Collecting Social Security Early (Before 66)

[blueeyes88]

Hi,
I am new to this forum but have a question concerning collecting social security before 66.
My wife is 62 and retired from teaching. I am currently 65 and continue to work. I earn over $100K.
My wife wants to collect her social secuirty now (at 62), but I feel that she should wait until I retire in a year or so since her social security would be reduced and subject to a high tax rate because of our income.
What should I advise her to do. She is of the opinion she should start collecting her social security now and I feel she should wait.
She feels strongly that I am wrong.
Please, any advice would really be appreciated.
Thanks again.

 

[REWahoo]

blueeyes88, there is no "right" answer to your questions, but there are many different opinions and options. The SS topic is one frequently discussed on this forum - here is a thread you might want to read: http://www.early-retirement.org/forums/f28/when-take-social-security-27924.html

 

[kowski]

Even if you win the battle you will lose.

 

[gerrym51]

google the 62/70 social security solution. excellent answer for married
couple


gerry

 

[REWahoo]

Here's an article that explains a couple of options: Two Ways To Optimize Social Security Benefits - Features

 

[OAG]

If you cannot satisfy her that you are right from searching the internet (which you may not be able to do) I would suggest a call to the 1-800 SSA number and make an appointment to go down and see them. Take your SSA annual forms with you and your projected income over the next X years. You may be able to do it over the phone also but face to face may be the best since you are trying to change one of your minds.

 

[Dawg52]

How long do you plan to work? On the surface it seems to me you are right. If you plan to work 2-3 more years, she could start hers at 65 at a much higher rate and you take yours at 70. Just my opinion though. Many ways to look at it.

 

[rs0460a]

Even if you win the battle you will lose.

How true! Why don't you just pay the age 62 benefit to her directly from your paycheck?

Then when you retire, she can claim at whatever higher rate currently in force? That way she get's "her income" and you get her to get the higher rate in the future?

That should satisfy both your needs (her - current income; you - higher future rate).

- Ron

 

[jedelfelt]

If you or your wife are extremely mathematically inclined, you might want to read Robert Muksian’s article, “The Effect of Retirement Under Social Security at Age 62,” published in the January 2004 issue of the Journal of Financial Planning. He makes a compelling case for waiting until full retirement age to collect Social Security benefits.

However, if you are still working and making $100k, I assume that you don't need the money. So the fact that your wife wants to take her SS money now may be based on criteria unrealated to maximizing her social security benefits. Thus, I think rs0460a may be on to something here. She may just want to have some of her "own" money. Thus, even if you can prove to her that waiting to take her benefit would be better from a purely financial point of view, she still may not be convinced. Good luck my friend!

Jonathan Edelfelt
Author of Who Said You Need Millions? Retirement Strategies for the Rest of Us