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Valued Social Butterfly

Re: Taking Social Security at 63 or 66

22,556 Views
Message 11 of 68

If you were born between 1943 and 1954 your FRA (full retirement age) is 66. 

 

The percentages  of your PIA (primary insurance amount) your benefit is based upon are easy to figure:  

 

At age 62 -   You get 75% (25% penalty)   

 

At age 66 -   You get 100% 

 

At age 70 -   You get 132%  ( DRC's of 8% per year are added to PIA)    

 

 

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Conversationalist

Re: Taking Social Security at 63 or 66

22,548 Views
Message 12 of 68

can someone tell me  how much percentage your amount will increase from  62 to 66 if

you hold off from taking your benefits. i just retired from my job at 62.

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Conversationalist

Re: Taking Social Security at 63 or 66

21,560 Views
Message 13 of 68
It is ideal to take social security as late as possible – it is very difficult to get a guaranteed 8% return in the market which is what you get when you delay your social security.
This may incredibly help you - www.retirement-income.clickfunnels.com/cheat-sheet-ss
Let's say I offered you an annuity that paid a guaranteed 8% for life, would you take it? If yes, then you want to delay your social security benefits until age 70, if you can.
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Conversationalist

Re: Taking Social Security at 63 or 66

21,523 Views
Message 14 of 68
It is ideal to take social security as late as possible – it is very difficult to get a guaranteed 8% return in the market

which is what you get when you delay your social security. Let's say I offered you an annuity that paid a guaranteed 8%

for life, would you take it? If yes, then you want to delay your social security benefits until age 70, if you can.

This may incredibly help you - www.retirement-income.clickfunnels.com/cheat-sheet-ss
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Conversationalist

Re: Taking Social Security at 63 or 66

21,521 Views
Message 15 of 68
It is ideal to take social security as late as possible – it is very difficult to get a guaranteed 8% return in the market which is what you get when you delay your social security. Let's say I offered you an annuity that paid a guaranteed 8% for life, would you take it? If yes, then you want to delay your social security benefits until age 70, if you can.

This may incredibly help you - www.retirement-income.clickfunnels.com/cheat-sheet-ss
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Bronze Conversationalist

Re: Taking Social Security at 63 or 66

7,960 Views
Message 16 of 68

Financial advisors use life expectancy into the 90s becaise it is so probable.  This is the table I looked at https://retirement-income.clickfunnels.com/joint-life-calculatorvtwhgz8a

 

A single female who has reached at 66 has a 30% chance lving to age 90 or above. In a married couple, one of the parties has a 42% chance of living to age 90 or better.  These figures do not account for the potential life-elongating science that is quickly progressing.  

 

 

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Valued Social Butterfly

Re: Taking Social Security at 63 or 66

5,751 Views
Message 17 of 68

ej9567 wrote:
If l start taking SS out the first of next year and work until lm 65, which is 1 more year. Will IHave to pay taxes ony SS, for that year?

You can work while you receive Social Security retirement (or survivors) benefits. When you do, it could mean a higher benefit for you in the future.

 

Each year SS reviews the records for all working Social Security recipients. If your earnings for the prior year are higher than one of the years we used to compute your retirement benefit, we will recalculate your benefit amount. We pay the increase retroactive to January the year after you earned the money.

 

However, if you are younger than full retirement age and make more than the yearly earnings limit, your earnings may reduce your benefit amount.  So taxes are not the only thing to be concerned about - but it depends on what your earning are -

 

If you are under full retirement age for the entire year, SS deducts $1 from your benefit payments for every $2 you earn above the annual limit. For 2015, that limit is $15,720.

 

In the year you reach full retirement age, SS deducts $1 in benefits for every $3 you earn above a different limit. In 2015, the limit on your earnings is $41,880 but we only count earnings before the month you reach your full retirement age.

 

Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.

 

Social Security Retirement Planner - Getting Benefits While Working

 

Yes, taxes on a certain % of your Social Security could be applicable - while working and even after you retire - that will depend on your total income and the tax tables.

 

Benefits Planner: Income Taxes And Your Social Security Benefits

 

Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits.

No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:

  • file a federal tax return as an "individual" and your combined income* is
    • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $34,000, up to 85 percent of your benefits may be taxable.

Consider this to be on only the contribution portion which was not taxed while working (the employer match)

 

read more at the above  linked Social Security webpages -

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Info Seeker

Re: Taking Social Security at 63 or 66

5,761 Views
Message 18 of 68
If l start taking SS out the first of next year and work until lm 65, which is 1 more year. Will IHave to pay taxes ony SS, for that year?
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Info Seeker

Re: Taking Social Security at 63 or 66

6,109 Views
Message 19 of 68
 
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Conversationalist

Re: Taking Social Security at 63 or 66

6,399 Views
Message 20 of 68
I agree thats why we should get it at 63.
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