If you are facing the question of whether to apply for Social Security at 62 or wait for maximum benefits at 70, this video will outline my thought process behind my decision to wait for 70.
Sure, some break-even calculations say why wait? But if you have a spouse counting on spousal benefits and more, the calculations could change.
I am not a financial professional, so take this video as entertaining ideas from one educated consumer to another. Always do your own due diligence and seek professional counsel for your specific situation….(read more)
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Why I’m Waiting for 70!
As the world has progressed in terms of advancements and achievements, it is not uncommon for many individuals to wait for significant milestones in their lives. Some eagerly wait for their 18th birthday to become an adult, others eagerly anticipate their graduation day, and some wait for the next technological innovation. However, one milestone that I am particularly excited about is turning 70. You may question why someone would be so enthusiastic about reaching this age, but for me, it signifies a unique phase of life filled with new opportunities and experiences.
Firstly, turning 70 means entering the realm of the so-called “golden years.” It represents the transition from a busy work life to a more relaxed retirement phase. While many people fear retirement due to concerns about boredom and loss of purpose, I view it as the perfect opportunity to explore untapped passions and delve into activities that were previously neglected. There is an entire world waiting to be discovered beyond the confines of the workplace, and reaching 70 will open doors to new adventures.
Secondly, embracing 70 is also a chance to gather wisdom and reflect on a life well-lived. Over the years, we accumulate a wealth of knowledge and experience that can be shared with younger generations. Turning 70 allows us to become mentors and provide guidance to those who are just beginning their journey. Instead of dwelling on past mistakes, it is crucial to use this milestone as an opportunity for self-reflection, personal growth, and contributing to the betterment of society.
Moreover, reaching 70 means being part of a generation that has witnessed remarkable transformations. The advancements in technology, medical breakthroughs, and social progressions have shaped our lives in unimaginable ways. By reaching this milestone, I can proudly say that I have experienced the evolution of mankind, from simpler times to the complexities of the modern world. Being able to share stories and teach younger generations about the past is an invaluable gift that comes with reaching 70.
Additionally, turning 70 encourages me to prioritize my health and well-being. Aging is inevitable, but it does not mean that one’s quality of life has to deteriorate. By taking proactive measures to stay active, eat well, and indulge in self-care, I believe that turning 70 can be a catalyst for leading a healthier and more fulfilling life. It is an opportunity to embrace a positive mindset, cherish the present moment, and make the most out of every day.
Lastly, waiting for 70 reminds me of the incredible amount of love, support, and friendship that I have in my life. Friends and family play an integral role in making this journey worthwhile. Celebrating this milestone with loved ones allows me to acknowledge the bonds I have built over the years and reinforces the importance of cherishing special moments together. Though the number of candles on the cake may increase, the love and laughter shared with those closest to me will only grow stronger.
In conclusion, waiting for 70 fills me with anticipation and excitement. It represents a new chapter, full of potential, growth, and valuable experiences. It is an opportunity to explore uncharted territories, to share wisdom, to embrace the changes around us, and to appreciate the love and support that surrounds us. So, as I eagerly await turning 70, I am ready to embark on this new stage of life with open arms and a grateful heart.
Also check out newest video on the subject: Should My Wife File at 62? https://youtu.be/Gz3qFhAnKpA
Y wait do u know when I will die
I'll do at 65.. i dk when i will die
Great explanation of a complicated topic. I am 63. Work by choice not by necessity and am leaning heavily toward taking SS at 70. However we have the means to retire tomorrow if I choose to. My problem? I love my job and have too much fun doing it. I did try out retirement at 58 but got bored after 6 months. I am not a workaholic but love having challenges which keep me young-minded.
People are so focused on the break even so that they maximize what the government pays them. They’d be better off finding jobs that they like enough to continue working until at least FRA. And they need to consider how they’re going to live on what they’re going to receive. Strangely many people will tell you that they can’t live on SS. You would think that they would have tried to live on the expected SS amount before quitting their jobs.
Good stuff. Thanks! I'm waiting to 70 for survivor benefits, too. My wife is filing at 66 and 8 months (FRA)…
I think there is a financial mistake that most are making. Everyone is only looking at the total amount of money that is coming from social security when comparing the income differences of age 62 versus 70.
But the mistake is that no one is adding in the income that you would receive if you continue to work while waiting to reach age 70.
For 8 years of not retiring, you are still making your normal income.
I took SS at 70. Best financial decision of my life. But I salute anyone who can retire early.
Well "
No one died before 70 and said i should of worked longer…
62 is it for me tomorrow is no promise and you never got to enjoy the fruits of your labor.
Dont wait people, you may die before 70 then you get nothing.
I went to SS two weeks ago and will start my age 70 benefit in September. What surprised me was the woman at SS made me an offer. I wasn't prepared for it. She said that I could take $95 less each month (pmt is 2387) and for giving that 95 up I would get a payout of $4700. I'm not sure if the $4700 is correct because I did not write it down. I said no thanks I want the $95. Is seemed to me that I would be harming myself to do that. Why? The $4700 would be gone by the end of the year. There's never enough. The $95 will always be there for me. I enjoyed this video.
I am almost 61. I would like to wait til 70 if possible. That way between pension and SS ….I would have 97% income replacement compared to working. But I retired at 56 and not sure if I can make it til 70 on the pension and savings. Going to try though.
I am 68 I filed at 66 and 2months to show more income for a condo other wise I would have waited for 70
Here is the problem with your thought process. Waiting until 70 to collect your Social Security does not always get you more money, in fact more often than you might think you get less money. Don't get caught in that trap that more per month means more total money. It doesn't. There is only one way for you to know if waiting will get you more money and that is if you already know the date you will die. I retired 7 years ago at age 62 and began taking my Social Security right away. Why? Simple there is no way to know that waiting will get you more money. The reason you get less at 62 is because you will draw the money for a longer period of time. It's not magic, it's just math. By taking the money at 62 I will already have recieved 48 payments before the person who waits until age 66 and a full 96 payments before before the person who waits until age 70. So here is the real truth. If you die before age 80 I win. If you die after age 80 then you win. It's just that simple. All the other numbers are just BS. The one truth you need to know is that more per month does not mean more total and less per month does not mean less total. This is not a case of of "the person who dies with more money wins". Money is not now, nor has it ever been, or will it ever be the most important thing.
Great video! I'm six years younger than my husband, so a lot of what you said was pertinent to my situation. Thanks for sharing this.
Social Security is the opposite of life insurance. With life insurance you have to die to have it collected. With social security you have to be alive to collect it. Many couples earn roughly the same amount so the spousal benefit is not a factor. If your worried about your spouse a twenty your term policy at age 50 will protect them for those 20 years where the money is most needed.
One of the biggest mistakes is to take social security at 62 while still working and start living off the combined income that pretty much assures you’ll never retire. This form of lifestyle creep is very dangerous to your retirement.
One thing that you did not mention is the effect taxes have on your SS. If you should unfortunately have a large IRA balance and need to make Roth conversions to limit RMDs, the taxes on those IRA distributions are going to take a big bite out of your SS. I chose to convert as much from my IRA to Roth as I can (limiting my overall tax to around 15%) in the years before I start SS at 70.
I’m sick about this. I took mine at 65 and I should have waited until 70. Kick me now.
Thank you. I wrestle with this. My benefit will be much higher and as luck has it, I am 2.5 years older than my wife. I think I might wait until 70 and as she will be almost 67 then we file and go the distance if we can. I do wonder if she should collect in her own name sooner, even at 62, and then get the reduced step-up spousal raise when I file at 70 and she is 66 and 4 months? As a cavate we do have pension income and decent savings, so this is not a "we need it to live on" decision but more of a long-term keeping up with inflation decision.
Waited until 70! Now getting 4550 a month! When wife files we will get 80k a year from SSI! Sweet!
I'm 1 month away from my 68th birthday. I retired at ags 65 but I plan to file at 70. I'm still healthy. I'm living off distributions from my IRA. I have converted some of my IRA to a ROTH. I want to minimize the money that I have left in my IRA before RMDs start at age 73. I plan to spend all my IRA and ROTH savings between age 70 and 80. This is because out of 5 man age 65, only 3 of those are still alive at 80 and at most, 1 is alive at age 90. Meaning, a lot of suffering and dying happens after age 80. But, if I'm lucky or unlucky enough to live past age 80, then the maximum benefit from social at age 70, of likely $5000 a month, should cover my expenses during my decrepit years.
I have talked to many people who took social security at 62.The most popular reason,is because, they say you don't know how much longer they will live,and want to get the money now,while they are still alive and can use it.They say ,there is no guarantee, you will see tomorrow,and you could die and get nothing.
Thank you for answering some of my questions …with real,life examples …
By the time he's 82-1/2 how much money is he going to need? Most people I know that are 82-1/2 don't spend much money cause they are too old to travel and enjoy life.
It takes over 40 years to get full SSI at age 66, and only 4 more years to get 132% of SSI at 70. As long as you have good health or a lower earning spouse who would get you SSI at death, its a smart move. 82 is the break even. And if you die before 82 you wont miss the money you didn't get…
Yeah I was a Federal Police Officer with the USMC and was a patrol sergeant and made great money, but we had 3 different shift rotations and the day shift rotation had a 5 am show up time that I had to get up at 330 am for…the last morning rotation was it for me…i was falling asleep at the wheel of my patrol vehicle every day at about 9 am….I took early retirement at age 52….sold my house and got rid of most of my worldly possessions and moved to Cebu Philippines at 55 and lived there for 2 years….now back in the states and now live here and overseas on a rotating basis….life is to short to walk around as a burnt out well paid zombie with no life….
People don’t wait because they’re (rightfully) concerned they’re going to kick the bucket before receiving ANY benefits after paying into SS their whole working lives.
how can i get your calculating format I've always believed on waiting to 70
I know so many single people who started collecting their SS at 70 but continue to work "full-time" past age 70. I guess a lot of their SS and/or their paycheck will go to IRS, right? How much SS will they lose? How much of their paycheck will they lose?
A lot of those at 62 are people taking disability because at 62 they automatically get their full retirement payout.
I too was retired. At age 63 I lost my job. I like you thought I wait until at least FRA. Then I was informed that my benefit amount would not increase after I quit work because I was not paying into SS any more. I would only get the yearly COLA if any. Are you sure the benefit will still grow at 8% even if you are not paying into Social Security? Thanks!
Sounds like you failed and want a lower expected outcome for you and others.
You know,I'm 2 years older than my husband I'm 65 and he is 63.I am glad you put this video out.Im Not filing probably till 70 I intend on working as much as I can untill then.We had some serious set backs in the past 10 years and pretty much had to start all over buying house repairing credit ect.I am thinking that if I work another 5 years that will boast my Years I did not work as much So I can still pay in till 70.And neither of us are wanting to just go home and wait to die.We dont have grandchildren and our 1 daughter is 43.So we are just going to pay off all our stuff and stay as active as we can.Noone knows what the future is My Dad died when he was my age and still working full time.I want to just live and do what I do untill I'm not here anymore.My husband feels the same way..We are not retiring untill we are forced to.So survivors bennifits is an Excellent reason.Who knows I might be Betty White!
The three reasons not to wait: (1) you have saved enough or have a generous pension (2) your health won't permit continuing to work (3) you can't find a job that pays enough to live on
Not only will benefits increase 8 percent a year for each year that you wait after age 62, but there will be COLA that isn't calculated into the published schedules. In 2022 the future COLA looks to be significant. That's likely to continue giving the current economy.
If I die before I reach age 70, I'll be with Jesus. If I continue working until age 70 I'll maximize my benefits . Then, I may live more than 20 years beyond 70 as did my father, who was healthy and active until the end. Work isn't a prison, its a privilege. I'm not going to plan to retire as long as my 401K and IRA are doing poorly.
Unless you are fat or smoke, you should wait until you are 70 to collect Federal welfare.
Financial Planners never dreamed in their wildest imaginations that the Govt would print & spend $30T dollars. 30 Trillion Dollars ! Crushing your buying power. Stealing wealth via inflation. Head of Household may have to face the cold hard truth. He may have to work to 70 and beyond to take care of his family as the dollar is sliced and diced.
Healthy ? Enjoy your work ? Wait til 70. My work is done here.
You & I are the same age & I’ve been following your videos & we’re of like mind on things. I’ll continue working through next year, & then hang it up. You left a couple of things out in the discussion of why people don’t wait until 70, like we plan to do. One of those things is taking the benefit anytime after 62 & then investing it. If anyone did that over the past 5-7 years, they would have been way ahead with even a moderate risk portfolio. If I decided to collect today, there’s no way I could reasonably expect to get those kind of returns for the next 5 years. I’d rather have the yearly 8% increase. The other reason I’m waiting is because I have substantial savings in deferred tax accounts, so no sense mixing in SS benefits that will be subject to tax. It’s important for others in similar situations to ours that they live off of those deferred tax accounts & convert whatever they can to Roth………BTW, my second home is in OCNJ. I’m pretty sure you’ve been there!
Seems to me that most people that wait until 70 to take SS do so because they have to–because they have no other savings and need the full benefit. So, they keep working up until that age. Many people that I know took the benefit as soon as they could and still work part-time. This way, they get to cut back to part-time work, have more free time and still have enough to make ends meet. Others will take it early because they don't need a full benefit and because they want it while they are still alive and don't know how long they will live. Still others will take SS early simply because they can afford to stop working early and SS isn't their only retirement income. There is no WRONG decision. Not everyone wants to work until 70 and not everyone will be able to work to 60 or 65, let alone 70. The choice is purely personal.
How Sad for people to have to keep working until the are 70.