If I want to retire early, should I take social security at 62 or 67 with $1 million in assets? How can I maintain my retirement income and expenses? What is the best age for me and my spouse to file for social security so my money can last? In this video, Troy discusses the differences between taking social security out at 62 or 67 and how long it can last you.
00:00 Learn more and Subscribe to Our Channel
01:10 Your Individual Circumstances and Social Security
02:44 Factors of Social Security within Your retirement planning
03:15 Retirement Expenses and Retirement Income
04:30 Social Security benefits at age 62
05:48 The Go-Go Spending Period Charts
07:00 Simulation with $1 Million in Assets
07:45 Bad Decisions in Your Retirement
08:10 Social Security at 67
09:50 Waiting until age 70 for Social Security
10:51 Stay connected to your Retirement Plan
11:00 Dynamic Spending Plan
11:55 Like Our Content? Subscribe and Comment!
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This video discusses fixed-income investing and utilizes the 10-year U.S. treasury as a general representative fixed-income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed-income assets. Other types of fixed-income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.
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retirement planning is a crucial aspect of one’s financial journey. Decisions regarding Social Security benefits play a significant role in determining the financial stability during the golden years. Among the many questions that arise, one common dilemma is whether to withdraw Social Security at 62 or wait until the full retirement age of 67. This decision becomes even more complex when there’s a considerable savings of $1 million. In this article, we will delve into the considerations that can help you make an informed choice.
It is important to understand that Social Security provides a safety net for retired individuals, providing a regular income to cover living expenses. The age at which you choose to begin withdrawing these benefits impacts the amount you will receive each month. Claiming at 62 allows for early retirement, but the monthly payments are significantly reduced compared to what you would receive at full retirement age. On the other hand, delaying withdrawal until the full retirement age or even beyond can result in higher monthly payments and potentially more long-term financial security.
One crucial factor to consider is your overall financial situation. With a substantial savings of $1 million, there is a stronger argument for delaying Social Security withdrawal. By relying on your savings to cover living expenses in the earlier years of retirement, you give your Social Security benefits the opportunity to grow. Delaying withdrawal until full retirement age or even beyond can increase your monthly payments by up to 8% per year. If you are in good health, have other sources of income, and can manage your expenses effectively, this strategy can be advantageous.
Additionally, life expectancy plays a significant role in this decision. If you have a family history of longevity or are in good health, delaying Social Security withdrawal may be more beneficial. By waiting, you can potentially maximize the benefits throughout your retirement, as the increased monthly payments compensate for the initial loss associated with early retirement. However, if you have health concerns or anticipate a shorter life expectancy, it might be wise to withdraw benefits earlier, as benefit calculations take into account the number of months you receive payments over your lifetime.
Another consideration is your current financial needs and obligations. Are you in immediate need of income to cover essential expenses? If so, withdrawing Social Security benefits at 62 may be a practical choice. However, if you have enough savings or alternate income streams to sustain you until full retirement age, it may be worth postponing to receive higher monthly payments in the future.
It is crucial to consult with financial professionals or utilize retirement planning tools to evaluate various scenarios and assess the impact on your overall retirement income. Consider factors such as your expected rate of return on investments, taxation, and potential changes to the Social Security system. These decisions should not be made in isolation, as they are part of a comprehensive retirement plan encompassing other income sources, personal aspirations, and healthcare concerns.
In conclusion, the decision to withdraw Social Security benefits at 62 or wait until full retirement age can be challenging, particularly when you have a substantial savings of $1 million. Factors such as financial stability, life expectancy, financial needs, and long-term planning need to be taken into consideration. By carefully analyzing your situation, consulting experts, and using retirement planning tools, you can make an informed choice that aligns with your goals for a secure and comfortable retirement.
Everyone is different, health, 0:56 side income, 1:04 nest egg, I am waiting until 65 and 2 months to draw. It helps pump my wife's up. Already retired but waiting to draw.
For most people, it does not matter much. People think if they wait, they will get more money. That's not always true. In fact stats would suggest that most people will end up with less. Social Security offers three options. Those options have changed, but 7 years ago when I was retired the options were age 62, 66 and 70. I ran the numbers to see when the break ever time was. What I mean by that is when do all three options come even. For most people that happens around 80 years old. For me it was 79 years 8 months. It's important to remember that more per month does not mean more total. The only way you can know for sure is if you have the exact date of your death. I ran the numbers and decided to start drawing Social Security at age 62. Since I didn't have the date of my death I looked at family history. My dad died when he was 80. He did have a brother who died when he was 87, but he also had a brother and a sister whe died in their 60's. So the question I asked myself was this. Would I rather have extra money when I was young enough to enjoy, or more money when I was almonst 80? Then answer was easy for me. I took the "bird in my hand was better than a bird in the bush approach and never looked back. Zero regrets about that decision. Think about it, do you really care how much money you want to leave behinc for you reletives to fight over? I know I don't.
Retiring and taking SS are not the same thing. Retire whenever you want to, start SS at 70.
I was able to avoid being fired while I worked. Therefore I am not financially desperate. I'll collect at 70
how long will you live? doesn't matter how healthy you are, accidents happen. So if I could take it at age 62 and the breakeven doesn't happen until age 82, knowing that I could check out anywhere in those 20 years between 62 and 82 why would I take the risk of deferring? The beer in hand is worth two in the fridge.
My husband retired Age 65, full benefit, 67 we have two year gap should we take 65 or 67
I am 63.5 years old. Waiting for Medicare age 65.
The problem with discussing Social Security retirement with financial planners is that the decision is as much about time and luck as it is investments, ROI and they economy.
Took Social Security at 38 on SSDI
why did you leave out 70
I'm 67 and recently retired. If I start collecting SS now, my monthly check will be $3,760. If I wait until 70 it will be $4,719. Collecting now would be foolish
2 friends of mine waited till 67 to get the full amount. Both seemed healthy. Both dropped dead of heart attacks before drawing a dime. Sad but very true. And now in the news- possible insolvency for the entire system in 10 years. Take it while you can get it or roll the dice gamblers. Your choice.
This really isn’t a fair analysis for the 67 and 70 scenario. It overly favors the 62 group also.
Of course the success can go down for the 70 if one retires at 61 but in reality those waiting until 70 already have plans to work until perhaps 65 when Medicare kicks in.
Let’s face it. When it comes down to the scenario of not running out of money then of course the longer one works and and takes SS at 70 will always win out.
Even if one dies before, at least the money didn’t run out.
Now there is a different game of life to see who can enjoy retirement the longest and not run out of money.
We each enjoy retirement differently. Some feel the need to spend to enjoy. Some enjoy by just having the extra free time. Spend time with grandkids.
If 62 works for some folks then good for them.
Do I need to become a client first before you do this analysis for me with my data and give me an answer?
i make 4,600 dollars with ss and union pension and 1 other source plus my wife makes 1,000 so 5,600 a month home is paid for i dont have any bills my home is worth 1 million 300 thousand dollars i took it at 62 plus my great state of ny cuts my property tax 50 percent at 65
Also, think about your health. If you're healthy enough to take it 62, do it because you never know how long you gonna live. I would lose money, but I would take it at 62. I would like to enjoy the freedom of not having to work before I drop dead before I retire.
Claimed mine at 62. My brother turns 62 next year and I advised him to do the same.
Wealthy people take SS at 70. Poor people take it at 62. Be smart. Do what wealthy people do.
So much talk about 62 or 67? I'm thinking of taking it at 65 when I start Medicare?
Exactly. Math is not always the answer. There are many factors that are not widely talked about.
take at 65, so when they drop your ss by 30% it will almost be the same as taking it at 62.
having a pension with no debt changes things dramatically
SSA told me not to take my late wife's benefits, but take mine at FRA higher rate then keep working until I'm 70.
Those are not the only options. I am taking it at 64 1/2. Every month between 62 and 67 is also an option.
If you don't know the "how long will I live" part of the equation…there is no way to get the correct answer. Don't take it until you need it is the best advice.a…IMO.
Try 70 now as the Fed is going to move it from 67 to 70.
81 percent then moving to another country, you can live real well!
Love your videos !! Thanks for the information. A lot to think of as we try to target when we retire. I love the "living organism" analogy. Roll with the punches and flex as we go!
My brother passed away and got not one social security check! I'm taking it as soon as possible and when I can still able to travel without a walker.
There are many years in between. Split the difference and do 64.5
I Love your youtube channel! I'm nearing retirement (5-7 yrs out) and my wife of 10 years just obtained her "Green Card". Will she be entitled to any SS (Spousal?) if she hasn't worked in the US? Would she be entitled to Survivor benefits?
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This channel does a great job with content, just a personal pet peeve of mine … discussion is always about 62 vs 67 … when for me the sweet spot is in the middle at 64 1/2!
Very informative video Troy. There is one scenario missing in your evaluation. What if one spouse started at age 62 and the other started at FRA considering they both made the same amount per year and either one would get the same amount from Social Security. Or, which way would be better, one spouse made 75,000 per year and the other made and average of 125,000 per year? Would it be advantageous for the higher earner to take it early and the lower earner wait until FRA, or the higher earner wait until FRA and the lower earner take it early? Also input the new scenario with the same retirement ages as you spoke of in this video? I know there are multiple outcomes, that is why the plan has to be monitored and adjusted through retirement. Thank you again for all the work you put into these videos. The value I get out of them is very useful and valuable.