7 GOOD REASONS to File for Social Security Benefits at Age 62
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- เผยแพร่เมื่อ 22 ก.ค. 2024
- 2/3rds of all SOCIAL SECURITY recipients file for Social Security retirement benefits BEFORE full retirement age. Most of the time they should have waited. This video looks at seven good reasons to file for Social Security benefits at age 62, instead of waiting until full retirement age.
Questions to Ask A Financial Planner to Determine if They Know How Social Security Really Works
Please explain what the best age is for me to file for Social Security and Why?
Please explain provisional income to me.
What is the best age for my spouse to file for Social Security if her/his retirement benefit is less than half of mine?
What are Social Security Credits and how are they calculated?
What is a Social Security Breakeven Analysis and is this a good way to determine when to file?
Do I need to file for for Social Security for my spouse to receive spousal benefits.
What is the Survivor Benefit and how is it determined?
What is the payout percentage difference between filing at full retirement age and minimum filing age?
Note: If you financial planner does not know the answer to these basic questions, I recommend that you move on to someone who does.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
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The decision on when to pick an Adviser is a very personal one. I take guidance from “Gertrude Margaret Quinto” to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I've never met anyone who retired early (62) and said "I wished I would have worked longer". Life is short. I'm 60 and hoping to retire in a couple of years. Mainly, because I don't want to wait until I'm older and my health may possibly be worse, and I don't feel like getting out and enjoying life. I want to be able to do things, while I can. Nothing is guaranteed.
It is not guaranteed your lust for life will end early. Your health may possibly not be worse. You will want to do the things you can while older.
Another thing is if you don't need the $$$, it can be invested and used at a later date or given away to the grandkids, etc... A "bird in the hand"...LOL
@@DrSchor
More than likely though a person's health get worse as they age. Natural cycle happening!!
True a person who eats fruits, vegetables, doesn't eat at McDonald's or Burger King everyday, exercises, doesn't do drugs, etc... will be healthier compared to a person that is unhealthy. But the bottom line here is DO NOT wait until 70 to take Social Security.
Better than in the government's hand and cannot be passed down if you died.
My best friend turned 60 in December of 2023, and on January 1 New Year’s Day died of a major heart attack?.
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Mind if I ask you to recommend this particular coach you using their service?
thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Consider retiring overseas. Asia specially. Cost of living there is cheaper than the US.
@@eugeneestalilla9017India I heard is cheap
I have actually come to realize that I can receive my social security benefits even while working.
I collected my social security benefit so early simple because I started making my financial decision with an advisor; *Teresa Jensen White.*
With her financial management strategy, I have been so profitable. I urge you all to stop the stressing and get to work with her.
My advisor; *"TERESA JENSEN WHITE".* In terms of portfolio diversity, she's a genius. You can glance her name up on the internet and verify her yourself. she has years of financial market experience.
It looks like all the calculations and hypotheses and assumptions are based on mathematical components. But how do you place a dollar value on less stress, more pleasure, or more time with friends, family and pets when retiring early. My job was so stressful at age 62 I didn't think I would live to my retirement age of 66. I chose to retire at 62, live a little more simply, and save my own life. I am now 70 and healthier, happier, stress free, and going strong. I eat less, have lost weight, am more active and all my vitals are great.
Great job!
So true. I recently retired from a stressful job too. Am collecting a nice pension and social security amount is not too shabby. It was a good decision. I worked for 48 years (14 til 62). It's time to do something else
I’m 60 and detest being treated like I’m over the hill at work. My co-workers disrespect me all the time. I will have a pension, we have a good 401K savings plan and I won’t get full SSA benefit until I’m 67. I’m seriously thinking about getting SSA at 62 and getting out of this rat race before it causes me to have a heart attack. As my daughter says YOLO
@@scot60 DO IT!!!! You won't regret it, I promise.
@@scot60 I retired at 60 and lived off my savings and cashed out 401k and living off that....I finally get Social Security next month at 62...it will be 1600 a month...if you can afford it ,do it....I was so sick of my job of 39 years it was nauseating pulling up to the front gate every morning and wishing the place was burning down.....I may not live in a mansion but I have no stress whatsoever and could care less what time I go to bed or get up....once you get your mind right,you can start enjoying life...good luck
It’s actually pretty darn simple. If you love your job - Work as long as you enjoy it. If - like most of us - you hate or are stressed out by your job - retire as early as you can afford it. Slaving away at something you hate or stresses you out any longer than you have to is bad for your physical and mental health and will probably shorten your life. Enjoy the one life you have!
I agree with you 100%.
Damn good advice !
Read my comments greg..
"...if you can afford it" there's the rub. It's the health insurance that keeps me working to age 65.
Agreed, but if you don't love your job, find a better one, both monetarily and fulfilling wise, and keep working till 70, you'll come out far more ahead! When figuring out the breakeven point, don't forget the working income. With his example the difference at age 78 is $226K for retiring at 62, vs 486K at 67, vs 623K if you retired at age 70!
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Mind if I ask you to recommend this particular coach you using their service?
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
After 34 years, 9 months, 6 days as a Navy civilian employee, it was time to pull the plug when I turned 62 in July of 2020. No regrets.
Double dipper!!
I'm going to be triple dipper!! MilRet, GSARet, SS!!!!
My older sister, a lifelong cosmetologist, started receiving her SS at age 62. Worked out well for her since she died suddenly at age 66 from cancer -- within a month of diagnosis. Prior to this, she enjoyed traveling, camping, concerts & dining out, more time with friends & family, the beach, more leisure time at home, and less stress with her finances and job while still working during this time.
I retired at age 62 and although I am as poor as the proverbial church mouse I don't regret it for a moment. I am 68 and in good health, live in my own house, not in debt and only paying monthly bills, have the money I need with a couple of hundred bucks left over at the end of each month. You can always figure a way to live within your means, but if you're not living it doesn't matter how much money you have.
Sounds 'rich' to me. In happiness
that is all you need. i paid off everything own my hosue, paid cash for it. retried from the state of CA when i was 57. the pension is ok. $2100, not great, but more then i need to live ok. plus my health unsurance is with the state. free. with my SSI i'll get about $900 more a month. i'll be 62 in Oct.
TO be frank you should have been happy before hand. So the comment is mute. Hope you don’t live a longer happy life to run out and suffer in the end.. good luck!
Steve that is an excellent summary of life. No one is poor if they are rich with life. Be Blessed
@@Food4thought1234 Some people have very good paying jobs that they hate, or at least hate a good deal of the job.
I know, I did it. They offered an "early out" and I couldn't say yes fast enough.
20 years of being on 24-hour call takes its toll. The "awakening" of corporate America sealed the deal. Being forced to watch, "Love Me I'm Gay" videos was the last straw.
BTW, it's "the subject is moot", not "mute". Being mute is the same as being dumb, as in deaf and dumb.
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It is what it is! During this austere times, protecting one's capital is much more important than making money. Basically because if one loses one's capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over
You need to invest in order to protect your hard-earned funds from inflation. You need to invest now because your money is more valuable today than it will be in a year
@@Alejandracamacho357
@@instinctively_awesome8283 The time value of money means today $10,000 is worth more than it will be in the future. Investing in the stock market is the surest way of protecting your money from inflation and the best way to build wealth. The U.S stock market is the world's biggest wealth creator which always outperforms most economic realities in the long term.
@@marianparker7502 You can't really know the full risk rate except you are a Pro. Reason I settled for advisory and guide from a stocks guru, “Susan Agnes Hancock”. Never been the same again with my holdings
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I filed at 62 because I wanted to be able to use that money while still in good health.
A lot of people travel early in retirement
I agree. I don't see many folks in their 80s living it up on vacations.
@@cutehumor Correct but if you still want to make money this income cap sucks.
well said...
Good move! I filed at 62 as well.
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The pandemic has taught everyone the importance of having multiple stream of income, unfortunately having a nice paying job doesn't mean you are financial free or secured.
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Investment is that tiny line that separates the rich from the poor. The wise from others. I can proudly say I am wise man today because I can provide for my family through my investments.
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I might have lost a little retiring a couple years early but I got out of a high stress, stupidly run environment.
The loss was so much worth a little less total social security.
I’m with you. I retired early too, took a 25% hit on pension but I don’t care. I have peace and that’s priceless. I’ll apply for SS as soon as I’m eligible.
I was raised by my grandparents in the 60's and 70's. My grandfather was the hardest worker I'd ever met, he worked two full-time jobs to provide for my grandmother (the home maker), my sister and me. We didn't have a lot but we had what we needed, food, roof, serviceable and clean clothing. My grandmother and sister could even take a summer long vacation every summer which was spent at my great-aunts house in California. It was a great childhood.
At age 70 my grandfather retired, I was 16 at the time. The following year, at age 71, he unexpectedly passed away.
Everything in life is a gamble. Do what you want and hope for the best, all these numbers and calculation are just that, they mean nothing because we never know when our number gets called.
Very well said 👏🏻👏🏻
So true. I know of a lady who out of nowhere got crushed, her neck broken , and died by an Escalade that crossed the median and pummeled into the sedan that she was riding with her husband. Just like that and all we could see of her is what’s on the family video that was taken a week before.
@@heythave : So the Escalade repeated struck the sedan?! That must have been terrifying! Why would anyone do that?!
@@really2345 The Escalade was going the opposite direction on the other side of the street, but for some reason it crossed the median and went on top of their sedan and crushed the top. Texting, drunk driving, who knows?
The 100% Truth
Number one reason to file early. Because you never know how long you're going to live. It's not just about your health it's also about accidents that can claim your life.
I feel the same way.
Exactly
Having inside knowledge. I think this should be considered with how healthy someone is.
Will take like 15yrs to make what you will have already made at 62 if you wait to take it at full retirement age.
Exactly, I filed at 62 because I’m only the third male in 3 generations of my family that made it to 62!
45 years of waking up at the crack of dawn now I don't have to wake up until the crack of noon I love it!!! It's 62 for me!!!
Likely you'll still keep the same hours for the first yr or so. After several years, I now go to sleep when I'm tired enough or lack something interesting at the moment. Wake when I'm done sleeping. If I'm busy & engaged in something, I could work on it all night, then sleep for an hour or a day with no regard for the clock at all.
I've also found that I can easily lose track of the days since "weekend" is now an obsolete term & there's no defined payday.
The entire concept of time passing has changed.
You're still on crack though
Joking 👍
I'm 70 now, but I did my calculation and decided to get SS at 62, so far, I'm doing great. One very important thing to take into account is that as you get older less money you need. My recommendation is taking it as soon as you can. All you have to do is "adjust to your new income"
A big thing is having a paid off house. So you live free basically.
Daniel your monthly Federal welfare check would be much larger if you had waited until 70.
Yes,Yes .I'm 69 and aslo RT @ 62. For me i looked at what i could still make an avoid taxation.! For every yr that went by i could make more till thy set me at, the sky is the limit. I flip houses,have been since age 19, worked a full time job as well. Now i just move in and take all the time i need to. Most people have children,rember the cost? I have four,human any way. Retiring at 62 yr is the same or similar as having another child.I got through four so one more was easier. Budget is the key,get all debts gone befor 62 yr. I recall when the kids started turning 16,thy want a car,i got 3 points on auto insurance and at one point had two inexperienced. I thank the powers of be, i have verry good helth for my age,i take no prescription daily,only antacids.Time:I stared doing what the L i wanted when i wanted three yrs early! I never wish i could go back and chang a things.If your 56ish my advise is to git on the ball,62 is closer than you think. I hope that advice from some one who has been there done that helps in some small way.
Don.B.
Monthly-yes but total amount over the rest of your life not!
@@jackcampbell4631 If you don't need the money until 70, why collect early?
One part of the argument that I NEVER hear mentioned is what you RISK by waiting until full retirement age. Say you wait AND then make it past the break even point where you actually have a higher gross total. You have RISKED dying earlier without claiming a single cent, also risked dying between the time you finally started claiming and the break even point ( still getting less overall) AND mostly like have spent those twilight years pinching pennies, when you could have been enjoying the benefits of a program you paid into your whole life. START CLAIMING at 62 whether you need it or not. If you don't need it, FINE buy a gold coin once a month give to your grandkids, or buy stocks, let the money YOU paid into the program work for YOU.
I tend to agree with you. I don’t need the money so I calculated the break even assuming I invested my early ss benefit with a conservative 5% return and I come out way ahead. The only thing I still need to do is factor in income tax and the possible Medicare penalties if my income exceeds the base level. The government sure likes to make our lives complicated.
My numbers showed a break even at age 76. After two bypass surgeries I filled at 62. Every day since has been a Sunday and permanent vacation is lovely 😊
Nice work!
the reason they want you to wait is that it is more likely you die before collecting your payback.
the fewer people collecting at 62, the longer Soc Sec lasts till running out of money.
that, and if you tell people to collect late and they die, no complaints. if you tell them to collect early and they spend it all, they come looking to you with pitchforks
@@BarryObaminable What did Michael say? lol
@@BarryObaminable you're kidding! who would have thunk?
I had 1 bypass at 61.
I retired at 60 and collected SS at 62. I feel so good after retire. I don't have to worry what day of the week, I don't have to wake up by alarm clock and the utmost is I don't have to listen to someone (boss) anymore. I have been traveled around the world and stay any place that I like as long as I want. My suggestion is if you can afford to retire early, do it.
nice work!
agree. i retired at age 57 from CDCR CA correctons after 20 years and get a good pension, plus my helath insurane, but i'll get some SSI. i turn 62 this Oct. i love not having a boss, though my last 5 years i was A nursing supervisor. but still had the head nurse of the whole prison over me. And the medical DR of the prison. still i am so glad i am retired now. no more crazy cry baby inmate patients. i went back to work twice in the last few years, both times becasue i was bored. once to drive the local bus. did it for 6 months hated it. 2nd time to work in a casino. i lasted 3 weeks. no more. never work again
That’s what my plan retire at 60 then collect ss at age 62.
Amen!
@@dencioz55555 yes, i just turned 60 and am retired.
I was blessed in every way when my back said, no mas! 62 was a blessing on the calendar. Mentally, I was ready to live smaller because I recognized my behavior with money. The more I have the more I spend. Nice to not be so wasteful and practice what I actually preach. Simple is so nice.
Funny thing is I just came across this video same period I met *Jessica Marie Gibbs* my phone must really be listening to all my conversations
You don't have to be shocked, Jessica Marie Gibbs as helped so
many newbies become millionaires
through tradin
How does this cry/pto tradin stuff really works and how do I make good returns from it?
@@fredwilson2489 I would recommend you get started with a professional that will trade for you while you get the returns
@@triciahall3213 thank you, Do you have an idea of any realitic professional I can start with that's trust worthy?
@@fredwilson2489 I would recommend my current *Jessica Marie Gibbs financials*. She is currently earning a lot for me and her responses as well.
The timespan from 62 to 70 is prime retirement enjoyment years where you can really use that money. If you wait too long, you will be too crippled to get out and enjoy life. It doesn't take as much money to sit home on the couch!
Good perspective
I retired on a state pension in 2013 at 57. Because of health issues (diabetes), I choose to collect SS at 62. I'm quite happy with my choice.
That’s good to hear
BETTER TO GET MUCH MORE LATER! PLUS THE INCREASES ARE BIGGER TOO. AS THEY HAVE TO PAY YOU, MORE!!
Bigger checks for the guy changing your diaper- what a great deal!
I retired at 62 after checking how much money i would get from soc sec and another pension. I own my house and have some savings. I knew it was a good decision when i made it, and 5 years later i have been living great. I have done some traveling abroad, i have worked on my house and cars and i like to spend time working in my garden. The travel is a luxury I can afford because the other things are low cost, mainly sweat and give me a lot of satisfaction. I have 2 kids which I help with, maintaining their cars and the occasional financial help. I get up when i want, go to bed when i feel tired, eat better because i cook and have the time. After 5 years i checked my savings and I have more money saved than when i retired. I lease a new car every 3 years, nothing too expensive but fun, and i have my old fun car that i work on and take for a drive to the coast, 25 miles away, when i get bored. I haven't bought many clothes since i retired and have been slowly working my way through my wardrobe trying to wear out all the shirts, socks, underwear, jackets and pants i had from my old office job. My kids keep buying me socks and underwear so i think i won't need to buy those until i reach 80. Covid sucks as i had a 3 month trip around southern Europe planned, I spent several months in 2019 using the internet finding the BEST cheapest places, hotels, train, car, museum deals going, the airfare would have been the biggest cost. I hope to live to be 100, and i spend time to keep myself fit and healthy but something bad could happen, but my family does not have a history of Dementia, Parkinson's or Alzheimer's, and no history of being hit by a car.
I watch several TH-cam videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hand
i'll advised to trade with the signal of an expert. it's more safe and profitable, i have made over $437k within 3 months investing with the signal of a reliable broker.
@maria sandra ;What is the name of your broker and how do i connect with him or her ?
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@@bartoszdobroslaw9774 Wow that was easy, i found her website and left a message for her . i hope she reply me. thanks.
Always buy higher dividends paying stocks, if it’s up you can sell and make some capital gains, if it’s down just wait till it comes back still you get a dividends. And also if it’s down by more . That’s my experience how to pay in stock market.
I did this exact math for my wife when she asked me when she should file. I just told her if she waited until full retirement age of 70, her break even point was about 82 years old and about 77 taking it at 67. It was a no brainer for her considering the fact that we both know that you don't spend as much money on entertainment and travel when you near the age of 80. Also factored in that tomorrow isn't guaranteed!
2 things, FRA is not 70, for most people its 67. Approx. 8% more per year after 67 up until 70. Yes less on T&E but usually much more on health care.
Then why wait until 70???
@Karl with a K Karl....I'm going to apply at 63..December 27 will be my 63rd birthday... So January 2023 I will put in my papers...thanks for the advice...I'm going to take it🔥🔥💯
@Karl with a K I got you 🔥🔥🔥..I’m going to take your advice..was struggling with when Ishould draw social security..was trying to wait until 66 or 65 when it’s tax free I believe..however I decided that you gonna pay taxes on something until you die...besides I can bank the social security and live off my pension until I need to tap into the social security..meanwhile I’m building a stronger savings also..I will be 63 in December 2022..a “young and young looking” 63 I may add..you helped me make the decision...I know I won’t regret it..hope my rent don’t skyrocket in the process but I’m sure I can work that out too...thank you Mr.Karl with a K...❤️❤️❤️❤️❤️
@Karl with a K Yes sir..you have helped and convince me..GOD bless you and let's enjoy this retirement 🔥🔥🔥🔥
I filed at 62 since I have worked since I was 11 years old , sometimes 100 hours at week, sometimes multiple jobs... I spent 40+ of those years helping make business owners wealthy ...
I still work part-time and can just enjoy it!
It was in May 2020. Since I was diagnosed with heart issues and a breast mass... made me know I made the right choice...
I put off medical care because of my job... now I may not live long enough to get to enjoy my retirement... money isn't everything if you don't have your health...
That’s absolutely true. Take care of yourself?
If you don't have your health, nothing else matters. Live well as long as you can, Pat Legg.
I hope your health improves and receive hard earned benefits you more than deserve. :)
Pat Legg may God keep you well and allow you to enjoy your retirement or partial retirement. You certainly earned it!
I hear you loud and clear brother, God bless you.
I took mine at 62 and never regretted it. Do what I want when I want ! Pay all my bills, eat well, live well ! You’ll wind up living better, longer, not having to work another eight years at an advanced age just to die early and collect a few more dollars a few more months before you go !!! Don’t listen, get out, enjoy what little time you have left ! The extra few bucks aren’t worth it.
Investing in the stock market is the best option to make a passive income. Virtually all the markets are crazy, most people pay more attention to the shiniest position on the graph, I’m keeping a diversified portfolio.
To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal.
@@helenoliver4838 Remember, diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline. Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.
@@greenquake11931 who would you endorse? I've been in the shadows for too long.
@@greenquake11931 Thank you so much! Found her webpage and left a message. Hopefully, she responds.
@@raymondbarnes5264 Welcome.
Took it at 62. Am now 72, not sorry at all. Who knows how long I have left. This is the reality of life.
Im enjoying social security at age 62... it’s a wonderful life
I'm 59 and have been working fulltime since I was 15. I'm applying for SS at the age of 62
If you have other sources of income (ie: savings, 401k, IRA, dividends, rental income) to complement it, it makes great sense. Have a friend who did that, works part-time and is actually doing better than working in a lousy, high-stress job with one income. Now they have two incomes. A lot more peace of mind.
Your checks will just DOUBLE. BETTER TO WAIT.! PLUS THE INCREASES WILL BE LARGER! BECAUSE YOU WAITED. BECAUSE YOUR CHECKS WILL BE LARGER. THE INCREASES ARE LARGER!!!
Wise!
My dad died at 71 and my mom died at 72 years old. My younger brother has had 3 heart attacks and does not drink alcohol or smoke. Before you start counting beans maybe look at your family's health history. I'll take mine at 62.
@@frankharris1649 You are doing the right thing. I took mine at 62 as well.
My best friend claimed at 62 and died a week before his first check arrived in the mail.
You had me at the math at the bottom of the screen, in the first few seconds. I'm a bit mortified that I didn't think of doing this very simple math myself, you sir are doing people a lot of good with your videos, glad I subscribed.
I went for 62 and am loving my retirement working for others. I continue to write books and sell them at Amazon
I'm filing at 62. No reason to give Congress more time to cut my benefits so they can take another pay raise.
I began receiving my Social Security benefits last month. I filed at 62 and glad I did. The money supplements the hospital pension( which I began receiving at 55) from my years as an RN working in Emergency Room ,Neurosurgical ICU ,,the Burn Unit , and Trauma ICU. UPDATE As of Feb 18,2021 am credit card debt free thanks to
the relief provided to me by the Social Security benefits.
Good move on your part Ken.
Or raise the retirement age again.
@@fredbretz7703 You are so right about that.
That's assuming you die at 78. Most people do not. Average means nothing in this case.
I’m glad my husband took it at 62, he was able to partially collect for 2 years before he passed away in an accident at 64.
So sorry for your loss, Margie.
Yes, my husband died at nearly 61, he was not allowed to have a government pension. Luckily, we retired early with private pensions and savings to travel for 4
years before he passed away suddenly. Very sad. His government pension went with
him.
You just don't know what's round the corner as the saying goes.
Sorry to hear of your loss, Margie. My Dad took SS benefits at age 62 and passed away at age 67 in 1987. If he had listened to the "experts", he would have gotten a lot less from SS than he did. Since I am physically like my Dad, I did the same with taking SS benefits at age 62. I have no idea if I will live an average lifespan or not but I do know that if one does that, the benefit that they receive from SS will be the same whether they choose to take it early or on time. It's a question of more smaller checks vs. fewer bigger checks but the total amount remaining the same.
I have no idea how SS works would I qualify if I will only work for 27 years I will stop working at age 45 I'm currently 35 and I will claim at age 62 so for 17 years I will not have a tax return I will have 0 income and just live through my savings can I claim when I turn 62?
@@banccp8652 I think that you would qualify with 27 years in the program but there is a gotcha! built into this. A calculation is done that includes your top 35 years of income, so you would have 27 years and 8 zeros in your calculation. Mathematically, averaging in a zero reduces the final result considerably and you will have 8 of them. If you can find an SS benefits calculator online, put in your income
for those 27 years even if you have to include estimates of future earnings. Be reasonable to get the most accurate result. That will
tell you your approximate benefit. Then add up any other types of retirement income that you have to see if that produces an amount
upon which you can live. Add in plenty of contingency factor money because inflation is likely to be worse going forward than it has
been in the recent past.
Visit the SSA web site to see what info you can find there. They might even have a calculator you can try to see how your benefits will
look when you are 62. Notice that the SSA has been telling people for a long time that SS benefits were never meant to supply us with
all that we need for a comfortable retirement. It is SUPPLEMENTAL income only. It will supply about 1/3 of your needs in retirement
with the other 2/3 coming from savings and investments plus any private retirement plan you might have, such as a 401k, 403b, 457, etc.
It’s always a gamble, as we have no idea what tomorrow holds. However, I REALLY enjoy my work as a civil engineer. My current position is so low pressure, I get to travel, and I work on my own in the field. There’s never anybody looking over my shoulder or micro-managing me. The company pays my food and lodging, provides a truck, and pays for fuel. I feel like I’m paid for doing my hobby. My only advice to younger people is DON’T be afraid of doing what you really like. There are naysayers out there who may try to shoot down your dream. Forget them and find someone who supports your goal.
I agree. I am starting my 37 year as a teacher this month and many people especially other teachers don't understand why I am still teaching, but I enjoy the students and enjoy the curriculum that I teach. As long as it is still fun to go to work each day, I will continue to be there.
YES! I had a decent paying job as a geologist/geology supervisor for a state survey for 39 years....I did not retire because I disliked my job or the people....I disliked the ever increasing micromanagement style by the higher ups, the constant boring mandatory weekly and monthly meetings, and the changing attitudes of the bosses (first tell you one thing, then a day later tell you something else). So at age 61.5, I left, took my benefits in cash and my retirement, and social security at 62...boss made several offers for me to come back, and after finding freedom, I never looked back. I loved my job, 95% of it was self guided, and no crap, but sometimes it was a pain, but mostly play, with state vehicle, decent per diem, for my own projects....which were of serious benefit to the citizens of my state. Now I do what I want to with NO boss! HA HA
Thanks for words of wisdom
You are one of the lucky few who truly has a "great" job. For most unfortunately, that is not the case. Each person's circumstances is different. It is not a one size fits all decision. My mom was a VP at HSBC Bank. She had long 12 hour days and was under a lot of stress. I suggested she retire early and she did. Within a few months of retiring, she looked 8 years younger!
As a financial advisor for the past 30 years advising clients, among other issues, strategies for optimal social security collection - thank you, excellent presentation and I appreciate that you mentioned each situation is unique and nuanced.
Here is a good reason to file at 62. I want my fn money back!
LOL
I would upvote, but you currently have 62 upvotes.
It looks like you are popular!
I filed at 62 at the max payout which allowed my IRA to grow untouched.
@@SkepticCat-pz1zz That's a strategy worth considering,
Your quality of life at 62 versus 70 can be huge. You want to be able to enjoy that extra income. I also have no desire to live in a nursing home for ten years. Kicking the bucket a little earlier is fine with me.
Okay, thanks! We're sending "Moose and Rocco" over to your house now.
Amen Roland 👍🏻
Don’t need the money need the health insurance
We don't know when "we will kick the bucket". You may live to 100.
Everybody’s situation is different. I feel more secure knowing that my benefits will be that much greater when I enter my eighties.
I took is at 62, I am 76 now. My thought was , I could die at 63 like my Mother. I am happy with how it worked out.
your thought should have been: i am not my mother. it would have worked out better if you waited for the larger check, which you would be getting now.
I had a cousin die last week from cardiac arrest at the age of 50, brother in-law died of a heart attack at age 42. You just never know ! I’m 53 and plan on filing at 62.
Totally
Yes. I died and was resurrected from cardiac arrest at age 36. While being the picture of health and living a healthy Spartan lifestyle and the arrest happened while jogging on a treadmill.
As long has you have a FEW dollars saved file at 62.....other than that who can afford to????
@@Torgo1969 Ever hear of Jim Fix?
RIP
My coworker retired and started receiving his social security and pension 8 months after his 62nd birthday. He was very happy. Had big plans. Went for his annual check up three months later and found out he has MGUS which is on the multiple myeloma (bone cancer) spectrum. It's benign now as his numbers are very low but may eventually progress into full blown multiple myeloma. He's doing fine now. But anything can happen. So if you can, take your social security at 62. No years are promised to you.
Imagine how much you pay for your health insurance since you are not covered by Medicare until you reach 65 Part A at no cost for hospitalization only, Part B at retirement age 66-67 which cost $145.80 today. Plus you have to buy Supplemental Insurance ($225)/ month to pay for what Medicare will not pay + Rx medication!
@@MBihon2000 As long ss they meet certain requirements, people are covered by their job even after retirement at 62 or 55 for that matter until they're forced onto Medicare at 65.
100% sure no one can collect pension plans from past employers until age 65.
Many die before collecting a dime.
My mother paid 40 years and didn't get to collect.
My husband's boss died his last day of work pulling his parking sign with his name on it out of the ground.
very true
I filed at 62, seven days after my first check I had a heart attack. Doing fine now, but I'm glad I was home when it happened and not at work.
Statistically, most people would be better off having a heart attack at work. If home alone, having a heart attack could be disastrous. So glad you are okay!
So glad that everything has worked out for you!
You provide some of the best common-sense advice - backed up by numbers - on the Internet. I appreciate you sharing your knowledge.
I think that filing early so that one can enjoy life--and possibly travel--while they are healthy is a valid and often overlooked reason to file early.
That is probably the #1 reason in my mind.
Agreed. Especially if one had prudently saved or had a decent pension, no debt, etc, and therefore didn't need the higher absolute monthly amount gained by filing later. Early filing might then facilitate increased recreation which a budget-driven saver might not otherwise feel comfortable allowing themselves to do. Major medical issues become much more likely after 50 years of age.
good point.
val 8742 100 percent
@@soundbreak7 That's a very good reason to file early.
I am claiming at 62 because I am tired.
I really enjoy the Holy Schmidt videos! Great practical advice and really appreciate the approach in tone and substance. I retired at 6 months short of 62 from a corporate position in the US and did not realize the stress and workload I carried until it was actually off my shoulders. Now I am able to focus on my mental and physical health out of the cubicle and working on my homestead in Brazil. No regrets whatsoever....
Thank you for sharing that. Retirement is on my mind (52 now) so this was good timing for me. I hadn't framed that question the way you did, so now I will research this to answer my questions. You got the ball rolling.
Keep in mind the greatest risk you face as a retiree isn't dying.... it's running out of money. Cost of living increases never keep up with actual inflation experienced by retirees. Assisted living isn't cheap. And in 2034 or thereabouts, there may be automatic 23% cuts to SS payments unless congress takes action. Do you trust congress to do the right thing? I'm approaching 70 and have held off taking SS. I consider it a growing annuity to help me offset inflation and increasing medical expenses. No one really cares if you end up homeless. Having extra money makes the time you have left, comfortable and secure. I have several friends that took it at 62 and now wish they had waited. Their purchasing power has been decreasing ever since they retired.
turned 57 two weeks ago and just stumbled onto this site; perfect timing. just not sure that I can make it five more years as a healthcare administrator... have begun looking into becoming an ex-pat in a less expensive country.
Health care professional here! 3 more years for me...plan is to live in Arequipa Peru. Rent a very modern condo overlooking the snow- capped volcano 🌋 and clear blue sky! rent + utilities+internet+food about 1200 a month. Plan to explore South America from that base. 🙌
I figure my cost of living right here on my farm beats anything over the borders.
I'm 66....funny; was a tax accountant myself. I started collecting the minute I turned 62. My older brother (5 yrs older) told me I was nuts and should wait until I was at least 65. I told him he was nuts for two reasons; First, who in the hell can predict the future? You may die tomorrow....hence, take it now. You earned it. Second, read the actuarials of the Social Security Administration. The average number of monthly checks collected by a "typical" recipient is 18. Doesn't take a rocket scientist to know what that means. My older brother started taking his SS at age 67. He just passed away one month short of his 70th birthday. Take it now.
good perspective
Where did you get the 18 checks being received by the average SS recipient? I haven not see that statistic and it certainly doesn’t jive with my experience.
@@LTVoyager I was a tax accountant for nearly 25 years...beginning back in the early 80's. Back then, the SS Administration used to publish those figures. They have since taken them down, because it scared too many people. It is very true, however. Although the life expectancy in the U.S. is "officially" near 78 today...with Western diet, et al involved...I'd say it is closer to 70. I don't have a crystal ball...but, I have had enough experience at 66 now....take the damn money as quick as it's available to you. My brother and I had arguments about this all the time. He collected 22 checks....yet, from only a monetary standpoint, he lost over 4 years of income. I'm a business person; First rule of business - Take the money.
@@scott3837 As a former accountant, you should be decent with math. Since SS checked are issued monthly, 18 checks would mean that people on average live just 1.5 years after starting to collect SS. That is simply not possibly mathematically. Even if everyone waited until they were 72, which most don’t, the average number of months collected would be at least 72 even for men whose life expectancy is 78 or so depending on which statistics you look at. And given that many start collecting in their early and mid 60s, your 18 checks number is simply BS.
@@LTVoyager Love to chat with you...but, frankly, I don't have time to continue this conversation. As I said...back then, you started collecting at 65. It was their figures, not mine. And, yes...that meant that the "average" recipient collected 1.5 years worth of benefits. It is what it is. No one can predict the future; especially when it comes to one's life span. Work the numbers all you want...me?...I'll take the money right now. If you can predict from today, how long you're going to live...or, someone else for that matter...then, you are way ahead of me. Like I said; my older brother argued this with me ....all the way up to his untimely passing one month before his 70th birthday. So, I would say that he fit the predictions. He merely passed up on roughly $70,000+ in income for not taking it at 62. Besides, today's dollar is going to be worth more than tomorrow's.
I did the calculations!! I figured out that it would give me more money earlier! If I waited till 65, it would take me about 6 years to get to the same amount I earn at 62! Smart move!!
The best Social Security advise I have seen. I use a financial adviser, worked at my job (great place and people) until 69 and started with SS at age 70. Health great and volunteering. So far so good. I followed my 45 year old plan.
advice
The biggest hurdle for most folks is the cost of health insurance before your eligible for Medicare. Retiring before 65 years of age means that you or your former employer will be picking up some or all the cost of health insurance.
I found that to be the biggest single expense before age 65 years old.
It should be mandatory to teach financial planning to all high school students prior to graduation. My wife and I had to teach ourselves. It had helped us make prudent decisions before our retirement at age 61.
Schools don't want to teach that to high school students because they want them to rely on the government in the future for all their needs...aka socialism. They will pay all their earned money to taxes and be taken "care of" by the United Socialist States of America under Biden and Obama and Soros. The new world is comig here fast. Schools only teach Critical Race theory and liberalism and how to hate capitalism.
@@KB-ke3fi You don't know what your talking about schools do not teach students to "rely on the government" they barely cover the government at all and certainly now how the US system is "socialism for the rich and corporations" and bread crumbs for the masses.
@@KB-ke3fi hahaha
@@KB-ke3fi You are 10000% correct KB. From kindergarden to college....kids have stepped into the brainwashing machines of these leftist teachers and administrators. The last two generations are lost for sure and the socialists are going for the knockout punch now.
Great post. I've been saying the same thing for the last 20 years. I've been pointing my kids towards the FIRE movement (Financial Independence Retire Early) for 10 years now and wishing someone would have done it for me back in high school. I'd have been retired years ago already. High Schools teach almost nothing about investment and financial responsibility. One of the major reasons so many kids now days, think college should be free and everyone but them, should pay for it.
As for the healthcare, if you can get your taxable income down, you can lower the cost of healthcare substantially on the Obama care sites. Best advice I can give, is to have some tax free income in your plan. Me personally, I have Roth IRAs and I plan to sell my house to pay for the first few years of retirement. Just as an example, a couple could have 24K in income, another 15K in social security and another 30k in savings / Roth IRA and pay no federal income taxes and get health insurance for 100 bucks a month or less. The 24k is the standard deduction for a couple and Social Security & Roth distributions aren't counted as income. For me, down sizing and having no mortgage and paying no taxes on the 69K of income is going to put me on the plus side of what I'm making now and I'll end up paying a lot less for my healthcare than I am now while I'm working.
The 78.6 years number is life expectancy at BIRTH. A better number to use for estimating how many years an individual has left (absent more specific medical information) would be something like the SSA actuarial life table which shows expected remaining life expectancy at a given age. At age 62 it would be 20 (M) or 23 (F) more years.
absolutely correct!
This is the most important stat and wasn't mentioned in the original presentation.
What about the age of the surviving spouse? If your spouse is much younger than you, then waiting until age 70 makes a big difference on survivor benefits.
This was the best breakdown I have seen on this and I have seen quite a few.
I’m 58 and 1/2 years old.
Can’t wait until 62!
I retired at 54 and signed up for Social Security last month so...my advice is retire as soon as possible because it's great waking up every morning and NOT having to go to work!
Can you file for SS at 55?
@@blackjoy6507 No, but I started collecting my pension at 55, that is the minimum age requirement.
@@williammiller8317 Ok.
Good rule of thumb. Just do the opposite of what SS recommends. Do the opposite of most things the gov't wants you to do. Get your money up front.
Lol. Thanks for the perspective.
I think there is a lot of truth to this because I, personally, think they didn't want to fix social security so the goal was to condition people to take it as late as possible, knowing they will just take the advice of "experts" without considering what the motivation of the "expert" might be to say that. You're still going to be in the stock market for 20 years after retirement. Mitt Romney is actually on a committee to fix social security so I have faith that it will get fixed. He is the money guy after all.
@@bhvgcfx459 it’s going to take more than Mitt to fix social security
I feel just the opposite. The return on investment vs risk makes delaying a big win in my book. My wife and I are both doing it at 70. I am a retired electrical engineer and my wife is a CPA so the math was not hard for us.
I’ve pinned a link to the top of these comments to one of my videos that suggests you are on to something.
Great video! Several other reasons for filing early might be: 1) the net present value (NPV) of money and, 2) the future insolvency of the Social Security system. These could be especially important for high-income earners who get a large dollar payouts.
If you get your money early and invest it in an income paying asset it might also appreciate. Or, get your money early before the SS system collapses or they institute ‘means testing’ for higher income recipients.
I worked in finance for decades and we always said, “One dollar now is worth more now than the promise of more dollars in the future.”
One dollar now is worth more now than the promise of more dollars in the future.”
Everyone agrees that common sayings are not always true:
1. If you spend that money now, you won't have it to invest. (opportunity cost)
2. You must have the discipline and intelligence to invest it well. (by definition, half the people have below average intelligence.
Your #1 is a very good point. How much of, say, your favorite mutual fund will you be able to buy with $100 today as compared to 5 or 8 years from now? Perhaps more than you'd be able to buy with $150 later. How much will roof repairs cost now compared to later? How about dental costs? $800 tomorrow might actually be worth less than $500 today.
There is NO "future insolvency of SS System".
At WORST will be a combination of higher taxes, raised age to FRA, and less than -10% cut to benefits.
Great job of explaining the options. Two comments:
* The average life expectancy in the U.S. is 78.6 years AT BIRTH. When you're 62 years old, your life expectancy is 81.7 years (80.3 for men, 83.1 for women). When you're 67 years old, your life expectancy is 84.9 years. So for the average person, the break-even for claiming benefits at age 70 will always be less than your life expectancy. The list of reasons for claiming benefits early will still apply - and also look at the comment from "michael smith" for another great reason.
* This seems to assuming that when you start claiming benefits, you are also retiring. If you are 62 years old and plan to keep working until you're 65, the calculation is different because of SS rules on claiming benefits while still working. It would be great to see an explanation that takes that into account.
Thanks for your comments. I know there is some inflation adjustments for SS, but you know if they properly track the real inflation rate? Until recently this would not have been an issue, but with the current CPI and PPI readings I suspect that the means for adjustment that the fed uses will leave a wider gap in the real inflation experience by folks.
Not anymore, with COVID19 you can go anytime.
Covid retired me at 62. I had worked since I was 13. Except for taking minimal time off to have 4 kids, I had always worked. I am loving retirement. I make enough to do what I want to do since my husband and I have been debt free for the last 15 years.
that's awesome
You brought up a great point - being DEBT FREE before you retired allowed you freedom to retire ! Many people don't realize that or just don't plan adequately.
Living within your means when you're young will allow for a comfortable retirement if you save for it !
That's awesome. I'm going to be enjoying retirement real soon. Need to take money when we can and start living
@@carolwells9409 Yes, if you are fairly certain that you will die before you reach 72, then collect early. Otherwise, either spend savings or keep working. You'll be far better off when you live to be in your 70s and beyond.
Filed at 70 and happy. Have done everything in retirement that I wanted to do since retirement at age 65 seven years ago. In great health and will be going strong at 90.........I think.....Let's see what happens. Exercise, eat healthy and maintain good health. After all health comes before wealth in my book.
Many are not worried about dying but worried about living. If you live a long life you may need that vital extra cash to maintain the lifestyle you are accustomed to so if the total all around circumstances are positive wait until 70. My spouse is 4 years younger and she is currently drawing a spousel benefit at 50% of my SS and at 70 she will start drawing off her own. I went the first 5 years in retirement without SS to age 70. My spouse is doing the same but getting a nice check each month. It works for us.
I very much agree. I retired at 52. I now invest much of my time in my body/health and I am in better shape than the vast majority of people 1/2 my age. I hope to live past 100 so for me it makes no sense to take SSN before 70 as I don't need the money before then and hopefully I'll get the bigger SSN checks for 30+ years.
Thank you for what you do! Social Security should always be the cornerstone in retirement planning👍🏻
Simple, down to Earth explanation, thank you!
We have a refrigerator magnet that says, "Life is uncertain....eat dessert first".
+Dana & Barb Hutchison I want one of those!
@@HolySchmidt ^^
that would have helped a lot in my youth... but I don't think it would have convinced my mom.
OMG! eat dessert come up died early.
That's why I missing all but 8 teeth.
I filed at 62 and it’s the best decision I’ve made. I retired at age 58
i retired from CDCR CA at age 57. in 5 months i am 62. i wont get a whole lot of SSI but some,. ill take what i get at 62.
.
I did the break even analysis ( using EXCEL ) for myself when I was approaching retirement age. It showed me that deferring my SS from 64 to 70 years of age, I would only break even on that decision at the age of 90. The likelihood of me attaining that age is practically nil, for several reasons. This was a no-brainer for me. I started receiving benefits at 65.
A number of people posting here are commenting on the total they receive over their lifetime, like they got ripped off if they didnt' get more. But , the difference between 62 and FR is pretty large and if the $$ you get at 62 isn't enough to cover your expenses and you still HAVE to work, then you really haven't gained much. I have two family members who started receiving their benefits at 62 , but they were both having financial difficulties and needed the $$. I'm hoping to hold out to FR as long as I'm in good health and working isn't making me miserable. I don't want to have to "unretire" , so once I retire even if it's only 5-6 years before I kick the bucket, I want to be DONE and not worried about $$. I meet too many elderly people at my job every day who are constantly worried about $$. Many of them are getting by on SS alone. SS was never meant to be a retirement plan. It was supposed to supplement your retirement and reduce poverty among the elderly, which it has done.
I'm very sorry, but you didn't calculate your break-even age correctly. It was not 90.
Everyone's break-even age is the same, for any two years. It makes no difference how much your benefit actually is. To clarify, the break-even age is not based upon each person's individual income or benefit amount. It's a simple formula. That formula is this:
_# of months until break-even = # of months difference between the two ages x (1 - the early retirement age reduction amount) / percent of PIA relative to the early retirement age._
Let's calculate your break-even age, from 64 to 70.
I will assume your FRA is 67. At the age of 64, the SS benefit you receive will be exactly 80% of whatever your FRA amount is.
# of months difference between the two ages is 72. ((70 - 64) x 12 = 72 months)
1 minus the SS reduction amount if you collect at age 64 is 80 percent. (1 - .20 = .80)
Percent of PIA relative to the early retirement age is 44% (20% reduction + 24% increase for waiting 3 years to age 70 to collect)
72 x .80 / .44 = 130.91 months until break-even age... or about 10.9 years, from age 70. (Almost age 81.)
You can also do it this way, which arrives at the same answer: number of months difference between the two years x the amount you collect at the earlier age divided by the difference between the amount you collect early vs late. In this case we have: 72 months x $800 at early age / $440 difference.
Excellent start... 78.6 is very simple and problematic as you mentioned.
Use 78.6 years + 1 Standard Deviation to determine the age of death. 50% pass before 78.6, 83% will pass before the new age, and only 17% live beyond this age.
However, I doubt the curve is a normal distribution, so an even better approach would be to determine the age at which 85% (pick a number) of people are expected to pass.
My dad got me my first job when I was 9 working for a service that cleaned houses and barracks on Walker AFB in Roswell,NM in 1956. I worked pretty steadily since then until I turned 61 in 2008 and retired. I filed the next year, put the check into paying for a new pickup I still have in 2020. I don’t miss the extra income I would have had at all.
I am 62.5; expect SS to be approximately $1550 after taxes; I also have Military and Federal Service retirements and debt free. Peace out at 63.
Nice work.
As a federal employee that’s seems late. I’m on track for 57 or before! Thank you. For your service and enjoy the hell out of your well earned retirement.
Outstanding!
@@joshhaas2410 well just watch out for something called GOP, government oversite program, I have paid into SSN since 1976 and now they are telling me I only get 40% of my earning because of my government disability check. Its my money but those MF are going to keep it and dole out what they feel I should get. Its a rigged system glad I have my other money. SSN is horrible
@@donnaporter587 I will indeed. That’s crazy. Is it specific to the disability check? Wonder what about that makes that happen.
I took SSA at 62 to improve my income stream without touching retirement assets. Military pension, PT/OC work which I still enjoy provides a comfortable income. I’m using the SS payments for flight lessons toward private pilot’s license. The added income gives me for flexibility in the activities I pursue today.
Question. When will you touch your retirement assets?
@@networth00 You have to start minimum disbursements at 72 whether you want to or not ,or be penalized heavily. You may already know .
You have been able to do this and keep your income under the $19,000? Has anything ever happened that has cost over and above your allowed income level? That's my biggest concern.
My neighbor took SS at 62 and lives off that and lets his 401k grown instead. That's what I want to do too. He has been doing great for the last 5 years. Retired at age 61.
@@annemitteness7426 I don’t have work income that comes close so SS is untouched.
Life is tough so enjoy yourself at every opportunity! My health went south when I attained the age of 63 ! I’m now 77 and it has been one thing after another ! But who knows how long we have so take those trips !
I plan to file at 62, and devote 100% of my time to my side hustle (welding).
@@sunnydays4966 Holy crap. English, do you speak it?
@@vr6swp I just going to delete my comment but had to put this one you clearly a snob suit, and not going to be a old man breast, I work on line lifting 75 lbs parts welded all day. It not retirement work. Lot of men all ages welled.
@@sunnydays4966 Not sure what a snob suit is. I'm currently employed as a mechanic, and my side hustle is TIG welding, making turbo manifolds, intake manifolds and turbo piping. I worked as a production MIG welder years ago in between mechanic gigs. You're not telling me what that's all about because I already know.
@Ingrid Alexander LOL thanks
File early, no one is guaranteed tomorrow.
No truer words were ever spoken
That's what I did. It does you no good if you don't survive to collect it.
💯
I suppose that is true.
Totally my plan, get it while still healthy enough to enjoy it.
Great video! Take it early and enjoy the Outdoors!
S.O.S. over and over .. i started @ 62 my wife waited until 65 and was about the last folks to get those bennies at the age of 65.. the difference between her check and mine is quite substantial is illustrated in this video .. do i have any regrets ?? no i have none.. over the long haul it all works out about the same.. we had a fair to midland nest egg put away and are quite comfy in retirement.. we paid off cars and mortgage prior to embarking on this life style. .what we did not see coming was inflation starting in late 2021 until the present with no end in sight. had i seen this impact coming we may have reconsidered our plans..at any rate, good video and well done !! ttfn
The difference between retiring at 62 compared to 67 is $70,800 ($1180/mo x 60 mo.). That's why I started my Social Security retirement payments at 62, I still worked until I was almost 66. The extra income sure came in handy. I turned 79 last March and still going strong.
No, that's not how it works. Your social security payment was permanently reduced by taking it at 62, not just for 60 months, but for the rest of your life. You may have seen an adjustment up at a later point because you continued to work and pay in until 66, but you are not getting the full amount of money you would have gotten if you hadn't claimed until 67. You were collecting for longer and the point at which the extra payments you've gotten is less than the total extra money in each payment past 67 is the "break even point" - 78 years. The longer you live after 78, the more money you have "lost out on". That's the point of Schmidt's graph and the talk on life expectancy. Doesn't mean it's not worth it if it gives you quality of life when you need it. But if someone lives to 93 and collected at 62, there is a big difference in the total by many thousands of dollars.
The difference between 62 and 67 is ,less time enjoying yourself, specially with this COVID19.
@@JK-ig9tr Plus, your getting taxed higher if your still working and receiving a paycheck right ?
@@JK-ig9tr I collected early at age 63 when COVID layed me off. I wasn't sure if I was getting back to work because of COVID so I decided it's best to collect now. But instead I started a business and am making much much more now. SS sent me a letter stating I had to pay back the money they gave me last year because I made too much the 1st year that I wasn't sure what my income would be. So I did pay it back. I asked them if I continued to collect and just keep paying them back because I can no longer retract my decision after 1 year of collecting do I still get more from SS later because now I am making much more and my 35 year average which they go by will drastically increase when I finally call it quits. The answers I found and also got from SS is YES. It may take a year to make the corrections to receive that money later but it will work the same as if I filed later in life as long as I'm returning the money as the rules call for if you make more than the limit each year. As long as you ase paying in to SS that money will be added to the calculations yearly. The do ask that you let them know if you know how much you are going to make each year so they don't send you a check or a partial check depending on how much over the limit you are. Sure, you may lose some money based on how quick SS makes the necessary corrections. But not much.
But talking to people who know the rules is what's important. SS workers on the phone DO NOT always know the rules in certain situations. It's best to educate yourself 1st then find a specialist deals with SS rules all the time. They're out there.
@@JK-ig9tr Yes, the break-even point can vary but for the majority of those enjoying average or better health, collecting SSI at age 62 will result in a loss of money after that break-even age.
I personally filed at 62 following a heart attack. I know many that decided to wait for that few extra bucks and died, collecting nothing after paying into it for a lifetime. The ultimate ripoff that many don't consider. I was told that by retiring at 62 my break even point was fourteen years later. I also had another retirement that pays MORE than Social Security, Imagine that. Maybe if we were to stop trying to support the world and took batter care of our own we could all collect a much better income. We might even make it up to the poverty level?
Exactly ditch, I did the math and it would have taken me 15 years to break even. Good for you !
At least you can control who and how you want to divvy out your own money to. With the SS system, the damn government gives away our hard earn tax paying citizen's money to the illegals! It pisses me off to no end. We have no say in it. They provide hospitals, schools, low income programs, etc. to them. Clearly they do NOT belong here. That is why they are called ILLEGALS!
your alias saids it all support for the rest of the world provides for wealth generation across the spectrum the very shovel you use to dig is made in china the profit margin is about 300% meaning you pay 40 dollars for the piece the company you buy it from pays 10. see theres more than enough to keep this capitalistic system alive.
@Karl with a K Clever idea. Who should do these videos? Thanks
I am 62 and made the last two comments as I am on my sons TH-cam TV account and appreciate your teaching expertise video's on filing time issues. My main focus is paying off credit card debt so my debt to asset ratio is positive keep trying and would prefer all credit debt paid and a clear mortgage. Honestly I believe I will work until I die which is only my fault for living above my means 20 years ago when I should have been saving.
Thinking of genetics as a guide to lifespan thinking like an Insurance actuaries would, suggest is I make a lot and get debt free which I am trying but living in the US is costlier now. Being Debt free alone would help my stress and health and possibly somewhat enjoy the back nine.
It seems wrong knowing what I paid in based on statistics of what I will collect I should be able to collect to help pay off my debt, but NO ONE SAID LIFE WAS FAIR
Thanks for these videos. I'm still relatively young, at 43, but I am in the early planning stages and really appreciate the content. I do enjoy work so, at the moment, I don't have plans to retire early. 67 seems ok to me......but obviously that can change depending on circumstance.
I felt great at 43, but less so as I'm nearing early retirement age. Your outlook and plans adjust, sometimes in ways you like and sometimes in ways you don't, as you age. You'll likely think differently about how much you want to keep working as you age.
A person I worked with several years ago retired at 65 and lived less than a year . I'm jumping ship at 62 .
There is some logic to that
A close colleague of mine and I were planning to retire together, she would be 65 and I at 58. Unfortunately, she was diagnosed with stage 3 lung cancer at 63 and lost the battle at 64. It was heart breaking. I bailed at 58 and enjoy my everyday and plan to file SS at 62.
A very good reason
@@supernovahk19 that’s very true. Don’t let the government stats lie to you. The government re allocates the money they remove from you through 30 or more years when/ while you are working and then propaganda you to wait 15 or 20 more years before you should take distributions is for the stupid. Taking back control of your own money is of every one’s priority. Rome fell, and history can and always repeats itself. I lost a very close aunt 61 and her husband my uncle from dad’s side (62) years of age cancer related. 20-30 years remaining after retirement isn’t that long to live, and how many good years is questionable from person to persons. God bless, live long and prosperous ✌️
Yep... that happened to my dad. Retired at 65, died three years later at 68. He did take a reduced amount so my mom would get a share. But the elephant in the room is many people die early... SS never says how many... where does that money go if not to the family?
A friend and former co-worker of mine retired at 63 in December 2019. She was looking forward to her retirement years. He husband, who had already retired about 5 years prior, passed March 2021 and she passed April 2021. Life is not promised to any of us. Take what you can and transition to an easier life with less demands so you can enjoy some part of life without the pressure to perform for others.
Great reply👍👍
That's a data point of 2 out of millions of folks who lived far past 76. Some contest rewards include a choice of getting a lump sum or monthly payments for a lifetime. Many of those who are not older than a certain age, foolishly select the lump sum, thinking "Hey, you should take it when it's offered."
Knowing simple variable equation math can result in your collecting tens of thousands of dollars over your lifetime.
@@davepaturno4290 I am a former Financial Advisor (stockbroker) with Morgan Stanley. We would usually advise people to have $1 million in assets (savings, money in the bank, properties, securities, etc.) before retiring. Since that is not always possible for many people, the next best thing is to take the lump sum which has more "dollar" value than over a period of time. Take that sum and invest it. If people do not want to invest in the stock market, at least purchase rental properties which will provide a steady stream of income and whose value will generally increase rather than decrease over time. Taking the sum in smaller amounts over time usually results in less value on the dollar.
@@rozchristopherson648 I have to wonder why annuities are so popular. Couldn't you take monthly payments to pay off rental property? The main point of my previous reply is that "taking the lower SSI payments at age 62 and run with it" is most often not the best advice unless you can somehow take that money and get more than 8% returns. I know a person who bought 16 houses that he rents. When I asked him what his net income is after all is said and done, he replied "about 8%".
@@davepaturno4290 8% plus the value of the properties, should he sell them. One should always try and take whatever money one has and place it where the value of it will grow rather than remain the same or decrease. Most people will probably not opt for retiring at 62 because they have not planned to do so and do not have enough money to do so. But the planning to retire needs to start at age 18, as soon as one legally can work full-time or right after college. Most people should plan on starting small businesses that can grow from beyond a "side hustle." Purchasing a house by age 30 with a 30-year mortage to be paid off by age 60 is also best. Most investments (securities) are not going to render beyond 10% unless one is extremely lucky. The point is to be focusing on what can grow or be sold for more money so that by the time one is 60-65 years old, there are enough sources of income and assets to sustain for perhaps another 40 years. It is entirely possible to live to age 100 so retirement income might have to last that long. Real estate is usually a good investment and holding on to a mutual fund is always best. On the insurance side, long-term care insurance is wise because a critical illness after retirement could wipe out accumulated assets, and result in liens against property if nursing home care is required. For this reason, assets may need to be placed in trusts to avoid the need to "spend down" for nursing home care through Medicaid. As to annuities, this is a complicated topic since there are various types of annuities, and their pay structure and disbursement should be thought out carefully in advance. Rental property should be paid off with the rents and enough rent should be charged to pay property taxes as well as repairs/upkeep and provide some monthly income for the owner. Like I said, the main thing is to grow assets and then protect them from being encumbered by a critical illness later in life.
One key issue that people 62 have is they might not have a choice. Their job decided they should retired and it is near impossible to get a good job at 62. So it’s either file early or work at Walmart. Age discrimination just does not get flagged.
Ageism starts at 40.
Home Depot, Lowes, Ace, Publix...
I started to draw at 62. I am 68 now. The last 5 years my health has been failing. I am so glad I did things like travel, fish, ski, and so forth while I still could. There is no going back. If money is the issue and not the freedom ... Then you can do some work and stay under the threshold for tax purposes. But Holy Shmidt ... at least think about and figure out what is best for you. Thanks Holy.
Your health fails because you listen to your butcher
So many retire at 62 and are bored silly. They get a job. They have lost out on a lot of money by collecting too soon.
You are using the wrong life expectancy. 78 may apply to everybody, but once you reach 62, you are expected to last more like 83.
If you remember algebra and variable equations, you can figure out break-even points very easily. Some other notes:
1. If you have a fairly robust 401k or IRA savings account, you can retire after age 59.5 and draw down on that account without the 10% penalty.
That way, you can hold off on collecting SSI. I retired at 63 but have not collected SSI yet. See #2 for another reason.
2. Look at your family history to use as a guideline for your own longevity. Most of my relatives lived to be near 90, and since I have lived at least as healthy a lifestyle as they have (with the addition of more exercise), I should be strong and healthy into my 80s.
3. Those who work until full retirement or 70 years of age need to factor in all that extra income when determining the break-even age. It can be sooner than the ones on the whiteboard shown in this video, and your accumulated wealth after full retirement can be far greater.
I have never heard of anyone taking retirement early and regretting it. Good presentation, but each individual and their situation is so unique, just too many variables to cover in a video. Learn about finances and how to manage your own. I find it so odd that so many people spend years getting an education and many more years working “the grind”, yet seem to have little interest in how to manage their resources. If you don’t know how to do it, it’s never too late to start learning. Good luck to all and God bless.
Very well said!
just turned 61 this november and if i’m alive in 2021 december 31st will be my last work day.
That will be quite a New Year's celebration
Congratulations 👏 👏
Lucky bastard....just kidding! Congrats and God Bless!
I retired two months ago at 60. I am the happiest I have ever been. My health is better without the stress. I can sit outside and smell the roses now. I was a teacher for 38 years. I do have a pension and an IRA. I may take social security at 62 and enjoy the rest of my life.
Nicely done
I retired at 56.
I don't miss work.
I'll take SS at 62.
I love waking up at noon.
I loving going to the park, laying down in the shade looking up at the beautiful blue sky.
Going to 7 eleven for a drink.
You know, I haven't comb my hair in 3 years.
Great, and you are saving money with no haircuts in the forcast 😱😁😷
@@keithborden4049 yep $$$
best comment string.
thanks for the medicine.
As you said ....do what is right for you!
You can look at it in another way. For example In this chart, if you collect early at 62 you get $1180 vs delaying at 67 you'll receive
$ 1789. The difference is $609 per month. Will get back to the $609 later . If you collect a t 62 vs waiting 5 years at 67 to collect, you'll be ahead by $70,800. So $70800÷$609=116.3 months which is about 9 years. The break even point of collecting at 62 vs 67 is 76yr old. To me, I want to enjoy while I know I'm still healthy, collect early if you can.
Took mine at age 62,because of covid 19,it’s been helping a lot ...
Fantastic
Covid is a good reason to file at 62.
My guess is covid 19 was a major factor for many that were forced to take it early. Actually, another tragedy that you don't hear about.
Covid was the reason for me too. They closed the business that I worked for.
This is exactly why i did all my living and having adventures in my 30s to mid 50s. Lived and worked all around the world. Lived on rental incomes. Didn't really have a normal, steady type job till I was 57. My late dad used to say society has it all wrong. We should enjoy in our youth and work in older age when the wanderlust isn't as strong. He thought i wasn't listening, but I was. Im 60, plan to work until at least 68. Now, i enjoy the structure of a work day.
Nice perspective
That's very good advice. I was in the military and they somewhat have that perspective. I traveled and basically enjoyed each new duty station I wish I had of stuck in out and retired, however I would been in at least 1 more war the the one in Iraq so I'm glad i got out and raised my kids. I work hard now 2 job and 2 retirements I want to stop at 67 live off my retirement and claim my benefits at 70 .I'm 56 now
When I was a teenager I was dating a woman 33’ years old who was a smart educated woman but she used to tell me work hard and do nothing while young so you can enjoy a rich life in your old age but she never mentioned or thought of dying early or anything like that. Men in my family are lucky to live past 60’ so another year and a half I’ll retire.
Woohoo!!!
@@youtold7727 that is child abuse... she was 33 and you were a teenager? Gross and inappropriate.
@@Beach-Star-Experience-550-YT It's always appropriate for a potent male to take a fertile female when chance comes.
Your videos are so helpful. Thank you for making things understandable for us. ❤
If one is still working, it makes no sense to take SS early, unless you are making a super low wage.Your payment is reduced $1 for every $2 you earn above $19,560.
One thing that could be added to your video is the income limits for filing early both at 62 and the year before full retirement age. These must be considered when discussing early retirement. Nice video.