Thanks to all for all the very informative responses. I was leaning toward taking it at 62, and these answers have left me feeling convinced that I was right.
This forum is a valuable tool for all.
Thanks again. See you on the road in about 60-90 days after I get my little retirement globe ! I'm sure I'll need more advice then... I have not had 30 consecutive days off in 46 years...Time for trout fishing..
Jim
Jim & Carmel
2004 Dutch Star 41'
2006 Jeep Liberty
Blue Ox Aventa Tow Bar
Brake Buddy
I started my social security at age 62 (I've been retired for 10 years). My wife will be 62 this fall and plans on taking hers then. The main reason we opted to take at 62 is that we have a 14yr old child and believe it or not (I didn't know) until I went to the office to make my application he (my son) draws almost as much as I do. He can draw this all the way through high school and some beyond. That is nearly $44,000.00 that we would have missed out on if we had waited until 66. The money for my son goes for his dental braces, pickup truck he's buying this summer when he turns 15 plus the insurance for same. About 500.00 per month is going into a 579 plan to help with his future education. I'm not sure but when the wife signs up the boy might also be able to draw some on her. And that my friends is why I'm drawing my soc security at age 62...jwb
Just signed up at age 62. On Feb 12, 90 days out from being 62, the earliest you can do anything, went on the web site and did everything in about 35-45 minutes. Just needed to send a copy of birth certificate to Albuquerque. Two weeks ago I got three envelopes from SS all on the same day. One returned the birth certificate, another saying the amount I would receive and start date in July, and the third info to establish a password for info. Very painless!
I was told by a smart state lawyer in 2000 in NJ during a pre-retirement seminar, that Anyone who has the time on the job, is old enough to retire and or collect social security at 62 should so. The longer you wait to retire or file for ss, the shorter time you will have left to enjoy your retirement. I retired in 2000 at 55 with 20 years of service. Last year I filed for SS at 62. That is 8 years that I have been collecting a retirement pension. Two months ago a former co-worked friend had put in the paper work to retire May the 1st when he would turn 63 because he wanted to have 35 years of service, which would have given him $150 more a month that I am making and a few dollars more on his social security. Well, he passed away last week a couple of hours after work from a heart attack. He never got the chance to see either his retirement or social security.
The moral of this long story is, to get it and enjoy it when you can cause you do not know when when check out will be.
daytona7 wrote: I was told by a smart state lawyer in 2000 in NJ during a pre-retirement seminar, that Anyone who has the time on the job, is old enough to retire and or collect social security at 62 should so. The longer you wait to retire or file for ss, the shorter time you will have left to enjoy your retirement. I retired in 2000 at 55 with 20 years of service. Last year I filed for SS at 62. That is 8 years that I have been collecting a retirement pension. Two months ago a former co-worked friend had put in the paper work to retire May the 1st when he would turn 63 because he wanted to have 35 years of service, which would have given him $150 more a month that I am making and a few dollars more on his social security. Well, he passed away last week a couple of hours after work from a heart attack. He never got the chance to see either his retirement or social security.
The moral of this long story is, to get it and enjoy it when you can cause you do not know when when check out will be.
I have seen similar occurrences more than once & chose to retire poorer but free & happy at 53.
greg121 wrote: Scott Burns had a column in the recent past that if I recall correctly indicated you could draw early - then repay and redraw at the higher rate should you have made it that far (sorry don't have it ready to hand)
I read the same column. Very interesting. At age 70, there is apparently an option to pay back every penny paid to you (no interest or penalty, just the raw total) and then reapply for SS at the age 70 rate.
You'd have to have someone work the numbers for YOUR case, but essentially what you would be doing is, at 70, buying an annuity for x dollars for the rest of your life. Might be good or might not, depending on YOUR life expectancy.
There's really a lot more to this than take it at 62 or wait to 'retirement' because there are a number of years in which one can take it, so it is a series of decisions, and taxes may or may not affect YOUR decision.
This is something that would be worth checking into with a for-fee financial advisor, with your expected other income and tax-deferred numbers in hand.
Lets see.... Took my SS at 62, then decided to give it all back and take the higher SS check at 70...
Payback would be over $95,000 to get a higher SS payment at 70.. That $90,000 would make over $4500/year in interest at 5%.... What a gamble it would be for me to live long enough to recover all that money...
Don't think I'd need a financial advisor, but rather a head-shrink if I were to do that...
Well the winner by far is "take it early.". That wasn't the best answer for us. First, due to some past medical problems, there was no way insurance was in any form going to be affordable until Medicare kicks in at age 65. So my only decision really and I'm now 64 whle she is 63 is whether to take it at 65 or wait until full at 66. And my only reason for debating that decision is my payment is going to be pretty high and my wife's while still adequate will be somewhat less. As someone said earlier the women usually outlive the men and I expect that to happen in our case. Now SS will not be the only financial instrument involved, however, if I pass she can draw my SS instead of hers. That being the case I may work the extra year to provide her as much as possible. Fortunately I do have a job that I enjoy....although no mistake I'd still rather be retired.
Whether it's 65 or 66 we are hitting the road fulltime for as long as our health holds out. I love hearing about all of you out there who are happy on the road.
phil crouch wrote: Payback would be over $95,000 to get a higher SS payment at 70.. That $90,000 would make over $4500/year in interest at 5%.... What a gamble it would be for me to live long enough to recover all that money...
Well, the $4,500 is taxable. What marginal tax bracket would you be in? How much higher would your age 70 payments be than your age 62? What's the net? Where's the break-even?
How old did your parents, grandparents and siblings live beyond 70?
More to it than just the costs and slightly different for each of us. For some it's clear one way or the other, for some it's murky.
BTW, I believe the columnist generally pegged it as an annuity returning 10%.
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