Delay Social Security? Take It Early? Wait Til 70?
ฝัง
- เผยแพร่เมื่อ 15 เม.ย. 2024
- Today we examine one of your most significant retirement decisions: when to start claiming Social Security benefits. Should you claim early, delay until age 70, or choose somewhere in between? We bring clarity to this complex topic by presenting detailed financial calculations and scenarios to illustrate the impact of each choice on your retirement income.
Questions? Email us at Hans@CardinalGuide.com, call us at (919) 535-8261, or visit our website at cardinalguide.com/
Show Notes: cardinalguide.com/wp-content/...
H E Scheil & Associates doing business as Cardinal Advisors holds an insurance license in all 50 states and DC. Listed below is the license # in each individual state. Alabama 675461, Alaska 100118081, Arizona 1800012348, Arkansas 100104794, California 0K32569, Colorado 464622, Connecticut 2463129, Delaware 1119857, DC 2887040, Florida L087124, Georgia 159539, Hawaii 445296, Idaho 507076, Illinois 100333675, Indiana 721739, Iowa. 1002056691, Kansas. 272705345, Kentucky 738674, Louisiana 614407, Maine AGN249408, Maryland 100048542, Massachusetts 2006645, Michigan 0104206, Minnesota 40411912, Mississippi 15016382, Missouri 8325733, Montana 100126008, Nebraska 100224332, Nevada 1007341, New Hampshire 2315847, New Jersey 1557889, New Mexico 1800010640, New York 1382342, North Carolina 1000092550, North Dakota 2000136230, Ohio 1028975, Oklahoma 100190853, Oregon 100237062, Pennsylvania 589318, Rhode Island 2309277, South Carolina 1907911784, South Dakota 10017719, Tennessee 2252224, Texas 1963111, Utah 513447, Vermont 1038574, Virginia 129027, Washington 864498, West Virginia 100107166, Wisconsin 100192273, Wyoming 275179 - แนวปฏิบัติและการใช้ชีวิต
A valid argument can be made for claiming at any age, because the age of death for yourself and/or your spouse is unknown and unknowable. If you apply the philosophical argument of "Pascal's Wager", one would generally delay as long as possible (up to age 70). The basic premise of Pascal's Wager is to consider, "What if I'm wrong" and choose which is the less worse outcome. If you decide to claim later and you die earlier than expected, you missed out on receiving money, but your still dead. If you claim earlier and live longer, you may not have enough money for a pleasant retirement. The choice is yours.
I don’t use the age to hit break even point in my consideration. I am waiting until 70, as I am doing Roth conversions in hopes of fending off IRMAA. Also having viewed my grandfathers retirement, I am aware of the potential effects of inflation and therefore feel a larger ss check would be of benefit to me. So after reviewing my situation, this is MY decision.
doesn't that start currently at over 100k? is your decision because you plan to have that much income while retired? or you are converting also to avoid RMDs?
I am married, looks like married is over 200k for IRMAA unless I am reading it wrong. No way my wife and I will spend even 100k while retired...
@@blanketwodahs6741 see I am single, living comfortably on my pension, because I lived below my means my whole life, also have dividends and interest income, then I will pull ss at 70. I should be able to move a little bit before rmds. They will kick in at 72 for me. And then I’m toast. I wasn’t aware of irmaa until about a year ago. I was already worried about taxes. My income never hit gross $50,000
When I was working.
It's not all about the Most Money? People focus wo much on the $$$? It's about When you get This Money? Alot of the people that Delay SS until 70 don't really need the money at all? $ millions in the bank? Alot of people take it at 62 Need the money to survive. Sone want the money for their Go-Go years? Others don't think they will Live long enuff for it to matter? Maximum Life not just Money!
Sounds like a parable from the bible.
I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!
Fun example: Couple retires at 66. Monthly budget requires $6,000 a month. If we take SS at 66 it yields $6,000 a month. Amazing. If we delay until 70 it requires we spend $360K of our own funds (6K per month for five years) IN ADDITION to not collecting $360K from SS (6K per month for five years). At age 70 we are now 'down' $720K. But wait, with a now 'higher' SS amount coming in at age 70, it "only" takes until age 87 to recoup the $720K ($360K+$360K). HAHHAHA, No thanks. We took the $6,000 at 66, we avoided spending ANY our own funds, keeping them invested and growing, and live quite comfortably on SS without ever touching our $XMillions nest egg. Oh also, read the book 'Die With Zero' by Bill Perkins.
That sounds reasonable. Congrats.
That’s my plan. Taking it at 66 & 4 months. I don’t need the money, it’s going into 529 plans.
@@user-el7ps4zt6r How perfect is that! Well done.
Point is valid. But it's 4 years, right?
@@patclark6032 Guess it depends. Retire January at 66, 67, 68, 69, 70 with a December birthday.
Good video but I think you guys missed the mark regarding SSA annual COLA adjustments. Hans made a couple offhand comments about inflation impacting SSA retirement benefits, but COLA is a big part of the decision process. The SSA statement is a snapshot in time and doesn't take COLA into account. When adding the 8% annual delayed earnings credit to several years of COLA adjustments, delaying taking SSA retirement benefits is substantial.
Exactly. This is a point that is often overlooked (by myself as well). Thanks for the reminder.
Thanks for this explanation. I was born in 1957. My Social Security statement shows the same retirement amount at age 66 years and 6 months as it shows for age 67, no increase for 6 months on my statement. For those of us born between 1954 and 1960, does the increase "freeze" for the months between our FRA and age 67?
always good stuff here, looking back, I should have delayed SS instead of taking it at 62...
You might want to explain further, to help others - I realize you can't change your own situation but maybe it will help others facing that decision since so often people who took it at 62 flood the comments sections of videos like this with their "No Regrets!" mantra. Typically they're only a few years into retirement and haven't experienced the loss of purchasing power older people have...
I might not even pick a date. I might just delay until I start getting concerned about my other assets. Which may or may not be an issue as I am quitting work @ 55.
Otherwise I am generally take it early to make some use of the money. Seems like it'd be a waste to delay until 70 and then pass away @ 75.
We are retired for 2 and 4 years. Wife took SS at age 63, I’m planning on waiting till 70 to get the higher survivor benefit.
If both members of a couple have work records, usually one should delay a while(the high earner). The other can take earlier.
This split strategy creates 2 large advantages. Early filing creates earlier income and mitigates portfolio withdrawals. The delayed benefit will be much larger and goes till the last person dies. So if one partner dies earlier(which is the norm) the low check goes away. If that one low check was taken earlier, they likely would have collected more, than if they had also delayed.
For us in today’s $ we will get $7000 as a couple when I hit 70, with a $4500 survivor benefit. That is more than enough to “survive” and creates a scenario where the portfolio is only needed for discretionary expenses!
Sounds reasonable to me. What might a couple do in the event only 1 of them qualify for SS benefits? Congrats.
@@heart_and_sole Why would only one qualify? Do you mean one spouse only qualifies on the other spouse’s record, and not on their own. In that case delaying at least somewhat is usually best, although probably not all the way to 70.
@randolphh8005 ..Correct on meaning of Qualified...Certainly many factors in play...The idea of drawing early to allow portfolio to keep on growing seems a larger upside vs the COLA adjustments on SS benefits...if a downturn hits the market, ride it out with SS...also IF one spouse never contributed into the system and qualifies for half of the qualified spouse's mthly payout...could that portion be rightly thought of as Free money...These are thought scenarios, as I enjoy finance topics.
Tom & Hans: Using the gentleman in the example along with the following assumptions, if he were to die after retirement when he was 68 years old. His wife would already be claiming her own SS and he would not have started his, yet. Please talk me through how and when she would have to claim her survivors benefit. Thank you.
The wife would be eligible for the amount he would have gotten if he claimed the day he died, since he is past FRA. She gets his delay credits.
@@randolphh8005 Thanks
Does your software take into affect the present value of money, ie you are getting more by waiting but its inflated dollars vrs today's dollars, and the idea of investing todays benefit vrs waiting for higher future benefit. Can you just tell me how long I will live (and my wife) so I can make the right move? haha.
For those who really want to wait.. and you have a birthday in months jul-dec.. you can wait up to age 70.5, because when you file you can option to get up to 6 months back benefit paid at once. If you are maxing out Roth conversions and don't want the SS money in this years tax filing, then this helps push out the taxable benefit to the next taxable year, thus allowing more Roth conversion to fill up your tax bracket.
How much is substantial IRA mean?
We will probably start at FRA (67) to avoid getting a reduction because we still earn income.
Take it at 62. It sure worked for me!
This is completely not the topic but knowing what I know now about whole life insurance with cash value, it would have been better for the government to investor money into individual policies so that we can have that compounded interest with the cash value and live off of that. I know that sounds insane but a trust fund doesn't seem like the best way to go!
If I stop working at 63 years old, draw off of cash and retirement funds, is there a possibility that my top 35 years actually decreases my check at age 70?
No. Your top 35 years remain constant, your FRA benefit is constant, and your age 70 benefit is constant; except for inflation adjustments
If I wait for full retirement age will I still be taxed on it?
Yes that's strictly a matter of income, age is not relevant. You might check out David McKnight's work on getting SS with zero taxation.
Thank you
If it is just about money, work 2 jobs until you are 70? LIFE IS Not just the Money!
Social Security is longevity insurance. People watching videos like these are more likely to live longer and would benefit from delaying to age seventy. It another way for you to take and pass the marshmallow test again.😸
This will not be paying past 2032 as US Gov will not exist in current form as of Dec 28, 2032. Taking it early and relying on gold and private sector annuities for longevity, far more sustainable than Fed Gov.
Wow! Spoiler Alert?
I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!
I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!