Rethinking SS

[Moemg]

I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?

 

[haha]

I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?

I am going to start looking at this myself. I am alrady past FRA, but was planning to wait until 70. Might take it now, and refile later if things have changed markedly.

ha

 

[ziggy29]

if it's still there and giving me anything close at 62 to what they claim I'll get now, I'll be doing cartwheels.

 

[REWahoo]

I'm sending in my application tomorrow (seriously) to begin taking SS at age 62. I had planned on waiting until I could draw full benefits at age 66 with the understanding that I'd pull the trigger sooner if the market went South. It crossed the equator today...

 

[Rich_by_the_Bay]

I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?

Just curious about your considering age 62 withdrawals: Is it due to cash flow issues now (related to the market)?

If not, what is the advantage of opting to collect at 62? Isn't the increase in benefits for leaving it in something like 7% bump per year, and this in a market that's down 20%+?

Barring total system implosion it seems you'd benefit more by dipping into your cash now so as to increase your payments 5 years down the road.

 

[Dog]

Glenn Beck was talking about SS on his radio show yesterday. He said SS is the next system to fall and the politicians are in denial. He was ahead of the curve on the oil and financial fiascos. So, if you qualify today - you may want to go for it!

 

[ziggy29]

Glenn Beck was talking about SS on his radio show yesterday. He said SS is the next system to fall and the politicians are in denial. He was ahead of the curve on the oil and financial fiascos. So, if you qualify today - you may want to go for it!

Interesting. Last time I checked, Medicare was in much worse financial shape. The one thing that would really devastate SS -- and push its solvency date forward a few years -- is prolonged high unemployment.

 

[unclemick]

I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?

Prior to August 2005, I was 9 ft tall, bullet proof and planned on living forever.

Then along came Katrina.

I applied for early SS in October 2005.



heh heh heh - it ain't only wide receiver's that sometimes hear footsteps!
. I could get a grip and run some numbers - but meanwhile I'm taking the money and rationalizing not getting any younger. 70 1/2 in 2014.

 

[Rich_by_the_Bay]

Interesting. Last time I checked, Medicare was in much worse financial shape. The one thing that would really devastate SS -- and push its solvency date forward a few years -- is prolonged high unemployment.

My reading tells me the same thing. Probably age of full retirement or income subject to ss withholdings will have to rise, but unlikely the system will disappear.

Medicare - a whole different story, and one reason why I am not planning on a decrease in health insurance cost at age 65

 

[youbet]

I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?

All the discussions on this board about when to take SS really perked my interest. But, no matter how I tried to evaluate the numbers, there continued to be assumptions to be made and personal circumstances to be considered that left the final answer somewhat in limbo.

I decided I'd just wait and see how things were looking for DW and I from both health and financial POV's. Today, I'm less than a year from early SS at 62. Health, knock of wood, seems OK which would leave the door open for delaying SS. Financial circumstances, however, indicate the $18k or so annual SS payment would be more than handy in stretching out cash reserves in this market.

Note: married couple here but DW not eligible to collect any of my SS due to the GPO provision.

Unless the unlikely scenario of a rapid market turn-around in the markets occurs by next summer, it's SS at 62 for me........

This isn't really a "rethink." It's just that "my time has come" (gulp) and it's time to look at current conditions and make a decision. I suspect that if the market was flying high and I was busy harvesting profits and holding a lot of cash, I'd probably delay.

 

[mews]

"You should take it when you need it" is the best advice I ever heard among all the scenerios and number crunching.

You can suspend, or pay back and re-apply if you turn out to not need it -

ta,
mews

 

[mike hall]

I'll be 60 soon, DW will be 59. I plan to retire soon. She will qualify for the min. on her record. I simply see it as the last card we have to play. Our plan: take hers on her record at 62, hold off taking mine until we absolutely need it, then convert her to spousal benefit. They even give you a Mulligan. All this could change in the future, just like anything else, if so we will re-figure.

 

[harley]

Glenn Beck was talking about SS on his radio show yesterday. He said SS is the next system to fall and the politicians are in denial. He was ahead of the curve on the oil and financial fiascos. So, if you qualify today - you may want to go for it!

I don't think being a 1/2 hour ahead makes you ahead of the curve. I watch Glenn Beck too, and as I remember it he's been right in there with all the other MSM as far as jumping on these issues. He's a talking head, not an analyst. I'd probably (gulp!) believe Jim Cramer before Beck on financial issues.

Now, he is claiming to have been ahead of the curve, but there are also 6-7 million people who claim to have been at Woodstock.

As far as SS, I see no problem with starting it early. If you don't need it for cash flow, especially. Just DCA it directly into the market. Then in 8-10 years you can pay it back from the killing you made in the after-recession run-up, and get the increased payout. Of course you won't need it then, having done so well buying when everyone else was digging bomb shelters.

 

[Rustic23]

I have been giving this some thought also. We have a 2 to 3 years cash until we would have to take any type of distribution from investments or start SS. So for us it will depend on how quick the market recovers. However, if this is as good of an investing opportunity as I think it is, I may reconsider.

 

[Achiever51]

DH became eligible for SS when he turned 62 two weeks ago, but plans to delay taking his benefits until 66 unless his business tanks in the near term....

I plan to apply for SS when I turn 62 to replace the "temporary" bridge portion of my pension that will go away at that time. I'm hoping that SS is still around then......

 

[Moemg]

Just curious about your considering age 62 withdrawals: Is it due to cash flow issues now (related to the market)?

.

For two reasons one I'm single so no survivor to worry about and second since I do a straight 4% my cash flow will be less and even though I do not use all of it I like it available now while I'm younger and can still travel .

 

[OAG]

I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?

I spent last year thinking about it and the result was to withdraw my age 62 application (2002), repay benefits and wait until age 70. However, now that I have done that I have read in a few places that for some reason age 69 is the best age if you have a spouse whose benefits are considerably lower that yours. I plan to look that over and may decide to apply for benefits at age 69 (Oct 2009). The difference in benefits is considerable and if DW outlives me by 3 to 5 years it will be to her benefit.

 

[haha]

I spent last year thinking about it and the result was to withdraw my age 62 application (2002), repay benefits and wait until age 70. However, now that I have done that I have read in a few places that for some reason age 69 is the best age if you have a spouse whose benefits are considerably lower that yours. I plan to look that over and may decide to apply for benefits at age 69 (Oct 2009). The difference in benefits is considerable and if DW outlives me by 3 to 5 years it will be to her benefit.

Could you give a link to that? I suppose the reasoning may also apply to singles.

Ha

 

[OAG]

Could you give a link to that? I suppose the reasoning may also apply to singles.

Ha

Ha: I will when I find one again. At the time I first saw it I just passed it over. But it got stuck in my mind - and got me to thinking about it. I am not sure it is true yet but I have calculated the increases, buy month, for the next two years. I need to work on a Excel SS to see. I suspect it will be one of those "it depends" since age of DW versus mine along with family history will play role. Remember, with married couples the rate is 150% of the higher earners benefit.

 

[Notmuchlonger]

I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?

Nope just another bump in the road of life.

 

[Rich_by_the_Bay]

For two reasons one I'm single so no survivor to worry about and second since I do a straight 4% my cash flow will be less and even though I do not use all of it I like it available now while I'm younger and can still travel .

There is something to be said for optimizing cash flow when you are young(ish ) and healthy.

 

[cute fuzzy bunny]

Did ya really need the 'young' and 'healthy' qualifiers

 

[Finance Dave]

Isn't the increase in benefits for leaving it in something like 7% bump per year, and this in a market that's down 20%+?

The exact % reduction for taking SS early varies based on your "normal" retirement age. But essentially it's 5/9 of 1% per month for the first 36 months, and 5/12 of 1% for all months over 36. So if your normal retirement age is 65, and you take it at 62, that's 36 months x 5/9 = 20%...or about 6.6% per year. If your normal age is 67 and you take it at 62, then it's (36 x 5/9) + (24 x 5/12) = 30%, or 6% per year.

There are many factors to consider when deciding when to take it.
1) Can you earn more than this by taking the money and reinvesting it? Perhaps.
2) What if you don't think you'll live to full retirement age? Then you better take it early unless you are looking at spousal complexities.
3) If you take early, you get benefits for a higher number of years. Using this example Should You Delay Your Social Security Benefits? : Moolanomy it took 12 years just to break even....will you live that long?
4) Here's another article that talks about the spousal considerations Make the Most of Social Security - Kiplinger.com

In summary, it's not as simple a decision as some people make it out to be. Each person's circumstances are different.



Dave

 

[cute fuzzy bunny]

The only part I needed to see was that I'd be in my mid to late 80's before I broke even between taking it early and deferring withdrawals vs taking it late.

Good enough.

 

[Bikerdude]

Always planned to take SS at 62. Current market situation only reinforces my decision. For me it slows the IRA (cash) "burn rate" and reduces taxes.