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Re: When will you collect Social Security?

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I was a machinist for 34 years. I had to retire at 63 because of arthritus in my wrist. It worked out ok for us, because we had our house paid off. We both receive Social Security and I get a retirement check from the company I worked for. We worked hard and saved $120,000 in the bank plus $320,000 in my 401K. We moved to Arizona 7years ago and love our life here.   

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Re: When will you collect Social Security?

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My opinion...just like something else....we all have one. :-) First and foremost, it depends on your personal situation.
The MONTHLY Social Security amount will most definitely grow...at a decent return of 8% a year...if you wait until your full retirement age (or even further if you delay until age 70). That is simple math.
There also is a crossover point that compares the TOTAL amount you are receive from Social Security if you take it early...lets say 62...versus someone who takes it at full retirement age...lets say age 66.
The person who takes it at age 62 has been collecting for 4 YEARS by the time the person who waited until age 66 BEGINS collecting. There is a chart on the Social Security webpage that shows your the crossover point (for me it is age 78). That is simple math.
Back to my first point. It is a personal decision. You may need the money so you take it early. You may want to do things before the "crossover point" so you take it early. You may not need the money so you take it late to get the 8% growth. You may have
longevity in your family so you take it later.
It's personal...



which if you take social security early
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Re: When will you collect Social Security?

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Message 3 of 53

@rlewis1951 wrote:

I am now 67, and I plan on waiting until I am 70 for two reasons. My full retirement age is 66, but, I was screwed out of state of Ohio because the dept. was contracted out, so I, along with a few others missed out on 5 yrs of Public Employees Retirement System. I retired at age 61, so that I could earn more S.S. in the private sector. I figure with this plan, I should be okay once I hit 70. I need to move to a condo, sell my house, and travel.


Will the Social Security Windfall Elimination Provision affect your benefit?

https://www.ssa.gov/planners/retire/wep-chart.html

* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: When will you collect Social Security?

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@JLSurratt wrote:
Gail.1 I am not missing anything. I have done the math and if you wait until FRA you do not see any increase in total benefit until after age 82. Since I do not know how long I am going to live I took SS early to get out of debt. Since I have other retirement income and life insurance of $100,000 for my if i die before her. She will be just fine with my lower SS check . Plus we can travel and do things from age 63 to 66 that would not be possible without the SS checks. Who knows the quality of life in your 80s. Bigger SS check in my 80s for the nursing home, I have seen it happen to older Aunts and Uncles.

Yep, that's right - more self-payers, or at least paying a fair amount, for that nursing home stay in later life would help out society as a whole.

 

Like I said, you made the decision for your benefit - I am not disclaiming your need or want.  

 

But others need to be aware that since the FRA has and is increasing and the early retirement age of 62 has remained the same - sticking with the early age of 62 to retire will reap a person less and less in their benefit as the FRA keeps marching upward towards 67.

* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: When will you collect Social Security?

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Message 5 of 53
Gail.1 I am not missing anything. I have done the math and if you wait until FRA you do not see any increase in total benefit until after age 82. Since I do not know how long I am going to live I took SS early to get out of debt. Since I have other retirement income and life insurance of $100,000 for my if i die before her. She will be just fine with my lower SS check . Plus we can travel and do things from age 63 to 66 that would not be possible without the SS checks. Who knows the quality of life in your 80s. Bigger SS check in my 80s for the nursing home, I have seen it happen to older Aunts and Uncles.
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Re: When will you collect Social Security?

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I am now 67, and I plan on waiting until I am 70 for two reasons. My full retirement age is 66, but, I was screwed out of state of Ohio because the dept. was contracted out, so I, along with a few others missed out on 5 yrs of Public Employees Retirement System. I retired at age 61, so that I could earn more S.S. in the private sector. I figure with this plan, I should be okay once I hit 70. I need to move to a condo, sell my house, and travel.

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Re: When will you collect Social Security?

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Message 7 of 53
thanks
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Re: When will you collect Social Security?

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I believe I said that. I wrote: "I wasn't eligible for Part B until I was let go from my job". What I did not say is that you have a limited time to apply for Part B.
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Re: When will you collect Social Security?

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Message 9 of 53

Very detailed contribution. I am looking for advice. I have pension income to meet my needs. I am trying to answer this question: what would be best for someone taking their SS at 62, full retirement or 70 if they invested their SS at a reasonable rate (5%?) instead of spending it? Which option would yield the most income if one lived to their actuary age? Cannot seem to find anything comparing SS 8% growth to investment growth if that makes any sense.

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Re: When will you collect Social Security?

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@LogicsHere wrote:

Did you apply for Medicare Part A (the free part) when you turned 65?  I did and I wasn't eligible for Part B until I was let go from my job. I did not get an increased premium.  Applying at 65 instead of 70, you would have eliminated the additional $25 a month you say you are paying for your Medicare premium. 


The rule for Medicare is that most everybody signs up for Premium-free Part A at 65.  It can work with employer coverage.

 

You have to sign up for Part B at 65 To avoid a premium penalty UNLESS  at the time you currently have other credible coverage.  Once that credible coverage is no more you only have a few months to sign up for Part B to avoid the penalty.

* * * * It's Always Something . . . Roseanne Roseannadanna
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