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Old 02-17-2017, 09:34 AM
 
Location: Grove City, Ohio
10,133 posts, read 12,387,762 times
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Quote:
Originally Posted by Hemlock140 View Post
I found that the biggest jump in SS predicted benefit is in the 50-60s when reaching the highest earnings level, currently at 64 my highest ever which is almost double what I made at 50. If I work to 70, which I may do, it will be 8% more than if I go at full retirement age 66. That's only a few hundred a month more, but I still enjoy my work.
Actually that is 8% per year after FRA of 66 for a total increase of just over 32%.

What drove me the hardest to put off claiming benefits is this article from 2014 If you love your spouse, you’ll wait to claim Social Security

I got another year and a half to go to age 70 at which time I will collect benefits. By waiting the four years the increase is very significant and goes a long way towards making up for the sin of not saving as much as you should have.

We're in the same boat in that I love my work as well and I see myself just continuing to work until I just don't feel like it anymore. Age 75 maybe? 80? Whatever.
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Old 02-17-2017, 01:08 PM
 
4,649 posts, read 6,483,631 times
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I'm doing 62. Currently I'm building up residual income sources through network marketing. I look at it this way. Build with youth and if youth catches on that income can go on for a long time. Then there's annuities. The key to retirement from what I have personally seen is guaranteed income.

What is the monthly guaranteed income coming in every month? That's the retirement bottom line. If married then consider life insurance for the spouse if there's going to be a drop in income at death. Keep it simple.
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Old 02-17-2017, 02:41 PM
 
Location: Greenville, SC
4,649 posts, read 3,704,540 times
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Quote:
Originally Posted by nicet4 View Post
I got another year and a half to go to age 70 at which time I will collect benefits. By waiting the four years the increase is very significant and goes a long way towards making up for the sin of not saving as much as you should have..
As I recall, the difference for me was something like $800 per month for waiting the additional four years. I have been working anyway, so waiting another four years was no big deal. The advice I'd give others based on my experience is: start preparing and saving as early as possible; if you didn't do so when younger, don't beat yourself up because it's never too late to start; and work the different financial scenarios for yourself before making a decision about collecting. The decisions you make pre-retirement can make a huge difference later.
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Old 02-17-2017, 04:39 PM
 
Location: Florida
5,247 posts, read 3,018,567 times
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[quote=GeoffD;47224125]Social Security is COLA protected. Unless Congress messes with it, that is a huge advantage of Social Security over anything else in my retirement toolbox. It also makes deferring as long as possible and to age 70 if you can highly desirable. You lock in that COLA-protected benefit for the rest of your life.

The figures that the government uses exclude the costs of food and fuel, two of the largest necessities the a retiree has. Thei will never be corrected as long as members of congress are exempt.
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Old 02-18-2017, 08:14 AM
 
Location: Hiding from Antifa?
6,417 posts, read 4,179,346 times
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If you look back on your earnings statement that the SSA provides, it looks like you will get a lot more by continuing to work, while knocking earlier years out of the equation. However, you have to consider that those earlier years are adjusted for inflation before they are added to the mix. You may make $120,000 this year, but knocking off one of those years you made $20,000 in the 70's may not happen. The factor they apply to those earlier years can make them higher than current years.

At one time I dug deep enough in SS's web pages to find those factors, but I don't remember where I found it. I't not easy to find. Maybe someone will post a link.
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Old 02-18-2017, 09:43 AM
 
Location: Loudon, TN
5,784 posts, read 4,838,667 times
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If you use the calculator on the SS website, you can enter your estimated earnings for the future years to get a more accurate estimate of your future SS benefit. Since I retired far before my SS eligibility age, this was necessary so I could enter zeroes in the years from retirement to SS eligibility to get an accurate benefit estimate.
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Old 02-18-2017, 10:00 AM
 
Location: Paranoid State
13,047 posts, read 10,442,710 times
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Quote:
Originally Posted by Girl View Post
Of course, this is presuming that SS will still be around when I retire in 20 years...
I entered the workforce in 1980. One of my first jobs, working for a consulting company, was to put together a set of training classes to educate congressional staffers (and the odd congressman who chose to attend) about these new-fangled things called "personal computers."

To make the implications of access to PCs relevant, we built training based on the economics of Social Security.

Staffers had access to all the relevant demographic data and financial data regarding the SS system. They would enter key parameters, push a button, and low & behold the Personal Computer would calculate & print out year-by-year projections of SS, and at some point, the projection was that the SS system would run out of money.

Shock! Horror! Disbelief! How could the Social Security System run out of money!?!?!?

Then, of course, we let the staffers fiddle with the parameters such as contribution percentages, benefits, age of retiring, etc -- all within reasonable bounds.

Then they would once again push a button, and low & behold the Personal Computer would calculate & print out year-by-year projections of SS. Once again, at some point, the projection was that the SS system would run out of money.

The end result? Some staffers and a few congressmen learned a thing or two about PCs. Not much else. Later, unrelated, the Medicare & SS systems were modified a bit to remain solvent. My guess is they will be modified again to remain solvent.

************

As a result of the above, I began my retirement savings within a year of grad school. My plan was to assume SS would not be there for me, and if it were, all the better. I'm 60 now, and have been retired for over a decade. When I hit FRA, I'll file for SS. By then I may be means-tested out of SS. Or not.
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Old 02-18-2017, 10:02 AM
 
4,315 posts, read 2,524,483 times
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Quote:
Originally Posted by Cruzincat View Post
If you look back on your earnings statement that the SSA provides, it looks like you will get a lot more by continuing to work, while knocking earlier years out of the equation. However, you have to consider that those earlier years are adjusted for inflation before they are added to the mix. You may make $120,000 this year, but knocking off one of those years you made $20,000 in the 70's may not happen. The factor they apply to those earlier years can make them higher than current years.

At one time I dug deep enough in SS's web pages to find those factors, but I don't remember where I found it. I't not easy to find. Maybe someone will post a link.
(1ST PARAGRAPH ).............GOOD POINT !


Some of my highest wage years (adjusted for inflation) were my early years when I had a great paying union job in the 1960's.


Many posters don't take the ......adjusted for inflation.....into consideration and presume since they are earning a higher wage near retirement that it is going to be higher than earlier wages in calculations.
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Old 02-18-2017, 02:58 PM
 
12,299 posts, read 15,199,676 times
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Quote:
Originally Posted by FeelinLow View Post
20 years ago if you asked me if I'd draw SS at 62 I'd have said, ''No way! I will work until 70 to get the highest amount!'' Well today I turned 62 and next month I start to draw my SS. Long-term unemployment and under-employment made that decision for me.
I look forward to financial security that I haven't had for 8 years. Bring it on! We've got a roof, we will be able to eat! Also finding out that though I seem to get ''less'' by filing early, I in fact get more checks over the years and it all balances out.
My point is, you never know what will happen in 20 years and I hope SS is still around. And I know many people for whom SS is their sole income. It will be more and more as jobs disappear and let's face it, very few hire 60+ year old workers. I am living proof of that.
Be smarter than me if you have the opportunity!
That's what financial experts don't tell you. They say wait until FRA. But if you can't find work at 62, that's the age to claim.
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Old 02-18-2017, 04:13 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,387,762 times
Reputation: 13976
Quote:
Originally Posted by Vasily View Post
As I recall, the difference for me was something like $800 per month for waiting the additional four years. I have been working anyway, so waiting another four years was no big deal. The advice I'd give others based on my experience is: start preparing and saving as early as possible; if you didn't do so when younger, don't beat yourself up because it's never too late to start; and work the different financial scenarios for yourself before making a decision about collecting. The decisions you make pre-retirement can make a huge difference later.
Within a couple dollars that is what it is for me and an extra $800, for us anyway, was to good to pass up.

I am one of those who didn't save like I should have when younger so this went a long way to make up for what I didn't do.

How much is $800/month? How much would I have needed to save to be guaranteed $800/month for either of us possibly living another 25 years? $800*12*25=$240,000. As an added bonus that comes with COLA's, such as they are but they are still there, and it is as guaranteed as guaranteed can get.

I could have stopped working, collected benefits at 66 and we would have been fine with a retirement budget. We have a nice place to live, very safe, clean and comfortable. We had enough in our budget to keep the thermostats comfortable, all the lights on along with $270/week for food, entertainment, clothes and little things like beauty shop. We had $100/month for gasoline along with $150/month budgeted for gifts for grandkids and the like.

It would have been comfortable enough for us and after all that we would have had $286/month left over for emergencies.

By working the extra four years we will still keep the same budget but we will have $1,280/month left over for emergencies or anything else we want to do. This isn't so much emergency money as it is our play money. If we want to go to Vegas we can go to Vegas or do a cruise, or even two or three, depending on what WE WANT to do which to me is what retirement is all about.

I got an old Trek 310, I would like to have a new one which is something I don't think I could ever do without that extra $800.

That and if I die first, which is likely, that extra goes to my loving wife who has put up with me for over 40 years and earned it.
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