Combined income = AGI + nontaxable interest + 50% * social security
For your benefits to be taxable, your combined income must be greater than $25,000 if you're single or $32,000 if you're married and file jointly.
It is not just 62 or 67. You can begin at one month after your 62nd birthday. Each month you delay starting, the payment increases (about 2/3% per month, 8% per year). I am working right now, so I don't want the SSI payments taxed at a rate commensurate with my working salary (yes, it is taxable).
Poorly thought out advice, There are a lot of issues that should go into the decision of when to start taking Social Security that are not brought up in this piece. Recommend you do some Real research into Pro's and Con's.
Right, it's simple arithmetic and a no brainer for you because you are not planning your retirement, you are making a snap judgement that will be affecting the rest of your life. DON"T BASE YOUR RETIREMENT ON A 90 SECOND YOUTUBE VIDEO!!!! There are so many factors that can change your decision on when to collect. Be smart, do research, consider your entire financial and tax situation. Most community colleges offer two day classes on SS and retirement that usually cost less than $50. I have been to 2 and both were well worth it. My wife and I have been researching our retirement for two years and I am still two years from when I plan to retire. We feel confident and comfortable that we will have money and security for the rest of our lives,
If you cannot get good work at 62, or you or your family's lifespan tends to be short, it is reasonable to take it at 62.
However, the "break-even" calculation does not tell the who story. On average, people live to 80 today. I know from my parents, you need more money for care the older you get. My mother has been on Social Security for
35 years (since 62), and the 25% difference at 66 would make a difference, and the 25% still more at 70, more difference.
In the meantime, he pays a penalty depending on how much income he has in addition to his SS (unless he's impoverished, in which case, go ahead and collect). Plus, at 65, he starts to get an additional tax exemption. Truth is, you can collect now, but you may forfeit a significant amount unless you're unemployed and you will never get that back and then you're locked in to the lower payment. After 65, it's pretty much all yours.
Depends on genes and circumstances. I am 65 and don’t plan on collecting until 70. My great grandma lived to 101 (1867-1968) Her daughter 95. My mom is 84 and going strong. My grandpa lived to 86 but died in 1963 never seeing a hospital. People tell me I look fifty. Plus I have more than enough to live on till 70. It is going 8% per year. I will break even at 78. Betting on the come I see 90. However, if I was like a lot of my friends I would collect yesterday.
I tried to file for my 62 and they said I made too much to be allowed to get ‘anything ‘ now and my benefit would be locked at 62 rate, not all that upgrade later stuff YouTube told me. Very disappointing. I can’t retire on my 62 benefit but was hoping to get something now.
SS takes about 134 dollars a month off the top for medicare plus you have to get additional coverage for what A and B don't cover. Can you live off of 1700 after that is taken out? I hear people say that you can get a part time job to cover what you lack. I thought retirement was from working not just downsizing your hours.
Problem is my current annual income exceeds (3X) what one year of social security would pay at even age 65. I think I'll go for age 68. In the meantime I'll add money to lower that huge SS deficit for everyone else. (I guess I'm kinda like CommanderBubba).
Also if you get sick and it costs 50,000.00 in one year of special care to keep you alive - You're screwed!
Don't possibly gamble an entire lifetime away, my wife and I paid Ameriprise financial to do a custom bullet-proof retirement workup for us.
I can't begin to tell how much clearer/safer the future looks now. Great video - thumbs up!
I am waiting until age 70 I will get $1,980 per month at age 62 I would only get $1,190 per month. if anything happened after age 70 so I couldn't work I could get by on $1,980 per month I certainly couldn't get by on $1,190 per month moth that's for sure.
So at 76 he will collect $650 more every month for the rest of his life just by waiting those 4 years? That’s a no brainer dude. That money will come in handy. Unless you really need the money or are in poor health or otherwise do not expect to live that long, you should wait. And between 66 and 70, that benefit goes up 8% more per year and maxes out at at age 70. If you can, hold out till then. I will be 70 next year. My benefit will be more than double what I would have gotten at 62. I did the math. I break even at 81. If I live to 90, that’s an extra $175,000! Yes you could die sooner, but you will need that extra more should you live. If you die, it’s irrelevant, if you live, you will have more financial security.
A person needs to make a serious list of real time expenses before retiring at 62 or even 66.
Rent or Mortgage
Property taxes if mortgage
Gas & Electric
Water (some towns even have sewer costs)
Phone and / or cell phone
medical / medicare
Whatever is left is for food and entertainment. Pretty scary on $1,700 / month. I'm working until 70. I have added almost $200K to my 401(k) and even more than the friend this guy is talking about. In my opinion, this guy is not seeing the big picture. I would have drawn about $1,800 / mo at 62 but will get $3,396 / mo at 70. Cash flow is everything.
I agree with this gentleman because it's safe to say you're health is only gonna decline as you get older not in reverse and return back to 100% excellent health !!!! So what's more important enjoying what few more years you have and staying active in retirement or slave in the concrete jungle fulltime working til 67 only to die soon after collecting perhaps one or two ss checks !!!! The choice seems clear to me people !!!! No later than 64 for me !!!
This is very true the numbers are for 62 ..however 2 ? That may be of concern they are to me maybe to others...an extra yr or 2 maybe necessary for extra $ needed monthly. Or a option could possibly do a part time easy/crap job for the needed xtra ..but the real problem is Medicare..insurance is so needed as we age it's not available till 65 ...that is a very worrisome thing ..I realize you can cobra but there again that cost may not be sustainable for 3 yrs and may have limited availability..just wondering what do people do during that time of non coverage?? ..
Why are the least-informed, like "rick simple" here, so often smug about what they think they know? Guys like this always think only of one possible undesirable outcome: they die before the "break even" point on delayed SS payments and so consider that they have lost the game. For some reason they never consider the other possible outcome, that they live longer than expected, spend down their other assets on the cost of living those extra years, and so end up broke or with no other assets than SS when they are very old. While those outcomes may both be undesirable, they are not equally so. If you die "early," in retirement, you certainly have no financial worries since being dead is cheap. If, on the other hand, you outlive your savings and/or portfolio you are likely to be in desperate straights with no options at all.
The goal for retirement is to avoid ending up broke, rather than to be sure not to leave the government with an extra penny. SS is an insurance program, not an investment scheme. An annuity, of which SS is by far the best available, is the only financial asset you cannot outlive. Delaying SS benefits is just a way of "buying" a larger annuity that will start in the future and last for your whole life and your wife's whole life also, by the way.
Rick simple shouldn't be giving advice on a subject that he does not understand. If you can afford to delay receiving SS benefits, you should do so unless you already have a terminal illness. If you can't afford to wait, then you have no choice.
one thing that nobody ever mentions on these 62 vs. 65 discussions is that whether you think its socialism,communism,or obama's fault[i'm alluding to the discussion about the individual mandate for obamacare we had a few years ago,and its repeal] social security is going to withdraw $134[or more] the month after you turn 65 for medicare, it will cut into what you're makin at that date.it could be a good thing if you.re paying more per month,or it could be a bad thing,its much more than i was paying for my health insurance,and its much worse coverage.but don't get me started!!!
Only way I would wait:
1. Have a young wife I love
2. Have a good paying job I like and has good amount of vacation time.
Remember after 60 they do not count those years as one of your top 35 years of income.
Do 62 if your single - work part time ( make under 17,000 ) cash SS checks you earned.
I will be looking for a part time job that gives stock option as part of job ( another retirement found when hit 67 )
For the rest of your life. There is no cap on benefits. Plus you get cost of living increases. Plus your wife get's half of your benefits at her full retirement age, plus she gets your full benefit if she outlives you. Plus the SS Administration's plans call for increasing benefits in the future beyond cost of living, although that plan may change.
I say wait if possible until you are age 66-70! the odds are you'll collect more money over your lifetime. the question is which way is more much more likely to pay you more money over your lifetime, beginning at age 62 or starting at ages 66-70! The correct answer is waiting until ages 66-70! Imagine how much inflation will impact your budget when you are much older and older! What if you live to 90,95,100 or 110! Having that larger S.S. check all those years will significantly benefit you year after year for many years. If you don't take S.S. at age 62 and then die 3 years later it won't make much difference. But if you live a normal life expectancy of age 84 or longer to age 90-95-100 then the larger check will help you immensely. if you made it without S.S. from ages 55 to 62 then you can make it until age 66! don't make a big mistake for short term gain.
Yep! And that's why I retired at 62....SS has it All figured out.....Not only do they have their hands in Our Cookie Jar, but, they ration out our hard earned money to us and call it an entitle ment....This is our retirement ...not Entitlement! Do Not Work your whole damn life! God Bless.
I definitely plan on taking the money at 62. Who knows how long you’re going to live. The Social Security administration is pushing as hard as they can to convince everyone to wait, the only reason for that is they are hoping enough people die before they actually collect.
If you start at 62, any income will reduce that SS amount. If no income, no problem. But I plan to work until 67. If I'm working for $50,000, that's $250,000. If I start at 66- full retirement for me, and continue to work for $50,000 and receive a year of SS, that's an income of $77,000. So from 62 to 67, I've earned an extra $277,000 that I wouldn't have had at 62, not to mention health insurance which I don't need to pay for 5 years. For me, continuing with my addiction to paychecks, is the best deal, then getting 100% full SS, with no penalty for working income. If at 62 you can retire without any income needs, then do take it early.
It is simple AS LONG AS you do one thing at 62: don't work. As long as you don't get "earned wages" you're fine to start drawing at 62. But if you plan on working, there are "penalties" for drawing early SS while still working. I'm not getting into the details here - just saying look it up before you pull the trigger.
I went ahead and started collecting my SS refunds at 62 because I'm not sure I'll survive the next heart attack and I wanted to ensure I got as much of my money back from the theivin', cheatin', lyin' asswipe government as possible before I have to leave here.
This is not a one size fits all solution. If S.S. is only a small percentage of your total income after retirement it's not so bad but if it is a major part of your post retirement income that lesser amount you take at 62 will buy less and less as time goes on . You have to look at how it will affect you with the lesser amount on a month to month basis. You are living on a fixed month to month income and that difference of say $500 to $1000 monthly can be huge say 10-15 yrs. down the line. Every ones situation is different. Look at this from all the angles before you decide. Best of luck.
Screw the math.
I'm 60 and lucky enough to have a good-paying job in a warehouse. But it's a physically demanding occupation and it gets tougher with every passing year. So my choice is whether to stay on the job for an additional four years - and risk serious injury or even termination for not being up the the task physically and then have to look for another job at this age - or simply punch out at 62 and do the best with whatever I can get from SS.
Stick a fork in me at 62. Because I'll be DONE.
I see people every day (as a physician) who made this bet and, lo and behold, made it to 83 and now live below the poverty level or are wholly dependent on their children. If you are going to make that bet, at least don't be a burden to your kids.
Like all things, it's not so simple. It actually takes closer to 11 years to recoup the $84K based on the numbers given. You have to figure what to do based on a) what is your current financial situation (working, have other income etc)--delaying SS means you are earning 8% on what you will get. Are you getting that with current investments? Also the more you work the more SS you will get. b) what is your life expectancy--if you are going to live a long time 11 years is not much compared to the additional 20-30 years you might live. We are talking about delaying 4 years. c) expenses and inflation--if you think your inflation (versus the CPI used for SS) will be high the money in the hand now will be worth more than later d) spousal SS-if you pass away your spouse will get the higher of the two so you may be limiting what your spouse will get by taking your SS now versus later. Can your spouse get by with this?
So what Ricky is saying--do the math--is absolutely correct but it also depends on you situation now and later. By the way some 48 percent of women and 42 percent of men signed up for Social Security at age 62 (2013).
Medicare doesn't kick in till 65? So in terms of health benefits and if you're able to continue working wouldn't it make sense to keep working? I guess the other point would be if you do start to draw at 62 I thought I heard one of these experts make a statement that you could earn up to or less than 1400 a month while drawing?
Slightly over 10 years and 9 mos to recoup. Now there are other factors to consider. If you can invest the money you could turn that 84K into much more. Some people do not need the money at 62 since they may have a pension in play and lump sums of cash to live on.
I did that same math a few years ago and decided to draw my SS at 62. My mother waited until she was 66 to start drawing her SS and she past away at 67...even if she had started at 62, she would've never caught up as it takes 10-11 years to make up your loss.
the math means nothing. It is the time spent living free and learning and spend time with loved ones. That is something to think about. money means nothing when you die and should not factor in when you are at an age that, lets face it anything over 55 is kinda borrowed time. I know many that have already died before 55 and a lot that have died by 65. life is short live cheap and happy.
At 62, he's gonna get a good amount, considering the average is around $1200.-$1350.
So if it's the only pen. he has,WAIT.
BUT IF HE HAS OTHER PENS. ,TAKE IT.TIME/MONEY VS. YOUR AGE/FUN ARE WHAT YOU CONSIDER.
I agree wholeheartedly as far as the math goes , as long as you are ready to retire from your full time job.
At 62 I still enjoyed my lab tech job and I would make too much to simultaneously collect SS and continue working. The penalty over allowed income would be crazy. I continued to work until 65 and this past February retired and started to draw my pension as well as SS. Further thoughts about waiting to collect SS for 8% yearly increase doesn’t add up as Devin described so well.
Nevertheless, everyone’s personal situations are different and there are many pathways to financial satisfaction. Like most folks I didn’t pay much attention to my health care benefits my employer provided. I ended up subscribing to Medicare Plan B and 3 supplements for health,dental and scripts. It’s early to judge, but I feel comfortable with my choices. It’s time consuming to figure out but conferring with other retirees really helps.
Thank you for your YouTube post Devin Carrol 👍
I am soooo glad SS begins at 62 and not the old code of 65,,,guess gov witnessed too many of payers passing on pre 65...= you receive zero, as you R in the grave....I get 863, 2nd ck comes april 11,,,860 is not much, but with wife working + will sell home very soon,,i'm OK.....,,now my life /money is devoted to God,,how God works that out is his business. Unlike Osteen who collects money and keeps the filthy evil called MONEY.
I know everyone attaches the word retiring with social security... Social security is not a retirement fund... Its a supplemental income fund... But don't make like its a. Pension fund or 401k.... Most cannot live on SS they will have to work and if you work...you can only make. Approx $16,000 a year and if you make over that you will be penalized and your SS will be much lower. So what do you think your truly going to get a month?
Why retire at 62 years old if you're still able to work? That's $600 a month that you will acquire at 66 years old goes a long way for living expenses. If you have planned adequately, and made wise Investments, you can fully retire at 62 years old. However, most people have not done that.$1,700 a month, even if you paid off all your bills, will barely cover expenses in today's market. Sitting on my ass after 62 years old is not in my future. I would rather work as long as I can and have a purpose each and every day. I could retire at 62 years old with a more than adequate income but I choose to be productive and keep my mind active past this age. I see people retire at 62 years old everyday and end up in poor health. They tend to become more sedentary. When they get sick, the financial burden becomes unmeasurable. At 62 years old, you don't qualify for Medicare. You have to purchase a healthcare plan, which is very expensive for a 62 year old person. Nobody ever takes this into consideration and they never think that they'll get sick.
Like I told a friend who retired, he felt guilty because he wanted to work, I told him if that is what he likes and wants then that is retirement also. He can now call the shots and up and quit anytime he wants or make changes. The way you retire is personal. I love traveling and seeing things. I now live full time in a RV. There are many days that are too short to get to all I want. Cold out right now so did not go out much today but every day is different and every few weeks is a different place. To each his own. My last 10 years of work was with patients in hospitals it was very rewarding. Maybe when I settle again I would go back into that part time again only as a volunteer. options are freeing.
Takentime S it doesn't matter. I happen to like to work. I work in healthcare and my job, while being a little stressful at times, is pretty easy. I could easily retire at 62 years old but for what? Having a job makes people more productive in their old age. Even if you're only working a couple of days a week.
This is for people who CAN make it on $1,700/mo. Maybe they have 4 family members all collecting and living together. Either way, if you always made good money, but now your body is falling apart and you simply cant go on. You take the $1,700 and live.
what you make now is what you make for good nothing will change and you will have to do nothing. I am close with a few on SSD. oops your on ssdi or are you on ssd. there is a difference one is from the state and one is from your social security of what you earned. if your on the state then I do not know the answer.
What happens to all the SS-money that ppl have built up during their lives and unfortunately die before they are eligible to collect it? How about the super rich that don't need or register for SS. These moneys MUST stay in the social security system and be used to benefit minimum amounts for CITIZENS ONLY!!!
The money that people don't collect because they remains in the SS system and is the reason that the SS system is not a ponzi scheme as the uneducated like to think. SS is an insurance system designed to protect us against the financially undesirable outcome of outliving our assets. The fire insurance companies can afford to pay you when your house burns down because most houses don't burn down. Similarly, the SSA can continue to pay you your monthly benefit long after you have collected more than you paid in, because most people won't live that long.
it is not about the money it is about how you want to spend your time while alive. what is so hard for the simple idea. Spending your time that is fun and worthwhile and not caring about the money. It just so happens Social Security can help. Now if you love what you do and want to do that as long as possible than that is great. What ever your priority is for over 60.
If you're trying to say take it at 62, I think your "math" shows you should take it at 66... After 10 years he'll be 72 (really not that old) from that point on you say he'll be even... So, he then gets an extra 650 dollars a month for the rest of his life... If he lives another 10 years till 82, he'll get an extra 72 thousand dollars... Seems to me you're making the case NOT to take it early unless you think you will die before age 72????
Wrong math - it's not the total you can collect til you're dead, it's how much you need PER MONTH when you get older to survive comfortably. Think about it - once you take it early, you're stuck with the lower benefit the rest of your life (unless you repay it before you turn 66).
My full retirement age is 66 and 4 months, I crunched the numbers if I wait till full retirement instead of taking at 62 I would be 78 and 6 months when I would break even, if I wait till 70 instead of 62 I would be 80 and 6 months till break even, if I would take the money from 62 to 66 and 4 months and put it in safe investments my breakeven point would increase i'm sure by a couple of years, all we know for sure is today and I will go as far as saying only this moment, will I be here when 78 1/2 or 80 1/2 shows up, how will I feel when I reach that age, will I even care about extra money at that age, these are questions nobody can answer and specially not all these geniuses out there that tell you to wait, like the financial advisors that tell you where the best place to invest your money is but their net worth is close to 0, this is a personal decision and one we will not know its 100% correct if we base it only on the numbers, but depending on what are outlook on life is we can be pretty sure we are making the right decision on what we choose.
The government moved my full retirement age from 65 to 67 years ago and the last I heard trump is planning on bumping that again and making my retirement age 72 to help pay for their one and ahalf trillion dollar tax break for the wealthiest 1% here in America,,, they’re giving families like Walmart $50 billion a year in tax cuts and getting ready to cut every single entitlement and benefits program the American people are entitled to,,,,Social Security and Medicare is at the top of that list,,,,, they want us to wait that long for benefits because they know dam good and well none of us are going to live long enough at these older ages to drawl out even half as much as we paid into it,,,and they know that they don’t want us to have it ,,,they are laying plans to steal it away from us,,, A wise man once said it’s easier to fool someone then it is to convince them they have been fooled,,, my message to the American public is this,,,, I hate to be the bearer of bad news but when y’all voted for trump you got fooled,,,, (Bigley to quote an idiot‘s word) best thing y’all can do is vote trump the hell out of that White House and the GOP Republican party off the face of this 🌏 earth while there is still any kind of hope for the working class and the poor and the seniors,,,,hint,,,,, Bernie Sanders will Protect our Social Security and fortify it and it will probably be easier to get disability Social Security under him also,,, and he will protect our entitlements as well,,, simple basic entitlements,,,,necessities for decent human survival,,,, something to think about,,,,Bernie Sanders would be for the American public,,,, Walmart and Wall Street won’t like him he’s not gonna do too much for them,,, but he’ll do everything he can for the average American citizen you can believe that 100%,,,, wouldn’t it be nice to have free healthcare free college tuition for our children and grandchildren??? Bernie Sanders thinks so,,, if you want your Social security at any age regular or disability you’re going to have to fight for it ,,,,right now trump and the GOP are laying plans to steal every dime of it...............
Absolutely ! That's what I did !! Don't delay ! (know of a guy who could have retired early but waited to "get more" .....he dropped dead @ 65 waiting for the "66 (full benefit??)"
"Ya, never know, when your gonna go !"
This guy is spot on! And one thing he didn't mention is..."early death"!
I'd rather die at 65 or 66 knowing I've enjoyed 3 or 4 years of SS payments versus dying at 65 and not have collected a dime! (Which the government is hoping you do!)
"I'd rather die at 65..." Hard to see the logic in that. Why don't you just reverse mortgage your house, give up any insurance, bet all your money on the ponies and smoke crack cocaine. Hell, you ain't gonna be around long anyway, right?
I wished I could have retired at 62.I had to keep working until I turned 65 because of health insurance.Then I could get on Medicare.Health insurance premiums would have taken damn near all my SS at 62.You do what you have to do.Then I made more than the $1410 per month they allow for a couple of months and they cut me off for 2 months.I'll be 66 in May,so I'll be free of their stupid rules.You can't win!
Also, all these calculations including yours do not add interest or any type of return on the investment towards the money you are paid (62-66) after all if you wait till 66 to collect it is only fair to (wait to spend) pile that money up with interest and it will be longer than 10 years, quite a bit longer.
The SS calculated this to make it equal if you live the average life expectancy, meaning you have a 50/50 chance of living longer. With interest you have less than 50/50 of living longer.
If you have a spouse, especially a younger spouse, she can get your SS after you die if it is more than hers/his. That is one situation where it may be good to wait.
Yes, but it depend on circumstances. If you have longer than 76, that extra money adds up quickly, and could be very important. Plus, if you work after 62, chances are you will have to pay back some of that. Could be a lot of it. Do the math, but it is a little more complex than in many cases.
How bout this!? Purge congress and rescind all amendments to the original scheme. We were forced to pay into this fund. Is anyone really angry enough to get the money that is yours back? No age differential, no reverse scheme to calculate. It is our money, not the gvts. Oh we sheep