your perspective on this!
So are you living on SS only?
@@rubicon3416 No, I have a Navy pension and a state of Floriduh pension along with social security. I no longer have my Roth, I spent it.
How much was your boat?
@@calebmelton5989 $112k +$23K in Refurb and repair.
I am still working and I just got my 3rd SS check at 66.5. I am healthy however I planning to retire in the next 3 months at 67 My FRA was 66.5
My dad started at 62 and was healthy. Dropped dead of heart attack at 65. You never know.
So sorry to hear that!
Leave it to government to make this so unbelievably complicated.
INDEED!!! I'd love to see any one of our politicians live for 1 months on what we live on. Lol. Bet they couldn't do it!
Everything at the govt is complicated.
Taking SS early doesn’t have to mean full retirement early. Perhaps one would like to cut down to part time and use the SS benefit as a means to support this transition. This video raises a lot of good questions. Each situation is unique.
They scared my Dad into taking social security at 62 = $600.00 monthly. He lived to age 89 and was sorry he took social security early.
Sorry to hear that. It is an important decision that can have lasting consequences. That's why we avoid the "always take it at __" talk because everyone is different. Thank you for watching!
Yep. My grandmother AND mother both lived past 100. I don't know, but have heard being a centenarian is highly generic. Soooooo, I'm not retiring early because I'm basing retirement on 35 years starting at 70.
who were "they"
Who is "they" that scared him?
@@kennyplay5982 The person that did my Dad taxes along with people talking and articles/government saying social security was going to run out of money.
I waited till full. I'm still working as a residential contractor part-time, about 700 hours annually. I love it, I'll stop when I don't enjoy it anymore. I'm very healthy both parents are still breathing at 87 years old. Working until full allowed me to pay off my mortgage and become totally dept free.
Sounds like you're in a great spot I. Life! Thank you for sharing!
Debt free?? Nobody in the US is "totally debt free". There are those pesky income tax's and In your case property tax's too.
Wow God bless you. You're a power of example.
You've got to love what you're doing, which it seems you do, otherwise it's wearing the golden handcuffs while you're working. Love and light to you and yours. ❤
@@kellyname5733that's not debt, it is a recurring expense
When to take SS is a serious decision and an individual one as well. Some need to take it early for various reasons. Others, like me who took it at 62 and did not need to was ultimately it was not a good decision. Waiting til 70 which would have worked out as I am now 83 and in good health was a better decision. Add to that, I made a poor choice in investing and put all into what became a Ponzi Scheme! Crap! :-) Fortunately my second wife inherited more than I lost. Sometimes good fortune smiles on you. But that was just plain luck for us. Not all are so lucky.:-)
Everything was much cheaper 14 years ago when I retired at 62. People seem to think that cola makes up for the costs increases. It doesn't even come close. I wouldn't have retired at 62 if I wasn't debt free at that time. But I was and have never regretted retiring early. I also have a decent retirement, so it's different for each individuals circumstances.
Retirement doesn't necessarily mean not working. Tomorrow is never guaranteed . I'm drawing mine at 62.
Same!
Same here! You get to collect longer that way and you can still make a little over 22,000 a year.
Everyone is different…
That's what I did when my husband passed away. Even though I wasn't working at the time, I did work my whole life...but needed the money. Now working part time and I'm ok.
Formula : 1. You are healthy. 2. You enjoy your work. 3. You collect at 70 so your wife receives your full benefit even if you drop dead at 70 and a day. She deserves to sleep comfortably at night when you're gone. I am head of household and this was my decision. Also- these videos never take into consideration your income from age 62 to 70. It's typically a good strong income $. The perfect launching pad into retirement.
Yes, having a lower earning spouse played largely into my decision to wait until age 70. My military pension will drop to 55% after my death so having the higher SS benefit is important to offset that drop in income. Great video.
@@brucefredrickson9677 very nice to think of your spouse.
My plan was also to go to 70, and I still might, because my wife will be 63 at that time. But she’s told me I’m not allowed to go before she’s close. She will have a really hard time even though everything will be set. Luckily, I can reduce my pension to 75% and she gets the same for life, she’ll have my high earning survivor benefit, and my maxed 401k (which we’re Roth Laddering near retirement), Mega Backdoor Roth, Roth IRAs, HSAs, and brokerage accounts and my company stocks.
The new plan is to retire at 62, when she’s 55. My employer has retirement health coverage, which will also cover her in case of me passing before she turns 65. The aforementioned accounts should still cover us with 8 years of earlier retirement and all that time to enjoy our time together sooner.
Matt, it's such a simple decision for obvious reasons. Unfortunately people either fail to plan or just as bad ignore the obvious and draw early and regret later in life.
I'm hoping you can answer this my husband is 6 years older. He's made significantly more than me if he files at 65 when do I file for spousal benefits when I turn 65 and he's 71?
I retired at 66and 4 months my age, social security had sent me the letter to confirm thank you
Buddy and I used to talk about this and debate it all the time.Sixty two, sixty five, sixty seven, seventy?
He turned 61 in October of 2018, two weeks later he was diagnosed with stage 4 pancreanic cancer and died December 18, 2018.
The correct answer will be sixty two in my case.
Glad to see a more sophisticated look at the breakeven analysis using the "opportunity cost" of holding on to one's personal investments longer. I did the same and used multiple rates to test different rates of return. The most reasonable rate of return for me pushed the breakeven date from age 78 to age 82. Knowing that, I chose to file as early as possible and use the government's money via Social Security rather than my own.
Appreciate you watching and sharing your experience. Few go into the detail you did for your calculation.
The Governments money 'is your money'. You contributed 'your money' to SS every month.
Did you consider the COLA against the larger benefit. I did and as you said, breakeven point was age 82. As my mom died at 84, and dad is still alive at 90, I am choosing to wait till 70.
Social Security IS your money, not the government's money. Even though it is a horrible retirement plan from a financial standpoint, you would do better in a standard savings account, it is a retirement plan that you and your employer(s) paid into.
Most of my family died before every getting social security . Something to think about ..,
Oh nooò. Sorry
1:00:48 I think your best move is to plan on retiring without SS and then count it as icing on top when/if it does arrive. If I can set my retirement funds to create a situation in which my projected needs are covered (and possibly some of my wants too) then at least I am not playing the "I can probably skip my meds this month because I have hit the Medicare doughnut hole.
Hoping for the same freedom when the time comes. Donut hole goes away in 2025 😊
This channel is a great source of information for folks approaching retirement. My wife and I are new subscribers. Thanks for the well-presented, clear, and not overlaying complicated explanation of the basics.
Thank you so much, James! Appreciate you spending time with us!
We just released a new video (seconds ago) on Social Security taxability that you may enjoy :)
th-cam.com/video/ZetbFdEqi2A/w-d-xo.html
If you can still work, and don't mind it, would delay until full retirement age(FRA). That way, you can make a lot more $$$ working from age 62-66, than not, due to the SSA earnings cap. When you finally begin drawing at FRA, you'll have the advantage of greater savings & greater security, having earned more income from age 62-66. If desired, you'll also be able to continue working without an earnings cap, now that you have reached full retirement age. There is no one size fits all. Seek advice for your own situations.
I had to get SS at 62 because I retired under a firefighter retirement system at age 55 and got a retirement supplement that disappeared at age 62.
This is so informative man. I also listened to the episode on Roth vs traditional. Please keep it up. Would love more episodes like this with this guy. It's seriously wildly valuable.
Thank you so much! Recording a new one next week 🙂
@90DaysFromRetirement in case you were wondering, none of this is TOO DETAILED! The detail and tangents are so appreciated I can't even express it. Please keep going hard with the substance and detail.
I knew nothing about all this until I started listening to this man, he breaks everything down to it’s smallest denominator, thanks mr. social security explainer: please continue this great teaching…as we continue learning and growing!
@@beverleyboateng566 thank you so much for spending time with us! And we are so glad this is helpful!!
@@user-cf1tm6fx4w for some reason, TH-cam just showed us this comment even though it is 3 weeks old. Appreciate you saying this! Means so much to us and helps validate our hope to keep these moving forward. Thank you!!
Regarding the timing about when to take SS, as I contemplate my decision to wait until 70, my main criteria was to maximize my spouses fixed income in a post-Charles world. But as I listen to your presentation I realize two concepts compete; I feel comfortable taking on investment risk now, but I am sure my wife would be very uncomfortable with it. So to avoid the risk of my passing or the loss of cognitive ability, I choose to hold out to the maximum. It is a TEAM sport!
100%! You are wise to look at it as a team sport!
@@Theretirementnerds - we were born in 1952 and 1953. I started studying SS in my 50s and had the File & Suspend all planned out. That blew up in 2015 (I blame Alicia Munnell), but Restricted Application lasted just long enough for us. BTW, there is virtually no one left that qualifies for Restricted Application (spousal).
In a couple more years, we will not have to talk about FRAs 66 vs 67. BTW the last person that could get FRA=65 is 85 today.
In the example where the fellow filed and passed away, the spouse should have moved to a benefit that is 82.5% of his PIA; a safety net for spouses of selfish husbands.
I waited and couldn’t be happier
You could also buy a large term insurance policy if you decide to retire earlier. Yes, its not cheap, but we only live so long...
I plan to retire at FR at 67. That is 2.5years from now. My benefit amount is way higher than both my x’s spousal portion. One x is on ssdi and the other is on ss. Both are over 65. If either x spouse dies before I take full retirement can I take their benefit as survivor benefits and then take my ss benefit in 2.5 years? Probably won’t happen, but wanted to know the process. Is a x survivor benefit the same amount as what their ss benefit was when they passed?
I’m so grateful to have found Eric’s channel, The Retirement Nerds. Such incredibly helpful information. Thank you! I recommend you to all of my friends and family.
Thank you so much Virginia!
I love the way you guys have the opposite way to treat your hair… one has the perfect comb with jel and the other one looks like just got out of bed… nice 😊!
Thank u for this
Planned without SS in the mix. We will get it and when I turn my SS on alone will more than cover all our household expenses and some fun. So investments will just be gravy train baby !
Excellent job guys! Thank you.
Thank you so much!!
The quality years you have left are a major factor. Everyday you delay is one less day you have to live healthy or at all. 🤔 I worked with a guy that kept saying he was going to work one more year. He never made that last year and died.
Most people who are motivated to work "just one more year" often aren't ready to retire in the first place. I work with a lot of elderly high income people, and the majority of them will die or be forced into retirement because they are too sick to work rather than getting to enjoy a real retirement. There are a few who genuinely love their work and are invested in the company... But most of them are high income with even higher expenses. Cars, homes, boats, spouces, vacations, supporting lifestyles of adult kids and grandkids, you name it, they are proof to me that income or social security are rarely the reason why people don't retire. They just have so many plates in the air that everything is riding on them to keep working and they feel too damn responsible for everyone else to ever give themselves a break.
And that isn't all bad. They mean well by it. But social security is rarely the real reason to work or not work one more year. It is more the unwillingness to stop expanding lifestyle that keeps people in the rat race. If you can manage that, and pay off debts, then the cut in pay of social security would only be a minor consideration of taking it one year vs another.
Thank you for explaining this complicated stuff.
Thank you Margaret!! Appreciate you!
FANTASTIC conversation, thank you!! I appreciate your immense knowledge and great clarity on all these subjects.
Thank you so much! So glad it was helpful!
Outstanding content. So many variables and SS decisions should be made on an individual by individual, family by family basis. The “growth” discussion as it relates to break even is NEVER discussed.
Some other considerations are DAC benefits, caregiver benefits, and the family maximum can add even more complexity.
I appreciate knowing there are firms out there who can consider all factors in helping to advise in this decision making. We most likely will be contacting you for a more in-depth review
Thank you for watching and for leaving such a nice comment! We'd be honored to help in any way we can
It was so helpful!!!
I wouldn't be surprised if the combined benefit of this show to all the listeners who follow the advice to be in the millions of dollars.
But there's another important consideration in planning for social security - taxes.
Your videos are fabulous and incredibly clear and informative. No hyperventilating or trying to push an agenda, which I pick up from most other YT videos of this type. Just from the few I've watched yesterday and today, I've learned a great deal - and I think I was already pretty well-informed. Great work and thanks.
Thank you so much! Appreciate you taking the time to watch and leave this comment 😊
Thank you for making this video
Of course! Thank you for watching!
Thank you verry much!Enormous help with details you have given.
So glad it's helpful! Thank you for watching!
this entire series needs more "Likes"
Appreciate you saying this! Thank you so much!
I learned so much from this series of videos.
@@attheworktable did you see the new one released yesterday? Zacc did a remarkable job in that one as well.
th-cam.com/video/flCDgSy25e0/w-d-xo.html
Wow wow wow……so much to learn, thank u, for this valuable information.
So glad it's helpful! Thank you for spending time with us!
I am very grateful for all the information you have shared thank you
Thank you so much for watching Debra!
Your video gave us a lot to think about; excellent - thank you 💙!
Thank you for watching! :)
😊great information guys! Thank you so much!
Thank you for spending time with us 🙂
Great presentation on the "when to take SS..." topic. One of the few I have seen that suggests you need to look at more than getting the "max" from SS based on longevity. You may be putting yourself at greater sequence of return risk or missing out on portfolio growth opportunity by waiting. As someone who retired early (stopped working) before 62 I have been analyzing at it more in terms of cash flow and portfolio appreciation than "maximizing" SS amount. I have found the New Retirement application helpful to look at SS scenarios in conjunction with expense and portfolio projections.
Thank you for watching and so glad it was useful. Appreciate you sharing your thoughts!
Thank you!
Thanks for good informations.
You are so welcome! Thank you for watching!
Good Information!!!
Thank you so much!
I'm trying to figure out when to take my Social Security as well, so I truly appreciate this video. My spouse and I are both age 68, and he filed for his at 66 and 4 mos. I'm still working full time, so I was letting mine grow, but even letting mine grow to age 70 will still not equal his...it'll sill be short about a hundred bucks or so. He's dying, so I'm considering if I should go ahead and take mine now, then switch to his once he passes on. Ugh! So much math.
Why not? Since you’re going to draw his sooner than later. Bank your’s or spend it while he can have some benefit from it.
So sorry for all you're going through.
Wow!! Enjoyed the episode. Lots of great content and I appreciated your respect of the others privacy. That is quite the galley.
Thank you so much for watching!
A few rules
1)Married at lease 10 years
2)Cannot remarry to live off of old-spouses PIA
Now that the kids are grown and I don’t have to rush home to cook dinner or drive someone to soccer, working is actually enjoyable. Plus I can work from home. And I get paid while I’m on vacation. I see no reason to retire- and definitely not until I’m 67 or 70.
Thank you for watching and sharing your thoughts!
I'm in the same situation.... kids gone, working from home at a job I like.... I'm looking at 67 or 67-1/2 for retirement and SS...
If your second spouse has died, can you file for your ex-spouse’s (first spouse’s) benefits if their PIA is larger than second’s spouse’s?
I appreciate the information given freely and being married i learned some decisions we might make when we retire. Being in are 50's were not ready to retire anytime soon.
Thank you for watching! It's better to be too early than too late :)
Im gonna try to go for 125%
I'm pretty sure that Zacc can accomplish accounting for the opportunity cost of delaying filing (as it relates to investor risk tolerance), by setting up the Excel sheet as he described, with inflation adjusted cash flows for different start dates, then using the "net present value" function to sum the cash flows. The "rate" in the NPV function would correspond to the expected return of the assets outside of S.S. When the net present values are equal for different start dates, that is the break even age. There is a little bit more excel work to automate it, but guessing its well within his wheelhouse (or feel free to reach out and I'll share it, I think I'll build it into my model. I appreciate the podcast, it was very informative).
I love both my dogs! Great video & thank you for the content. I'm still undecided between supplement plan vs Advantage.
Glad it is helpful! Dogs are the best!!
Have to be almost in perfect health to change from Advantage to Supplement.
Wide variety of supplement plans from cheap major med to more expensive covering everything. Have heard horror stories about advantage plans, since insurance co makes care decisions vs. Just your doctor.
But it is cheaper. Good luck!
What is the video that talks about taxing SS? You mentioned it at the 1:10 mark, and said the video is going crazy right now. Just came across your channel, and perfect timing, I retire in one year. Love all the videos I have seen, thanks
Thank you!
Here is the SS taxation video:
th-cam.com/video/-NlSlZeoRn4/w-d-xo.html
It is for 2023. We will make another for 2024 soon.
I took it at 62 and was glad I did it although I continued working and gets taxed too much and there were times SSS stops it because it gets beyond the capped allowed. But I like to work but this is 100% commission on a W2 but I love what I do.
I think you might be better off halting ss and pay it back to get a higher return later. Not sure its even possible.
I am 66 I. In great health love working and making incredible money. I am waiting til 70 . No reason to take it now..
A reason to take it at my full retirement age (66 and 2/3), but before age 70, is that I have those working years until age 70 to save or invest the social security payments I don't yet need to live on. I did the math, and it would take me until age 86 to make up the difference between the FRA payment and waiting to take the age 70 payment. Most people in my family die at 83- 85. Even if I live to 100, there is a lost opportunity cost to spend the money at an age I can enjoy it, or lost interest which would be thousands.
Goodie good for YOU. I am a vacc1ne mandated aka medically gRaped nurse Who worked frontline during C0vid while many made MORE THAN ME WHILE SITTING HOME SAFE AND SOUND DOING ... NOTHING.. who is so ill every day of my life trying to still make a living.
I wish the tax cap would go away. I was in the earning bracket for a few years where my social security tax ended. It wouldn’t have bothered me a bit to pay on the entire year pay.
Better analysis in this video than most
Thank you George!
Most money sites seem to suggest 15% - 25% (or more) to create an acceptable retirement situation. If people could retain their 12.4% that SS extracts from them and add the aforementioned 15% - 25% they could end up investing as high as 37.4% of their gross each year in something they could have a little more confidence in. Averaging $75k for their work years (20 - 65) at just 7% could net them $41,079 / month for a 30 year retirement if their rate drops to 4% after retiring.
The only absolute rule is you. What are your personal circumstances? In my case, I married a younger woman with minor children. For the children to receive social security benefits based upon my work record (my PIA Earnings), I would have to be physically receiving mine, not just have earned, for their benefit to be physically turned on. I physically turned mine on at 62, as early as I could, as the minor benefits will end at 18. We are in a family max situation.
I retired 19 years before my FRA, which will be 67. I may wait until i am 68, 69 or 70 though to start.
Congratulations on such an early retirement!
No worries you look handsome. Thank you for your advice
I'm 63 on SSDI and a widow who was the higher wage earner. I was told when my SSDI converts at age 67, my FRA, I should suspend my own benefit to let it grow until the age of 70. Then during this time I was told I could not take a Survivor benefit because I had been on disability but that would give me three years without any income in order to end up with a higher Social Security payment on my own record. Now I'm wondering if I should somehow get off disability and claim my Survivor benefit even though it's lower than what I'm getting now. I have asked several so-called experts I Social Security like you and I'm not really getting clarification from what a computer program told me to do. My understanding is that the restricted applications are still available for widows, but the company who ran the program says that that is not the case! Can you please help me with this because the days are taking away and I don't know what the best strategy really would be.
What an awesome video. I wish you could have touched on the subject of someone getting a state retirement and then when they start collecting social security too how it will affect it. But with that being said there was so much information in this video. Zach is really awesome with his knowledge and down to Earth speaking. Utah has some really awesome human beings! Great Job!
Zacc is awesome and is such a valuable wealth of knowledge.
In regards to your state retirement, would this video help? It talks about the WEP and GPO penalties associated with those who work for a state entity that does not contribute to the Social Security side of FICA taxes and instead, offers the pension?
th-cam.com/video/n4aHC6xnFFM/w-d-xo.html
Let me know if it is something else you'd like us to tackle and I'm sure we can put something together.
Appreciate you!
I had watched this video once before but I don't think I was serious enough in listening to it. This time I was. I went on the SSA Site with the WEP Calculator. I put in my wife's salary for the 10 years they took out social security. She made from 80k to a 100k. I just sort of guessed at it. I didn't see anywhere for the amount to put in for her state retirement. It came out to $1.218 a month. Would that be the amount or would I need to subtract that $547 from it, Thanks for your help.@@Theretirementnerds
This is excellent information and advice. Are you aware of a Canadian resource giving this type of information?
Moral of the story everyone’s situation will be different. Some say draw down your retirement accounts first. Some say take social security @ 62 and save the invested assets. Depends on what you would like to leave after death.
Yes, and it depends on investing wisely.
Thanks for the great content, gentlemen! Yesterday, I read that only about 4% of people maximize their Social Security benefits, so there is much room for improvement.😀
Thank you so much for watching David!
I always think of you when the more financial videos are published because I know you have a brilliant financial mind. Appreciate you!
@@Theretirementnerds Thank you, that is very kind of you to say.
Whoa!... that first example, that woman cracked the code!
It's nice to have options, I guess!
Not really. Not all three marriages lasted at least 10 years (one was only 6 years). I guess if she was widowed in the 6 year marriage, that would work as she would have been married longer than 9 months for the survivor benefits.
I delayed until 68 to provide delayed credits to the surviving spouse. That was the age my wife reached her full retirement age. I feel what would have been drawn from my portfolio will generate far more income than the 2 years of delayed credits given up by not waiting till 70. I look at Social Security as insurance against out living your money...!!
I like your thoughts!
What about taxes and RMDs ? If getting SS early throws you into a higher tax bracket when you have to do RMDs because your investments grew and your Medicare premiums go up, should that also be factored in ?
Some things that are not mentioned enough to seniors! The double taxation of social security. And, the social security tax table has not been adjusted for inflation in decades. Thus, more and more seniors are moved into a taxable or higher tax table. Politicians have been giving seniors lip service for decades, rolling out bills they know won't pass, or just focusing on keeping social security solvent. What they are not telling seniors, social security will be solvent, via The Federal Reserve currency printer. And, that seniors will continue having reduced purchasing power, via the low manulipated annual COLA amounts.
I’m dual entitled. I’m taking survivors benefits at 60. And then switch to my SS at age 70. I have looked at over and over. This is the only thing that makes sense.
Keep in mind there are income cap limitations on earnings under FRA and if under FRA you need to be mindful of the tax bracket on SS
Makes no since to touch your investments if you have over $500,000 and instead take SS early and let your investments grow even more.
Except you'll never find a better investment than Social Security. It's the stuff investors dream of. 8% *guaranteed* annual returns? Inflation adjusted every year? Minimum 15% (usually more) of the income tax free?? Social Security is the best investment around. Spend the rest of your money first
@@rayzerot Nope, I'm hanging onto mine as long as possible. I hope to do WAY better than 8%.
@@LG123ABC- Maybe you will, maybe you won't. We could have a prolonged 1970's scenario where you lose for a decade.
Great Interview. How can I get more information on IRA Topedo? Thanks.
It all revolves around how SS is taxed.
This video should help: th-cam.com/video/-NlSlZeoRn4/w-d-xo.html
Traditional IRA income would count in the equation. Roth wouldn't.
My sister is 60 years old now and is legally separated. She collects 50% of her husband's monthly government pension. She left her government job to raise her kids, but went back to work part-time once her kids were close to graduating high school. If she starts collecting social security at 62, she will be penalized for collecting her husband's government pension. Not fair. I heard there may be something in the works to change that. Are you aware of this new law?
She shouldn't be penalized since this pension was not based on HER work.
We have heard that Biden has discussed getting rid of the WEP/GPO but nothing has come of it yet. It has been "discussed" for years. Usually as a campaign promise from both parties that isn't fulfilled. Maybe that will change.
A thought on this is that social security is not inheritable. If you are drawing down assets to maximize your SS payment, you are reducing your legacy to your spouse or family members.....if that is a consideration for you.
Excellent thought!
For a spouse, SS benefits are (sort of) inheritable through a survivor benefit. There is a story in there around this where the spouse takes SS early at 62, dies shortly after, and now the spouse is left with the smaller SS benefit rather than the full PIA.
In this video, we touch on drawing SS early but needing other assets to cover and how that can have consequences.
th-cam.com/video/ZetbFdEqi2A/w-d-xo.html
Thank you for adding that!
I have life insurance, so when I die my wife gets the life insurance and my SS survivor benefit. I am really glad I invested in life insurance when I was younger. It makes waiting to age 67 to collect SS much easier.
Life insurance is important! Thank you for sharing!
My wife retired as a Texas school teacher after 30years. She can’t get SS as a retired school teacher, it’s been that way for decades. I’m 65 but not planning on taking until 70 as of right now. If I die she won’t let get any of my social! Just so wrong. If she dies I get her retirement ( our choice when she retired) and my SS until I die.
This was a really good coverage of the topic. I learned that I had a misconception about survivor benefits - THANKS!
WRT the 4 Breakeven Analysis adjustments Zacc suggests, including the investing temperament and the associated Lost Growth is brilliant, but I wonder if the COLA item makes sense. If there were no inflation, there would be no COLA and one would maintain their buying power and no adjustment would be warranted. As there is inflation, the COLA's purpose is to maintain (sort-of) the buying power of the benefit, so it seems like it should be ignored. The fixed incomes that do not have COLAs are the ones that should be considered and adjusted for.
Every time the COLA is announced, the news says it is a raise for seniors, but as it never really covers the lost to inflation, it seems to be the celebration of a loss of buying power.
The reason COLA needs to be factored into the break even analysis is that delaying SS benefits increases the dollar amount; delaying until age 70 increases the benefit AND COLA by 77% over age 62 so while a person who takes SS at age 62 may get a $100/mo increase, a person with the same FRA benefit will get $177/mo increase and that definitely changes the breakeven analysis.
@@murrays1555 - You make the point that delaying until 70 give a disproportionate COLA over filing at FRA or 62. True. But my point is that the COLA is an attempt at maintaining buying power (I argue one always falls a little behind, as CPI-W is a poor measurement). Inflation needs to be factored into the calculation for retirement income that does not keep up with inflation. When building your plan, figure out how to get increases from your other accounts to keep you even. SS will sort-of fix itself. If you chose to get 124% (132% if you are older), 100%, or 70% (75%) of PIA, the COLA is simply trying to keep your chosen benefit even. Be careful to evaluate sales pitches correctly. Regards.
@@charleslemaire8137 I agree, COLA is meant to keep up with inflation and may not be sufficient, but I was replying to your comment "I wonder if the COLA item makes sense" in regards to a breakeven analysis. The answer to that question is unequivocally yes; inflation and your expenses are a different analysis and don't factor into when you "breakeven".
We need to figure in how much we can make in wages while retired too, right?
And the penalties for making too much and what happens to your benefits.
Can you please get to the point?
Last time I went to sleep.
I’m trying to watch again
Increasing FRA past 67 will absolutely suck for a lot of people-like blue collared workers.
Agreed
@@Theretirementnerds my 50`s blue collared bros are all staying too feeling years of hard labor. They aren't going to survive to 65, even
Sarasota Tim has all the answers if you want to live in a camper down south.
With Covid and shit goin down with govt seems to make sense for all to take it at 62
my present checking account got compromised. I OPEN A NEW CHECKING ACCOUNT & is there a form that needs to be filled up? Pls let me know. Thank you.
My husband will take at 70.
I will take it at 62.
I will retire at 55.
We will have lifetime health insurance
Sounds like a plan!
@90 Days From Retirement
Thank you for your video. I am still confused because my situation is very rare.
My wife is 5 years older than I am.
I want to take Social Security at 67. She would be 72 at that time.
She is ok with retiring at any age after 62 so when, should she take hers and when should she take spousal?
My PIA is 2924, hers is 1108, both at 67.
Or can you please do a video where the lower earning spousal benefit spouse is older? I've never seen anyone cover that nuance.
Hi Frank! Great comment. You are always free to send me an email to erik@90daysfromretirement.com and I'll connect you with Zacc's team. It is no cost to have a conversation with them and they can give you some direction and a plan around your circumstances
You have to think about life expectancy. For example my father and his brother were the first men in their paternal line to live past 50 (heart disease), my father already has had two heart attacks, he would be a great candidate to take early retirement at 62 or for disability if it gets worse. He also has a comprehensive retirement plan on top of social security, 2 pensions (19 years and 17 years), 401k, and a paid off house he could downsize, which is basically a fancy way of saying that he has other incomes during retirement. He realistically could possibly not make it past his 70s, so retiring at 67 might mean his retirement won't last 10 years. Where he could retire at 62 and if he does pass in his 70s he has much more time to enjoy his retirement.
Great video! Question: Is there a way to calculate how much your social security payment will be if you choose to stop working before your FRA? The social security information sheet makes the assumption that your earnings will continue to be the same as your most recent annual earnings reported. If you stop working 5 years prior to your FRA, for example, your monthly social security estimates will be something less than those listed.
Thank you for watching!
Many financial advisors will have some sort of tool to help calculate that kind of thing. Zacc and his team do not charge for social security consultations. I know other financial advisors do the same. That's probably a good and accurate way to go.
You can fill out a form and send to SSA advising them of the age you want to stop working before FRA and they will mail you an estimate of what you can expect to earn. I did this, it was very helpful.
On SSA.gov, you can edit the income for the upcoming year to $0, then a new chart will show how much you'll receive.
The SSA website will tell you this
There is an option on the SSA.gov calculator that lets you enter an amount for future earnings and zero is an option.
Just a comment - I'm assuming that you meant to say that people would be earning a "return" on their IRA/401K portfolios, not just interest. "Interest" is a specific type of payment and does not include appreciation in the value of the underlying assets.
My mom needs to talk to you!!
Send her our way!
Erik@90daysfromretirement.com is my email address. Have her include what state she's in 🙂
Doubtful. Historical stock market returns (s&p) are about 7.5%. Every year you delay taking SS it raises about 8%.
Here’s the other problem: I’m turning 65 next month, and I’m being forced to get on Medicare off of my wife’s insurance. My full retirement date is 66 and 10 months. So, I’m out of pocket paying for Medicare for 22 months. Why is the date for Medicare and SS different? If I don’t take Medicare now I’ll be penalized for the rest of my life. Government just trying to screw folks looks like to me
Is your wife still working and covered by a company plan? You may not have to go on Medicare.
Watch this video:
th-cam.com/video/jwQKngHS5zI/w-d-xo.htmlsi=fGeenFsL-CfIuq1p
My email is erik@theretirementnerds.com if you want to dig into more details
@@Theretirementnerds. Thanks.
My 1st has always been now retired at 43 from the Postal Service Immediate Annuity. Army Reserve at 38, finally at 60, check started. Social Security 62. I want my money 💰 now.
My sister die at 35 in a car accident 😢.
So sorry to hear about your sister 😢
This is very comprehensive and generous advice on SS, but be sure to look at the video breakdown of topics. I watched an hour of info that didn’t really pertain to me because this is highly targeted to couples (and divorced / survivor) strategies and I am not eligible for spousal or survivor benefits. I guess it’s interesting to know, but doesn’t pertain to me. The advice on not worrying about wether SS will go away was helpful. I’m 62 and was wondering if I should take retirement early - partially for this reason.
Thank you so much for watching and sharing these thoughts!
I am going to be 67 in June 2024 . I will have
Cal Per benefits plan . My question is when will be best time to retire? I want to retire soon .
Many people don't realize that the social security fund is empty. Our government borrowed money from our social security fund. And regardless what they say they never paid everything back. Todays society security benefits are currently being paid from what's known as the general fund. So, in that respect, the social security fund (now general fund) can never go broke. That's what Congress votes to increase the debt limit on nearly every year.
The general fund is what runs our country, pays government employees' wages, etc. Consequently. They will always vote to increase the debt ceiling.
Ok
( ~13:45-14:00 in ) On the Spouse getting half of higher wage earners benefit: In our case my wife gets her PIA & then the difference between her PIA & Half of my PIA. Sounded like there was 2 options???
You described it correctly. Zacc goes over this at about 19:36 - 20:47 :) Thank you for watching!
Yes, you can take a divorced spouse benefit if you remarried, if your later marriage ended by annulment, divorce, or death.
You should NEVER wait until 70 unless money is the only priority - imo. Life expectancy for males now who are age 62 is about 83. Meaning, statistically if you waited until 70 you only have 13 years of the full benefit which is capped at around $5k a month or 60k a year. at 67 its roughly $3,900, so.... you are only earning 8% on 40-56k a year for 3 years. The maximum benefits of $60k a year for 13 years is 780k. The rough estimate for max benefit at 62 is $2,700 x 21 years is $680,000 or just $5k less a year over the same period. In other words, you pay yourself to retire earlier - if you can swing it. If you're checking out at 83, the question is - are you taking some of it with you, ie., enjoyed your last years here, or passing it all on to your heirs/spouse. Lastly, when SSA changes come - and they are for sure coming - who do you think they will go after first for savings? The people at the $2,700 a month level or those at the $5,000 a month? Mathematically, waiting until 70 is the optimal economic choice, but who wants to work for 50+ years and only have 13 years to relax? Plus, there is a HUGE difference between how your body works at 62 and 70. Love the educational content though - best Iv'e seen so far.
I have worked as a nurse for 35 YEARS and only have 2,000 SS. I HAD ENDANGERED MY LIFE DURING C0VID AND MISSED SO MANY YEARS of spending time with family band HOLIDAYS AND DROVE THRU RAINSTORMS and SNOWSTORMS and HURRICANES. HOW IS THIS FAIR?
Thanks for that marriage date tip 😂 great analysis guys
Thank you so much for watching!
What about a single person . When should i take SS. Im 63 ... my work is physical and I'm tired .. I'm a stylist for 43 yrs don't know if i can make it to 67 . Will it be ok to start at 65 ?