It's Time For Medicare (whether I want it or not)

[KennyG]

3 Reasons You're Better Off Claiming Social Security at 70 | The Motley Fool

Reason #3 was new to me SS info.

That's good information, but a poorly written article since Bullet Point #3 is actually No. 2 in the text. But in any event, that's one of reasons I delayed until 70 since my wife is 11 years younger than me. One confusing point that most articles don't explain is that the spouses benefit, while you are alive is only 50% of your full retirement age benefit, not the delayed benefit. It steps up to your delayed benefit amount only as a survivor benefit.

If the spouse had higher earnings, this reason doesn't have much importance.

 

[buckeyefarmer]

What year? A couple of years ago I found a check stub from my first job out of college, after I'd been there for 2 years. (1982)
I pay more in taxes now than I brought home back then.

I hear ya, I paid more in just federal tax this year than my first years pay as an engineer, not a job while in college.

 

[buckeyefarmer]

Nothing new in that article, but do like motley fool.

You can easily calculate your break even age, mine is around 85. So, will I even see 85? If not, retire early, take it and stop worrying. If you take it early, it’s reduced but you earn it for a longer time

It’s a shame the government plays all these games to make it confusing, but I guess it gives us choices.

 

[Gale Hawkins]

"Recent studies revealed your odds of ending up with more lifetime Social Security income are higher if you delay claiming. Specifically, just 6.5% of people who start getting checks before turning 64 end up with more lifetime benefits, while 57% of people who delay until 70 find themselves with more total benefits.

There's a simple reason you have better odds of ending up with more money if you wait. Social Security was designed to equalize out lifetime benefits regardless of claiming age, with early filers getting more small checks and late filers getting fewer large ones. But the formula of early filing penalties and late retirement credits was based on life expectancy at the time of the program's design, and it hasn't changed despite life expectancies getting longer since then.

As a result, more people than in the past end up living long enough to get so many higher checks, their lifetime benefits more than make up for income they passed up by putting off receiving them until age 70."

Moving the Max realized benefits odds from 6.5% to 57% on average does financially appeal to some. There's no game bring played. Some don't have 35 years of earnings by full retirement age so working to 70 can boost monthly SS deposits. Then there can be income tax considerations due to retiring before 70. Different people need different opinions.

Being a special snowflake my annual SS is $18K more by signing up at 70 vs 62. In our case since the wife had hit her FRA when I signed up she can draw off of me until she turns 70 next year and starts drawing off her account. I have to live to 75 to be in the black vs signing up at 62.

At 62 the math showed me to make a run for 70. I had a friend with health risks who signed up at 62 and lived another 3 years.

When it comes to Social Security staying alive has more impact on how much one draws than anything else.

 

[ovrszd]

When it comes to Social Security staying alive has more impact on how much one draws than anything else.

Truth.

 

[Williy]

By the same token people wait until their are
70 and make like a frog an croake before they
can file. I have been collecting SS for 20 years
and 22 years for regular retirement. Filed when
I was 62 and not sorry I did!

willy

 

[dmccarty]

There are times when one needs a good attorney. That's one time he needed one, the family farm was HIS family's not hers. A good attorney should have worked out an equitable settlement based on her contribution to the marriage. Something could or should have been worked out.

Not really. The land was THEIRS because of marriage. When they split up, they split the assets of the marriage. He had to sell the land to split the assets since he did not have the money to buy her share of the land.

Later,
Dan

 

[Fuddy1952]

I'm in Virginia.
I bet it differs by state.
Virginia:"When Virginia couples divorce, their marital assets and property are divided based on a number of factors, and each spouse may not receive an equal share."
So again, he should have had a good attorney especially with something as serious as selling off the family property!
Here it's based on many factors. The fellow you know could have borrowed against the property (worse case), paid her off then repaid the loan.

 

[dmccarty]

..
You can easily calculate your break even age, mine is around 85. So, will I even see 85? If not, retire early, take it and stop worrying. If you take it early, it’s reduced but you earn it for a longer time
...

Exactly.

The problem with taking Social Security later is when you have a decent retirement fund of your own and you want to keep as much of your money as possible. If we take Social Security early, that is money that we do not have to spend from OUR retirement accounts. We can't pass on our Social Security benefits to children and/or grandchildren but we can with our retirement funds. If one looks at the Social Security actuarial tables you can see one's life expectancy. We are planning to live to age 85, though the tables say I won't get to 85. My expectation is I will live passed 85 due to current health and family history, but one does not really know.

I would rather get Social Security ASAP to minimize taking money out of our retirement funds. Also to allow us to start taking out more money from the retirement finds to reduce taxes later on due to required withdrawals. That last part is a balancing act.

Later,
Dan

 

[Gale Hawkins]

By the same token people wait until their are
70 and make like a frog an croake before they
can file. I have been collecting SS for 20 years
and 22 years for regular retirement. Filed when
I was 62 and not sorry I did!

willy

Glad it worked for you. I didn't prepare as well as you and needed the extra $18,000 annually for retirement expenses in my case. For me I still work so I can max fund my IRA and for the fun of working and the social aspect.

 

[Gale Hawkins]

Social Security: Offices will reopen after 2 years this month | Fingerlakes1.com

Social Security Administration offices have remained closed since March of 2020, and now, two years later, they will finally be reopening this month. The agency is currently facing major backlog issues, similar to the IRS, due to the pandemic and staffing issues. Many are hoping that reopening...

www.fingerlakes1.com

 

[Paddy]

even if I thought I would die at 68, I would not draw at 62. Why? Because my wife could live to her late 80's on 70% of what it could have been. Drawing early has big penalties long term

Even if my wife started drawing her S.S. early, when she chose to take "half" mine, it is reduced. 70% of 50% is mine.
If we both go early, 70% plus her 35% =105%
Both go FRA, 100% plus 50% =150%
I go at 70, she geos at FRA, 124% plus 50% = 174%

When I die, she will get 70 to 100% the highest SS benefit depending if she OR I go early
(your spouse will get 100%, not the 124%)

I think I got it correct...

 

[Gale Hawkins]

even if I thought I would die at 68, I would not draw at 62. Why? Because my wife could live to her late 80's on 70% of what it could have been. Drawing early has big penalties long term

Even if my wife started drawing her S.S. early, when she chose to take "half" mine, it is reduced. 70% of 50% is mine.
If we both go early, 70% plus her 35% =105%
Both go FRA, 100% plus 50% =150%
I go at 70, she geos at FRA, 124% plus 50% = 174%

When I die, she will get 70 to 100% the highest SS benefit depending if she OR I go early
(your spouse will get 100%, not the 124%)

I think I got it correct...

I think you're correct on that last point. I signed up at age 70 so I get 132% of my full retirement age but my wife because she had reached full retirement age but not yet 70 she is drawing off of me until she retires and she gets 50% of what I would have gotten if I had retired at a full retirement age instead of 50% of what I draw.

 

[KennyG]

If you delay and your wife waits until her full retirement age, she gets 50% of what you would have gotten if you had not delayed. However, when you die, her benefit steps up to what you were getting including the delay bonus. I'm not sure it makes sense, but it's the government.

A large factor in my delaying to 70 was that my wife is 11 years younger.

 

[Williy]

KennyG the gov never makes cents! Clowns are
not very bright but the worst part is their in the GOV!
I knew a guy that worked at the post office and when
he retired he was asked if he wanted to combine his
two retirements and he said yes what a mistake he
lost $800 bucks a month by doing that. I retired from
civil service and when I when to get my SS I lost $100
a month. They vote themselves a pay raise more than
I make in 2.5 years of SS

willy

 

[oosik]

Diggin It - - look at the bright side. You lived long enough to get these bennies. Kenny G - post#2 - hit a home run. Get the Medicare book and figure it out from there. Get objective evaluations - not sales pitches.

 

[Fuddy1952]

I speak with a financial consultant occasionally. Before I retired at 61 when I mentioned social security his advice was taking it at 62 which I did. He said the age where things change is about 85. In other words living past 85, I should have waited.
Everyone's situation is different and no way could my wife & I survive on our SS combined although we paid into it for many years starting as young teens. Ours is taxed, enough left after Medicare and taxes for maybe a few meals out.
We don't think of it as income.

 

[Williy]

jTaking SS at 62 the three years I was collecting
before I hit 65 I don't believe I would have gained
anythig if I had waited and I had a few extra bucks
for pocket money. I had worked at the post office
for 6 years and they wanted me to pay that back
so I could collect by adding that in for retirement
but I would have had to pay twice the amount I
received like $9,987.65 so I could add another
$50 a month. That sure was so sweet a deal I
just had to pass it up.

willy

 

[buckeyefarmer]

Exactly.

The problem with taking Social Security later is when you have a decent retirement fund of your own and you want to keep as much of your money as possible. If we take Social Security early, that is money that we do not have to spend from OUR retirement accounts. We can't pass on our Social Security benefits to children and/or grandchildren but we can with our retirement funds. If one looks at the Social Security actuarial tables you can see one's life expectancy. We are planning to live to age 85, though the tables say I won't get to 85. My expectation is I will live passed 85 due to current health and family history, but one does not really know.

I would rather get Social Security ASAP to minimize taking money out of our retirement funds. Also to allow us to start taking out more money from the retirement finds to reduce taxes later on due to required withdrawals. That last part is a balancing act.

Later,
Dan

Very good point Dan.

 

[Gale Hawkins]

jTaking SS at 62 the three years I was collecting
before I hit 65 I don't believe I would have gained
anythig if I had waited and I had a few extra bucks
for pocket money. I had worked at the post office
for 6 years and they wanted me to pay that back
so I could collect by adding that in for retirement
but I would have had to pay twice the amount I
received like $9,987.65 so I could add another
$50 a month. That sure was so sweet a deal I
just had to pass it up.

willy

The math can vary from person to person so each one has to do the math After getting advice directly from the SSA.

In my case I am getting an extra $1500 more per month for life by signing up at 70 vs 62. SSA called me the day after I signed up to tell me have my wife who plans to retire at 70 to sign up at once drawing off of me until she turns 70. When she called another younger SSA rep said No Way.

Since this unknown SS bonus was going to be worth $30K to her she didn't take No for an answer. Six months later we both got our first SS DD's 30 days after I turned 70.

I told her that this unknown $30K SS bonus surely was for a Tesla down payment in 2024. Had she not had reached her FRA and been 65 days younger she would be missing out on this bonus that I never factored into my when to retire decision.

SS details are FULL of Exceptions plus make sure your SS Rep is fully informed about Exceptions that may apply in your case.