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Forgive me for asking this again.....But what's the "gain" -- percentage gain -- I'll say.....if you retire....DO NOT FILE.....until your FRA.
Let's say a person makes 100K....retires at 65....(lives off a pension) ...but does file for SS until age 67 FRA...so doesn't work for two years before Soc Sec.(their highest (and last) 30 years employment were 10 years each 100K, 80K, 60K)
Everyone talks about an 8 percent gain a year if you delay...but that's only if you're WORKING right up until filing.
What's the gain....if you're not working....but still delay. I think the answer I saw before was not as much....but is it 5%. 2%. is it even LESS...like no gain at all in the earned benefit ...just the COLA increases.
Before I retired at 58, I went to a Social Security seminar. The guy there said take it at 62. How do you know you're going to live to 70? Made sense. I took it at 62.
Would it make sense to retire a year before your FRA and move as much money out of Tax Deferred IRA as you possible can without getting killed with taxes to a Roth IRA? I would have to use some of it to live off but I am worried about getting taxed to death with SS and taking out my IRA. Any ideas?
Would it make sense to retire a year before your FRA and move as much money out of Tax Deferred IRA as you possible can without getting killed with taxes to a Roth IRA??
This is exactly what I plan to do: retire before FRA and convert as much as I can from our 401Ks and IRAs to ROTH IRAs. Our future RMDs will put us into pretty high tax bracket so we will try to do as much as we can to minimize the tax impact.
Before I retired at 58, I went to a Social Security seminar. The guy there said take it at 62. How do you know you're going to live to 70? Made sense. I took it at 62.
Well that was the deal when SS was first established back in the 1930's when people didn't live long so SS wasn't so much of a burden on the Government since people died earlier and weren't able to collect benefits.
My dad had diabetes (Type 2 ) which was under control and in good health but he took SS at 62 and 11 months later he had a stroke and died.
We did several different calculations. But the decision we made is this: waiting until age 70 when we'll need less income makes no sense. We have a Danube River cruise planned for 2016, a Europe/UK trip planned for 2017, and an eastern Med cruise planned for 2018. We need the income now when we are still young enough to enjoy it. Who knows whether we'll be need all the extras after 70.
So he is taking SS at age 62. Mortgage will be paid off then, improvements will be finished, and we are just going to spend money! Why save it? We saved our whole lives, now is the time to reap what we sowed.
Forgive me for asking this again.....But what's the "gain" -- percentage gain -- I'll say.....if you retire....DO NOT FILE.....until your FRA.
Let's say a person makes 100K....retires at 65....(lives off a pension) ...but does file for SS until age 67 FRA...so doesn't work for two years before Soc Sec.(their highest (and last) 30 years employment were 10 years each 100K, 80K, 60K)
Everyone talks about an 8 percent gain a year if you delay...but that's only if you're WORKING right up until filing.
What's the gain....if you're not working....but still delay. I think the answer I saw before was not as much....but is it 5%. 2%. is it even LESS...like no gain at all in the earned benefit ...just the COLA increases.
Thanks
Can you point to an SSA document that explains this concept ? I can't find any, and my own experience says different.
I quit working at FRA (66), and waited until age 70 to file for Retirement benefits. I received the full 32% (4 years x 8%) Delayed Retirement Credit, versus my FRA amount.
Well that was the deal when SS was first established back in the 1930's when people didn't live long so SS wasn't so much of a burden on the Government since people died earlier and weren't able to collect benefits.
My dad had diabetes (Type 2 ) which was under control and in good health but he took SS at 62 and 11 months later he had a stroke and died.
I turned 62 in 2013, the 30's? I'm not THAT old! Anyway, I paid into the ss system and am happily collecting.
Before I retired at 58, I went to a Social Security seminar. The guy there said take it at 62. How do you know you're going to live to 70? Made sense. I took it at 62.
I just went to a SS seminar and the advice was wait until FRA (me = 66).
The argument being that since it's a lifelong annuity, better to let it accumulate.
It's all relevant, though, to whatever your life situation is at the time and I don't think one size fits all, anyway.
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I can't find any, and my own experience says different.
