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Old 08-17-2014, 11:44 AM
 
29,782 posts, read 34,880,403 times
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Quote:
Originally Posted by ApePeeD View Post
That's the million-dollar question. Is it better for you to retire early with a lower benefit, or work a few more years and get a higher benefit?

Nobody knows how long they will live. However, you know your health now, how much assets you have now, whether or not you have a spouse who also has savings, and whether or not working a few more years will just whittle away your health more than it's worth.

If you're 63, already have health problems, and everyone on your family has died at 65 of breast or prostate cancer... well then, maybe working until age 70 isn't a good idea.

If you're 68, and everyone in your family has lived to 102, and you have zero retirement assets... maybe you should work a little bit more...
Hopefully folks have the ability to delay benefits without still working.
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Old 08-17-2014, 03:40 PM
 
Location: Talmadge, San Diego, CA
13,325 posts, read 25,312,896 times
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Quote:
Originally Posted by biscuitmom View Post
Surely you jest. If not, where on earth did you get the idea that SS benefits continue to grow past age 70?

Delayed Retirement
I have a co-worker that thinks the longer you wait to take your SS, it goes up $100 per year. I have no idea where he got that information, either.
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Old 08-17-2014, 04:53 PM
 
Location: Grove City, Ohio
10,135 posts, read 12,392,750 times
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Quote:
Originally Posted by moved View Post
I have a co-worker that thinks the longer you wait to take your SS, it goes up $100 per year. I have no idea where he got that information, either.
Simplified.



As many have already said after age 70 it stops.

My greatest earnings years were the 1980's, 90's and for a good number of those years I hit the maximum taxable earnings but from 2001 on not as good on the income side. Adequate but I haven't hit the maximum social security tax for a while now.

On a side note, having absolutely nothing to do with the current thread, I've never been happier at work than I am right now. As far as purchasing power I am earning about half of what I did 25 years ago (no cruises for a while and the private airplane is gone) but I would not want to go back to the conditions I had to endure during my high paid years. Money isn't everything. Fact is I learned that money isn't much at least to me.

At 66 my social security benefit was estimated to be $2,250 but if I wait just four more years my benefit will be $2,970 so here I am still working and not collecting.

When my wife turns 66 I will file and suspend so she can receive 50% of my FRA benefit or $1,125 which we don't have a need for so we'll just pay taxes on it and bank it while I continue to work.

At 70 my benefit will be $2,250*1.32=$2,970 giving us a combined social security benefit of $4,095 which might not be as much as I am earning working full time BUT it is practically tax free money. Georgia is very friendly on retirement income. About Georgia:
Quote:
One of Kiplinger's top ten most tax-friendly states for retirees, the Peach State is a peachy tax environment for retirees. Social Security income is exempt, and so is up to $35,000 of most types of retirement income. For those 65 and older, the 2013 exemption is $65,000 per taxpayer. The statewide sales tax is 4%, but jurisdictions may add up to 4% of their own taxes. Full-time residents qualify for a homestead exemption, and residents 65 and older may qualify for additional deductions from property taxes.
No state income tax and according to this online calculator we won't have any federal income tax on an annual ss benefit only income of $49,140. Even adding $12,000 yearly for IRA distributions (I honestly don't know what we will do with the money when we're forced to take it) our federal tax is still zero!

What makes me feel great is if I pass first my wife loses her $1,125 but picks up my $2,970 monthly benefit. Couple that with the IRA money and she as a widow should do just fine.

If you were like me and didn't save enough, for whatever reason, working a couple or few extra years can make up for a lot of sin.

Three or four more years and we got it made.
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Old 08-17-2014, 06:08 PM
 
2,394 posts, read 2,064,093 times
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If you were like me and didn't save enough, for whatever reason, working a couple or few extra years can make up for a lot of sin.


This is so true. That is why health plays such a huge role in pre-retirement planning
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Old 08-18-2014, 08:44 AM
 
26,591 posts, read 52,323,935 times
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Quote:
Originally Posted by ApePeeD View Post

If you're 68, and everyone in your family has lived to 102, and you have zero retirement assets... maybe you should work a little bit more...
People are living longer... at least those around me.

The lady across the street lives alone and is 101... another lady down the street died at 104 at home and there are lots of folks around here in their 80's and 90's.

The 104 year old started teaching at a one room school house near Minden Nevada at age 17... she taught for 50 years and had social security for 37 years...

Many of my retired Public Safety friends put in between 20 and 30 years on the job with some retiring at 51-53 and projections are 40+ years of benefits are a real possibility... although most are not under Social Security.
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Old 08-18-2014, 02:29 PM
 
Location: Idaho
4,628 posts, read 4,473,076 times
Reputation: 9060
Quote:
Originally Posted by Cnynrat
Well, all I can tell you is that the SSA is projecting that my benefit will be $3,500 per month if I wait until 70 to draw my benefit (which I plan to do). I've earned more than the maximum taxable amount for a number of years now, but certainly not for my entire career...
Quote:
Originally Posted by ABQ2015
My projected SS at age 70 is also $3500 a month. I've paid the max for about 20 years but not for 35 years...
I'm not doing quite as well as you two. The statement I generated in May shows that I'll get ~$3330 if I wait until 70, (I'm unmarried and will most likely stay that way). I'm 63, (today), and plan to work until I'm 66 and a half, and will probably delay starting SS benefits until I'm 67, maybe later. Depends on how much the house values go up in the next three and a half years and if the stock market doesn't crash again.
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Old 08-18-2014, 03:06 PM
 
Location: SoCal desert
8,093 posts, read 13,238,618 times
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Quote:
Originally Posted by volosong View Post
I'm 63, (today),
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Old 08-20-2014, 03:37 AM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
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Quote:
Originally Posted by volosong View Post
I'm not doing quite as well as you two. The statement I generated in May shows that I'll get ~$3330 if I wait until 70, (I'm unmarried and will most likely stay that way). I'm 63, (today), and plan to work until I'm 66 and a half, and will probably delay starting SS benefits until I'm 67, maybe later. Depends on how much the house values go up in the next three and a half years and if the stock market doesn't crash again.

Happy Birthday
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Old 08-20-2014, 03:54 AM
 
71,669 posts, read 71,801,099 times
Reputation: 49256
Quote:
Originally Posted by Ultrarunner View Post
People are living longer... at least those around me.

The lady across the street lives alone and is 101... another lady down the street died at 104 at home and there are lots of folks around here in their 80's and 90's.

The 104 year old started teaching at a one room school house near Minden Nevada at age 17... she taught for 50 years and had social security for 37 years...

Many of my retired Public Safety friends put in between 20 and 30 years on the job with some retiring at 51-53 and projections are 40+ years of benefits are a real possibility... although most are not under Social Security.
the last decade we have been adding 1 year of longer life every 4 years as a large group.

but as i say over and over averages do not mean a thing , planning around worst case scenerios does..insurers know just how many people will die each year but without knowing who that is a meaningless number to us and so is average life expectancy.


good planning dictates planning around age 95 regardless of what averages show.
we can only have two outcomes to anything , things either work out or they don't. it really does not matter what averages say.

averages say the chance of your home burning down are pretty slim but most of us mortgage or not still have fire insurance as we plan around the worst case anyway.

retirement planning is no different.

Last edited by mathjak107; 08-20-2014 at 04:21 AM..
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Old 11-05-2014, 09:03 AM
 
Location: land of ahhhs
277 posts, read 298,471 times
Reputation: 489
Quote:
Originally Posted by Cnynrat View Post
The more I think about it, I'm not sure why anyone cares what the max is anyway. You earn what you earn, and that sets your benefit. You can do things like work longer, or delay benefits to increase your SSA benefit if you want to. But while the max may be an interesting theoretical construct, I don't think knowing it is actionable in any meaningful way. Perhaps that's what TubrogP was trying to suggest to me earlier.
Dave
Here's a reason: looking over my SS benefit statement if I wait until I'm 70 to claim, my benefit will be $3252. I notice there are some years I was working that show I had no income. At that time I was in business with my former spouse, and probably there was some advantage to his claiming all the income from our business. I still have the same accountant, and he cannot recall why this was done. Other years reflect my income being much less than it could have been, probably because I had a second job and that income was being reported separately to SS. So, I was going try to have this corrected (former spouse and accountant all in accord). But why, if I'm near max already, and still working? I suppose if I'm $500/ or so short it might be worth it since I'm immortal and will need those funds, but another 2-5 years of contributions on the max taxable income ought to bring me pretty close. My question, if anyone knows: if I fall short of the max at the time I turn 70, will continuing to work past that age raise my benefit, or is your benefit set in stone at age 70?

I read an article on Motley Fool yesterday: How Big Can a Social Security Check Be?

That got me to wondering about the cost and effort it would take to correct my record. A search here brought up this thread. After all, it was this retirement forum where I learned I could claim spousal benefits, so you guys have already helped improve my standard of living. Thanks
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