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It's hard to judge. I haven't taken mine yet because the bennies go up about 8% per year. But I will probably have to take it at 65 when I have to start paying for Medicare. I won't think that was a smart decision if I croak tomorrow.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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Our retirement funds went up +9% (cagr) for last 8 years. It was wise for us to take SS early and allow the retirement Income assets to grow. [We use a "protected Income stream" model for retirement; Not a retirement "Asset Allocation" model ]
Last edited by leastprime; 05-12-2018 at 10:31 AM..
except we never know in advance or we can be in an extended bear market tomorrow . so i would never base things on the bull or the bear . remember even if you were a head now from being up , by the time 70 comes you will be pulling more out of investments to live during the next bull market than had you delayed with that bigger ss check . so in the end it likely will wash out .
It is a personal decision. I took mine at 62 and have no interest in calculating what if I waited. I get to cruise a few times a year and other expenses are covered. Why should I worry about what if?
I'm 54. But I plan to take SS at 62, (at least that's the plan now). I know it will be vastly reduced compared to 67 but, like a previous poster, by accepting early, it will take 14 years before you "lose" money. That takes me to 76. I'm signing up at 62, my own personal preference.
By the way...never even considered getting SS, still don't, so any money from a broken system I've forcibly paid into the last 40 years is a bonus.
I retired at 57 with a pretty good pension, and took my SS at 62.
I still have a few years until I'm eligible for Social Security, but based on my recent SS benefits statement, if sign up to receive SS at age 62, I will get approximately $800 per month LESS than if I wait five years at 67 at full retirement age (FRA). Is that extra $800 per month worth working an extra five years?
As everyone else has been saying it depends.
I waited to after age 69 to collect because it was the only way I could guarantee a comfortable retirement future for both my wife and me.
For us the difference between 62 and 69 1/2 came out to a combined monthly increase of $1,660 which made for the difference between a very frugal retirement and a retirement where we can pretty much do anything we want short of getting stupid with the money. Another way to look at it that $1,660/month is the same has if I had saved an after tax $400,000 over a 7 1/2 year period or $53,333 every year.
I worked, I got paid and the social security increase was exactly as if I had received a $53,333 after tax bonus check every year for 7 1/2 years. That, combined with the paycheck I did receive, was the best employment compensation I ever got.
After our Medicare Part B is deducted we receive a combined social security amount of $3,800 every month and seeing how, given our income, it is exempt from federal and state income taxes, we can live comfortably on our social security benefits alone. In flyover country if a childless couple can't make it on the equivalent of a weekly take home check of $877, when they don't have the expense of working, they have a spending problem. Social Security without any savings, along with a very small state pension, will give us a very comfortable retirement when I do quit full time work which might be as early as next spring.
But all this is just me, we each have our own path.
I waited to after age 69 to collect because it was the only way I could guarantee a comfortable retirement future for both my wife and me.
For us the difference between 62 and 69 1/2 came out to a combined monthly increase of $1,660 which made for the difference between a very frugal retirement and a retirement where we can pretty much do anything we want short of getting stupid with the money. Another way to look at it that $1,660/month is the same has if I had saved an after tax $400,000 over a 7 1/2 year period or $53,333 every year.
I worked, I got paid and the social security increase was exactly as if I had received a $53,333 after tax bonus check every year for 7 1/2 years. That, combined with the paycheck I did receive, was the best employment compensation I ever got.
After our Medicare Part B is deducted we receive a combined social security amount of $3,800 every month and seeing how, given our income, it is exempt from federal and state income taxes, we can live comfortably on our social security benefits alone. In flyover country if a childless couple can't make it on the equivalent of a weekly take home check of $877, when they don't have the expense of working, they have a spending problem. Social Security without any savings, along with a very small state pension, will give us a very comfortable retirement when I do quit full time work which might be as early as next spring.
But all this is just me, we each have our own path.
If you have plenty of income but no savings how do you handle the purchase of new cars? A new roof?
It's hard to judge. I haven't taken mine yet because the bennies go up about 8% per year. But I will probably have to take it at 65 when I have to start paying for Medicare. I won't think that was a smart decision if I croak tomorrow.
If you croak tomorrow you won’t be thinking about decisions.
I plan to file and draw from it as soon as my earliest eligibility.
Retired at 46 so I'd have to wait 16 years to see a raise so to speak lol. Why wait until 67 if there is no guarantee you'd live to 63 or 62 for that matter. Take the money and enjoy life while you still can. Working that 5 extra years is 5 years less you'd have time to actually enjoy yourself and reap the rewards of the extra wait. Also, no guarantee of reaching age 67. Today could be your last day on earth, so no guarantees many of us will even live to collect that first check regardless of when you plan to retire permanently.
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