Why Your Choice: Take Soc Sec. at 62, Full Retirement Age, or 70? (pension, spouse)

[rdflk]

Can you provide some insight as to which you did, and why?

Retirement for me is still far enough away that technically I guess I don't even need to be thinking about this now, because who knows what the rules will be 10 years from now.

But I dream of retirement and am pondering what I might do.
Insight on your choice and why would be appreciated.

-- Did you grab the lower amount as soon as you could? If you did that did you work part time?
-- Did you wait? And not choose to work part time?
-- Looking back was the increased amount worth waiting for?
-- How much of an increase is worth waiting for?
-- If you waited, did you tap your own savings in the meantime?
-- How'd you pay for healthcare, if you weren't old enough for Medicare?

Thanks.

[Hemlock140]

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.

[Gandalara]

I retired at 60 (I do not work at all) and I'm about 1/2 year away from 'grabbing the lower amount'.

I have other income, so I'll be saving the whole amount for at least 6 years. If I die and don't use it, my niece will inherit the investment account - instead of the government keeping it.

I have employer/retiree insurance until I'm 70.

[rdflk]

Thanks,

I'm debating, as we all do...whether to take the lower amount
For me the SS numbers are, as of now are about $400.00 a month more at 65 than at 62, and 67 is about 400 more than 65 (so 62 to 67 is an $800 difference) ...70 is $1,400 more than 62.

[Garthur]

I will be SS eligible in 14 months. I will be taking SS at 62. I have been 100% retired for about 5 years and have no plans to work again.

I just checked my benefit for age 62/66/ and 70. If I wait till 66 or 70 It will take till I turn 79 years old to catch up. 79 would be older then any man in my family has ever lived.

I currently living off of my company pension and savings. When I start collecting SS at age 62, I will be able to almost stop savings withdrawals. I want to have the savings untouched for future investments and emergencies.

My company has been providing health care, so that's not an issue. I will have to go on medicare at age 65.

Something that weights on my mind is if I wait for another 5 years or 10 years to collect my SS benefits, what will the government change during that time that would affect my benefits. One thing I do know is my benefits will not get better but it could get worse. The sooner you start collecting, the best chance you have of keeping your benefits. It would be almost impossible for the government to decrease benefits to people already collecting.

[Gandalara]

I'm debating, as we all do...whether to take the lower amount

My numbers are about the same as yours. $400 to $500 difference from 62 to 66.

I thought about it for years. (I obsessed about retirement from age 50 on, LOL)

Then one day a few months ago, a light bulb went off (And heck, I think it was caused by a post here on CD!) that if I waited and then died before applying, that money was lost to the government coffers. Gone. And it was mine.

A lot of the posts on CD about SS concern couples - I have no spouse or offspring. So it works for me.

Everyone's mileage will vary.

[rdflk]

I'm single, no kids, also. Guess I'll just eventually have to do the specific math
My concern or issue would be -- and it depends on how much a person has saved/invested in the first place.....

Do I want to retire at 62 -- and then use up/tap/diminish savings that could be growing to get me to 65. OR just work to 65 and get a higher amount then that won't mean tapping savings at all. My pension is higher also, if I wait.

Also, now that I have discovered (it's been around forever it's just new to ME) seasonal employment I'm also rethinking in 'retirement.'

And I don't mean s sales person at Macy's at holiday time. I mean an amusement park, or ski resort, or factory that needs to gear up for 3-4 months....THAT kind of part-time work I might do. A job where they don't even need or want you for most of the year. I actually have recently also read about high-paying white collar seasonal jobs that no one really thinks of.

I retreat I go to hires people for the summer. If I could travel and have the rest of the year free. Heck yeah I might work.
I thought part-time meant a job I had to be at twice a week or every weekend...so I still couldn't take long trips like I want. But a job where all they want to know is can I come back next October or next May...sure, maybe

But I also would have to do the math on making too much and having Soc Sec. taxed.

Can someone answer this: there are two Soc Sec issues with working while drawing benefits, right?
-- Making so much they TAX your benefits....and
-- making so much they "dock" or deduct from your benefit. (the old for every 2 you make over a given amount, they take 1)

Are they separate issues or the SAME issue? just said a different way.

[Gandalara]

Re "docking" - Here's the SS pamphlet.
(Note - working in the first year of retirement has different rules for income, than the years following)

How Work Affects Your Benefits

[rdflk]

Thanks. I'll check it out when I get a chance.
MAYBE something will "click" and I'll get it.
I've heard it's still hard to get straight..even with 'professional help.'

But as was said, I'm so far out from retirement, current rules could be completely different.
But I still want to understand it.

[Mr5150]

IMO your month to month income is more important than what your lifetime SS benefit received. By waiting until I am 67 (3 more years) my SS income will be 40% higher than what it would have been had I drawn at age 62. So I would advise waiting as long as you can before you sign up.

Plus there is an earnings penalty until you reach full retirement age.