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OP says he & his wife both make low 6 figure incomes from their jobs, I doubt they would be eligible to receive SSI, so obviously he means Social Security.
The question of when the optimal time to take SS draw has been debated on several threads here. From an actuarial standpoint, it does not matter, you will get the same amount of money, either more payments of a smaller amount if you start earlier, or fewer but larger payments if you wait. At 70 you get the largest payment they will provide so there is no sense in delaying past 70, as I understand it, under current law. The laws have been changed in the past and probably will be in the future as well.
My own take is that if I don't really need it, certainly I won't take it until FRA. Certainly not if still working, which I am now. My own situation, with a wife in long-term care, is not that common. I may very well take SS at FRA while still working, since if she is still alive she will get a draw on my SS as well, and this would pay for more than half of her long term care costs.
Final thought: Some people approach this as "How will I get the most money over my lifetime from SS?" If a guy wants to approach it that way, he certainly can, but, since none of us know how long we will live, we have too many unknowns to be able to do this with any certainty. I would suggest taking SS when it would help you live better after retiring. There is no one-size-fits-all answer.
Good, thank you.
Exactly. We clearly do not need money. But, as you said - no one knows, when. If I hope for a handful more 4 yrs down the road - and don't make it, I lost it all I could have in the meantime. In my case, it will be $27K a year. I'd rather turn around and put those money into the house, to pay it off.
We talked and talked and I really see no good reason to wait. My FRA is 2 months 1 week away.
Honestly, Mitch, I think, it's a carrot before the donkey, to not take it now. Whatever happens, I plan to work anyway till I can, part time maybe...
See, we are frugal. And, with 3 rentals, lots to write off. I do not believe, those money will slam me with huge tax difference.
Also, on their website, it says that, it may actually increase my benefit, as it increases reported income and they recalculate it, based on the highest year. It will definitely be the highest year, if I add SS benefit to income. So there's that too..
Also, on their website, it says that, it may actually increase my benefit, as it increases reported income and they recalculate it, based on the highest year. It will definitely be the highest year, if I add SS benefit to income. So there's that too..
SS Retirement benefits only use earned, FICA payroll taxed, income to arrive at the "highest 35 years". As reported on your SS Earnings Statement.
Not SS benefit payments or other so-called "unearned" income, like interest etc.
Good, thank you.
Exactly. We clearly do not need money. But, as you said - no one knows, when. If I hope for a handful more 4 yrs down the road - and don't make it, I lost it all I could have in the meantime. In my case, it will be $27K a year. I'd rather turn around and put those money into the house, to pay it off.
We talked and talked and I really see no good reason to wait. My FRA is 2 months 1 week away.
Honestly, Mitch, I think, it's a carrot before the donkey, to not take it now. Whatever happens, I plan to work anyway till I can, part time maybe...
See, we are frugal. And, with 3 rentals, lots to write off. I do not believe, those money will slam me with huge tax difference.
Also, on their website, it says that, it may actually increase my benefit, as it increases reported income and they recalculate it, based on the highest year. It will definitely be the highest year, if I add SS benefit to income. So there's that too..
I suggest you look into another potentially unexpected by you situation:the Medicare and its costs.
If right now both of you have your healthcare coverage from the employer while working - when you apply for SS - it is considered that you automatically apply for Medicare.
Do a research regarding Medicare rules/costs: there are some potential financial landmines for you both to consider
And if you want Medicare - have you signed up already?
If you don't sign up by 65 and then decide to sign up later - you get penalized.
Do not need to sign up if covered by an employer plan when hit 65 - from medicare,gov
Quote:
Once your Initial Enrollment Period ends, you may have the chance to sign up for Medicare during a Special Enrollment Period. If you're covered under a group health plan based on current employment, you can sign up for Part A and/or Part B anytime as long as:
You or your spouse (or family member if you're disabled) is working.
You're covered by a group health plan through the employer or union based on that work.
Usually, you don't pay a late enrollment penalty if you sign up during a Special Enrollment Period.
It is hard to live on SS only,why spent so much time and energy to talk about it?
But then I wont start at 62.
I think you might be surprised how far Social Security contributes to some people's retirement expenses. My SO who is now 69 claimed his SS benefit at 67 which is currently $2,200/month. I am 64 and still working, and if I choose to take my SS benefit at my FRA of 66.6, according to my most recent statement that will be $2,600/month which both benefits combined = $4,800/month. With no mortgage, no car payment or other large outstanding debt our combined expenses not counting things like vacations and other extras will be just about $4,800/month.
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OP is NOT confusing me
