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Old 07-23-2014, 08:21 AM
 
7,341 posts, read 16,662,001 times
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I took "early retirement" (SS) at age 62 b/c I was unemployed, had used up all of my UI and wife and I decided that some money coming in for me was much better than none. My age, no college degree, no certification and past surgeries were really going against me in finding a job. Even though it was a lower amount, I'm VERY glad I got it. On the other hand, my wife wants to work her full-time day job 'til she is 70 and then get "late retirement" and extra money to boot. I told her, "if you can do, go for it", unfortunately, the "getting up in the morning" is getting much harder. She thought she had a hard time getting up for work when she was younger, but, like other things that were done at a younger age, being in mid-60's isn't easy!
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Old 07-23-2014, 08:40 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,177,266 times
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Quote:
Originally Posted by nicet4 View Post
I'm now full retirement age and I am not collecting.

For now I feel like working and with a expected FRA benefit of $2,250 every three months I work without collecting means an additional 2% or $45 monthly for every month for the rest of my life. If I go to age 70, right at just four more years so it isn't that far away, I will receive an additional $720 every month for the rest of my life and that money is indexed to inflation.

If I go to 70 with my wife receiving 50% of my FRA benefit ($1,125) plus my $2,970 we should be able to live very comfortably on SS alone leaving all our savings to the spouse that survives.

But the biggest thing to think of is your spouse that survives you. If I pass first my wife will lose her $1,125 but pick up my $2,970 With what savings we have she should be able to live the remainder of her life very comfortably.
Do you realize that if you File and Suspend now at full retirement age, that you can still let the benefit grow as you said BUT it also allows you, in case something happens, To recind the suspension and recieve a lump sum of your back payments at your FRA,[so without the increase] but if you needed the lump sum you.

If you do this at least you have the option, while it otherwise does not affect your plan at all the other thing is if you do File and Suspend your wife can collect her 50% as soon as she reaches HER full retirement age.
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Old 07-23-2014, 10:33 AM
 
Location: Mount Airy, Maryland
10,484 posts, read 5,944,584 times
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Quote:
Originally Posted by highcotton View Post
Dave,

In my opinion, the direct answer to your specific question is - In most cases, YES!
Meh. In other words the average investor would be so bad at picking investments that his returns will result in no net gain or even losses each and every year for the point to be dismissed? I just don't see that. The average person at age 62 clearly has money to live on, or he would not be delaying his filing. So that money can either be tapped from his retirement account to pay for the scrapple and eggs he requires every morning or it can be left alone. And if it is left alone in the vast majority of cases it will grow. If the guy is that bad at investing then by all means take SS at 62. And if you are still working and do not need the money from either source I just can't see how a person could not make money with those monthly checks being invested via dollar cost averaging with a balanced investment approach in the majority of cases.
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Old 07-23-2014, 10:38 AM
 
Location: Mount Airy, Maryland
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By the way I do come off as someone who is trying to argue that filing at 62 is not necessarily the wrong decision. Now I get it, there is no right or wrong answer as it all depends on each individual's situation. And I'm not trying to convince myself or others to file at 62. I'm just trying to offer another look at things to the people who continue to claim it's an 8% yearly increase, which it is not, and to offer other factors other than the charts that do not consider other investment returns.
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Old 07-23-2014, 10:38 AM
 
71,811 posts, read 71,919,037 times
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The question was why didn't dr pfau include any investing returns in the chart I posted.

the answer is the investing returns are so personal and varied there is nothing to really figure. each person has to use that chart and then project their own returns.
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Old 07-23-2014, 11:30 AM
 
Location: Mount Airy, Maryland
10,484 posts, read 5,944,584 times
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Quote:
Originally Posted by mathjak107 View Post
The question was why didn't dr pfau include any investing returns in the chart I posted.

the answer is the investing returns are so personal and varied there is nothing to really figure. each person has to use that chart and then project their own returns.
Agreed. The problem is many (most?) don't think that way. They see the chart and conclude that it gives them the exact break even point without considering investment returns. I'm just trying to get people to understand the entire picture. It's not that much of a reach to predict a modest 4% gain on a balanced portfolio and do the calculations based on that figure. Regardless the charts do not tell the entire story, that's been my point.
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Old 07-23-2014, 03:50 PM
 
Location: Gilbert, AZ
3,194 posts, read 1,967,999 times
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Most people seem to look at this as a break even exercise. I think this makes sense in the case of someone who has no worries at all about running out of money.

The other way to look at it is using an income approach. People who are concerned about running out of money might find this to be a useful point of view.

Mike Piper looks at both of these approaches, under the Social Security tab, and then under "When to Claim Social Security"...

www.obliviousinvestor.com
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Old 07-23-2014, 04:11 PM
 
7,341 posts, read 16,662,001 times
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Two men we know, my brother and a friend of ours, filed for "early" at 62 even though their employment retirement income was very good. One retired from Ford Motor Company and the other from the State of PA. I think, if a person has a nice retirement income coming in, and can wait until 66 to get Full SS, they should. But, that is my "thinking".
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Old 07-23-2014, 04:16 PM
 
29,815 posts, read 34,907,142 times
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Quote:
Originally Posted by LoveBoating View Post
Two men we know, my brother and a friend of ours, filed for "early" at 62 even though their employment retirement income was very good. One retired from Ford Motor Company and the other from the State of PA. I think, if a person has a nice retirement income coming in, and can wait until 66 to get Full SS, they should. But, that is my "thinking".
A lot depends on what the incomes are depending on the variables at different ages and benefit selections. For couples it can be very different.
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Old 07-23-2014, 05:07 PM
 
Location: Kountze, Texas
1,013 posts, read 1,161,032 times
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Sadly, DH and I don't have a choice. He is currently a Federal retiree - he gets (and I will when I retire) a benefit that approximates our SS at 62 and stops when we reach 62 and can get the SS.
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