Basic Social Security questions

[fmhealth]

I could use some sage advice from the more experienced folks on this board. Here are my questions.

1- Is there anything inherently wrong with collecting your SS benefits at 62?

2- Once you complete the online application, how long before you start receiving checks?

3-How much do your SS benefits increase for each MONTH that you delay before starting to receive benefits?

4-Is it advisable to have Fed & State taxes automatically withheld from each check?

5- What other critical elements should I closely examine?

Thanks in advance for your time & thoughts. Much appreciated!!

 

[W2R]

I could use some sage advice from the more experienced folks on this board. Here are my questions.

Well, I'm not all THAT experienced, but here goes:

1- Is there anything inherently wrong with collecting your SS benefits at 62?

Absolutely not! Each person has their own set of circumstances. Make sure your choices are the best for you (not for someone else). Personally I plan to wait until 66, but most people here are planning to collect at 62.

2- Once you complete the online application, how long before you start receiving checks?

I can't remember what people have said. Someone else can help you with this one. I have read advice to apply 2-3 months before you are 62, if you plan to collect then. But who knows if that advice was right?

3-How much do your SS benefits increase for each MONTH that you delay before starting to receive benefits?

That depends on when you were born. I was born in 1948, and I know that they increase by 33.33% from 62-66. In other words, if I were to receive $1000/month at 62, I would receive $1333.33 if I instead waited to 66 to begin SS payments. So, I would imagine that the monthly increase for me would be 33.33/48 = 0.69%. If I waited until 62 and 1 month to collect, I would receive $1006.90.

4-Is it advisable to have Fed & State taxes automatically withheld from each check?

I don't think they withhold state taxes, though I could be wrong. If you don't have them withhold federal taxes, then I think probably you have to pay taxes quarterly.

5- What other critical elements should I closely examine?

Thanks in advance for your time & thoughts. Much appreciated!!

I am hoping that someone else can answer more expertly on these questions! They are interesting. When I started writing this post, nobody else had posted so I am just trying to get the thread going.

 

[Moemg]

Before you go to apply go to the SS web site so you know what to bring with you .The list varies if you've been divorced or widowed. I applied in Dec. and checks started in Feb. ( It was for Jan. ) . I don't have taxes taken out but I do estimated taxes .Only you can decide when to apply but if you are undecided there are many many threads on the subject .Hope this helps !

 

[fmhealth]

Thank you gentlemen. Your insights are right on target!

 

[EngineeringMyFinances]

It depends ...

.... on your personal situation.

There are life expectancy issues that should be considered. Also whether or not you're married.

Your benefit may be less than the figure in your annual statement if you continue to work. Or if you're drawing a government pension.

The rules are somewhat complex. The Social Security Administration has a pretty good web site. I recommend you start on this page and read the pages it links to get more details to help you make an informed decision.

 

[fmhealth]

Thanks EMF. Good points to seriously consider.