SS Payments at 62 (What will/do you get?)

[JustCurious]

isn't you combined life expentancy because you are young. the older you get the longer the life tables extend. once you reach 65 there is a 50/50 chance one of you will reach 90.

Your idea is correct, but your numbers are wrong. Once you reach 65, you have a 50/50 chance of reaching 83.

http://www.census.gov/compendia/statab/2012/tables/12s0107.pdf

 

[Cut-Throat]

Yeah, I want to make sure I have enough money for the best walker in the neighborhood.

Here, let's do the Calculation....In case you missed the point.

Let's Say you retire this year at age 62 with the $1 Million Portfolio and decide to take a 4% SWR. You get Social Security of $19,476 per year at age 62 and delaying to age 70 would get you $34,092 per year. Let's assume no inflation for ease of calculations.

Scenario age 62. Your SWR is $40K per year and Social Security of $19,476 gets you a Spending total of $59,476 for each year of your retirement period.

Scenario age 70. You stash 8 years of $34,092 from your portfolio into a savings account for a total of $272,736. Your portfolio is now down to $727,264. Your 4% SWR is now $29,090 per year and you remove $34,092 from your savings account giving you a total of $63,182 to spend each year for the rest of your 30 year retirement period.

The Delay to age 70 gives you $3,706 more every year starting at age 62 with no more increased risk. If you are of limited imagination or physical capacity, I am sure that this would buy you the best walker in the neighborhood. For myself I would opt for an extra week of Fishing in the Bahamas every year for the rest of my 30 year retirement period.

No need for any stupid 'break even analysis'.

If your WR is more conservative, such as a majority of the people here and myself, the results are even more compelling. At a 3% WR rate the age 62 scenario is a total of $49,476 and the age 70 scenario is $55,910. The delay of SS now increases your annual spending by $6,434.

 

[73ss454]

Since I'm 63 and 5 months I've done the math over and over and I agree with you. The problem is that no male in my family has ever lived past the age of 68. So if everything holds true I can toss the math out the window.

DW turns 62 in Dec. and only worked a few years so it will be a small amount. So I'm thinking I'll also take mine in Dec. and it will boost DW's. Since I'll be close to 64 and the clock is ticking ya know.

I could also not take it and then drop dead and DW will get more. Hmmmm!

But I'm still holding a 500K LI policy (whole life, but tha't s for another thread) so she can get some tax free money from that.

 

[gerrym51]

Since I'm 63 and 5 months I've done the math over and over and I agree with you. The problem is that no male in my family has ever lived past the age of 68. So if everything holds true I can toss the math out the window.

DW turns 62 in Dec. and only worked a few years so it will be a small amount. So I'm thinking I'll also take mine in Dec. and it will boost DW's. Since I'll be close to 64 and the clock is ticking ya know.

I could also not take it and then drop dead and DW will get more. Hmmmm!

But I'm still holding a 500K LI policy (whole life, but tha't s for another thread) so she can get some tax free money from that.

if your convinced you will die by 68 take the money

 

[73ss454]

if your convinced you will die by 68 take the money

I keep looking for an expiration date but can't find one. But most likely I will be taking the money in Dec..

 

[explanade]

What is the 62/66/70 plan?

What is the URL to the calculator of the benefits?

 

[martyb]

My SS estimate at age 62 is around $235. If I wait till age 65, it jumps to around $300+.... I'm taking it at 62 to buy beer and fish bait.

 

[HFWR]

$1550
$2156
$2873

At last count...

 

[Alan]

What is the 62/66/70 plan?

What is the URL to the calculator of the benefits?

I believe this is what is meant by the 62/66/70 plan

Lower earning spouse starts SS at 62.

Higher earning spouse files at their FRA (~ age 66) but does not begin collecting until 70

Lower earning spouse files for spousal benefits once the other spouse has filed.

The SS calculator can be found on the SS website.

Retirement Estimator

 

[gerrym51]

lowest earning spouse takes at 62

highest earning spouse files at 66 for 1/2 spousal benefit.(assuming lowest earning spouse has own benefits)

highest earning spouse files at 70 for own benefit

 

[73ss454]

lowest earning spouse takes at 62

highest earning spouse files at 66 for 1/2 spousal benefit.(assuming lowest earning spouse has own benefits)

highest earning spouse files at 70 for own benefit

This is a perfect plan if you can keep breathing.

 

[gerrym51]

This is a perfect plan if you can keep breathing.

I don't know about you but i plan on living,long,long time

 

[73ss454]

I don't know about you but i plan on living,long,long time

You know what they say about plans. Man plans and God laughs. But I wish you the best.

 

[gerrym51]

You know what they say about plans. Man plans and God laughs. But I wish you the best.

if your right your dead
if i'm wrong i'm dead.

won't matter

 

[packrat44]

I don't know about you but i plan on living,long,long time

My plan is to live untill at least 100. So far, my plan is working.

 

[meierlde]

lowest earning spouse takes at 62

highest earning spouse files at 66 for 1/2 spousal benefit.(assuming lowest earning spouse has own benefits)

highest earning spouse files at 70 for own benefit

I would be careful of this as it could well be percieved as an abuse of the system. A new rule could well be imposed on SS as a part of budget deals that you get to decide once and only once which benefit to take, and you are stuck with that decision. (For married couples)

 

[Alan]

I would be careful of this as it could well be percieved as an abuse of the system. A new rule could well be imposed on SS as a part of budget deals that you get to decide once and only once which benefit to take, and you are stuck with that decision. (For married couples)

Man plans, and the government changes the rules.

Fortunately they don't usually penalize folks after the event. e.g. a loophole used to be that you could file and collect SS at 62, invest the money until FRA or later, then re-file for the higher benefits and only have to pay back what you have already been paid. When they closed this particular loophole a couple of years ago they announced the new rules several months in advance and didn't penalize those that had already taken advantage of the old rule.

I wonder how many couples actually take advantage of the 62/66/70 rules.

 

[rodi]

The 62/66/70 rule only works if the couple is close in age. Or if the SS earner is same age or older than the low SS earner.

Trust me - I've got the spreadsheets to prove it. (Hubby has lower SS earnings, and is 10 years older. We'd have to be in our mid 80's/90's for it to break even.)

 

[rescueme]

I wonder how many couples actually take advantage of the 62/66/70 rules.

True.

I would suspect it is as low as those folks who filed at 62 and repaid the benefits many years later (no longer an option, beyond 12 months from filing date).

I have yet to hear from anybody (other than this board) that even knows about the option, let alone has executed the plan. Heck, most folks we know/meet along the way just took it at age 62, but then again most/all of them had defined pension plans with the SS age 62 "offset" (pension reduced by amount of SS at age 62), so it made sense to keep that level payment stream over the long term.

As for us who are under the "new system" (e.g. no pension and have yet to start SS), the options are quite different.

Stay tuned. We start the plan (66/70, not 62) in 20 months .

 

[jimnjana]

The 62/66/70 rule only works if the couple is close in age. Or if the SS earner is same age or older than the low SS earner.

Trust me - I've got the spreadsheets to prove it. (Hubby has lower SS earnings, and is 10 years older. We'd have to be in our mid 80's/90's for it to break even.)

We have a 10 yr gap as well, but DW is older. We still are leaning towards having her take it at 62, but I haven't run any numbers yet. My SS benefits are about $300 higher than hers. We have a few years to go...

 

[rescueme]

The problem is that no male in my family has ever lived past the age of 68.

In my case (speaking of males only), I had a brother who passed at age 20 months (health related - not an accident), and my grandmother (paternal) who passed in his early 90's.

Family lifespan has little to do with your personal situation. Remember, you are a "product" of two (and many generations) of folks.

Studies have shown (you can look it up) that there is little in common to immediate family (e.g. parents) to count on in your personal life.

 

[tessaduncan]

If lower earning spouse files at 62 on their own benefit and later files for spousal (at spouse's FRA), won't their spousal benefit be reduced?

 

[BruceinGa]

I have a question. Why can't my wife draw ss now at 62 and 8 months and I, 63, take her spousal benefit. Then when I reach 70 take my ss and let her take my spousal benefit at that time?
What is the reason for the FRA, 66, to enter into this strategy?

 

[bentley]

1899
2521
3352

 

[rodi]

If lower earning spouse files at 62 on their own benefit and later files for spousal (at spouse's FRA), won't their spousal benefit be reduced?

I believe this is true.
And I think that's why RescueMe is doing 66/70.