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The age 70, "silliness" is that if you wait till age 70 over whatever your full retirement age is, for many here is it 66, then you receive 8% more for each of those years in your final benefit amount and that increase can be passed on to your surviving spouse.
So there is nothing silly about it for some people.
The age 70, "silliness" is that if you wait till age 70 over whatever your full retirement age is, for many here is it 66, then you receive 8% more for each of those years in your final benefit amount and that increase can be passed on to your surviving spouse.
So there is nothing silly about it for some people.
You are absolutely correct! It is amazing the totally incorrect information that some people come up with. What Mercia (the uninformed poster) does not understand is that at FRA he can get [only] 100% of his benefits, but by electing to wait even longer to collect (beyond his FRA) he will collect much greater than the 100% (FRA) benefit...to the tune of an 8% increase per year, each year until age 70. That's not silliness, that is an absolute FACT!!! For most of us that is 4 years at 8% per year. (I don't know of any safe investment to get an 8% annual return!) Thus, if you have the resources (savings) where it's not absolutely necessary to collect your SS benefits, and you expect to live to a normal age or beyond...then it is best to postpone collecting SS benefits for as long as possible, and preferably until age 70 when annual increases cease.
Once you start getting it, that's the amount you'll get every month unless there's a raise. You can't "change your mind." If you wait until you're 66, you'll get a higher amount.
Well, yes you can. However, it isn't easy and is not cheap!
You can request that your SS be stopped so you can reapply, then you have to pay back every penny you got in the first place! THEN you can re-apply for larger benefits.
I don't see a time when this will work out but I could be wrong.
Japan, Male-79.0, Female-86.1, Average 82.6
Canada, Male-78.3, Female-82.9, Average 80.7
US, Male-75.6, Female-80.8, Average 78.3
Compute retire at 62 and live to 78.3. Then compute retire at 70 and live to 78.3.
Come on people. Bet on what the insurance companies bet on.....averages....LOL
Uh, you're kidding, right? The insurance companies base their premiums on the life expectancy as of the age you apply for the policy.
As of 2007, the average 62 year old male was expected to live another 19.4 years. The average 62 year old female was expected to live another 22.31 years. Quite a difference from the figures cited in your post.
Well, yes you can. However, it isn't easy and is not cheap!
You can request that your SS be stopped so you can reapply, then you have to pay back every penny you got in the first place! THEN you can re-apply for larger benefits.
I don't see a time when this will work out but I could be wrong.
Before people started to get really interested in this stuff - the SS website had a break-even calculator (since removed from the website). Like if you didn't take SS at the earliest possible age - and waited until full retirement age (for me and my husband - 66) - how long would it take you to "break even"? When my husband and I started collecting early - at age 62 - 2 and 4 years ago - that calculator told us that we wouldn't "break even" until age 78. My brother - who is good with math and spread sheets - will be eligible for early SS this year - and his own spread sheet analysis shows that he would also break even at age 78 if he waits until age 66. And that kind of analysis doesn't include any return on your money (if you're able to save any of it). For me - it was a total no-brainer. A bird in the hand versus a slightly bigger bird in the bush that I might have 16 years down the road (if I live that long)
Note that these calculations were for people who weren't working and "earning" income. Different rules might apply then. Ditto if there are 2 spouses in grossly different earnings situations. Robyn
Japan, Male-79.0, Female-86.1, Average 82.6
Canada, Male-78.3, Female-82.9, Average 80.7
US, Male-75.6, Female-80.8, Average 78.3
Compute retire at 62 and live to 78.3. Then compute retire at 70 and live to 78.3.
Come on people. Bet on what the insurance companies bet on.....averages....LOL
Wrong again!
When a person makes it to 65, their life expectancy improves to 83.6 years (82.2 for men and 84.9 for women). It gets even better at age 75. Those who make it to 75 have a life expectancy of 86.7 (85.6 for men and 87.5 for women).
Last edited by highcotton; 01-08-2012 at 05:23 PM..
Well, yes you can. However, it isn't easy and is not cheap!
You can request that your SS be stopped so you can reapply, then you have to pay back every penny you got in the first place! THEN you can re-apply for larger benefits.
I don't see a time when this will work out but I could be wrong.
The Social Security Payback Option was eliminated, effective December 8, 2010.
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What Mercia (the uninformed poster) does not understand is that at FRA he can get [only] 100% of his benefits, but by electing to wait even longer to collect (beyond his FRA) he will collect much greater than the 100% (FRA) benefit...to the tune of an 8% increase per year, each year until age 70. That's not silliness, that is an absolute FACT!!! For most of us that is 4 years at 8% per year. (I don't know of any safe investment to get an 8% annual return!) Thus, if you have the resources (savings) where it's not absolutely necessary to collect your SS benefits, and you expect to live to a normal age or beyond...then it is best to postpone collecting SS benefits for as long as possible, and preferably until age 70 when annual increases cease.
