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Re: Taking Social Security at 63 or 66

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Message 21 of 68
 
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Re: Taking Social Security at 63 or 66

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Message 22 of 68

Bill K., what are your options?

 

1. Keep working and retire later, and take SS later?

2. Stop working, live off savings, and take SS later?

 

If you make $20000 a year, I don't think you trigger the added SS taxes.

 

From IRS.GOV

 

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.

 

 


Sincerely,
Peter
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Re: Taking Social Security at 63 or 66

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Message 23 of 68

Hi! My name is Bill K. and I'm confused about weather I should be on SS or not. I'm 64 and still working. I make about 20K a year. I was told i should have signed up at 62 and banked the money until I decide to stop working. My target date was 66. However, it seems that I have been wasting money that I could be getting. Right or wrong? I know that at 66, I will be getting about $400+ more a month than if I went on SS now. But, will this all break even as long as I live for a few years?

If you can help, please let me know.

Thanks,

 

Bill

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Frequent Social Butterfly

Re: Taking Social Security at 63 or 66

8,153 Views
Message 24 of 68

I put a posting out on the Social Security discussion, there is a "when to take Social Security" conversation. I have a link to a Google spreadsheet with Net Present Value (NPV) financial calculations.

 

Go take a look at my numbers over there. In summary, I think the conventional wisdom about taking Social Security as late as you can is totally wrong, because it ignores opportunity cost and time value of money. 

 

My calculations say take it at age 62, if you'd otherwise be pulling money out of any decently allocated investment accounts. But if your money is saved in Money Market accounts or in cash under your mattress making 0%, then take it later.

 

 

 

 


Sincerely,
Peter
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Re: Taking Social Security at 63 or 66

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Message 25 of 68
I will be 62 this year, however planning to work till I am at least 65. I am not married znd feel like I am 40.lol, not brsgging, I think the next three years will give me added years, as I am active and will be able yo travel more later and still do all the things I love, walking, gardening just getting out there and seeing new things and conversing with people! I can't take Medicare till then and would like to keep my current medical till retirement. Just living a good life, 65 for me! Smiley Wink
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Re: Taking Social Security at 63 or 66

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Message 26 of 68

Shanran1, I'm in a similar situation.  I retired from Federal Service in 2011 at age 56 after being employed for 33 years. Add my 4 years of military time and my 1+ years of accumulated sick leave and I retired with 38 years of Federal Service. While federally employed, I was under the Civil Service Retirement system (CSRS). I'm currently drawing  a CSRS annuity. I'm also working part time for United Parcel Service and am paying into SS. Also, for the past 20 years I'm worked as an independant contractor umpiring NCAA college baseball games which I also pay SS tax when I file my Federal income tax. I will be 60 years old next year. My plan is to begin drawing my SS benifits as soon as I turn 62. During my Federal service I also contributed in to the TPS (Thrift Savings Plan). In addition to that, I also have a regular IRA account. 

 

g

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Conversationalist

Re: Taking Social Security at 63 or 66

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Message 27 of 68

I have a question about "double dipping." If I take SS at 62, then spousal benefits at 66, can I then take my benefits (based on my record) at 70?

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Re: Taking Social Security at 63 or 66

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Message 28 of 68

If you delay taking your social security payments it will extend the "run out of money" date that Social Security goes bankrupt so that is good for Social Security, but is it good for you?

 

Plus if you die before you start drawing it will save Social Security a bunch of money.

 

Also which would you rather have $5.00 now when you can spend it or $7 later when it all goes to the nursing home you are vegetating in?

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Re: Taking Social Security at 63 or 66

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Message 29 of 68

I am a retired federal employee under the old civil service retirement system (CSRS).   I also have 40 + quarters (28 years) under Social Security.  I still work part time with more Social Security taken out.

 

Since the social security Windfall Elimination Provision (WEP) reduces my Social Security benefits so is there any benefit from waiting or should I sign up to get what I can before the law changes again and totally eliminates any benefits?

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Re: Taking Social Security at 63 or 66

7,390 Views
Message 30 of 68

I remember this deduction from my first paycheck that took out taxes called " FICA ". I owned a business with 30 employees and paid matching " FICA ". I have paid in so much " FICA " - that I am going to start taking back some " FICA " before it quits paying back.

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