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Old 02-22-2017, 04:16 AM
 
Location: Central Massachusetts
4,800 posts, read 4,856,396 times
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Quote:
Originally Posted by borninsac View Post
So it's official, I made it and am eligible to start collecting Social Security benefits albeit a reduced age 62 benefit. This I shall not do at this time. I hope to cross other age milestone lines in my gracefully aging sand, God willing, in my years ahead.
So you have etched the plan in jello so it has a bit of flexibility?
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Old 02-22-2017, 06:39 AM
 
Location: Delaware
239 posts, read 154,425 times
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Quote:
Originally Posted by borninsac View Post
So it's official, I made it and am eligible to start collecting Social Security benefits albeit a reduced age 62 benefit. This I shall not do at this time. I hope to cross other age milestone lines in my gracefully aging sand, God willing, in my years ahead.
Yes, I'm faced with the same decision. In December I celebrated my 62nd bday and I am going back and forth. Do I take the SS now, while I'm young and can use it to the fullest, or wait four more years and get a higher check.

For me, I will forfeit over $20,000.00 a year by not taking it. My SS goes up $13.00 each month I wait. It will take me six years to recover the twenty grand I lost. If I wait two years to collect, twelve years. etc. If I live past 80, then it will pay off to wait until 66. Otherwise, I'll never recover what I didn't take.

I've already been retired two years and have been drawing some money from my 403B to suppliment pension money. That money is 100% taxable. In the state where I live, my SS would be taxable at 85%. It probably would pay for me to stop the 403 until later on and start the SS.

Now is the time I am relatively young and can use that money to the fullest. We have no guarantees how long we're going to live.

As you can see, I'm having a tug-of-war with myself over this issue.
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Old 02-22-2017, 07:06 AM
 
Location: Colorado Springs
4,856 posts, read 4,972,198 times
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I think that making it to 62 gives you a bit of security. That reduces anxiety.

Even if you decide to delay the onset of SS, you know that if things get ugly, you can click that mouse and start the gravy train. Each scoop of gravy will be smaller, but at least you will have some.
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Old 02-22-2017, 08:14 AM
 
Location: Center City
6,866 posts, read 7,817,078 times
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Here's a handy little calculator that lets you know the "break even" point of activating your SS at different ages: https://www.standard.com/individual/...ven-calculator

When looking at this, there is another added advantage to taking my money earlier rather than postponing it. All of the SS money I'll start receiving when I turn 62 this summer allows me to continue to keep those quivalent funds in my investments, earning money for me in the interim.
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Old 02-22-2017, 08:20 AM
 
13,325 posts, read 25,590,184 times
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Quote:
Originally Posted by Vision67 View Post
I think that making it to 62 gives you a bit of security. That reduces anxiety
Exactly. Each financially meaningful anniversary checks off another box.

My next major anniversary is 65 for Medicare. I am not sure when I'll go for my Soc. Security- FRA is 66 but it depends on how I finance my earlier retirement (at 64 and 8 months). Same internal battle as others have- what if I go for it too early? What if I wait too long or have health limitations early on? Etc.

Sometimes I'm tempted to just flip a coin!
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Old 02-22-2017, 08:29 AM
 
Location: Central IL
15,253 posts, read 8,560,668 times
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Quote:
Originally Posted by Pine to Vine View Post
Here's a handy little calculator that lets you know the "break even" point of activating your SS at different ages: https://www.standard.com/individual/...ven-calculator

When looking at this, there is another added advantage to taking my money earlier rather than postponing it. All of the SS money I'll start receiving when I turn 62 this summer allows me to continue to keep those quivalent funds in my investments, earning money for me in the interim.
....or the opposing perspective which is, rather than counting on the market with its variable returns (and actual losses at times) to keep earning and adding up for you, delay Social Security and get a pretty much guaranteed "return" each year that you wait.

Sure, you have to take out from your investments and that feels painful...unfortunately you can more easily "ignore" or overlook the pain and loss you experience by taking SS earlier. Just because avoiding one pain point is more immediate doesn't mean that it is the best choice long term.

I'm sure that mathjak will chime in very soon!
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Old 02-22-2017, 08:35 AM
 
779 posts, read 525,443 times
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Could somebody answer my question ?


I live in Canada so my understanding of the US social security program is pretty basic.


Do most Americans look at their SS payments as a sole source of income in retirement, or as a supplement to their own investments and private pensions ?


Second. If a US citizen has a pension from a former employer, does that result in their SS benefit being reduced ?


Thanks.


Maple Guy.
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Old 02-22-2017, 11:22 AM
 
7,813 posts, read 4,404,011 times
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Quote:
Originally Posted by V8 Vega View Post
I started Collecting SS at 62 and never regretted it one second. After all you don't have to work anymore. I have hobbies and interests. I read somewhere if I make it to age 80 then I will have gotten the same amount of money from SS than if I had waited to 66 my full benefit age.
How does this work, exactly? I'm math-challenged! Reading these retirement threads, I have a renewed appreciation for the fact that I'll have both a pension (I can retire anytime now, but am working a bit longer for more money and to solidify my plans) and also plenty of savings so that I don't need to rely on SS to retire. I'll play it by ear when the time comes, although obviously it would make more sense to leave it there -- at least while interest rates remain so low -- for the long term.
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Old 02-22-2017, 11:49 AM
 
Location: Las Vegas
13,895 posts, read 25,351,824 times
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Me too. I passed the 62 marker and just knowing it is there makes me feel better! If I need it, I will sign up but if I can keep on squeaking by I know it will be considerably more if I can make it to FRA. If not, oh well. I will still get more than if I had taken it the minute I was eligible! I might need to take it at 65 to pay the Medicare premiums.
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Old 02-22-2017, 01:01 PM
 
Location: Eastern Washington
14,272 posts, read 44,972,066 times
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Quote:
Originally Posted by mapleguy View Post
Could somebody answer my question ?


I live in Canada so my understanding of the US social security program is pretty basic.


Do most Americans look at their SS payments as a sole source of income in retirement, or as a supplement to their own investments and private pensions ?


Second. If a US citizen has a pension from a former employer, does that result in their SS benefit being reduced ?


Thanks.


Maple Guy.
I don't know statistics, but maybe about 35% of Americans retire on SS alone.

I'm not certain if pension payments affect SS. Working for wages does, if you earn more than about $15K, you start losing SS at a rate of $1 of SS lost for every $2 earned.

SS was intended as a supplement to other investments and pensions, but, some people fail to plan ahead, spend all they make, then are forced to retire by external circumstances, and end up on just SS.
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