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The latest updates to future SS amounts just came out on My SS. If you worked in 2018, thrn it will up date again in Feb-Mar 2019. I was surprised to see more than a $70/mo increase my FRA (2025) amount. A few more COLAs like this last year will make a huge difference!
Something seems off with those numbers.
Is it even possible that if you are replacing 8 years of very low income with let’s say $100k/yr that the difference would result in +$17k a year in ss?
typically the check at 70 is 69% bigger than 62 . that is just what this is, not counting colas .
MJ made some very solid points when we were discussing annuities. As the rate of return by delaying exceeds the annuity payout it make sense to delay filing and draw down from the 401. There are a ton of reasons why this is a good idea and some are not specific to people considering annuities.
The SS increase exceeds the payout on an annuity and is a guaranteed increase unlike investment returns, the larger SS benefit also means a larger COLA, in addition it could have tax ramifications as SS is only taxed once you exceed an income threshold, so it's better to have a larger SS check and smaller income from 401 distribution.
All of this makes perfect sense mathematically. But the emotional toll of watching your balance dwindle down when you just know you can stop the bleeding by simply filing for a check that's just waiting for you is huge.
There is no doubt that it does. What I stated is how long it takes for that return to catch up with what you had to lay out in waiting. Remember that we are talking about retire at 62 and either use SS at 62 or other sources.
At a 4% return on investment in my calculations it took until you are 82 to make up the outlay. Longer if you have a higher return on investments.
Something seems off with those numbers.
Is it even possible that if you are replacing 8 years of very low income with let’s say $100k/yr that the difference would result in +$17k a year in ss?
I’m not sure I understand your comment, what replacement of 8 years of income. I retired at 55, I haven’t worked since. The numbers are straight from mySSsite.
unscientific polling of people about 62 or 65 or 70.
i just asked them about when they started SS and this is what i got:
1. the ones who waited until 70: about half said that was best for them.
2. for the 65 group: around 30% said it was best for them.
3. 62: unanimous yes. everyone agreed it was the best option.
I’m not sure I understand your comment, what replacement of 8 years of income. I retired at 55, I haven’t worked since. The numbers are straight from mySSsite.
if your last years working before you stopped were your highest years then ss assumes that you will be earning that level from 62 to 70 if you are looking at your 70 amount and bumping out smaller years .
if you stop and don't work until 70 then you won't bump the 8 years that ss assumed you were going to .
so your amount may be less than shown .
my last 2 years were part time so my amounts going forward were not anticipating me bumping out any years so it stayed the same .
if your last years working before you stopped were your highest years then ss assumes that you will be earning that level from 62 to 70 if you are looking at your 70 amount and bumping out smaller years .
if you stop and don't work until 70 then you won't bump the 8 years that ss assumed you were going to .
so your amount may be less than shown .
my last 2 years were part time so my amounts going forward were not anticipating me bumping out any years so it stayed the same .
They were not my highest years, but they were higher than my $20/year in college. I worked part time in the last two years. I expect it’s not to be what it shows right now, but very minor difference. Not enough that I have to worry about. Even make more sense to delay it then, otherwise it would be smaller still.
But according to today’s estimate, my husband and I will rack in more than $70K tax free from state tax.
Is 1/2 your husbands fra amount more than your fra amount ?
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