U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-01-2014, 08:31 AM
 
Location: Los Angeles area
14,018 posts, read 17,756,785 times
Reputation: 32309

Advertisements

Quote:
Originally Posted by popcorn247 View Post
There is something that I am confused about. If I were to take SS early, let's say it pays me $18,000.00 per year. So in the 3 years before I reach full retirement age, I would have received $54,000.00 from SS. How can waiting until full SS be better than having received the $54,000.00? Or, will my income from the income stream from 403b be counted against the SS prior to age 66?
First, the 403b income will NOT be counted against SS income. Only earned income (salaries, wages, tips, self-employment income, commissions) does.

Waiting until full retirement age can be better (although I am not recommending that in your case) if you live until your late 70's, which is the approximate "break-even age". It will take that long for the greater monthly amounts after full retirement age to make up for the $54,000 and start to move "ahead".

So anyone in his or her 80's who waited for full retirement age can look back and say, "Ah, I am now money ahead on Social Security". But you want to ditch a stressful job now while you are still young enough to do stuff in retirement. You can't retrieve that if your health goes to hell when you are 80.
Reply With Quote Quick reply to this message

 
Old 06-01-2014, 08:36 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,176,472 times
Reputation: 6696
Quote:
Originally Posted by Escort Rider View Post
I agree with jghorton. If the OP has been putting money into a 403b for 40 years AND will be getting Social Security at age 63 (already one year, or 8%, better than the minimal SS at 62), then we don't need to know the details about exactly how much money is in the 403b or exactly what the SS benefit will be. OP: ditch the stress and ditch the long commute (another source of stress). Your 41 year career is longer than that of many people when they retire.

So unless there is something you haven't disclosed, such as a large amount of credit card debt, what ARE you waiting for?
Just a correction here:
The 8% does not kick in till after 66, it is from 66 FRA to 70 that the benefit goes up 8% a year if you don't collect.
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 08:36 AM
 
71,778 posts, read 71,875,234 times
Reputation: 49341
the big wild card with delayed ss is the effect of getting those larger ss checks lumped together with rmd's when you have a substaintial retirement account.

many times you end up getting ss taxed if you were kind of at that dividing line as well as paying marginal taxes in a higher bracket then had the payments been more spread out.

if it gets high enough you have the medicare surcharges to deal with too on top of the taxes.

the calculations for all these scenerios is best left to the sites like social security solutions who for a fee can run all the scenerios.

we are going this week to see an advisor who can kind of work up all the options including any effects roth conversions may help us.
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 08:55 AM
 
2,627 posts, read 4,957,348 times
Reputation: 2225
Quote:
Originally Posted by mathjak107 View Post
the big wild card with delayed ss is the effect of getting those larger ss checks lumped together with rmd's when you have a substaintial retirement account.

many times you end up getting ss taxed if you were kind of at that dividing line as well as paying marginal taxes in a higher bracket then had the payments been more spread out.

if it gets high enough you have the medicare surcharges to deal with too on top of the taxes.

the calculations for all these scenerios is best left to the sites like social security solutions who for a fee can run all the scenerios.

we are going this week to see an advisor who can kind of work up all the options including any effects roth conversions may help us.
What is rmd's?
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 09:26 AM
 
Location: Brooklyn, New York
445 posts, read 1,247,628 times
Reputation: 525
If you hate your job, go ahead and retire. My own retirement was forced - I had worked at the same job for 27 years but circumstances had changed and it was no longer a good place to work. I grew to hate it and dreaded going to work every day. My husband and I had a talk when we were on vacation and he supported my decision to quit - but I was fired by text message while on vacation! Classy, right? I'm 59 years old and obviously not eligible for SS but I had numerous meetings over the past couple of years with my financial advisor who assured me that I could afford to retire.

I was/am a little nervous about health insurance. I did not have health insurance through my previous employer, so that was not a factor in my decision. Thank God for Obamacare, even as flawed as it is, because I have asthma and would have been very worried about coverage before the ACA. My husband is 66 and semi-retired. He's on Medicare and his employer covers us. I did have a very nice retirement plan so I left my former employer with a good chunk of change, and we also have rental income and no debts.

Since my retirement, I am much less stressed out. I have rediscovered cooking - I enjoy cooking for my husband every night. We can go on vacations whenever we want, without worrying about taking time off (my husband's hours are very flexible). My working environment was highly toxic and it just wasn't worth it. Plus, like richdor says, you will actually save money by not working. I live in casual clothes and don't have to pay for transportation.
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 09:42 AM
 
71,778 posts, read 71,875,234 times
Reputation: 49341
Quote:
Originally Posted by popcorn247 View Post
What is rmd's?
required minimum distributions at 70-1/2 from retirement plans that are deferred.
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 09:53 AM
 
Location: Los Angeles area
14,018 posts, read 17,756,785 times
Reputation: 32309
Quote:
Originally Posted by arwenmark View Post
Just a correction here:
The 8% does not kick in till after 66, it is from 66 FRA to 70 that the benefit goes up 8% a year if you don't collect.
No that is not correct. The benefit goes up 8% per year for each year past age 62 if you don't collect. (Or, which may be what you're thinking of, it is reduced about 6% per year if you think backward from age 66 to age 62.)

Edited to add: Here's a cut and paste from another thread where I used actual numbers to run the arithmetic:

The SS benefit at age 62 is 75% of the benefit at the full retirement age of 66. Therefore, one can look at the situation from both directions. For simplicity, let's assume a full retirement age benefit of $1000, in which case the age 62 benefit is $750.

1. We can figure the reduction from full retirement age (looking backwards, so to speak), which is 25%, divided by four years equals a bit over 6%. This is probably what Dave has in mind.

2. Or we can figure the increase from age 62 (looking forwards), i.e., from $750 to $1000. Adding that $250 increase to the $750 results in a 33% increase, being that $250 is one-third of $750. 33% divided by four years equals 8.25% per year.

I believe looking at things from the perspective of #2 above is more accurate because that is what the retiree is facing at age 62 as he or she decides whether to file for benefits or not. The benefit will increase 8.25 percent each year filing is delayed, up to age 66. And of course it will continued to increase until age 70 as well, but I have not looked at the percentage increase per year between 66 and 70.

Last edited by Escort Rider; 06-01-2014 at 10:12 AM..
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 10:23 AM
 
Location: Great State of Texas
86,093 posts, read 72,563,848 times
Reputation: 27566
Quote:
Originally Posted by Escort Rider View Post
No that is not correct. The benefit goes up 8% per year for each year past age 62 if you don't collect. (Or, which may be what you're thinking of, it is reduced about 6% per year if you think backward from age 66 to age 62.)

Edited to add: Here's a cut and paste from another thread where I used actual numbers to run the arithmetic:

The SS benefit at age 62 is 75% of the benefit at the full retirement age of 66. Therefore, one can look at the situation from both directions. For simplicity, let's assume a full retirement age benefit of $1000, in which case the age 62 benefit is $750.

1. We can figure the reduction from full retirement age (looking backwards, so to speak), which is 25%, divided by four years equals a bit over 6%. This is probably what Dave has in mind.

2. Or we can figure the increase from age 62 (looking forwards), i.e., from $750 to $1000. Adding that $250 increase to the $750 results in a 33% increase, being that $250 is one-third of $750. 33% divided by four years equals 8.25% per year.

I believe looking at things from the perspective of #2 above is more accurate because that is what the retiree is facing at age 62 as he or she decides whether to file for benefits or not. The benefit will increase 8.25 percent each year filing is delayed, up to age 66. And of course it will continued to increase until age 70 as well, but I have not looked at the percentage increase per year between 66 and 70.
Taking SS at 62 instead of your full retirement age is no different than retiring early with a reduced pension.

It's not that you wait to get more but that you decide to take it early and get less.
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 10:25 AM
 
Location: SC
8,793 posts, read 5,669,961 times
Reputation: 12805
Quote:
Originally Posted by popcorn247 View Post
I've worked 41 years for the same non-profit. I've been putting money into a 403b for 40 years (TIAA-CREF). I am 63 years old. I just can't continue working at this place! My emotional and physical well-being is suffering....boredom, stress, lack of appreciation, etc. and a very long commute (since 1978) has just about made me nuts!

I want to retire in a few months....and take early Social Security.....so many people say to wait, but I just can't.
Wait for what? Death? Creaky Joints? Bad Eyesight? No hearing?

If you have run the numbers and it works out so that your net worth is still increasing - or at least steady - when you reach 90, I say pull the trigger and go do what you want to do.
Reply With Quote Quick reply to this message
 
Old 06-01-2014, 11:42 AM
GLS
 
1,985 posts, read 4,849,660 times
Reputation: 2408
Quote:
Originally Posted by stillife View Post
...... My own retirement was forced - I had worked at the same job for 27 years but circumstances had changed and it was no longer a good place to work. I grew to hate it and dreaded going to work every day. My husband and I had a talk when we were on vacation and he supported my decision to quit - but I was fired by text message while on vacation! Classy, right? .......
Sounds like your employer never deserved you in the first place,.... but your husband does. Hope both of you enjoy your retirement while you are still young.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top