Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-01-2010, 11:02 AM   #41
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by Lazarus View Post
Any drawback for having her draw hers for a year before I am eligible for mine?
I'm going to direct you to ask the same question of "sscritic" on the BH forum:

Bogleheads :: Index

H/she is the recognized expert on all questions as related to SS and usually supplies your question with a detail answer, breaking down year by year, dollar by dollar and is very detailed in the analysis.

Rather than give you my opinion, I would rather you get the answer from a known "expert" on the subject...
__________________

__________________
rescueme 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 08-01-2010, 08:59 PM   #42
Thinks s/he gets paid by the post
Finance Dave's Avatar
 
Join Date: Mar 2007
Posts: 1,046
Quote:
Originally Posted by W2R View Post
I am 62, and my opinion is that you and I are in an age group that is much less likely to be affected by SS changes than some of the younger age groups. Still, all the talk of SS change is pretty unnerving and I understand your concern.

My original plan was to wait until age 66 to claim my benefits. Right now I am taking it year by year. It's very similar to a game of chicken in some respects, and I don't want to be frightened into changing my plans unless there is a good reason to do so.

I think that if the full benefit amount was changed for those in our age group between now and our full retirement age, there would be a massive public reaction and outcry. Anything is possible but perhaps this is less likely than some scenarios (such as increased taxation of SS benefits).
I agree....I cannot see anyone in Congress reducing benefits for those in or near SS retirement age....too much political pressure. The only change that MIGHT come in this regard is tying increases to CPI rather than wage progression formula. This could affect everyone, but those at or near SS age would see the change slowly and it would be very minor. For example, if wages next year went up 3.2%, but the CPI went up 2.9%, you'd only get a 2.9% increase whereas today's formula gives you a 3.2% increase...thus a .3% loss...not very much. Over many years this can be a big deal.

There are many proposals being thrown around, here's one:
Womenstake: Anything to Avoid Raising Taxes on the Wealthy: Cut Social Security Benefits to Pay for the War?!

Also, IMO, the decision of when to take SS is so complex that I would never try to guide someone else. It depends on so many factors such as your health, financial needs, assumptions about interest rates, whether you are married, did your spouse work, who earned more; a whole littany of factors. Each person needs to look into the details for their specific situation and do what's best for them. There are even file and suspend methods, repay-restart methods, and so on....geesh.

As for me, given my specific circumstances, I plan to have my wife take at 62, and I will wait until full age (67 for me).

Good luck with your decision.
__________________

__________________
Finance Dave is offline   Reply With Quote
Old 08-01-2010, 10:23 PM   #43
Recycles dryer sheets
HsiaoChu's Avatar
 
Join Date: Feb 2010
Posts: 389
If you don't need the social security at age 62, take it anyhow but start banking the money. Suppose you made good money in your life time and you start taking it at 62, and they will give you 20K then, but if you wait until you are 70 they will give you 27K.

How long with it be before you will make more money by taking it at 70. Well.... (not even figuring any interest) for 8 years you will get 20K which you have saved each year and now at age 70 you have 160K+ saved(actually more like $180K see below). You will continue to get 20K each year. But how long will it take to make up the money you lost by not taking it early. At 82 you will have received $400,000+ in 20 years. If you waited until you were 70, then at 82, 12 years later, you will hAVE RECEIVED $324,000. IF YOU live to 87, you will have received your 20K for 25 years, and you will have received a total of $500,000++ during the 25 years since you retired at 62 and started taking SS of 20K. If you waited until 70 then you will have been receiving your $27K for 17 years and your total will be $459.

There chances of catching up before you die is very small. The SS system wants you to take it later because the money you will get will be less. Its simple to figure out, but few people can do this.

Suppose you save it from 62, and get into a serious financial bind and need $20K to fix your septic system of your retirement house. If you haven't taken it early and saved it, then you will have no money to draw on.

Your saving it above assumes also that you get no interest, but even at a lousy 2.5%, after receiving $160, you will have gotten a total of $179,000+ not 60.

The numbers just keep going up. Realistically you can never make more by waiting until age 70 if you didn't need it until 70, but saved it in an interest bearing CD account.

HsiaoChu
__________________
HsiaoChu is offline   Reply With Quote
Old 08-02-2010, 12:11 AM   #44
Full time employment: Posting here.
Ronnieboy's Avatar
 
Join Date: Feb 2008
Posts: 646
Quote:
Originally Posted by Lazarus View Post
I know Social Security has a "Full" retirement age and amount. But I look a it as a continually increasing amount beginning at age 62. If I waited till 70 it will be higher than the “Full” retirement amount.

A spouse at age 62 can get about 32.5 percent of the Full benefit of the partner that they are drawing off of.

So to clarify my question. My wife could draw on hers for a year. Then I could begin mine at age 62. So she could then begin to draw a spousal benefit off mine which would be larger than her amount.

Any drawback for having her draw hers for a year before I am eligible for mine?

Good question, as I am in the same situation. My wife is 3 yrs older than me and I would think the best approach would be for her to take the $$ at 62, while I apply for spousal benefits and then at 62 or even waiting till 66 take mine and have her get 50% of that. Of course things will change by the time we get there, but as of right now all things holding steady, that is what we would do.
__________________
I don't want to spend my entire life at work. I deserve more. - Want2retire aka W2R
Ronnieboy is offline   Reply With Quote
Old 08-02-2010, 07:51 AM   #45
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 719
Get it while the gettin's good.

http://www.nytimes.com/2010/07/31/yo...ecurity&st=cse

Key quote: “One financial planner, who has dual citizenship in the United States and Greece, said he was not taking chances. ‘Having seen what happened in Greece, I feel even more strongly today that I should not count on any Social Security for me and my younger clients,’ said the planner, George Papadopoulos, 43, of Novi, Mich. ‘I will continue to tell clients not to highly rely on Social Security and think of any money coming their way as gravy.’”
__________________
rayvt is offline   Reply With Quote
Old 08-02-2010, 08:18 AM   #46
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,445
Quote:
Originally Posted by rayvt View Post
Get it while the gettin's good.
More than likely what I will do and use it on med's and wild women.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 08-02-2010, 08:51 AM   #47
Recycles dryer sheets
HsiaoChu's Avatar
 
Join Date: Feb 2010
Posts: 389
Quote:
Originally Posted by Dawg52 View Post
More than likely what I will do and use it on med's and wild women.
I tried to pay my wife to be a wild woman but she politely refused numerous times. So it is not true that you get what you pay for.
__________________
HsiaoChu is offline   Reply With Quote
Old 08-02-2010, 10:05 AM   #48
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 719
"Investments, IRAs, and 401(k) to live on;
company pension for trips to Europe or Bahamas;
Social Security for lap dances."
__________________
rayvt is offline   Reply With Quote
Old 08-02-2010, 08:13 PM   #49
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,820
Quote:
Originally Posted by HsiaoChu View Post
If you don't need the social security at age 62, take it anyhow but start banking the money. Suppose you made good money in your life time and you start taking it at 62, and they will give you 20K then, but if you wait until you are 70 they will give you 27K.
I'm not sure how old you are, but I can't figure out where you got the 20K and 27K.
Check out the Early and Delayed adjustments here:
Benefit Reduction for Early Retirement
Delayed retirement credits
__________________
Independent is offline   Reply With Quote
Old 08-02-2010, 11:11 PM   #50
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by Independent View Post
I'm not sure how old you are, but I can't figure out where you got the 20K and 27K.
Check out the Early and Delayed adjustments here:
Benefit Reduction for Early Retirement
Delayed retirement credits
I think poster meant to say 20k at 62 and 27k at FRA, not 70.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 08-03-2010, 08:07 AM   #51
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 719
That would be it. The values would be 20,000 & 26,666 and 35,200.
__________________
rayvt is offline   Reply With Quote
Old 08-03-2010, 09:20 AM   #52
Recycles dryer sheets
HsiaoChu's Avatar
 
Join Date: Feb 2010
Posts: 389
Quote:
Originally Posted by rayvt View Post
That would be it. The values would be 20,000 & 26,666 and 35,200.
YOU CAN QUIBBLE about the exact numbers, meaning that I didn't give the exact number, but the quotes that I got from the SS administration are what I used. The SS admin uses lots of acrynyms to confuse people so that they have no idea what's going on. The paper I get from them stated what I would get if I took it at 62, and what I would get if I waited until I was 70. I based the calculations on those numbers. It is what it is. I'm no apologist for the SS administration.
__________________
HsiaoChu is offline   Reply With Quote
Old 08-03-2010, 10:22 AM   #53
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 719
Quibble? Not my intention.

SSA is pretty clear on this, IMHO. They give the exact formula, and for convenience the results of that formula at the age extremes.

When base amount is age 66 (NRA or FRA).
At age 62 is 25% less.
At age 70 is 32% more.
__________________
rayvt is offline   Reply With Quote
Old 08-03-2010, 12:10 PM   #54
Recycles dryer sheets
HsiaoChu's Avatar
 
Join Date: Feb 2010
Posts: 389
Quote:
Originally Posted by rayvt View Post
Quibble? Not my intention.

SSA is pretty clear on this, IMHO. They give the exact formula, and for convenience the results of that formula at the age extremes.

When base amount is age 66 (NRA or FRA).
At age 62 is 25% less.
At age 70 is 32% more.
Whatever you say.
__________________
HsiaoChu is offline   Reply With Quote
Old 08-03-2010, 12:20 PM   #55
Recycles dryer sheets
HsiaoChu's Avatar
 
Join Date: Feb 2010
Posts: 389
Quote:
Originally Posted by rescueme View Post
I'm going to direct you to ask the same question of "sscritic" on the BH forum:

Bogleheads :: Index

H/she is the recognized expert on all questions as related to SS and usually supplies your question with a detail answer, breaking down year by year, dollar by dollar and is very detailed in the analysis.

Rather than give you my opinion, I would rather you get the answer from a known "expert" on the subject...
Could you be a little more specific as to the post that has this information. Its a huge website and even searching for sscritic leads to a huge number of posts.
__________________
HsiaoChu is offline   Reply With Quote
Old 08-03-2010, 12:20 PM   #56
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by HsiaoChu View Post
The SS admin uses lots of acrynyms to confuse people so that they have no idea what's going on.
Do you truly believe that statement?

Just wondering ...
__________________
rescueme is offline   Reply With Quote
Old 08-03-2010, 02:30 PM   #57
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,244
I think the best advice I've seen about SS is to take it when you need it. Based on actuarial tables, it should all work out about the same for the "average" person.

If you don't need it, then you have the luxury of "running the numbers" to see if there is some potential "edge" you can get, based on your own circumstances (family longevity vs. current illness, spousal benefits, taxes, etc. etc.).

I often give thanks that we've set up our finances in such a way that I can delay taking my SS. My main reason in doing so is to "lower" my income as I convert traditional IRAs/401(k) to Roth IRAs. By doing this, my intent is to "smooth" out my taxable income over my life time. Only time will tell if this was a good plan or not. My secondary reason is an "insurance" policy for DW. The longer I wait to take SS, the larger her survivor benefits will be. We intentionally structured my pension to provide more current income at the cost of lower survivor benefits. The delayed SS hedges that bet.

If circumstances change, my plan can change. I try to review our situation on a yearly basis. Full disclosure: DW started her SS at 62 just to "hedge" our bets that we would ever receive SS.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 08-03-2010, 03:29 PM   #58
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Quote:
Originally Posted by HsiaoChu View Post
Could you be a little more specific as to the post that has this information. Its a huge website and even searching for sscritic leads to a huge number of posts.
Just post your question rather than digging around for something close. S/he really is very good at providing a detailed response with citations.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 08-03-2010, 07:35 PM   #59
Thinks s/he gets paid by the post
Nodak's Avatar
 
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
I started taking mine at 63. Since I draw a federal pension the amount of SS I can draw is limited by "Windfall Profits Elimination" rules. I have it set up to go to a savings account that I can use for play money.
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
Nodak is offline   Reply With Quote
Old 08-03-2010, 09:50 PM   #60
Recycles dryer sheets
nphx's Avatar
 
Join Date: May 2007
Posts: 285
[QUOTE=rescueme;963081]This is the one I use:

https://secure.ssa.gov/acu/ACU_KBA/m...main.jsp&LVL=4

QUOTE]

jeeze why would the ssa.gov web site SSL certificate reveal a typo like its registered in "Balitmore" Maryland
__________________

__________________
nphx is offline   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
Social Security Engineer FIRECalc support 2 09-20-2007 04:00 PM
When to take Social Security sgeeeee FIRE and Money 244 05-27-2007 10:48 AM
Social Security, --- Again Sundance Kid Other topics 12 03-05-2007 08:53 PM
Social Security...or what? jake Other topics 19 10-16-2004 07:39 AM
Social Security-Take It Now Or Later? haha Other topics 22 10-08-2004 04:36 PM

 

 
All times are GMT -6. The time now is 03:54 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.