Why Your Choice: Take Soc Sec. at 62, Full Retirement Age, or 70?
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it is already means tested as the more income you have the more it is taxed. you can work after fra and it will not be reduced for working . but it will be taxed if you exceed certain total modified income levels.
rules for spousal benefit when on ssdi
"Eligibility for Spousal Benefit
If you begin to receive SSDI benefits, your spouse may also be eligible for benefits on your earnings in the following situations.
Your spouse is 62 years or older. If your spouse is 62 years or older when you start receiving disability benefits, he or she can also get a monthly benefit based on your earnings record unless he or she can get a higher benefit amount on his or her own record. But if your spouse collects a spousal benefit before full retirement age, the early retirement penalty will permanently lower his or her benefit. This does not apply to those caring for a child under 16 who is eligible for a child's benefit.
Thanks. That tells me what I need to know. As long as I can keep working past FRA in two years I will apply for spousal benefit and continue working for a while as opposed to taking my own SS. I will only get about 45% of what I would get using my own SS at that point, but the additional 8% per year after that will be a much better cushion for both of us(or just me) when I do retire as well as provide a much better survivor benefit for her if I die first.
I think, though, we will probably make an appointment to speak with someone in SS to go over our specific case.
Thanks. That tells me what I need to know. As long as I can keep working past FRA in two years I will apply for spousal benefit and continue working for a while as opposed to taking my own SS. I will only get about 45% of what I would get using my own SS at that point, but the additional 8% per year after that will be a much better cushion for both of us(or just me) when I do retire as well as provide a much better survivor benefit for her if I die first.
I think, though, we will probably make an appointment to speak with someone in SS to go over our specific case.
Yes meet with SS but do not depend on them giving you advice on the best way to do things. My experience is that half the time what they tell me does not happen.
Now that you know what you want to do do some more detail searching to see if you find any other items to consider.
Another thread asks if people worked in retirement.....which again got me thinking about how that decision can affect the choice of when to take Soc .Sec. When the time comes I'll have to do the math on retiring at 62 and tapping Soc Sec and pension for less money -- but working part time...vs retiring later but perhaps not working at all.
Is the full time money worth the full time hours I have to be somewhere I don't want to be? How much longer do I want to trade my life for money and lifestyle? Do I leave a roughly six figure a year full time job I wish I could leave tomorrow -- for partial retirement, Soc Sec./Pension and working a 10.00 hour part time job? I have to admit my first thought it $10 an hour isn't worth me getting out of bed for.
Many people say they retire early, get a part time job -- and that even with their early, reduced Soc Sec and pension -- end up with the same or more money -- working part-time ....than they had working full-time...so why work full time when you really hate it?
As for working in retirement, I'm not retired yet but I'm slowly moving from thinking I absolutely won't work in retirement ....to thinking maybe I will. The earlier I retire the more likely I might...work at a totally (IMO) mindless job -- with NO serious life-or-death deadlines.
-- office clerk, cleaning person, or some kind of seasonal job...the seasonal employment REALLY appeals to me....a job where they only want/need me to work 4-6 months a year...THAT might be perfect.
And IF I do part-time or seasonal work, I MIGHT not even want to take the "burnout recovery" year off I always said it would take before I'd even want to work again. Going part time might be enough to get me OUT of the "I hate working mindeset."
I may be anxious to retire -- but I also like my lifestyle, I'm SINK and make close to six figures, have a 7 1/2 hour work day ...so other than having to work life is sweet. I don't know whether to retire at 62 with less Soc Sec. and pension, even though I COULD make that work....and maybe work part time....OR keep working the well-paying job I have...until 65.... and have pension and Soc. Sec. be more. No different from the basic choice many of us have to make. My FRA is 67, Oy! At this point mentally I recoil at the notion of working until 67! I can't even imagine it.
Another thread asks if people worked in retirement.....which again got me thinking about how that decision can affect the choice of when to take Soc .Sec. When the time comes I'll have to do the math on retiring at 62 and tapping Soc Sec and pension for less money -- but working part time...vs retiring later but perhaps not working at all.
Is the full time money worth the full time hours I have to be somewhere I don't want to be? How much longer do I want to trade my life for money and lifestyle? Do I leave a roughly six figure a year full time job I wish I could leave tomorrow -- for partial retirement, Soc Sec./Pension and working a 10.00 hour part time job? I have to admit my first thought it $10 an hour isn't worth me getting out of bed for.
Many people say they retire early, get a part time job -- and that even with their early, reduced Soc Sec and pension -- end up with the same or more money -- working part-time ....than they had working full-time...so why work full time when you really hate it?
As for working in retirement, I'm not retired yet but I'm slowly moving from thinking I absolutely won't work in retirement ....to thinking maybe I will. The earlier I retire the more likely I might...work at atotally (IMO) mindless job -- with NO serious life-or-death deadlines.
-- office clerk, cleaning person, or some kind of seasonal job...the seasonal employment REALLY appeals to me....a job where they only want/need me to work 4-6 months a year...THAT might be perfect.
And IF I do part-time or seasonal work, I MIGHT not even want to take the "burnout recovery" year off I always said it would take before I'd even want to work again. Going part time might be enough to get me OUT of the "I hate working mindeset."
I may be anxious to retire -- but I also like my lifestyle, I'm SINK and make close to six figures, have a 7 1/2 hour work day ...so other than having to work life is sweet. I don't know whether to retire at 62 with less Soc Sec. and pension, even though I COULD make that work....and maybe work part time....OR keep working the well-paying job I have...until 65.... and have pension and Soc. Sec. be more. No different from the basic choice many of us have to make. My FRA is 67, Oy! At this point mentally I recoil at the notion of working until 67! I can't even imagine it.
I do not pretend to have the answer for your dilemma, as the answer has to be a personal one for you. Therefore, I offer the following only as a "food for thought" type comment:
Since the grass is always greener on the other side of the fence, that "totally mindless job" may seem attractive to you as a stress-reducer right now, but you may discover later that the boredom is also something you can't stand and that you'll want to flee. Intelligent, creative people don't normally do so well with boredom.
Also, you mentioned the low pay of a part-time job yourself. Consider this: Working one more year beyond age 62 at your present job, for example, may be worth as much or more money than five full-time equivalent years at the part-time job, stretching out to 10 years in actual time. (I haven't run any math on that - rather I am just seeking to suggest the general principle involved. But I don't think I'm exaggerating if we're talking $10 per hour!)
Every day you live, you're one day closer to dying. That being said, the question becomes, at 62, do you want to draw a smaller amount for a longer period of time or take a chance that you'll live long enough to see 66 and draw a larger amount for a shorter period of time? It's as simple as that. 1 bird in hand, or wait for 2 in the bush.
with us increasing life by 1 year every 4 years now it may be a larger amount for a longer time ,especially if a couple where two horses are running on one bet.
Time is our most valuable commodity, when it runs out it can't be replenished.
Money is nice, but anyone can live on less.
I'll take more time retired with less money.
I've never actually known anyone who outlived their money unless they deliberately eliminated their estate in order to qualify for Medicaid into a nursing home. That's not in my plans, neither was dying on the job.
I've never actually known anyone who outlived their money
I didn't either until my mom got Alzheimers....
She's still with us at 88 (89 next month)...but her live-in home agency aide -- just the aide -- was $7,230 a month. That'll take a bite out of a next egg real quick. She hasn't out lived her money...yet. And I'm doing my all to make sure she doesn't.
We've had a financial team from before she was diagnosed four years ago... a financial team CPA, CFA, and eldercare attorney...so we'll see.
Of course i've had some in-law relatives who passed away and never HAD any money but that's different..died as broke as could be. Not even money to bury them.
Back to the original topic....less money earlier retirement.....or more money later retirement....we'll see on that, too.
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