not necessarily. I've got some really nice plays with mine that many don't know about. I actually got turned onto the strategy from a PSU guy.
OT: When to take Social Security
- Thread starter RULoyal
- Start date
Thanks. Just one and he's done with college and making decent money. Saved well, never carried any debt other than a mortgage (paid off a few years ago), and was fortunate to work at one of the last companies (Merck) with a defined benefit pension plan. Was going to take the lifetime payments back in spring 2022, when inflation started rearing its ugly head, so I decided to take the lump sum instead, so I could invest it and make some $$, instead of having a fixed income from the pension with no cost of living adjustments. Cashed out near the max amount before it would have dropped significantly (those lump sums go down a fair amount when interest rates rise and vice versa) and have done ok with the investments.
As an interesting aside, I have a few friends whose aim is to "have the check for the funeral bounce," i.e., spend everything they have while they're still alive, leaving nothing to their heirs. I get it, but that's not what we're doing. Will hopefully be leaving a nice big chunk for our son and smaller chunks for a few charities (and Rutgers).
If you are interested in investing, check out the stock & investment thread. Lots of fun with a bunch of knowledgeable posters.
Some really bad information, facts, and assumptions in this thread. Surprisingly disappointing for this forum of the educated. Didn't see one single person even mention that after 62 you can take it any time. It is not 62/67/70. It is linear.
here's my grid (my monthly is almost $2600 with COLA now) . So over 22 years I will lose on average $4,000 per year in total IF I live to 85 lol. Break even is 80. I'll take the cash now (NJ Tax Free), enjoy the extra funds to LIVE, and hope to beat myself by living past 80 and "costing myself" a few dollars in the long run.
here's my grid (my monthly is almost $2600 with COLA now) . So over 22 years I will lose on average $4,000 per year in total IF I live to 85 lol. Break even is 80. I'll take the cash now (NJ Tax Free), enjoy the extra funds to LIVE, and hope to beat myself by living past 80 and "costing myself" a few dollars in the long run.
| year | Age | ||||||||
2021 | 62 | $ 2,197 | $ 6,591 | ||||||
2022 | 63 | $ 2,197 | $ 26,364 | ||||||
2023 | 64 | $ 2,197 | $ 26,364 | ||||||
2024 | 65 | $ 2,197 | $ 26,364 | ||||||
2025 | 66 | $ 2,197 | $ 26,364 | ||||||
2026 | 67 | $ 2,197 | $ 26,364 | $ 3,049 | $ 9,147 | ||||
2027 | 68 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | ||||
2028 | 69 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | ||||
2029 | 70 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 11,586 | ||
2030 | 71 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2031 | 72 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2032 | 73 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2033 | 74 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2034 | 75 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2035 | 76 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2036 | 77 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2037 | 78 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2038 | 79 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2039 | 80 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2040 | 81 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2041 | 82 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2042 | 83 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2043 | 84 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
2044 | 85 | $ 2,197 | $ 26,364 | $ 3,049 | $ 36,588 | $ 3,862 | $ 46,344 | ||
| $ 612,963 | $ 667,731 | $ 706,746 | |||||||
| $ 54,768 | $ 39,015 | ||||||||
| $ 93,783 |
This chart makes we want to start taking payment at 62. Enjoy it or invest it. Either way you will likely end up ahead.
Just confirming in retirement that interest, dividends, earnings from stock investments, etc. do not count towards the income limit - correct?
Dennis can you put the titles on the number lines? Haven't had coffee yet lol
The income limit is around $21,000 for 2023. It becomes unlimited once you reach full retirement age.
I think people know, or at least should know, you can take it any time after 62. The question being discussed is whether to take it early or not. And that becomes a judgement call based upon one’s specific situation and comfort level.
My dad took it at 62 and is now 90. Many people would consider that a bad financial move in retrospect but in reality, it was a great move.
The social security allowed him and my mom to travel extensively in their 60's until the age they had to start limiting their vacations. I think somewhere in their 80's they had to cut back.
You never know what’s around the corner. Most people should take the money ASAP and enjoy.
Especially when you look at average life expectancy numbers in the US (women 79/men 73) and given that break even age for social security (taking early vs 70) is usually around 79/80 years old. Now everyone's situation is different and if your health and family history might indicate you and yours are going to beat the odds, you might wait.
around 58000 if you are working in yer retirement year, which is the year you reach SS retirement age.
Yes
Some money I received in 2023 will not count against the ss income limit because it was earned prior to 2023 but paid in 2023.
They're the monthly and annual payouts starting at 62, 67, 70 (you can see the years on the left). The first line in each column is lower because I started getting it in October (3 months) the first year. Due to COLA the number for next year has already jumped to over $2,600.
Most medical professionals would tell you because you have parents or a parent living beyond mid 80’s that your odds do increase dramatically. Lifestyle is important. Stress is a big issue throughout our lives and as aging occurs we have a more difficult time finding ways to alleviate it. Though you can exercise, eat right and find ways to destress we all need some luck along the aging journey. One way to see that happen is finding ways. For me and most of us RETIREMENT helps … just keep busy … don’t stop moving.
Well if most people know it nobody ever discusses it as a solution to taking it early or not which is always about 62 or Full. And it not just the question of anytime but the payouts are linear. IF you want to "bridge" the decision that's your play. Wait a little bit , get a little more, and lose a little less.
Of course it is a judgement call. Otherwise the option wouldn't even exist.
People need to understand the system currently in place. Yes , you can leave at 62 but of course at the reduced rates . I believe many are in the 66-67 group for full benefits. So you will lose out. Originally my defined benefit pension kicked in at 58 but then was changed to 62 (no medical) . Also was one of the last large companies who still had that. Now like most it’s 401k’s. Keep in mind medical plans can vary and what is offered is important. Just counting on Medicare ? Think again. Most of my wife’s and my high school classmates had a huge discussion on companies and rates. That was quite helpful in deciding on who and what was best for us. I still am part of my former company and the medical rates offered when I retired. My wife has her own through the company and fortunately it is quite good . Expensive ? Yes but you will need medical insurance as well it is a definite need. You get what you pay for. Many get the bare bones minimums and that can be a problem with many medical conditions. With this we get great vision and dental plans. Unless you feel a need to go cheap then that is risky. Medicare could be solved along with the SS issues. This has been discussed some years ago on this board.They who make these decisions aren’t worried and mainly because it never effects them and their family . Both don’t care…
My 90-year-old parents smoked 5 packs of cigarettes a day (3 packs for dad 2 for mom) while I was growing up. My dad quit in 1978 and my mom quit in the 1990's. There was never a time without a lit cigarette in the house or car,
If you told any of us, they would make 90 I do not think we would have believed it.
From my experience withy parents, Medigap coverage is worth every penny.
Yes, judgment call. And the bridge depends on personal factors and preferences. As I posted earlier, I took SS at 65 but would have been fine at 62 or fully delaying, or anything in between. If you have sufficient assets it probably doesn’t matter much—or at least it shouldn’t.
With my parents- it is tough to figure. My Mom passed when she was just 40, back in 1972. Cancer and she was a heavy smoker and er Doctor did no diagnose it early enough. If it were 2022- she most likely would have made it through it- both of her parents(my grandparents- lived into their 90's) - on Dad's side- also a heavy smoker lived until 87. His parents had passed in their late 60's. But they both passed in the early 1970's - so, right around expectancy at the time.
I have never smoke- no longer drink much and eat fairly healthy. I will most likely work until 70 - some parts of that is that my current base/commissions- are significant enough that each additional year I work is significant to my net worth. I figure to live into my 90's and though I will still be working up until 70- my position allows me tons of flexibility to travel and enjoy life as I am doing so.
I have never smoke- no longer drink much and eat fairly healthy. I will most likely work until 70 - some parts of that is that my current base/commissions- are significant enough that each additional year I work is significant to my net worth. I figure to live into my 90's and though I will still be working up until 70- my position allows me tons of flexibility to travel and enjoy life as I am doing so.
My mom identified an issue and insisted doctors run tests that identified she had cancer twice-once lung and once kidney. Her second lung cancer was found during follow up of her first lung cancer- the 5-year period. She never had chemo or radiation just surgery.
The tumors she had with the lung cancer were mostly the type not caused by smoking although she did have some that were tobacco related.
She was treated at Sloan by the same doctor who treated Justice Ginsburg. Great doctor at a great hospital.
Just read, social interaction is the most important for longevity.
When my parents got married- she told my Dad that she would dies at 40 and have 6 sons…
They couldn’t conceive for a number of years so adopted 2 boys. Wouldn’t you know it- In the next 7 years- she birthed 4 more sons- and unfortunately, she passed, 2 weeks after her 40th BD…
She was diagnosed at 35, but had been going to the doctor for over 2 years before it was diagnosed. She did do Chemo and declined to do it anymore. She could extended her life by another 6-12 months but decided to spend her last few weeks, instead, with all of us and took a camping vacation with all of us, when she passed during that vacation.
If only medical was better back then. But this may also be why my life could be extended, because at the age of 10-after losing Mom because of smoking- I swore I would never do so in any form. And I never have…
You mean supplemental insurance to cover the 20% that Medicare doesn’t cover? My father had the supplemental and at the end had huge medical cost, probably close to $1 million. We only paid maybe $1,000 out of pocket expenses. His company paid for the supplemental insurance for both my parent for over 30 years saved a couple hundred thousands but in the end the company stopped because the union didn’t care about the old retirees anymore.
Medicare Advantage can be tricky and may be more costly with out of pocket cost.
Last edited:
My siblings realize we have been very lucky with our parents. None of the 5 of us ever smoked. My parents warned us against smoking for as long as I can remember.
Not many things worse for the human body than inhaling smoke into your lungs.
I have supplemental as well as all my siblings. Once you elect Medicare advantage, you will have a difficult time switching or at a much higher premium.
If you delay ss & have lots of untaxed ira rmd when time comes along with pensions etc, then you can find yourself being 80 years old and making a crap load of money that may force you into higher tax bracket & also finding you pay irma (with you paying more for medicare than the average bear). So, for higher net worth people (who don't necessarily need the ss at 62), it may nevertheless be more tax advantageous to start taking your social security early before full retirement age. So for many people it's not about the break-even point and longevity but more about strategy involving taxes.
My father’s dad lived to 87 … my dad 90 … My dad’s mom 65 smoked Pall Malls for 50 years as did gramps. They also back in those days were a daily stop in at local “ gin mill” for post work shot and beer . Mom’s mother passed at 87- gramps at 55 was a cigar / beer guy . Pancreatitis back in 1950 was not good especially refusing to quit. I was 6 months old. Owned a bakery and provided a good life for his family . Wish grandma kept the bakery and 4 lots they owned in Bay Head .So lifestyle - genetics sometimes really matters most.
That is why while I want legal pot I would rather see it sold in a non-smoking/vaping method.
Genetics matter most unless addiction beats it.
My dad was also a Pall Mall smoker. Mom was Kools and Salem if I recall correctly.
Similar threads
