Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Taking Social Security at age 62
Old 09-02-2014, 05:39 AM   #1
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 320
Taking Social Security at age 62

Looking for people who have taken Social Security at age 62. Please explain why you decided to take Social Security at age 62 and also how this has worked out for you. Do you have any regrets? Do you wish you waited longer? DW is thinking about using SS as her "fun money" and doesn't want to wait additional years until FRA to get it.


Sent from my iPad using Early Retirement Forum
__________________

__________________
PERSonalTime is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-02-2014, 06:48 AM   #2
Full time employment: Posting here.
 
Join Date: Jan 2010
Location: dubuque
Posts: 618
How many years out would be the break even point compared to full retirement age? my wife has some health issues and I am trying to get her to sign up at 62 also.
__________________

__________________
frank is offline   Reply With Quote
Old 09-02-2014, 09:26 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 1,904
Quote:
Originally Posted by PERSonalTime View Post
Looking for people who have taken Social Security at age 62. Please explain why you decided to take Social Security at age 62 and also how this has worked out for you. Do you have any regrets? Do you wish you waited longer? DW is thinking about using SS as her "fun money" and doesn't want to wait additional years until FRA to get it.


Sent from my iPad using Early Retirement Forum
Both my wife and myself took SS at 62 for the following reasons:

1) I have no pension or other sources of income other than my investments, My calculations show that when the investment return from the money left invested is taken into account and a RR of 5-6% is achieved the SS at 62 comes out ahead.

2) The SS administration keeps saying that there will be a reduction of benefits of 25% or so starting in 2035 unless the program is changed. I am old enough to remember how difficult politically the last fix back in 1980 was to put into effect. This was at a time when the government more or less "worked" and was perceived by most people to be benign in nature. I'm afraid that those days are gone and I don't believe that the fix will be easy when there are lots of very powerful political folks for whom the goal is to eliminate SS as it currently exists.

3) The COLA aspect of SS can be tampered with by a Government that wishes to do so to save money

4) the Taxing aspects of SS can be tampered with by a Government that wishes to collect more money.

5) The generation that counted on SS as a solemn Government promise is heading for the cemetery at a rapid clip. Young adults today have no expectation of SS being there for them. Politically eliminating SS will get easier, not harder over time.

6) I like having as much control as possible over my own destiny, Reducing my personal resources ( i.e. my investments) by using up my own money between 62-70 counting on the promise of a Government program to take care of me in the far future is anathema.
__________________
ejman is online now   Reply With Quote
Old 09-02-2014, 10:19 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Apr 2005
Location: Midwest
Posts: 1,568
Quote:
6) I like having as much control as possible over my own destiny, Reducing my personal resources ( i.e. my investments) by using up my own money between 62-70 counting on the promise of a Government program to take care of me in the far future is anathema.
Amen!
__________________
razztazz is offline   Reply With Quote
Old 09-02-2014, 10:43 AM   #5
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 2,979
Quote:
Originally Posted by ejman View Post

4) the Taxing aspects of SS can be tampered with by a Government that wishes to collect more money.
This is my biggest concern and an area I'm going to watch. I learned the hard way about taxation of SS when DH and I married and he started collecting SS (he'd turned 65). The tax bite on his SS will be a lot less now that I'm no longer working, but I think that when the numbers for SS start looking worse this is an area they'll mess with, making SS even more needs-based. I may file early if I think that too much SS will be taxed away when I'm 70.
__________________
athena53 is online now   Reply With Quote
Old 09-02-2014, 11:22 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 1,044
I'm almost positive I'm taking it when I turn 62 in less than two years. Family history argues for taking it early as the correct bet. Already being on the dole will be more likely to shield me from whatever shenanigans the politicians pull to reduce the payout. It's a little extra fixed income insulation with no bond risk, but I will either pay down rental mortgages or invest the annuity, as I do not need it to eat.
__________________
Another Reader is online now   Reply With Quote
Taking Social Security at age 62
Old 09-02-2014, 11:58 AM   #7
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 320
Taking Social Security at age 62

Quote:
Originally Posted by frank View Post
How many years out would be the break even point compared to full retirement age? my wife has some health issues and I am trying to get her to sign up at 62 also.

While I haven't done the calculations lately, I think my DW's breakeven point is at least 10 years (age 72). However, everyone's situation is different depending upon their individual numbers.


Sent from my iPad using Early Retirement Forum
__________________
PERSonalTime is offline   Reply With Quote
Old 09-02-2014, 12:20 PM   #8
Dryer sheet aficionado
 
Join Date: Feb 2014
Posts: 43
I see that a lot of ss decisions are based on leaving a higher spousal benefit. That I understand, but if that is not a factor as your spouse will do well on their (her) own, how much does that change anyone's thinking regarding 62 vs 66 or whatever.


Sent from my iPhone using Early Retirement Forum
__________________
43WorkYears is offline   Reply With Quote
Old 09-02-2014, 12:53 PM   #9
Full time employment: Posting here.
jjquantz's Avatar
 
Join Date: Jan 2014
Location: Northern Virginia
Posts: 847
Quote:
Originally Posted by 43WorkYears View Post
I see that a lot of ss decisions are based on leaving a higher spousal benefit. That I understand, but if that is not a factor as your spouse will do well on their (her) own, how much does that change anyone's thinking regarding 62 vs 66 or whatever.


Sent from my iPhone using Early Retirement Forum
This is a good question. DW and I will have essentially equal benefits and we are only one year different in age. I've run through some ideas but don't feel confident enough in my conclusions to share other than to say that my initial reaction is that we can treat them as independent decisions that will have little effect on the other, surviving spouse. That initial reaction is VERY tentative, however.
__________________
jjquantz is offline   Reply With Quote
Old 09-02-2014, 01:11 PM   #10
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,804
DH started SS at 62. For us it worked out to be the best solution because we have a pre-teen and a teenager... They can collect, as well, if he's collecting. (Something I learned about here.) This puts us well ahead of the game, financially.

I don't include the boys SS earnings in my income budget - because I direct it straight to their college savings. (I removed that spending item from my spending budget- and call it a wash.)

It's unusual to have minor children at SS age, I guess... One slight advantage to marrying and having kids at an "advanced" age.
__________________
rodi is offline   Reply With Quote
Old 09-02-2014, 01:17 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Isn't the breakeven point, age-wise, 78 for most of those scenarios? To where, if you end up living past 78, you were best off waiting until 70 to take SS?

In my case, I plan on taking SS at 62. My reasoning is that taking it early will let more of my investments continue to grow, rather than having to cash them out early. And, I figure that if they do make any serious changes to SS down the road, they'll figure a way to screw those not on it yet, moreso than those who are already collecting.

I also figure that the earlier part of my retirement is going to be more useful, enjoyable, and productive than the later years, so might as well start spending a bit earlier, rather than hoarding for later.
__________________
Andre1969 is offline   Reply With Quote
Old 09-02-2014, 02:51 PM   #12
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
For us, for tax purposes... instead of using savings, but more importantly, because of a fear of recurring cancer, and dying before getting the first dollar.
No regrets... at all. Now 16 years later, getting $25K (DW and I total). Haven't figured how much we might have been getting, but the $$ in savings account CD's back in the 1990's were earning good %'s.

"Bird in the hand..."
__________________
imoldernu is offline   Reply With Quote
Old 09-02-2014, 03:02 PM   #13
Dryer sheet aficionado
 
Join Date: Feb 2014
Posts: 43
I will agree with your decision based on what you said. It's a tough decision based on the many factors we all have. Stay well.


Sent from my iPhone using Early Retirement Forum
__________________
43WorkYears is offline   Reply With Quote
Old 09-02-2014, 08:17 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
IMO the real decision points are:
1) health and family history related (poor = take earlier)
2) financial situation (do you need the money to live comfortably?, yes = take earlier)

If you really think the government will take the benefits away, then you should go ahead and take it (bird in hand theory), but personally, after watching politicians over the last 6 decades, I don't think any majority group of them have the political guts to take it away from people we are getting or close to getting the benefit (most of us I would think). We (older folks) have a tendency to vote and be very vocal politically when stuff start to go 'sideways'.
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 09-02-2014, 09:42 PM   #15
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
Thank you for your very frank post on reasons you favor taking SS at 62. While I agree with many of your concerns, here are my reasons for delaying as long as possible.

1) I have enough savings to get me to at least 70, but my calculations show that if I live unexpectedly long and markets are unexpectedly unfavorable, then I may eventually run out of money unless I get a higher payout from SS.

2) I have longevity in my family, so while I do not know how long I may live, I must plan at least for the possibility I last into the high 90's (or more if medical advances keep extending lifespans). In that case I also want to be sure I have enough to pay for quality care and not end up in some less desirable institution.

3) The COLA aspect of SS and the taxing aspects of SS can be tampered with by a Government that wishes to do so to save money, but so can aspects of my various retirement accounts. I want to be diversified between SS, IRA/401k, Roth/Trad, taxable/sheltered, investments/home equity and so on, so whatever happens I can still muddle through and not have the majority of my eggs in any one basket that political action could reduce in value enough to hurt me. I am also hopeful that a large senior lobby can at least somewhat contain any of these political take aways.

4) I need the years between age 62 and 70 to do as much Roth conversion as possible and with lower income in these years hope to get maximum benefits from my various tax advantaged savings programs.

5) I have no spouse or dependents and no opportunity to file/suspend or manage higher payout with spousal benefits games. I have adult children as heirs, but unless something catastrophic happens they stand to inherit enough to put them in good shape for their own retirements no matter when I expire. They will get enough in any case so I see no need to take risk to maximize their gain if I die unexpectedly early. I see no need to try to maximize their gain in any scenario. I already do not buy life insurance as it is superfluous.

6) I do not think of SS as a way to maximize my take from the government. I view it as a way to insure myself against the risk of living unexpectedly long. That is the ONLY scenario in which SS is significant in my planning. I have enough assets to live as I am accustomed and still leave assets to heirs for any other scenario. In those cases, I will have lived a lifestyle I wanted and will not care about my remaining portfolio as I will be expired. I already have enough assets to live the lifestyle I want and have the experiences I desire, without SS. Taking SS early or late will not result in my reducing or expanding my lifestyle. The only scenario in which I am at risk of running out of assets is if I live to a ripe old age, and using SS to generate maximum payout for life, plus the assets I will still have, covers that risk.

7) If I have to accept a bet on whether I live long or short, the only side of that bet I care about is the side where I live long.
__________________
growing_older is online now   Reply With Quote
Taking Social Security at age 62
Old 09-03-2014, 01:03 AM   #16
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 320
Taking Social Security at age 62

Quote:
Originally Posted by rodi View Post
DH started SS at 62. For us it worked out to be the best solution because we have a pre-teen and a teenager... They can collect, as well, if he's collecting. (Something I learned about here.) This puts us well ahead of the game, financially.

I don't include the boys SS earnings in my income budget - because I direct it straight to their college savings. (I removed that spending item from my spending budget- and call it a wash.)

It's unusual to have minor children at SS age, I guess... One slight advantage to marrying and having kids at an "advanced" age.

rodi,

How is it that the kids are getting SS? I wasn't aware that that could happen.


Sent from my iPad using Early Retirement Forum
__________________
PERSonalTime is offline   Reply With Quote
Old 09-03-2014, 01:44 AM   #17
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,395
Quote:
Originally Posted by PERSonalTime View Post
rodi,

How is it that the kids are getting SS? I wasn't aware that that could happen.

I can answer this. Briefly, if a parent is receiving SS then the under 18 (under 19 if in high school) children of that parent receive 1/2 of the parents FRA SS amount. If there are multiple children, there is a family cap on the amount of benefits.

My husband retired at 62 and took SS at that time as we had 2 minor children under the age of 18 at the time.
__________________
Katsmeow is offline   Reply With Quote
Taking Social Security at age 62
Old 09-03-2014, 03:30 AM   #18
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 320
Taking Social Security at age 62

Quote:
Originally Posted by Katsmeow View Post
I can answer this. Briefly, if a parent is receiving SS then the under 18 (under 19 if in high school) children of that parent receive 1/2 of the parents FRA SS amount. If there are multiple children, there is a family cap on the amount of benefits.

My husband retired at 62 and took SS at that time as we had 2 minor children under the age of 18 at the time.

Katsmeow,

Thanks for the explanation! Btw, does the kid still get one-half of the parents projected FRA SS even if the parent takes Social Security at 62? (It seems like that's what you're saying).

Sent from my iPad using Early Retirement Forum
__________________
PERSonalTime is offline   Reply With Quote
Old 09-03-2014, 09:16 AM   #19
Recycles dryer sheets
In-control's Avatar
 
Join Date: Mar 2007
Posts: 319
My SO and I are taking SS @ 62. I figure every $ that it contributes to our spending is one more dollar that does not come from my savings/investments.
__________________
Just Trekking thru!
In-control is offline   Reply With Quote
Old 09-03-2014, 09:37 AM   #20
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,851
Quote:
Originally Posted by growing_older View Post
I do not think of SS as a way to maximize my take from the government. I view it as a way to insure myself against the risk of living unexpectedly long.
+1 That is how I view SS, too.

Also, I was surprised at how fast the years from 62 to 66 passed. Now I am getting divorced spousal SS, while my own SS continues to grow until age 70 when I will claim it. I am sure the years from 66 to 70 will also pass unreasonably quickly too, and then I'll get my own, higher benefits.
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Taking Early Social Security 1fuzzball FIRE and Money 20 03-02-2014 09:31 PM
Taking Social Security at 62 - Point to Ponder freebird5825 FIRE and Money 63 06-16-2013 10:26 PM
Taking Social Security early vs. not LeavingOhio FIRE and Money 268 06-05-2013 10:17 PM
When to start taking Social Security davemcmullen FIRE and Money 74 10-14-2008 09:23 AM
SS benefits, delay taking Social Security, Scott Burns article landover FIRE and Money 11 11-29-2005 06:58 PM

 

 
All times are GMT -6. The time now is 11:25 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.