3 Reasons to File for Social Security at 62... and 3 Myths!
ฝัง
- เผยแพร่เมื่อ 18 พ.ค. 2024
- When are you filing for Social Security? Is this the optimal time for YOUR retirement? Many retirees make common but preventable Social Security mistakes. You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to www.safeguardinvest.com/contact.
Timestamps:
0:00 Should You File for Social Security at 62?
0:30 Reason #1 - File At 62
3:35 Reason #2 - File at 62
5:36 Reason #3 - File at 62
6:38 Myth #1 - You Can Spend More By Filing Early
9:22 Myth #2 - File Early and Invest is Better
12:27 Myth #3 - S.S. is Going Broke
- - - - - - - - - - - - - - - - - -
Always remember, "You Don't Need More Money; You Need a Better Plan"
🍿 Subscribe to our channel: th-cam.com/channels/VMA.html...
🏆 Join our Weekly Email Series: bit.ly/weekly-email-series
📈 Talk with us about your retirement plan here: www.safeguardinvest.com/contact
📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing - www.amazon.com/New-60-Generat...
Safeguard Wealth Management is an SEC Registered Investment Advisor. Safeguard Wealth Management is not an insurance provider. All content on TH-cam is for informational purposes only and should not be taken as personal advice for your situation. You can read more disclosures at www.safeguardinvest.com/fiduc...
![Supernova - aespa エスパ 에스파 [Music Bank] | KBS WORLD TV 240517](http://i.ytimg.com/vi/bepqfR-pxY0/mqdefault.jpg)
Took mine at 62 and living life as I should
I've always believed that the one way to get Congress to 'fix' SS is to eliminate their cushy retirement plans and put them all in the same system as the rest of us. Sadly, that would take an act of Congress.
They were supposed to go to Washington, spend 2 years there then return home to run their blacksmith shop.
SS is a pyramid scheme. The only way to fix it at this point is cuts or tax increases.
We could fix healthcare if Congress had to be on the same healthcare as the rest of us too
Most people in congress are millionaires, they don’t rely on social security.
@@jpny4750 True. The problem is that very few are millionaires before they get to Congress.
The one thing you can’t regain once lost is TIME. Being that TIME waits for no one, I will be collecting as soon as I’m eligible.
Exactly
Do you have other retirement savings etc to increase the amount you will have to live on?
I've seen what can happen when people run out of money later in life or when they have health issues with no resources.
You still have the same amount of time with or without SSI... What so bad about showing displine and working a few extra years to lock in a MAX ssi benefit?
I signed up at 61 and 9 months to the day. 4 years of checks, and I'm still working. 😂
@@Mark-qv4bn We can't get a pension here until we're 67 but I retired self funded about 4 years ago just before I turned 60.
I've thought about working on and off as I could still earn decent money but the thought lasts for about 5 seconds.
Money tends to disappear. Always take money ASAP
Especially considering when you’re 80 and up, you’re not spending as you are when you’re 65 to 70 you’re sitting around the house or assisted living if even alive
I'm 5 yrs from 62, and that's when i'll take mine!
Got plenty of other retirement savings to back up SS?
Being broke and old isn't much of a plan.
I took it at 62 and am so sorry I did. The cola increases will not keep up with inflation.
Fanta also
62 and working part time love it
This is what I'm doing. And I have a schedule that fits my lifestyle.
I agree and what most people don’t figure into it is inflation! At seventy the additional money won’t buy as much as it does now!
The older you get the less you’re gonna spend you’re gonna be sitting around the house or God forbid in assisted living. Take it when you’re young.
If you have other investments, pension, etc, and don't really "need" the social security, why not take it early and invest it all. That way you're making extra money on your SS, instead of the government. Break even becomes much longer then as you're getting extra money the same as if you had waited years to take the money.
This is a great point and surprised that most financial TH-camers don’t mention that.
But if you are working, consulting, etc, you get taxed heavily on SSI if you take it early, right?
Get it at 62 while the US government is still solvent. I believe it won't be for too much longer.
The one critical factor in all these best age to start SS discussions, that we don't control is how long are we going to live. Unless you already have a terminal disease or have an in with the man upstairs, your life expectancy is an unknown moving target, that changes the answer to what is "best". For many of us the decision is between starting SS early or delaying retirement. Only you know whats "best" for you. Do your own analysis and don't rely of the so called experts. I retired at 60, had enough saved to live on and wasn't concerned about maximizing my SS payout. I started collecting at 62, that was 15 yrs ago and I've never looked back or doubted my decision.
Congratulations, you won. You’re enjoying the money while you can walk and at the healthiest ages in retirement.
40 years of corporate America. I took mine at age 62. Then I cheated and filed for SSDI. It was a 3-year battle, but I won my SSDI. Getting FRB now. I have 1y left for my SSDI to turn back SSB. Downsize to Independent Senior Living. So I'm good.
@@thebootielover Teach me master ! I have a hip problem and I limp into work everyday. I would like to get disability around 63 and quit playing the game. Do you have any advice for a brother in need ?
You forgot cash in before the ponzinomics of it collapse.
Do any of us know when we'll die? I'll take mine when i'm healthy!
What? Are you planning on being not healthy just 4 years later at 67? Take your minimum for life.... I will take the almost double at 67 while exercising and taking nutrition while enjoying saying goodby to the coworkers from 62 to 67 You should place your bets of living rather than betting on dying
Yes. Some people do know when they will die. Some people have a terminal disease and can almost accurately predict exactly how much time they have left. For those people, the choice to take SS now would be a no-brainer.
However, for others, the very fact that you don't know when you will die is a valid reason to wait.
For example, for a healthy 65-year-old woman, there is a 72% chance that woman will live to be at least 85 years old. There is 54% chance that same woman will live to be 90. Finally, there is a 31% chance that same woman will live to be 95!
Taking it early simply because you are "healthy" and you don't know "when you will die" is a very poor reason to take it early. To clarify, taking it early might be fine... but not for the two reasons you gave.
Usually, its not about the total amount of money you collect before you die. It is about whether you can live on what you are collecting monthly.
Omgosh with this video! Amazing information! Thank you! Thank you! Thank you!
The most valuable (information wise) channel on TH-cam, Eric. Thank you!
I took mine at 62 and I never looked back!
How old are you now? What was your main reason for taking it early? Did you need the money?
If you make it to your mid to upper 80s, do you think you then might regret taking it early? (As you probably know, the total amount received by delaying until you are 70 will be substantially higher at the age of 85 or so, than if you took it at age 62, with the 30% reduction in payouts.)
@@MrEdwardCollins I worked as a cleaner in the public school system for 25 years. Very physical work. Especially in the summer time. All rooms are scrubbed from ceiling to floor. Every stick of furniture scrubbed down. Taken out. Floors striped waxed. Furniture put back in class rooms. It's like moving four to five houses a day. My knees about had it. House paid for. No debt. Good pension,403B S.S. And my savings. Doing well. I might have stayed a little longer if I didn't have to do the work of two people. Part-time position was eliminated when he retired .
@@strothermartin5368How did you manage health insurance?
@@timcoleman3421 I worked for the state. Took my health insurance with me.
@@timcoleman3421 I have health insurance from my job.
At 70 on your death bed, wanting to buy back the last 8 years that you worked for a bigger benefit. Not gonna happen. Not with any amount of money, You're gambling every minute you wait after 62. If you can, retire as soon as you can and enjoy your life.
I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?
Excellent video and very important information. Thank you!
Great video. Super helpful information.
I'm in my 20s but I still like to learn about Social Security and how it works, etc.
ss wont exict by the time you retire
20S my God why would you give a Bollocks about social security at that age you need to chill.
One of the most sane and reasonable videos I’ve see on taking SS at various ages. There are two other constants in life other than death and taxes. They are: politicians love to get reelected and old people vote. SS gets fixed I have no doubt. If SS is your primary source of income in retirement it’s always better to wait. The beauty of SS is that it doesn’t care if there’s a war in Ukraine, China invades Taiwan, or what political party runs Congress. Your check is in your account every month. While your IRA will fluctuate accordingly.
I took SS at 63 and am using it to pay the taxes on my Roth conversions. It does mean I convert a less. The reason I did this is because I view my taxable accounts (where I would have to pay the taxes on conversions from) as my money, and by taking SS earlier I am paying the taxes on the conversions with my uncles money. When I hit FRA I will have the option again of stopping SS and letting it grow again. That is called claim, suspend, restart, you can look it up at fidelity. Who knows if it will be here in another year, but for now it is available. I did a lot of planning and put a lot of thought into taking SS early so that I could use it to pay the taxes on the conversions.
Will have to wait taking SS to do Roth Conversions.
Why do people convert if you withdraw money while in retirement in small increments won’t you be in a lower tax bracket anyway?
BTW, very informative video.😊
I look at delaying ss as a form of longevity insurance. If my wife and I live into our 90's and spend most, all?, of our money, by delaying ss we have the maximum amount of guaranteed, inflation adjusted, income coming in to live on. Not a massive amount, but a lot more then we would have had if we took the money at 62. Plus, it gives us a larger roth conversion window.
Yes and no, IF you are healthy sure , but plenty of people get some type of lingering issue that pops them into either independent care, assisted living and or a nursing home in their late 60's early 70's for a really long time, not just one or two years but decades.. they first drain their funds and assets to medicaid status and then get warehoused in a bedlam style nursing home , with 3 beds in a room, the smell of feces and urine everywhere, along with some painful screaming...throughout the halls. . Medicaid takes your SS benefit as a cost reimbursement for that room, food etc regardless if you pulled the trigger at 62, 67, 70.. It might be better if you can afford it to take it early cushion the healthy years with extra money and if the time comes the state snags the lower money amount in your dwindaling years..
@@markbajek2541 Yes, if you are obese, or a smoker, or already have a chronic condition, or your parents or siblings had serious early medical problems, then yes, you take the money early betting that you don't reach the break even point (which a ballpark estimate would be 80). (also note that the closer to 80 you get, the smaller the amount you gave up is). The other issue is can you live well without taking social security. Me, personally, based on my current health, how I've lived my life, and my family history, living well to 80 isn't unreasonable. (Though I could be delusional). So, I'd rather risk not getting the maximum benefit, for the peace of mind that I'll get the extra money if I do live well into my 80's.
Great summary and the best I’ve seen thus far on SS insolvency. Thank you!
My plan is to hold off on SS until I decide I need to take it because of factors like a 2008 drop in stocks. My goal is FRA but may go longer depending on other factors. My wife has a minimum SS benefit and doesn't want to deal with a portfolio so max SS would benefit her if she outlives me.
Reason 3: "assuming the longevity expectations work in your favor" - this says it all
There are so many variables in when to take, think of it this way, you’re trading time for future $$$ and you CANT get time back. Me and my wife are taking it at 62 Social Security will cover all our expenses as we will gave 0 debt
Best to wait until you are 70. Why opt for a small check???
@@websterhays8352 Our health is not promised, we have approximately 800k in retirement accounts and our combined S.S. checks will cover ALL monthly living expenses, giving us the freedom to travel and vacation while we’re still young and healthy enough….. $$$ can’t buy time or health, we’re gonna live in the moment!
When one of you dies the survivor only gets the higher of the two social security checks. Not both. Maybe you already know this?
@@KentAndrewLang1967 you are correct, I didn’t mention we have 1 pension and about 800k saved, my wife is higher earner and we are considering waiting till 70 for her on S.S. For tax and RMD’ s reasons
As you say, if you expect to draw from invested savings that will require that a several year portion of that portfolio be kept in very safe investments, and that will limit the overall portfolio to a lower average return.
I’m starting to look at it myself, but as long as I’m healthy, I will wait as long as I can but during the meantime, my wife and I will be trying to enjoy more of our time regardless
Always great information Eric & team; sound, fact based, data driven guidance is so important, nice work presenting this topic!!
Excellent math.
I took mine at 62 and 6 months I never regretted it and am over 10 years ahead of those who waited. Not to mention if s/s goes belly up, at least you have yours!!
Hope you have retirement accounts. or you will have regrets.
Social Security has been in place for more than 80 years. Taking SS early because you think it might go "belly up" is a very poor reason to take it early. There's absolutely no evidence or valid reason to believe the system will go "belly up."
Yes, for the first 20 years or so, if you take SS early, you will be ahead of anyone taking it late. This is completely true. It's only after those first 20 years, and then for the rest of your life, that you might regret taking it so early... when the small checks you receive no longer are enough to cover your expenses.
Age 65 but have money in IRA wait till thats gone and take at 70! My uncles who have died age 75 to 90! Have a Uncle 88 now still alive! Right now thinking of doing a senior part time work program since I haven't worked during covoid just to pass time while I decide where to retire! Use that for moving money plus housing shortage at least 3 year waiting list and better live near medical and senior services! Almost 4 hour trip here now cut it to a hour!
I believe in filing late, but does the math include the stealth tax increases on social security? (Set limit for trip to 50 and 80% taxed, and then higher tax rates levied against the 50 and 80%)? Thanks Eric,
Cheers
The other thing you have to understand is that in order to gain more money in the long run it’s estimated your Ernie’s stay the same so that means you must continue to work till you’re 70 years old if you want the full benefits who wants to continue to work until that ageonly to recover what you lost at an age 85 when you first see the positive side of your benefit and by then you’ll be 6 foot under in most cases
The money to live on has to come from somewhere. There's an opportunity cost of pulling funds from somewhere else that doesn't seem to be often considered in this sort of presentation, which should be considered. Taking social security early and saving money in investments, savings, 401ks, etc., that would otherwise have to be drawn upon. That would reduce/mitigate the potential loss of post age 78-84 social security income. To me it was worth taking the money I can't control, rather than spending the money I can. That drops the longevity gamble from the equation and, even with pessimistic projections, it doesn't seem to put you far behind comparatively.
So are you saying we should take social security at 62 or not? Not clear
@@trave7644looks like he’s saying early so that you don’t have to spend from your investments.
I’m not arguing about the opportunity cost of money, but the rest of your premise is flawed.
If all goes to crap and the Gov can’t meet its obligations do you really think that they will lower the benefits of people over 78, before they tax retirement funds of the “wealthy” that have a portfolio. They already are constantly changing the rules on IRA’s, RMDs, Roth and SS claiming. But,they never reduce SS benefits for those already drawing.
Much more likely to increase tax on your million dollar portfolio, than lower granny’s benefits
@@randolphh8005 My only premise is that these presentations don't clearly include that opportunity cost and that it's worth consideration. Beyond that, unless you live past 82 (plus or minus a couple years), it doesn't matter when you take it. So, how far is it past that break even age is it before all the fretting being done over when to take social security proves to have been worth the time it took to fret about it? 88? 92? If the biggest thing you have to grouse about when you hit 92 is that you could have come out $40K (or whatever it turns out to have been) ahead by delaying social security until you were 70, you're probably doing OK. Remember you'll still need to keep attention on those pesky neighbor kids that keep stepping on your lawn. And, if you don't take it at 62, the money needs to come from somewhere, possibly continuing to work. So, take social security whenever you want. I took it at 62. I'm still not sure that it was the best answer. I only know it's not as bad a decision as some might suggest it was. I paid for access to New Retirement so I could run the scenarios and whether I run them with pessimistic or optimistic projections, they don't come out that different, all things considered.
Or if you do drywall
I chose to retire at 65.5 and I was earning $115,500 a year at that time. We are Debt Free Homeowners with a $1,300,000 investment portfolio. I started collecting Social Security at age 65.5. We currently collect a combined Social Security benefit of $3,750 a monthly after taxes. I am the primary bread winner and my spouse's portion is 50% of what I receive. I also receive $721 in a retirement and my spouse also collects about $1,000 a month in a retirement benefit. We have about $5,500 a month in total monthly income. We only withdraw growth from our investment portfolio during high performing years.
For us it seamed like collecting Social Security after I retired was the most beneficial thing to do.
All these specific and personal financial details seem like something you should be sharing with a financial advisor, not a bunch of strangers on the internet. Good luck with your future, I hope you don't end up murdered.
@@hojo70Maybe their spouse has a hefty life insurance policy and is putting out the feelers for one of the 7.5 million invaders to pay them a visit.
Three reasons: None, none, and none. Unless you have lost your job and in poor health; however, if you don't have medical insurance, you are "screwed" until Medicare kicks in. If you are on Medicaid, now that's a different story all together. FRA or wait until you are 70 if you can. It's a multivariate equation and cannot be one size fits all. If you can't figure it out, then hire a fee only RIA to run the numbers, analyze your situation and make recommendations/options, period EOS!
Delaying makes sense even with a short life expectancy if your spouse has a lower benefit and a longer life expectancy.
Also the type and income of your employment when you are close to retirement age matters as well. If you have a cush job, with lots of vacation time then maybe delay and do the traveling while you are still working.
My break even age is 77 and a few months. I know that as I continue to work, I am paying into FICA, a program that I will never live long enough to see a return from.
I don’t really plan on needing SS since my wife’s pension will cover our expenses. I was thinking if we did need extra $ that I would start collecting SS early to preserve our savings to pass on to our kids.
M1 and M2 are not entirely myths. It can be true depending on your assumptions, or how reality plays out. IMO, I would agree 10% is too aggressive, but 5% is too conservative. An assumption of 7% LT is more realistic. Predicting the future is hard, but always planning for the worst is no way to live.
I was committed to waiting until age 70 and getting the greatest monthly amount, given I do not need the money now since I am still earning a good salary from rental income, and I am in very good health and therefore can guess a long life expectancy. Then I recently did the math on how much more money in total that I will get in SS benefits after age 81 through age 90 due to the greater monthly amount. The total increase in benefits was about $20k by waiting til age 70 vs 69, and another $20k, or $40k total additional benefits by waiting til age 70 vs 68. These amounts are not that great, and the greater difference equates to about one year of benefits. I decided to no longer wait and will start taking benefits next year at age 68.
I'm taking mine at 62 I'm not promised tomorrow
I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?
I will collect now. Tomorrow might not happen.
Yes, but what are the actual probabilities that for you, "tomorrow won't happen?"
For a somewhat healthy 65-year-old woman, there is a 72% chance you will live to be at least 85 years old. There is 54% chance that same woman will live to be 90. Finally, there is a 31% chance that same woman will live to be 95!
I'm not about to argue with anyone who wishes to take it early. That's a personal decision. However, the data shows that MOST people will indeed live long enough to "see tomorrow." And many of them will at that time regret taking SS early, since the small checks they receive no longer will cover their growing expenses.
So the break even taking it at 70 is between 80 and 85 and the life expectancy for a male is 84 something. You are not selling me on taking it at 70. I’m sticking with the FRA or slightly earlier, lol
Me too. I'm taking it as soon as I retire, be it 63 or 65 or 67. If I do make it to 85 or 90 I can't imagine I will be spending a lot.
Waiting till age 70 can make sense if you have a spouse that takes early. Remember for a couple the larger check goes to the last person alive. We are in that situation, wife gets $2500, took at 63, I will get $4500 at 70. We both retired at 63. All our parents made 87 and mom’s are still alive.
The “break even” is only relevant when dying young, otherwise SS is inflation adjusted, and guaranteed till death, that is a pretty good insurance policy. We don’t really worry about running out of money, and thus can spend down our portfolio sooner and more aggressively which we are currently doing while still “young and healthy”
Why? if the breakeven point is between 80 and 85 and life expectancy at 70 is 84, then isn't it a 50/50 guess? I can't follow your logic.
@@DonaldMains the “break even” is actually between age 77 and 83. In addition the average age of death for a 65yo is closer to 83-85. Also SS is the same for males and females, but females live about 2-3 years longer than men. Also the break even math from Social Security hasn’t changed in recent years despite life expectancy being higher now than 20 years ago.
This means that more than half of retirees will make it past the break even, especially women.
It is not a 50/50 proposition because you start getting more money past the breakeven by delaying and you have a larger check that goes to the last person alive.
The increase in SS between 67 and 70 is 24% and it is guaranteed and inflation adjusted.
For a couple the breakeven is more complicated but since the larger check goes to the last person alive, and on average one spouse will make 90 for a 65yo couple, delaying can make sense.
So in the end delaying has the best outcome if you have average or better life expectancy.
Obviously there are other variables that can affect timing
Good discussion!
Are you sure? I've heard that the breakeven is 78 at FRA.Makes sense that if you delay SS for 3 years until 70 the breakeven will increase as well, though not a one year for to one year relationship. Of course if you make it to 70 your life expectancy increases as well. The calculations part of the equation I always find overrated . The best age to take SS is not so much an actuarial exercise but a personal circumstances question. @@randolphh8005
Your social security is taxed if your income is over $25k single or $34k married. Maximum benefit is $58k a year.
Set a max payout, ditch the income cap.
If you can afford health insurance. If you don't have a job that you can and still want to work for more money and benefits. If you have assets to supplement income. If you are not able to work
Ten days after I turn 62, my CalPers Pension hits 71% of Contract Wages. Social Security 90 days after is 29% of Wages. Take Home pay increases roughly $700 Monthly. [No more Pension or Social Security Contributions] Taxable income rises a bit. [No more IRC 125 Deductions]. If i was going to Keep Working... Total Pensions would increase 6% between age 62 & 63 PLUS 3.5% per year afterwards in round figures. BUT, I'm tired and want a change. My Debt is minimal. My belongings will be minimal by the time I leave for SE Asia to Vacation for the following three years. At 65, When I'm Medicare Eligible, if I'm tired of SE Asia & Warm Weather, I can return.
Will your pension include COLAs? At the same level as SS?
2% Statutory COLA with an 80% Purchasing Power Protection Allowance paid in May [Yearly Lump-Sum] IF the COLA has fallen behind. @@Dave-sw2dm
According to ss website I can't take my ss early. I get this message --> No benefits can be paid to you because your earnings are too high
Thanks for being one of the 1% and paying the lion share of tax dollars.
How about if I file at the age of 60? I need to do this for my health, and short life expectancy. I wont make it until 67. I'd like to have a few years of not working, and spend it with family
I wish they allowed a opt out option let me and my employer choose where I want the money.
They do. My grandfather was a farmer an opted out of social security. He instead always used the amount of money that he would have paid to social security to save and buy more land. You will guess right if you guess that was a good decision. He worked hard in the warm months and lived easy in Florida in the winter. Died with many acres to leave his kids with.🌞 In his retirement he lived off renting out the farm land.
@@saversavvy2670 only certain people can do it like preachers and such
Thanks, one of the best presentations Ive seen on this subject. It reinforces the decision I made at 62 which was to wait til 70. To me it made sense to wait for the reasons u outlined. Mainly generational longevity on both sides of my family. My overall health and activity level. Spousal benefit. I had also considered taking at 62 and investing 100% but two things were concerning. The volatility of the market over those 8 years vs a guaranteed 8% increase annually. Other reason was advice from my portfolio planner and my tax advisor. Both told me that they rarely see clients who are able to stick to this strategy or worse dont do as well on the investment side and would have been better waiting.
On the flip side I have seen to many seniors regret taking it at 62 and run short every month
If you cannot make over 8% in the market...you are not trying. Go to fidelity... look at mutual funds and sort by returns over the last 10 year. Make and account and split it beteen the top 5 to 8 mutual funds making over 10% the last ten years. Forget about it...except 1 day a year. On that day log in and get rid of the lowest return because it could have done better. Get rid of the highest return because it is unlikely to happen again. (sell and buy other mutual funds you do not already own with +10% annual the last 10 years) Repeat every year. I have...and I have made WAY more then 8%. It isn't that difficult. You don't need to know what stocks to invest in...just the bigger number the better.
can you file at 62 even if you are still working or do you have to retire before or at age 62 to file SS?
There is no "best age". There might be a best age for someone in "your situation", but there is no standard BEST AGE. If you think you have a 30% or greater chance of running out of money, work another year or two....unless you absolutely hate your job.
Why are we okay with them stealing our money. If we've paid in and have 1.5 million why if I die does my spouse have to choose between taking their SSI or mine. BOTH should legally be theirs and they should be able to take both. Then to tell us that SSI is insolvent after people have been dying early and the government has been pocketing this money for decades is crazy!! We need to stand up and protest.
Who pays the medical bills?
Thank you
Can u use s.s
To pay for
401k roth
Converstion?
Of course. Withholdings from S.S. will cover some of the tax liability but you can also make estimated tax payments from your S.S. benefit once it hits your savings
Something I don't see mentioned anywhere. If you didn't have a good income until later in life, by waiting until age 70 instead of 62 those 8 higher income years could replace some of the low income earlier years, thus raising the 35 year average, resulting in a higher benefit.
Yes. But once you hit age 60 those previous years of earnings are adjusted for inflation by social security at that current rate.
@@KentAndrewLang1967 A year of zero wages is still a year of zero wages after adjusting for inflation.
Would be interesting to see cohort life expectancy for persons in their 60s with no obesity, diabetes, heart disease or history of cancer. I suspect most people in that cohort should wait until 70.
I’m closing in on retirement, and I'd love to move from Minnesota to a warmer climate, but home prices are ridiculous now.. do I look at other assets and wait for housing crash, or go ahead with house purchase anyways?
Florida has a a homeowners insurance issue going on heretofore and rising property taxes, so it’s not as attractive as in the past.
I rather rent for 3-6 months in Florida and return to Maine to our small house.
Or live like a queen/king overseas. Eg. Cambodia, Thailand, vietnam, and so on.
If house prices are high everywhere, you pay more for the new house, but you get more for your old house. If house prices are low everywhere, you pay less for the new house, but you get less for the old house. YMMV.
If it was just a reduction in the monthly benefits at age 62 but you can make that up if you live long enough and the break even age should be at about 79 i would take it early IF they had a higher cap on the income you can earn, BUT i think its only like 22k a year you can earn and anything over that they take $1 for every $2 you make over that, so if you make 66K a year they would take 22k of soc sec benefits ,correct? PLUS, you would be stuck collecting the lower benefit amount the rest of your life. So unless you can live on what you make from soc sec at 62 or you have retirement savings to help fund what your soc sec benefit shortfall would be then i dont see most people these days collecting early as a good idea.
When you reach Full Retirement Age your benefit amount is recalculated and any of the income penalty is taken into account, potentially raising your benefit amount.
Another benefit in waiting to draw Social Security is that Social Security is divorce proof. If you delay drawing your S.S. and draw out of your IRA or other accounts from age 65 to 70 and a divorce occurs, then the increase in Social Security payments is locked in under your name. You will not have to share it with the ex if a divorce occurs. And added to that the money you drew out of your IRA to fund the years 65-70 while waiting to draw at 70 will not be on the table for property division. They were used up buying you coffee with the boys and hunting trips! This double edged advantage can be significant if the worst happens. You never know what will happen if you married an ONAC (Ornery North American Chick!)
In California if you were married 10 years she gets off your social security. The good news is it comes out of a slush fund and doesn't physically come out of the money that you draw.
I think I almost understood what you’re saying. I wonder if you’re related to my wife?
I will have a pension, so I will probably get on SS at 62 or 63.
62 or 63??? Wait until you are 70. Do not opt for a puny check!
I bailed at 62. Just sick of the rat race. I've made more money and have more "stuff" 6 years later than ever. Been able to focus on me and not working for 'da man!
Why hasn't it been fixed...because the problem is 10 years away...not tomorrow...
If retiring at 62, how do you get health insurance until qualifying for Medicare? The marketplace is really expensive for me. Is there a way to use your SS payment as your income instead of your previous, pre-retirement income?
If your income is low, they offer subsidies through the marketplace. Its discounted insurance.
When applying through the marketplace, you input your expected income for the upcoming year, which will include Social Security benefits. At tax filing time, the actual numbers are used and you either get a refund of the unused credits or have to pay back the excess credit received, as part of your income taxes.
Someone at work told me if your income is under $30k you might be able to get Obamacare for free. Works great if you live in a low income state.
This is a great video. Basically if you are healthy at age 65 you need to delay until age 70
Then at 70 show off your fancy wheelchair buzzing around the condo complex.
From Social Security, Life Expectancy at 65: male 81.9, female 84.6. What am I missing here? 3:31 of your video shows men 84.2 and female 86.8. That is a huge difference. Please explain
I’m guessing those were pre-Covid life expectancy numbers and the numbers when down because of Covid deaths.
what if you are normal...no portfolio!!!
Exactly!
Gonna run out in 2033 so at 62 this may i get 11 years. Not waiting for 67.
What happens if the sole earner starts to collect, then dies, before the spouse turns 62? Does the spouse get nothing until turning 62?
They get a job
You can get a reduced survivor benefit starting at 60
The only benefit to filing at 62 is if you stopped working or were unable to work. Otherwise you would not receive the benefit because of the income rule. I’d rather have the larger income than the benefit.
I retired @58, started SS@ 62....no regrets. I'm a little confused. If a person waits till 70 years old to draw more social security, does he have to work till he's 70?????
You don’t have to work until 70, you just postpone filing until 70.
I would say your more than a little confused.
@ timcoker1428 Yes, you have no regrets now. That's understandable. And you also might not have any regrets for the next 17-20 years or so.
The problem might come when you are in your mid to upper 80s... and the small SS checks you receive no longer cover your expenses.
A person receiving $2,056 a month at age 62, for example, will receive $3,579 a month at age 70. (Both figures are without the yearly COLA increases, of course.) That's a substantial increase.
Of course, there are valid reasons for filing early. For example, you might need the money now, to live on.
@@MrEdwardCollins Lucky me, I have other means than SS. SS is a very small amount of my monthly income. I put most of my SS in a savings plan for my Grandson. Like I said,no regrets 😊😊😊😊😊
They should be on ss
Your sole calculus here is using ones cumulative benefit total as THE criteria one should use to determine when to take SS. I would argue that FICA tax is just that a TAX you pay when working. What you paid in taxes has no bearing on what you should get back. Same goes for income tax. You pay income tax based on taxable income with NO expectation of getting that amount back. Why expect that for SS benefit? (solely because the method they chose to use to calculate your benefit is based on the amount you paid in FICA tax over your working career). Personally if you have alternate income streams and are trying to reduce taxable income for other reasons, taking in MORE income defeats your other goals. Also if you want to pay from other sources fist and maximize your income later (either for you or your spouse or even both), defer the payment until later. If you need it to LIVE, then obviously take the benefit early. I know you talked about this, but again, your primary criteria in your graph was cumulative benefit and I don't even look at that metric.
My sole calculus, if forced to pick one, would be maximizing probability of success of a given goal. But I think I noted some of your points in the video. If you NEED the money, then it means you don't have assets to be able to delay. That is a reason to take early.
I think a trap people get into is taking Social Security early feels better and that can prevent them from making the objective best choice.
if i work till 63.5 and i take SS at 62 does the amount change once i am no longer working or does it stay the same?
Stays the same for life
If you start collecting before FRA, then you are penalized with a $1 reduction in benefits for every $2 you earn above $22,320 per year.
@@SpynCycle57 Agree, if he draws SSI at 62 and works after 62, he will have to give back the amount of money you described. This "give back" period will end at age. 67... Meanwhile, he has permanently locked into the absolute minimum SSI check for the rest of life. It will never increase whether he works or not.
@@ericlee2931 Plus while earning an income and drawing a SS check, some of the benefit could be subject to taxes.
Medical at 62yo?
Another myth is that everyone has a "portfolio".
The Government has a lousy history as an investor . If you allow them to invest in higher producing assets you will find them investing in favorite investments such as cylindra , one of Obamas favorites that had a no claw back provision in the loan agreement. Shortly thereafter they went BK and the government lost 100% of the loan.
You said you can file between 62 and 70, but you don't HAVE to file at 70. It's just that you don't get any more by waiting past 70.
I believe you have to file by age 70 ..
It would be foolish to file after age 70.
You do get more if you wait past 70 I think if you wait until 73 you will get 24 percent more
@@quickturn66 wrong
From the Social Security website: When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits.
Retire early and take it at 62. They're hoping you wait and drop dead in the interim.
Exactly! People in here acting as if they going to live forever..Even if you are healthy now tomorrow isn't promise if you live to 62 you should take it.. They want you to gamble but this isn't Vegas.
@@CoachDarren💯👍👍
File early if your job is making you miserable.
By that I am assuming that you don’t mean your job specifically but the assholes in charge.
Another option would be to simply quit your job and take a full time or even part-time job elsewhere, if your current job is all that bad.
This ignores the longevity of the survivor, usually the wife.
I did note this in the video. Higher earner should almost always delay (to an extent) unless both have short longevity expectations.
I’m still working until I’m 65 so couldn’t take it at 62!
You could but you'd be paying $1 to SS for every $2 you make over about $21K. So it wouldn't make much sense to have a wage income over $21K between 62 and 65. Maybe dial back on your hours, read a book on the beach .
@@markbajek2541you loose that $1 for every $2 now but then when you reach full retirement age it is recalculated back into your monthly payments which is an increase at that time. I don’t know all the details but that is how I understand it. Its never discussed in detail when I see it come up.
Terry
Same reason they won't fix the border issue. Both parties benefit from this problem. Dems get to say that Rs are inhumane and Republicans get to say that Ds want open borders.
You forgot to mention COLA on average 3% a year.
The best thing to do once you get your social security is to expat to another country
You just made it more confusing
I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?
i dont understand this. my brain is mush when it comes to math
Just raise the limit to rich contributors and don’t pay them unless they need it! They get all the tax breaks during their life and they won’t miss it like the poor do!
Stop and don't listen to this man there is no magical time to file for social security it is completely individual-based on each individual's situation there is no special time or Better time it is Only dependent upon your own Personal situation and there are thousands of situations everyone is Different
🤦🏻♂️ "There is no magical time!" - I agree. Who mentioned a magical time?
If we all knew the expiration date, we would know the best time to file. Take it while you can enjoy it and you’re your healthiest.
If I could opt out, I would sign my name in blood that the government could let me die in the street if I somehow ran out of funds.
I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?
I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?
All you need to do is live to age of 81