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Old 09-14-2014, 05:53 PM
 
Location: Indiana
314 posts, read 541,851 times
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Just do the math, if you take it at 62 you will get money earlier, and still get the same amount of money you would of if you took it later up to the age of 79. Only after that do you actually get more money...
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Old 09-14-2014, 06:01 PM
 
71,704 posts, read 71,829,507 times
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Don't forget to consider both survivor benefits and spousal benefits by waiting if married.

Filing early has little options you can utilize.
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Old 09-14-2014, 07:00 PM
 
29,784 posts, read 34,885,423 times
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It isn't just the total payout over the cost of your life that's important. It is also the yearly payout towards the later years of your life. Aging with financial dignity.
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Old 09-14-2014, 08:57 PM
 
Location: Grove City, Ohio
10,135 posts, read 12,395,557 times
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Quote:
Originally Posted by Hemlock140 View Post
I will be eligible in 7 days. Since I am making more than I ever have in the past, enjoy my work, and the location, and have barely vested for a pension, I expect to wait until at least 67. When I get there, I'll evaluate whether I still enjoy working and may stay longer but not beyond 70. Every once in a while I run the numbers on our retirement system website, and I found that staying another 6 years increases my pension by $800/month, and that will help a lot. That means age 68.
The difference between 8years is a 25% cut from FRA or a 32% increase over Fra benefits.

Assuming that your FRA benefit is estimated to be $2,250 if you take it at 62 you will get $1,687 but if you work just 8 more years your benefit will be $2,970.

There is a lot of difference in standard of living between$1,687 and $2,970.

That's a difference of $1, 283 monthly which in most situations is tax free. How much would you have to save to produce a guaranteed monthly income of $1,283 with cost of living increases for the rest of your life?

But it isn't just about you, if you are married that goes to your spouse if you die first.
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Old 09-15-2014, 08:51 AM
 
29,784 posts, read 34,885,423 times
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Quote:
Originally Posted by nicet4 View Post
The difference between 8years is a 25% cut from FRA or a 32% increase over Fra benefits.

Assuming that your FRA benefit is estimated to be $2,250 if you take it at 62 you will get $1,687 but if you work just 8 more years your benefit will be $2,970.

There is a lot of difference in standard of living between$1,687 and $2,970.

That's a difference of $1, 283 monthly which in most situations is tax free. How much would you have to save to produce a guaranteed monthly income of $1,283 with cost of living increases for the rest of your life?

But it isn't just about you, if you are married that goes to your spouse if you die first.
That's why the 62/70 strategy is so popular with many folks. Only one can get survivor benefits so the highest benefit person should wait til 70 and who ever survives will get that amount. Once I hit 70 my wife will be Golden (would be already) if I pass first. She will have both of our pensions and my age 70 SS as fixed income I will have the same if she passed first.
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Old 09-15-2014, 08:53 AM
 
16,437 posts, read 19,147,848 times
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Originally Posted by mathjak107 View Post
Don't forget to consider both survivor benefits and spousal benefits by waiting if married.
Very, very important, and a mistake I have already made that can't be undone.
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Old 09-15-2014, 09:54 AM
 
Location: land of ahhhs
277 posts, read 298,471 times
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Quote:
Originally Posted by TuborgP View Post
It isn't just the total payout over the cost of your life that's important. It is also the yearly payout towards the later years of your life. Aging with financial dignity.
Bingo! I don't understand those who want to "get everything that's coming to me" as has been expressed often. I might be missing their point, but to me, having a life sustaining cash flow if I live as long as I hope to is key.
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Old 09-15-2014, 12:31 PM
 
Location: SoCal desert
8,093 posts, read 13,240,703 times
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Quote:
Originally Posted by mastequila View Post
Bingo! I don't understand those who want to "get everything that's coming to me" as has been expressed often. I might be missing their point, but to me, having a life sustaining cash flow if I live as long as I hope to is key.
Because some of us will have a uninterrupted cash flow as long as we live.
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Old 09-16-2014, 10:03 PM
 
4 posts, read 5,123 times
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Default 62, 66 or 70?

Hi everyone,

I've been following the posts here and thought I'd seek input on the question of when to begin social security.

As background, my wife and I plan to retire in 4 years at age 62. At that point I estimate our combined retirement savings will amount to about $1.2M. While our home will not be paid off, we plan to move out of the area (suburban DC region) and purchase a home/condo in a less expensive part of the country with a portion of the equity we've accumulated over the years (about $500K). We intend to spend about half of our equity on a new home then place the remainder in savings for future living expenses. Based upon the estimates we've seen, at age 62 our SS will be a combined $3K per month. At age 66 (our FRA) it is $4.3 per month and at age 70 it becomes $5.6 per month.

If we decide to defer SS until age 66 or 70, I believe we should have sufficient retirement funds to cover our estimated living expenses of between $60K - $75K per year.

The question, should we begin SS at age 62, accept a reduced monthly SS amount and draw down a portion of our accumulated retirement savings or should we rely completely on our retirement savings until age 66 or age 70 as a means to obtain a higher monthly SS payout? I previously thought we'd adopt the first approach, however I've recently read several items which suggest, if one can do so, it may actually be best to rely on one's retirement savings during the early years of retirement and defer SS until later as a means to receive an increased monthly SS payment for the long haul.

I'd very much appreciate any thoughts/experiences/ideas you may have to share.

Thanks!
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Old 09-16-2014, 10:19 PM
 
2,042 posts, read 1,951,301 times
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Quote:
Originally Posted by Pouncetrifle View Post
Hi everyone,

I've been following the posts here and thought I'd seek input on the question of when to begin social security.

As background, my wife and I plan to retire in 4 years at age 62. At that point I estimate our combined retirement savings will amount to about $1.2M. While our home will not be paid off, we plan to move out of the area (suburban DC region) and purchase a home/condo in a less expensive part of the country with a portion of the equity we've accumulated over the years (about $500K). We intend to spend about half of our equity on a new home then place the remainder in savings for future living expenses. Based upon the estimates we've seen, at age 62 our SS will be a combined $3K per month. At age 66 (our FRA) it is $4.3 per month and at age 70 it becomes $5.6 per month.

If we decide to defer SS until age 66 or 70, I believe we should have sufficient retirement funds to cover our estimated living expenses of between $60K - $75K per year.

The question, should we begin SS at age 62, accept a reduced monthly SS amount and draw down a portion of our accumulated retirement savings or should we rely completely on our retirement savings until age 66 or age 70 as a means to obtain a higher monthly SS payout? I previously thought we'd adopt the first approach, however I've recently read several items which suggest, if one can do so, it may actually be best to rely on one's retirement savings during the early years of retirement and defer SS until later as a means to receive an increased monthly SS payment for the long haul.

I'd very much appreciate any thoughts/experiences/ideas you may have to share.

Thanks!
I have a similar situation and had always planned to take SS early but now am leaning towards relying on retirement money first and then take SS later maybe even at 70 because if I do that, not only do I receive an increased monthly SS for the long haul but we also can take a lot more money out of tax-deferred retirement at the 15% tax rate. Even if retirement monies get depleted doing this, the higher SS payments may mean that you'd still be okay, and if the retirement monies don't get depleted due to higher than expected returns or a more favorable than expected sequence of market returns, you'd be super okay.
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