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Old 04-19-2015, 04:15 PM
 
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Yes those larger pay checks at 70 sound good and then when you hear about people living longer it makes it seem like the way to go. But as Mathjack stated there are other issues to consider and we are not all in the same boat.
I'm single and planning on retiring at 62. My father, uncle and grandfather all passed on at 80. While I would like to live to 90+ as long as I'm healthy, somehow I think 80-85 will most likely be my number. I don't have kids to leave inheritance to, so it would go to nephews who are all doing well. So not really a priority.

I have decided on a similar plan. I have a pension and a 403b that I bought years ago, when I wasn't that aware of better options. So I could use that money as a bridge annuity to 66 and 8 months my FRA. While letting my much larger 401k untouched and growing. I could wait to 70 but as I said above don't think my longevity will give me a better deal and between pension and SS my 401k will be for fun and any major health needs.

The good thing is that I plan to retire at 62 and will have the means to enjoy myself early while I'm healthy and able before I get to an age when that won't be available.

By the way I want to Thank Mathjack and others on these boards that have opened my eyes to all different options and things to look at for. I came in ready for 62 cashing SS and trust me I still redo my math every so often. I still got 5 years to 62 and will be redoing those calculations as things change as they will surely do.

Last edited by Beach Sportsfan; 04-19-2015 at 04:45 PM..
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Old 04-19-2015, 04:16 PM
 
72,010 posts, read 72,043,164 times
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Quote:
Originally Posted by CarvedTones View Post
The average benefit of delaying is not that great. The problem is it is all about probabilities. Your break even date will likely be a range, not a specific date, unless you know exactly what your tax situation will be for every year involved. The true break even includes tax consequences. Anyway, the reason so many people push waiting is because it is true that you are likely to live past your break even date. That means more than 50% of people on average will live past break even. Way more than 50%? No. And less than 50% of people on average will live 5 years past the break even date. It was chosen because of life expectancy but because you have made it past 60, your life expectancy is a little higher than what was used in the calculation. But only a little. It's a roll of the dice with the odds slightly in your favor, not a slam dunk.

if you read my post above if you figure the checks you didn't get and just the average return on spending down a balanced fund while waiting ,, the fact your spouse who filed early won't get a kicker added until you file as well as the fact if you didn't file your medicare increases are not capped break even , is well past the 50% point for a man.
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Old 04-19-2015, 04:38 PM
 
Location: Cochise county, AZ
4,989 posts, read 3,482,361 times
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I started receiving SSDI just after I turned 61 due to a car accident. I really had to fight for it though. I will be 62 in a few months and I think the Judge figured I had gone through enough. Now, 3 years after the accident we (my lawyer &I) are finally settling for a substantial amount. If I had received that money earlier, I would not have had to take SSDI, although I think maybe doctor visits would have eaten into some of it. I'm just glad that my last 5 years of work were the highest I'd ever made. I receive enough to be comfortable and yet qualify for Senior housing.
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Old 04-19-2015, 04:40 PM
 
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ssdi is a whole other world.
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Old 04-19-2015, 05:34 PM
 
Location: NC Piedmont
3,928 posts, read 2,891,269 times
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Quote:
Originally Posted by mathjak107 View Post
if you read my post above if you figure the checks you didn't get and just the average return on spending down a balanced fund while waiting ,, the fact your spouse who filed early won't get a kicker added until you file as well as the fact if you didn't file your medicare increases are not capped break even , is well past the 50% point for a man.
I read that. Yes you can add a few more caveats and make it slightly more likely that it works out. My point is that people run these figures and tell you how much you might be leaving on the table without the sliding scale of likelihood. The most likely outcome of delaying is a small gain from living a few years past break even. The second most likely scenario is a small loss from not quite making it to break even. Living a really long time and getting the big payoff can and does happen, but it is unlikely. My point is that it is not a given that you get more. It is likely enough that it is the smart play if it doesn't affect your plans. If it will affect your plans, like making you work a year or two longer and you really would rather not then it isn't a slam dunk. I think a lot of people base their decision to delay on the big number that they aren't likely to see.
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Old 04-19-2015, 05:56 PM
 
72,010 posts, read 72,043,164 times
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I couldn't agree more. The ages thrown out there as break even are geared for those who are working until 70. Break even ages shift a lot if you are retiring at 62 and spending investments.

Odds are most do not live long enough in that case to break even and if they do the bonus for taking the risk living just a few years longer is not as great as they thought.

Last edited by mathjak107; 04-19-2015 at 06:11 PM..
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Old 04-19-2015, 07:51 PM
 
Location: USA
271 posts, read 315,827 times
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Quote:
Originally Posted by Vision67 View Post
The maximum Social Security benefit at full retirement age (66) is now $2663 per month.
Does that make the max at age 62 $1997 or 75%?
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Old 04-19-2015, 08:20 PM
 
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Quote:
Originally Posted by Cameron60 View Post
Does that make the max at age 62 $1997 or 75%?
It depends as the FRA age has increased the % you get at 62 is lower. For example my FRA is 66 and 8 months. If I take it at 62 is about 70.5%
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Old 04-20-2015, 01:02 PM
 
Location: RVA
2,175 posts, read 1,275,056 times
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Same here, born in 1958.

But if you are 62 right now, then yes, the max is $1997 if you maxed out SS contributions for the last 35 years of filed taxes. Depending on your birthday month, I THINK (because I assume SS uses filed returns for their calculation) that amount can change slightly after you start receiving, if you were to literally work until the month before you start getting checks. If your birthday is in December, your first check comes the following February, but it would be based on your return for the last tax year you filed, which would be the year before your last birthday. So if you maxed out SS the last year, then that would replace the earliest year of the original 35 used for the calculation, after you filed, and once that got in to the SS system, you would get a bump. But because of the time value of money and inflation, it is only like a $15/mo increase. It's a lot more of course if you haven't had 35 previous years maxed out, and are tossing out a zero or low income year.
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