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Take it as early as you can. No point in taking it at 70 then dying.
There is also the opportunity cost of working those additional years. If you retire at 62 and live to be 80, you have 18 years of retirement. If you are too sick to do much after age 78, you have 16 years of "fun" retirement. If you wait until 66, you only get 12 years. That's a net loss of 25% of your retirement enjoyment. Unless you really need that extra money, is it worth it to truncate your retirement that much?
I don’t think I will need the SS check at 62 for cash flow but what if I started taking it then and invested that money earned over the 5 years until I reach 67 (factoring in I will want the monthly checks for cash flow at 67) then cash the investments out when I turn 70 or 75. Normal rate of return expected. How would that impact the break even point for when to take the benefits?
The ‘Full Retirement Age’ seems to be a meaningless label. The bottom line is that the longer you wait, the more you get, regardless of your FRA. For example if I take SS at 62 I get $2000/month. If I retire at 66.5, I get $3000/month. And if I retire at 70, I get $4000/month. FRA is irrelevant. The numbers matter, not the label (early/full/delayed).
I am looking to retire at 63 1/2 and start SS at 64. That way I will get more than the minimum SS and still will not have to wait until 67. Since I have no mortgage and have a pension and TSP, the numbers look good for me.
From what I understand the system is designed to pay out the same total benefits for a person whether you collect a lower amount early for many years or collect a higher amount for less number of years. People seem to think they get more total money if they wait; understand that you give up a substantial amount if you wait so your 'breakeven' number has to account for that. And if you don't live very long afterwards it won't make a difference.
Another factor to consider is, when will you need the money most. Cash flow question is true, but really need to take into consideration when the cash flow needs is the greatest. When will you need the money most versus big payouts if you wait until 70. How much are you going to be spending in your 70s and 80s versus your 60s. As you wear diapers in a retirement home, are you going to be saying to yourself, "I wish I took that trip to New Mexico at 63 versus my bigger social security check in your 70s." If you have to borrow (credit cards) to go on that vacation in your 60s, then you have to add the interest cost of waiting to full retirement age. Many Americans are overweight and their true life expectancy or even the point where they are mobile and healthy is probably a lot shorter than what is being projected. My mother in law passed away at 62, never was able to cash her first check. Graphs and charts are nice but think about things that you will delay if you wait to collect later.
OPM handles your FERS pension and Social Security benefits as one payment when you retire and you aren't given the choice to delay the SS benefits.
Take it early no promise you’ll live to 70
Can I take all the money in my Social Security "account" and move into a higher yielding investment?
taking my SS at 62, Had a bout of prostate cancer right after i retired in 2019 at age 60 due to age restriction at work. have a adult son that is on SSI and at my retirement he will get DAC Disable adult child benfits (SSDI) which is base at half my PMI. Will only if needed take a small amount a month for my TSP , as my calulations now I dont need it so I will not apply for it, that way it will grow. I have had 2 co workers that were going to wait it full retirement to take SS but the never may it to the age of 64 and they appeared healthy.
This is a great video keep the information coming. I am an SSA employee and use to work in a position that l had to explain the break even point daily. On average you have to live 13-15 years past age 62 for it to be a disadvantage as apposed to taking your money at full retirement age. The other point is if your working. There are wage limits for people who take early Social Security benefits and if you go over the limits you are penalized. I am retiring at 57 but l am definitely taking my benefit at 62 even though l won’t need it. For me l ‘d rather set up some type of savings account/ investment vehicle for my adult children then to gamble that l will live past 75ish.
Too low volume !!
I worked as an Air Traffic Controller from 1984 to 2001. I have received FERS Disability since 2001. I did apply for Social Security Disability in 2001 but was not approved. I turned 62 in Nov 2020 and my FERS Disability/Annuity was recalculated. I have worked on and off over the last 3 years. Can I apply for Social Security Benefits now, I did work enough to qualify for benefits under Social Security and how will it (if at all) affect my FERS Retirement?
Because of my Spouse declining health I need to retire this year and because I'm only 59 I will be using my SRS, so my question is at 62 if I'm a widow, can I collect my husband's SS and not mine or do they consider that as one SS payment.
I think taxes will be one of the factors for me as well. If I move to a state that doesn’t charge ss tax I might start earlier. But if my bracket is high and I stay in Utah I might try and use up my other assets first to save paying on 85% of ss
If you retire before 62 and take the SRS, does it stop at 62 and you have to do something to start collecting SS or does SS automatically start at 62 when you take SRS?
You missed the most important parts, taxation of social security and Medicare deductions!
A very honest evaluation. Thanks.
I took mine at 62. My wife and I have nearly 2 million dollars in our TSP's, plus pensions so we don't really need it.
My social security check go's directly into an investment account that will eventually go to my spouse or kids. That way the money is there if I should pass before 79. If I did not take it there is at least a chance that I, or my kids, would not see any of my benefit.
Was this the correct decision? Who knows. If someone in the exact same position as me did the opposite, I would applaud them.
It would be much easier if we had an expiration date on our foreheads!
I am a VA employee this is a wonderful video. I like the data too.