Live Your Best Life With Rewards for Good. Start Earning Reward Points Now. Get Started Now!

Reply
Info Seeker

Re: Taking Social Security at 63 or 66

10,102 Views
Message 51 of 68

My husband and I both took our SS at 63 and have been retired for a year. We also have pensions so have not had to touch our 401K's. I feel that no one knows how long they will live and if one or both of us die the survivor  or our kids will at least get the 401k money.  SS end at death.

 

Report Inappropriate Content
Valued Social Butterfly

Re: Taking Social Security at 63 or 66

10,551 Views
Message 52 of 68

I think dj5891 has to be talking about either a survivors benefit or even disability when there are young children still dependent - There is nothing under the Old Age SS Benefit that causes an adjustment for SS. 

 

 

Report Inappropriate Content
Valued Social Butterfly

Re: Taking Social Security at 63 or 66

10,574 Views
Message 53 of 68

dj5891 said:

_________________________________________________________________________________

If you file when you have children in highschool under age 18 you get money for them also.  However, if you wait to file you will lose this benefit if they are now older than 18 when you file; .  Thus, I took mine early it was Much better than waiting!

___________________________________________________________________________________

You have got me confused now.  I am familiar with survivors benefits for children under 18 (or until they graduate from H.S.) if a parent dies.  Also,  children of all ages can receive disability benefits if they are disabled,  either physically or mentally.  

But if a worker is filing for benefits under the old age fund (retirement) I have never heard of receiving additional benefits if he/she has children under 18.  Or children of any age,  for that matter.     

Could you please elaborate on this?   I am sure others here would like to know.   

Report Inappropriate Content
Info Seeker

Re: Taking Social Security at 63 or 66

10,576 Views
Message 54 of 68

If you file when you have children in highschool under age 18 you get money for them also.  However, if you wait to file you will lose this benefit if they are now older than 18 when you file; .  Thus, I took mine early it was Much better than waiting!


Richva wrote:

I am planning to retire this year after my 63 birthday.  I could forgo social security and use  dividends and maybe dip into savings to make up the difference between expenses and pension.  It would allow a bigger check at 66 I have to believe this was already discussed but what is the thought here?

 

Thanks


 

Report Inappropriate Content
Treasured Social Butterfly

Re: Taking Social Security at 63 or 66

10,616 Views
Message 55 of 68

jp6340 wrote:
I'm using easy numbers to make things comprehensible only.
Say your ss$ per month is $1000.taken @ 63 rather than 66.
The 36 pmts come to $36,000. Do what ever you want with
This money. FOR 3 YEARS!
At 66 you would get approx. $1430,or $430/mo.more if you had waited.
Divide $36,000 by $430= 84 pmts for you to catch up even with early(age63)
Payouts. 84 divided by 12= 7 YEARS. THATS A LOT OF YEARS TO WAIT.
TO BRAKE EVEN! And remember you enjoyed 3yrs of control of YOUR $$$!
As simple as this seems it is a good example. If you invested that $36K and
Made $,you would even be better off to take the $ at 63yrs!

Gotta tell ya, I love the way your mind works.  I am starting to think I should take it at 63 anyway but one thing to consider is taxes. My wife will still be working until I hit 65 anyway so Uncle Sam will get more of my checks. Still, I like your logic. 

Report Inappropriate Content
Info Seeker

Re: Taking Social Security at 63 or 66

10,363 Views
Message 56 of 68
I'm using easy numbers to make things comprehensible only.
Say your ss$ per month is $1000.taken @ 63 rather than 66.
The 36 pmts come to $36,000. Do what ever you want with
This money. FOR 3 YEARS!
At 66 you would get approx. $1430,or $430/mo.more if you had waited.
Divide $36,000 by $430= 84 pmts for you to catch up even with early(age63)
Payouts. 84 divided by 12= 7 YEARS. THATS A LOT OF YEARS TO WAIT.
TO BRAKE EVEN! And remember you enjoyed 3yrs of control of YOUR $$$!
As simple as this seems it is a good example. If you invested that $36K and
Made $,you would even be better off to take the $ at 63yrs!
Report Inappropriate Content
Info Seeker

Re: Taking Social Security at 63 or 66

10,174 Views
Message 57 of 68

I've been studying my situation for retirement for a couple of years.  Using Flexible Retirement Planner, you can input when you get social security.  I have a pension, TSP, spouses pension, my SS and spouses SS.  For me, the planner shows that if I plan to start drawing at 62, I can live off a higher amount with a high Probability of success (POS).  I set a goal of 99% POS.  Delaying SS reduced my 99% POS spending by several thousand per year.  Now I know that there are benefits of waiting but if you were guaranteed a reasonable interest on your money, you would be better off taking it as soon as possible and invest it till you needed it.  The break even point presented in previous responses does not include any interest gained on SS invested until you needed it.  If you can gain enough interest on that money, there is no break even point.  I don't remember what the interest rate was but I don't think it was that high (~3%).  But there is always a risk of losing that money hence a reward for waiting.

Report Inappropriate Content
Retired Moderator

Re: Taking Social Security at 63 or 66

10,183 Views
Message 58 of 68
Is that for both widows and widowers?
Report Inappropriate Content
Valued Social Butterfly

Re: Taking Social Security at 63 or 66

38,084 Views
Message 59 of 68
GailL1 said:
"I was with you until you said the above, specifically about the 100% at 66 - if you started drawing at a younger age because you were widowed, how would you ever get to 100% at age 66?"

Thanks, guess it wasn't it clear. To clarify, I meant the age at which the widow first Files for benefits, not that there are increases after filing. If she waits to age 66, she gets 100% of the husband's benefit amount.
I mentioned it because it is another way of looking at "early versus full retirement age" filing. Only widows have a 6 year window to consider, not 4 years, in addition to the factor of what they would get on their own work record if they waited.
Complicated stuff!
Report Inappropriate Content
Trusted Social Butterfly

Re: Taking Social Security at 63 or 66

38,089 Views
Message 60 of 68

   You've done a bunch of planning for retirement, so you know there is no 'one size fits all'.   It's not simply about getting payback at a certain age,  it's your entire financial picture and expectations. How much do you want to spend now (for whatever activities you want in retirement) versus what is realistic for long-term finances?  Do you anticipate some extra expenses right after retirement for remodeling your house, or traveling? Do you want to wait on anything (expense wise) until you're eligible for full SS, or do you want to do some things now. If you take SS out early, how is your long term income/expense picture?

   There is as much 'personal choice' in this as actuarial stats, to me (while being 'realistic' about long-term finances).  

   However, if pressed for a short answer, I'm waiting until I get full benes, but I'm not in a situation where I need the money now. So, easy for me to say wait.  

     


Just think. The world was built by the lowest bidder.
Report Inappropriate Content
Announcements
Prepare to Care: A Resource Guide for Families download this free guide developed by AARP to help make caregiving more manageable. It includes information on how to have vital conversations with older family members, organize important documents, assess your loved one's needs and locate important resources.
Top Kudoed Authors