AARP Online Community and Discussion Forums - Re: Social Security at 62

Hookman1956 · ‎04-13-2018

I'm turning 62 in a couple of months and went to a SS office to inquire about a couple of things including what steps to take to apply for Social Security. I was told in no uncertain terms I'm not even allowed to apply, let alone receive benefits because I'm still employed. Can they really do that?

RichH678644 · ‎12-13-2018

This advice they keep giving us to wait until 70 to take Social Security is WRONG.

Your benefits will go up by 8% a year, but this is not the same as investing a nest egg at 8%, because you have no principal.

Instead, you will be PAYING for those increases through benefits not received during the wait. It can take up to twenty years at the higher benefit to make up for all those lost benefits you so strategically rejected for 4-8 years.

In other words, if you don't wait, you will have accumulated quite a bundle by the time you are seventy, but if you do wait, you will have nothing to show for it at 70 other than the fact that your monthly benefits will be higher. That monthly increase, set aside, will not add up to what you turned down until you are somewhere near 90.

So unless you're sure you'll hit ninety and see a net gain, take benefits as early as you are eligible, all other things being equal (e.g. don't retire early just to take early SS).When you finally hit 90, your are unlikely to think, "**bleep**, I wish I'd waited."

Even if you don't need Social Security, take it early and invest your monthly payments. Later you can use THAT nest egg to pay yourself whatever extra you would have made by waiting until 70. If you've invested according to conventional wisdom, you may be well past 100 before you'll say, "**bleep**, I wish I'd waited."

I took it early, and it has quite obviously paid off. I keep telling Jane this and I sent her the figures, but she refuses to answer other than an answer saying she won't answer. I don't understand these people.

As you decide when to take Social Security, do the math. It is simple math. Add up the total benefits you would receive between now and 70 if you don't wait. Divide that total by the monthly benefit increase you'd get if you do wait. That's how many months it will take you to break even. Divide by twelve, add to 70, and that's how old you will be. Is it worth the wait?

Jotto79121 · ‎05-04-2018

I started taking Social Security at age 62. My thought was - If you need to draw Social Security to make ends meet, wait as long as possible. If you don't need it to make ends meet, start as soon as possible. I am fortunate to have a Military Retirement, and a second career retirement, plus the amount put into 401Ks. We use the funds to travel the world, while we can still get around easily. My kids said that they aren't counting on any money when we pass, and to spend it now while we are still healthy enough to enjoy it. We have enjoyed our trips. My advice to our kids, and to other young people is to put as much away as you can now, so you will be able to enjoy your later years. If your employer provides matching funds, at least put that much in. Fortunate to have survived long enough in the military to get a retirement. Not the easiest route to go. Ate lots of Top Ramen noodles!!

cat0w · ‎05-04-2018

@Jotto79121 I think you got this backwards, "If you need to draw Social Security to make ends meet, wait as long as possible. If you don't need it to make ends meet, start as soon as possible."

NOTHAPPENING · ‎05-04-2018

If you are one of the people that feels "the glass is half empty" and SS will not be there in a few years, take it at age 62.

If you have saved your money, have a decent 401-K (or IRA), stocks, and a good bank account, consider taking the money early (62) because if you make too much in retirement, your Medicare costs go up (based on gross income). Check the Medicare site to find out current income and monthly payments for Medicare.

If you think longevity is in your future and don't qualify for the above two, wait as long as 70 to max out your SS.

rp68022582 · ‎05-12-2018

I applied for Social Security benefits starting after retire at 62. They said they would not pay me because I'd made too much money this year, but I've read that there is a one-year exception for people like me.

How do I dispute this? My wife wants me to walk in to the SS office that made the decision and talk to them. The person in the main SS said it would take months to get an appointment. Can I just wait in line and talk to an agent?

Jotto79121 · ‎05-04-2018

No, I did not get it wrong. If you need to use Social Security to make ends meet, delay as long as possible to increase the amount you will receive. If you don't need it to make ends meet, start drawing as soon as possible to give you some extra spending money to take trips, etc.

larryk678000 · ‎04-14-2018

The worst place to get advice and answers on Social Security is from employees at the Social Security Administration. These are Civil Service employees and once hired, they have a job for life (nearly impossible to fire Civil Service people). Do you think they understand the 2000+ pages of rules governing SS benefits? Do you think they have any incentive to stay up-to-date? It is well-documented that these folks provide BAD ADVICE.

GailL1 · ‎04-13-2018

This webpage on the Social Security Benefits Planner explains Getting Benefits While Working in detail.

SSA.gov- Benefits Planner - Getting Benefits While Working

Notice it says this on the page:

Also, as long as you continue to work and receive benefits, we will check your record every year to see whether the additional earnings will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount.

If you begin to draw your benefit early, it will always be at a reduced % depending on at what early age you begin; however if you continue to work and pay into the system even the reduced amount can still get bigger.

corah50 · ‎04-13-2018

Absolutely false, you can retire as early as 62. However, there's a specific $ amount you're suppose to earn per year. If you go over, you will have to payback. You're also stuck with that amount even if you're 80 yrs old. You may get Cost of living adjustments but its not much.

Hope this helps.

GailL1 · ‎04-13-2018

@Hookman1956wrote:
I'm turning 62 in a couple of months and went to a SS office to inquire about a couple of things including what steps to take to apply for Social Security. I was told in no uncertain terms I'm not even allowed to apply, let alone receive benefits because I'm still employed. Can they really do that?

Did they ask you how much you were making from your employment ?

It sounds like they were attempting to explain the Social Security "Earnings Limit" for those who want their benefit early, that is to say, earlier than Full Retirement Age.

Earnings limits
Under federal law, people who are receiving Social Security benefits, and who have not reached full retirement age, are entitled to receive all of their benefits as long as their earnings are under the limits indicated below. For people born in 1943 through 1954, the full retirement age is 66. The full retirement age increases gradually each year until
it reaches age 67 for people born in 1960 or later.

For 2018 -

If you are Under full retirement age, the Earnings limit is $17,040, And for every $ 2 over the earnings limit, $ 1 is withheld from your benefit.

SSA.gov - 2018 Update

This is the way it works because you are still working and still paying into the system because you are still working and therefore your benefit based on your earnings is continuing to grow.

The earnings limit changes to a higher amount in the year that the beneficiary reaches Full Retirement Age. The Earnings limit (2018) is then $45,360 and for every $3 over the limit, $1 is withheld from benefits until the month you reach full retirement age.

When the beneficiary reaches their Full Retirement Age, there is no longer an Earnings Limit.

rp68022582 · ‎05-12-2018

But the SS brochure states that there is one year special rule that allows people retiring under the FRA to collect the full amount due if they don't earn more than $1420 a month.