S.S .& the single forum members

[Moemg]

I 'm sorry for bringing up the dreaded Social Security word but I just do not understand why single forum members delay SS . For couples I understand it is so the survivor rate is higher but for us single members our SS dies with us so why not take it at 62 ? Sure you get more by waiting but aren't you are also playing the odds that you'll live long enough to come out even .

[HFWR]

Currently single, and I intend to start at 62 (eight years), though I'm not glued to that. Stuff happens.

[Khan]

Quote:

Originally Posted by Moemg I 'm sorry for bringing up the dreaded Social Security word but I just do not understand why single forum members delay SS . For couples I understand it is so the survivor rate is higher but for us single members our SS dies with us so why not take it at 62 ? Sure you get more by waiting but aren't you are also playing the odds that you'll live long enough to come out even .

I'm not concerned with spending time and effort to make sure I get the most money out of the system.

I might not take SS at all if I don't need it; I'll leave it in the system for those who do need it.

[Moemg]

Quote:

Originally Posted by Khan I'm not concerned with spending time and effort to make sure I get the most money out of the system. I might not take SS at all if I don't need it; I'll leave it in the system for those who do need it.

Khan , why not take it and donate it to one of your charities ?

[Goonie]

I'm single and plan on draining drawing SS at age 62 in 10.5 years. I don't know what I'll spend all of that new found money on, but I'm sure I'll find some new widget or whatchamacallit that I surely won't be able to live without....at least according to their manufacturer's ads.

[2B]

I'm not single but the reason for a single to not take SS is the same reason someone might buy an annuity. The only difference is that SS is a much better buy than what you can get in the SPIA market. If you really think you'll beat your longevity tables, delaying SS is the way to go even if you are draining other assets. SS goes up about 8.5% every year and its indexed for inflation. Waiting until 70 really increases your SS check.

The key is living beyond the SS actuarial life span. The gov't uses the "overall" numbers so if you have good health and a decent family longevity history it really is a good deal. If you die early, you're dead and won't care.

[W2R]

Quote:

Originally Posted by 2B I'm not single but the reason for a single to not take SS is the same reason someone might buy an annuity. The only difference is that SS is a much better buy than what you can get in the SPIA market. If you really think you'll beat your longevity tables, delaying SS is the way to go even if you are draining other assets. SS goes up about 8.5% every year and its indexed for inflation. Waiting until 70 really increases your SS check. The key is living beyond the SS actuarial life span. The gov't uses the "overall" numbers so if you have good health and a decent family longevity history it really is a good deal. If you die early, you're dead and won't care.

I like this post, so I quoted it.

I don't know when I will take SS. My financial plan has me taking it at 66, but really I intend to play it by ear. I will re-examine the problem several times a year until I start taking SS. After all, if 66 then why not 70 or 62? Because of SS's annuity-like properties, sometimes it makes more sense to me to put it off, and get more later rather than less earlier. Then again, I might take it early because a bird in the hand is worth two in the bush.

Although it's fun to politely wrangle back and forth about it a little, I suppose that ultimately it doesn't make a great deal of difference one way or the other for most of us. At least, it doesn't to me.

[aaronc879]

I may wait until "full retirement age" because I may be living off just S.S. if I live into my 70's. However, with my genetics it's fairly likely I won't live into my 70's so it's a tough choice.

[Khan]

Quote:

Originally Posted by Moemg Khan , why not take it and donate it to one of your charities ?

I am extremely lazy.

[FinanceDude]

Quote:

Originally Posted by Khan I am extremely lazy.

Direct deposit it to your saving account. Did you go to college? If you did, have your alma mater take the payment out of your account and invest in an endowed scholarship in your name or something.....

[Redbugdave]

One thing to consider about 62 vs 65 or later...If you take it at 62, (at the lower rate), you get an additional 3 years use of the money to enjoy it. I am not sure where the the break even point is, (think around age 69?), where the total dollar amounts paid to you equal each other, (62 vs 65).

Looking at this realistically in my mind, you might as well enjoy yourself while you can. When you get older, you may be "out of it" and won't be able to enjoy that extra money that you could have had between the ages of 62 and 65. The things people can do really changes between ages 60 to 65. Then when you consider what you can do between ages 65 to 70, I think mobility really begins to drop off, (and our brains, too).

I hope this makes sense...some things cannot be calculated, such as pleasure and making the most of what life you have now, (use it now or you may not be able to enjoy it later...because you may be out of it in a nursing home or some place).

[Alan]

Quote:

Originally Posted by Khan I'm not concerned with spending time and effort to make sure I get the most money out of the system. I might not take SS at all if I don't need it; I'll leave it in the system for those who do need it.

Wow, that's very altruistic of you. I'm suitably impressed. As suggested, why not consider drawing and donating to charity?

[unclemick]

Hmmm - Single in a household of three women each contributing SS/pension to household expenses. I planned to let SS build up.

Happy 62nd birthday/Katrina. Moved 1000 miles inland. Three deaths within a year.

I became mortal and took early SS. If I get back to living forever by age 70 - I may do the form/pay the money/reset the clock - if the option is still available.

Life happens. Have a plan but remember the difference between precision and accuracy.



heh heh heh -

[Tykimeister]

Quote:

Originally Posted by Khan I'm not concerned with spending time and effort to make sure I get the most money out of the system. I might not take SS at all if I don't need it; I'll leave it in the system for those who do need it.

Like my uncle who pretends to have "black outs" and hasn't had a job in 10+ years. But your right, I wouldn't want to take the money when there isn't any there in the first place.

[Bikerdude]

Quote:

Originally Posted by Tykimeister Like my uncle who pretends to have "black outs" and hasn't had a job in 10+ years. But your right, I wouldn't want to take the money when there isn't any there in the first place.

The way I see it is you're not saving anybody. If there is not enough money the fed will print it. So there is no way to escape. Take it when you can and give it away.

[Lakedog]

I'm also single and plan to start at 62 (or earliest age possible if that changes before I reach 62) -- seems like the best decision due to lifespan uncertainty.

[cute fuzzy bunny]

The other key if you delay is hoping the govt doesnt start doing means testing, cuts the payout, drops the inflation adjustment, increases the taxation or some other method of pumping the bilge before the ship sinks.

If you take the money and invest it rationally, you'll be in your early to mid 80's before the delay strategy starts getting the upper hand. Having that bird in the hand may let you be a little freer with your spending between 62 and 85.

I'm guessing that the money is going to be more fun to spend at 62 than 85.

[Dawg52]

Also under current rules, if you take it at 62 you have the option to re-apply for the higher rate at 70 and simply pay what you had received back without interest. Some are doing that today. I shouldn't say simply as I've read it is a complicated procedure. But it does seem like another pretty good reason to go ahead and take it at 62 and re-evaluate things at 70.

Edit: Didn't see Alan's response. Basically what he said.

[explanade]

Quote:

Originally Posted by Dawg52 Also under current rules, if you take it at 62 you have the option to re-apply for the higher rate at 70 and simply pay what you had received back without interest. Some are doing that today. I shouldn't say simply as I've read it is a complicated procedure. But it does seem like another pretty good reason to go ahead and take it at 62 and re-evaluate things at 70. Edit: Didn't see Alan's response. Basically what he said.

Would that be gross? Say you were getting $10k a year (for round number sakes) and you paid whatever taxes on it.

So at age 70, you pay back $80k to the govt. and they recalculate at higher payments?

[Dawg52]

Quote:

Originally Posted by explanade Would that be gross? Say you were getting $10k a year (for round number sakes) and you paid whatever taxes on it. So at age 70, you pay back $80k to the govt. and they recalculate at higher payments?

That's my understanding and it would be up to you to file tax returns to recoup any taxes paid. But even if you had to hire a CPA to help with that, it would be worth it IMO. Below is some additional info on the subject.

http://www.marketwatch.com/News/Stor...yU-JL_q6Uv1wpA