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I am going back and forth about filing for early Social Security benefits at age 63. I would like to stop working but could work longer because no one is forcing me to retire, and hubby plans to work until 66 or 67. Have any of you filed for reduced benefits before 65 or 66 and regretted it several years later?
Theoretically you would regret it if you lived to be older than 78. That is when the cross-over point is for you recovering more of your total insurance benefit in you life time if you had waited until you were 67 to begin your benefits.
I am going back and forth about filing for early Social Security benefits at age 63. I would like to stop working but could work longer because no one is forcing me to retire, and hubby plans to work until 66 or 67. Have any of you filed for reduced benefits before 65 or 66 and regretted it several years later?
It is a gamble every one has to decide for themselves in my opinion UR1972.
My dad took his social security at 62 years and received 12 checks before he died. He didn't get much of what he paid in. He was receiving $845 per month. Mom was a housewife and no social security was paid in for her. The good part was that she got 1/2 of his social security and received $442 per month for 21 years after dad died. She may have collected what he had paid in.
Because my dad died early, I also took mine at 62 years but was told by the social security people that I would be penalized because I had a teacher retirement income check. They were right as I started with $68 per month. That was 15 years ago and my ss check is now $180 per month. Part of my check pays for my Medicare premiums.
My wife took her ss at 65 and collected for 9 years before she died.
Theoretically you would regret it if you lived to be older than 78. That is when the cross-over point is for you recovering more of your total insurance benefit in you life time if you had waited until you were 67 to begin your benefits.
I retired at 61 and took early social security at 62, after calculating about the same 'break even point' -- No regrets and no looking back -- and I love being retired!
While you can easily determine your own trade-off math, your decision will likely hinge upon weighing-out the impact of the income-reduction on your lifestyle - vs - the importance of adding more years of 'retirement' to your life ... factored perhaps by your anticipated life expectancy.
Several things to consider and rough calculations:
1. Put a calculator to it. Retire at 63 with $x per month versus retire at say 67 with $y per month. Granted $y is larger but then how many years would it take to overcome all the years at $x.
Collect $1k per month at age 63 to age 75. 12 years at $12k per year or $144k.
Collect $1.5k per month at age 67 to age 75. 8 years at $18k per year or $144k.
2. If one could work say from 63 to 67 and not earn so much as to pay back (which limit ends at whatever age) and put in less time/effort doing so (which I did somewhat), then this could be fun/profitable but the catch is less time and less effort.
3. If one likes what they are doing (not just gets by with it) versus doing something else, then many would say keep working and collect at a later time.
All in all there is no black and white answer. It is very dependent on ones situation, desires, needs, ablity to control it, etc.
UR1972, I would encourage you to retire and start collecting your monthly social security check at age 63, especially if that is what you desire and if you will have enough money to live on without working.
There is no reason to keep working if you would prefer to not work at 63 and after, if you will have enough money to live on, if you do not especially enjoy your work, if you are worn out and tired of working, and/or if you do not need the automatic socialization and interaction provided by many workplaces.
I retired at age 62 and started collecting monthly social security at age 62. I am now 65 and have not regretted the decision for even one second. I love being retired.
One major difference is not being surrounded by an automatically available group of people - co-workers and clients - on a daily basis which makes a big difference in terms of frequent encounters and interactions. Just something to consider.
But I would definitely encourage you to retire and start collecting social security at 63 if that is what you desire and if you'll have enough money to live on.
if you retire at 62 you need to be able to afford to have you and your spouse live on the reduced amount for life .
if you retire at 62 and hold off collecting then you need money to cover you from 62 until you do collect.
either way 62 presents questions you need to address.
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