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In my opinion, this is imprudent. If you don't need the money, take it anyway and invest it, or even just put it in CD's. If you don't take it until you are 70, then you will have this huge nest egg to draw from if you need it, and you might. To make more money total you will have to live until your mid to late 80's.
Doesn't that depend on the person's income situation when they turn 62? There are many financial advisors who will advise people to wait as long as they can, esp. if they are earning a good income at the time.
I've been retired for 7 years and turn 62 in 30 days. I won't be taking my SS benefits until I'm at least age 66, and likely not until I'm 68 or 70. The increase is just too good to pass up.
Quote:
Originally Posted by Zarathu
In my opinion, this is imprudent. If you don't need the money, take it anyway and invest it, or even just put it in CD's. If you don't take it until you are 70, then you will have this huge nest egg to draw from if you need it, and you might. To make more money total you will have to live until your mid to late 80's.
Quote:
Originally Posted by ETex2
Doesn't that depend on the person's income situation when they turn 62? There are many financial advisors who will advise people to wait as long as they can, esp. if they are earning a good income at the time.
Zarathu,
SS benefits increase 25% between age 62 and 66 - that's an average of about 6% annually, which is much higher than can be obtained currently without great risk. And the increase between age 66 and 70 is 32%, or about 8% per year.
The only three reasons why I would take SS benefits early would be because:
(1) I could invest the benefits at a higher rate
(2) I plan on dying before age 77, which is the break-even age for full retirement benefits
(3) I need to money
None of the above apply...but of course I cannot be sure about #2.
Why in the world would I give up such a healthy annual increase rate on future income? I sure wish I could get that same rate on some of my other assets.
SS benefits increase 25% between age 62 and 66 - that's an average of about 6% annually, which is much higher than can be obtained currently without great risk. And the increase between age 66 and 70 is 32%, or about 8% per year.
The only three reasons why I would take SS benefits early would be because:
(1) I could invest the benefits at a higher rate
(2) I plan on dying before age 77, which is the break-even age for full retirement benefits
(3) I need to money
None of the above apply...but of course I cannot be sure about #2.
Why in the world would I give up such a healthy annual increase rate on future income? I sure wish I could get that same rate on some of my other assets.
Married/not married. Spouse benefits etc all play in.
Married/not married. Spouse benefits etc all play in.
True, that's a factor. In my case, I'm married and we both have the maximum SS benefits. My wife also plans to wait until at least full retirement age, and probably later.
Even though I'm getting a lesser amount of SS at 62, wife and I both agree that even that "lesser amount" is better than "no amount" due to being unemployed and the difficulty finding a job! Now, my wife told me this morning that she can't wait to retire when she is 66. One reason is that she can sleep in later and not have the pressure she does at work. On the other hand, I told her "if you keep working past 66, you can collect your full SS and still make the salary your getting right now. It would be a very nice income for her!
None of the above apply...but of course I cannot be sure about #2.
Why in the world would I give up such a healthy annual increase rate on future income? I sure wish I could get that same rate on some of my other assets.
Three reasons:
1. You're right about #2.
2. Money isn't everything and doesn't buy happiness.
3. You may have to continue to work longer.
My numbers 2 and 3 don't apply if you're already retired and comfortable without it. Your #2 always applies.
Couldn't wait! No more unemployment bene's left and job search has been going pretty bad. Wife and I agreed that it was for the best.
This is the reason that I took mine early. The only difference is that my unemployment went down to $76 per week.
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