Social Security start date

[von-mil]

I am 58 y.o. and not yet collecting any SS benefits. However, each year I get a statement from the Social Security Administration (it used to come via U.S. Mail but now I have to go online to get it). The statement shows my lifetime earnings record and an estimate of my future benefits for different benefit start dates - such as 62 years old, 70 years old and for what they consider my full retirement age (66 years 8 months).

My question for those that have also received these statements - how accurate have you found their estimates to be?

 

[MarkF48]

When my wife turned 62 I calculated how much she would get at that age and how much she would get between 62 and 66. Then I calculated how many years it would take at the 66 rate to recover that amount. It came out to 18 years to receive the amount she would not get if she didn't take it at 62. If she waited to take it at 66 she would be 84 when she broke even. I didn't account for COLA but I advised her to take it early since she was already retired from her state job. I am retiring at 65 and will take mine a year early. According to SS you will get approximately the same amount of money over a lifetime no matter what age you start.

Pretty much what I did by making a spreadsheet to calculate the differences and I took it at 62.

 

[k0ua]

Best not to start drawing on SS early unless you have to. The OP's sister will get only 75% of full benefits each month for the rest of her life. That can make for a skinny check if she's been looking at the monthly benefits estimate they send out each year. And another ~$120 will be deducted if she takes Medicare Part B at age 65.

$134 for 2017 for people aging in to Medicare and not already on SS...People already on SS will be Grandfathered at the old 2015 rates

The part B deductible will be $183 for 2017

 

[k0ua]

I am 58 y.o. and not yet collecting any SS benefits. However, each year I get a statement from the Social Security Administration (it used to come via U.S. Mail but now I have to go online to get it). The statement shows my lifetime earnings record and an estimate of my future benefits for different benefit start dates - such as 62 years old, 70 years old and for what they consider my full retirement age (66 years 8 months).

My question for those that have also received these statements - how accurate have you found their estimates to be?

Mine was fairly accurate.

 

[dmccarty]

Best not to start drawing on SS early unless you have to. The OP's sister will get only 75% of full benefits each month for the rest of her life. That can make for a skinny check if she's been looking at the monthly benefits estimate they send out each year. And another ~$120 will be deducted if she takes Medicare Part B at age 65.

As other's have said, you are going to get a certain amount of money based on what you paid into the system vs how long you take the benefits. Waiting longer to take SS provides more income but you end up, getting the same amount as long as you die per their estimate of how long you will live. Live longer and get more money. Die earlier, get less money.

But there is another way to think about this as well. We have a decent amount of retirement money saved up but we want to take SS as soon as possible. One reason is to simply retire and have less stress but also to go do things while we still are able. The other major reason is that retirement savings. I want to use as much SS as I can to hopefully save as much of the retirement money as we can. We can leave the left over retirement money to the surviving spouse and eventually the kids. I can't leave them SS money since it dies when I die.

Later,
Dan

 

[bigtiller]

I took mine at 62 rather than 66 because no one would guarantee that I would live to be 66 to get the full amount.

 

[dmccarty]

I took mine at 62 rather than 66 because no one would guarantee that I would live to be 66 to get the full amount.

Yep. One of our ex neighbors died yesterday. He was in his mid 50's. He went to bible study, had a heart attack and died way too young.

Later,
Dan

 

[KennyG]

I am 58 y.o. and not yet collecting any SS benefits. However, each year I get a statement from the Social Security Administration (it used to come via U.S. Mail but now I have to go online to get it). The statement shows my lifetime earnings record and an estimate of my future benefits for different benefit start dates - such as 62 years old, 70 years old and for what they consider my full retirement age (66 years 8 months).

My question for those that have also received these statements - how accurate have you found their estimates to be?

It's exactly accurate, if you read the fine print. If your income in remaining work years differs from your earnings history, it can change the benefit. The benefit will increase by annual cost of living. And, of course, if our omnipotent politicians decide to change it, all bets are off.

 

[Deere Dude]

A question for those in the know; I have been on SS for a 3 years already and get a comfortable amount. My wife plans on starting of SS because her 62nd was last month. Hers will be considerably less because she was a homemaker/housewife for half of her working years.

If she starts collecting for a lesser amount at 62, and then I bite the big one, will she be entitled to any of my larger amount. We have been married for all our adult life if that matters. I heard they can collect half or some other reduced amount.

 

[smstonypoint]

A question for those in the know; I have been on SS for a 3 years already and get a comfortable amount. My wife plans on starting of SS because her 62nd was last month. Hers will be considerably less because she was a homemaker/housewife for half of her working years.

If she starts collecting for a lesser amount at 62, and then I bite the big one, will she be entitled to any of my larger amount. We have been married for all our adult life if that matters. I heard they can collect half or some other reduced amount.

This is my understanding. Your wife would be able to draw up to half of your SS payment when she retires. Assuming you pass first, her SS payment would increase to the amount you were drawing.

Steve