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Re: using savings for a year to increase social security?

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Message 1 of 12

Get it as soon as you can or you may not get it at all.  A bird in the hand is worth two in the bush!

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Re: using savings for a year to increase social security?

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Message 2 of 12
but I'm not applying early by the time I start receiving benefits I will be 66 and that is my social security full retirement age. I'm just not waiting till 70. also I will be collecting my paycheck till I retire in april of 2020.along with ss.
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Re: using savings for a year to increase social security?

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Message 3 of 12

It sounds like you're not sure if you made the right decision to file for SSA Benefits early? And, it sounds like you're basing your decision on the potential amount of interest earnings on the SSA Benefits if you were to put it into savings?

The SSA Benefit amount you lose by filing early is way more than any interest you might earn [2.2% APR] on the reduced Benefit amount. So, this is not a good measure to base your decision on. It's more financial advantageous if you can wait longer to file for SSA Benefits.

Most people file early because of a shortage of funds and need to boost retirement income to meet monthly expenses.

I understand that the 8% increase in SSA Benefits is after your Full Retirement AGE [age 66] up to when you reach age 70. So, its for 4 years. You probably know that you can withdraw your SSA application for up to 12 months after filing, the caveat is that you have to pay back the SSA benefits you received [up to 12 months of benefits]. If I'm wrong, I apologize.

 

 

 

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Re: using savings for a year to increase social security?

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Message 4 of 12
Thank goodness we have options - sounds like you picked the best for your situation.
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Re: using savings for a year to increase social security?

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Message 5 of 12

That is why it is so important for each of us to consider our own circumstances.  "One size does NOT fit all".  My goal is to have the highest SS income once I turn 70 which for me is a difference of $1,000 per month compared to what I would have received at age 66. I still have the option of working some if I want but so far I haven't wanted to.

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Re: using savings for a year to increase social security?

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Message 6 of 12

I'M RETIRING IN APRIL OF 2020. I ALREADY SIGNED UP CAUSE I AM HITTING 66 [FRA] THIS YEAR AND FOUND OUT I CAN COLLECT AND EARN MY PAYCHECK [YES IT WILL UP MY TAX BRACKET BUT NO STATE AND CITY ON SOC SEC JUST FEDERAL TAx. I WILL BE IN GREAT SHAPE WITH MY SAVINGS. ONCE MY SS CHECKS STARET IN DEC I WILL BE 66 IN NOV.  SO I HAVE NO NEED TO DELAY SS FOR A YEAR.

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Re: using savings for a year to increase social security?

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Message 7 of 12

My situation was a little different. I remember around 62 looking at what I'd get right then, and what I'd get at 70. Pretty big difference, more than $1000/month. But the real decider was, since I was still getting a Salary from my Business, and getting SS early AND still working would lower what I was getting from the goverment, I decided to wait. Turned 70 last year, still have my business, and now getting SS was like a $30k yearly raise.

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Re: using savings for a year to increase social security?

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Message 8 of 12

You also have to factor in your health.  Due to health issues I have, I started taking my SS at 62 even though I may very well make it into my 70s,  I retired at 54 and my children are all successful but I do need my savings for my healthcare expenses.  It's nice having that little extra every month rather than depleting my savings at a faster rate.

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Re: using savings for a year to increase social security?

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Message 9 of 12

When I was several months from retiring, I sat down and looked at the difference between what I would receive at age 66 if I drew SS then or waited until age 70.  I was fortunate to be able to draw 50% of my ex-husband's SS between 66 and 70 (married 20 years) and also had enough savings to make up the difference I'd need to still live a comfortable life.  After I figured out what I thought was the best plan i.e. not collecting my personal SS until age 70, I met with my certified planner and asked his advice.  In my case, what I planned was exactly what he recommended.  I'm 2 years into the process and all is working well.  It is very important that each person consider their own circumstances before making these decisions.  My sister started collecting at 62 and wishes she had been able to wait BUT at the time her decision made sense for her circumstances.

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Re: using savings for a year to increase social security?

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Message 10 of 12

Have to agree with Gail. It's not possible to give you any sound financial advice without knowing specific numbers and amounts which you're not going to post on a public forum. Since you mentioned increases in your retirement income, factor in the increases in SS income by delaying benefits.

 

All I can advise is that you track your expenses for the last couple of years as down to the penny as you can get. Then, extrapolate for the future. Will you need a new car payment, or expensive maintenance to an older car? If you're in a house, will it need a $10,000 roof soon. Do you want to travel? Indulge in some hobby?  (you get the idea --- you have to run 'the numbers').


"...Why is everyone a victim? Take personal responsibility for your life..."
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