My grandfather died at 47, my dad at 57, I turn 62 in three months and I’m getting my social security now and my pension from work and I’m very thankful that I have a pension to draw and am still kicking.
From 62 to 70, what are those 8 years worth? 8 years of not having to go to work, 8 years of spending time with family, friends, or just what you love doing? Time is the one thing you cannot buy!!
I'm still working at 72 and I spend as much family time as I would if I didn't work because they're young and have to work and I'm not allowed to hangout at their workplace .
@@historybarf Obamacare...just signed up today. It's basically a super high deductible plan. Cost is $0.0 per month because they only factor in CURRENT income and once you retire that's likely not much. You can have millions in investments, and it's not counted towards income for the purposes of obtaining Obamacare.
My wife took hers at 62 and died of an aggressive cancer 8 months later, my uncle died of a heart attack 2 months before his retirement, lesson here, can’t spend it when you’re dead.
My father died before he could take any SS (age 54). In those days (before "federally guaranteed" student loans), I could receive a monthly SS payment to help with my college expenses. It was enough that I split it with my mom to cover her rent. I am eternally grateful for that. The student loans are a racket, and beginning the school year before Labor Day makes it impossible to work most of the summer jobs we used to help with college costs.
My mom died at 57, my dad 2 years later, he was 62, got his first check and died a month later. They both were born in the early ‘30’s, they worked like dogs and got nothing. I’m 62 in 2 years, God willing I’ll be starting it at 62.
I plan on doing the same thing...Even if you are still living many people have health issues, later, that dont allow them to have the quality of life. So while their check is more they have lost some quality of life and cant do the things they did just a few years before.
I started collecting SS at 62 years old. I am almost 74 now and have enjoyed my time away from the rat race. I work at a small part-time job four days a week and greatly enjoy my interaction with my fellow retirees. Money is not everything...it helps!!...but it's not everything!
and. your part time job still has SS taxes taken out of it, pretty sure your part time job won’t replace one of your pre retirement years income so it doesn’t benefit you at all. Doing away with these taxes on retirement part time income should be right up there with not taxing SS income!
I took mine at 62 as a supplement to my pension. It’s a very personal decision as is retirement. Mine was more than the average at 62 because I worked so much over those 35 or 40 years. Great information ❤️🌵
I retired at 60. I’m fortunate to have a good pension after 40 years with the same company. I plan on taking SS at 62. The men in my family don’t have a long lifespan. I would rather enjoy the extra money when I’m still relatively young and in decent heath. If I live past the break even point, l still would consider that a win because I’m still alive! If I don’t live past the break even point I won’t know because I will be dead.
The one thing that is never talked about: How healthy will you be if/when you wait until 'full retirement' and was it worth it? I would rather be a little bit cold and a little bit hungry and still walk, rather than be a millionaire and in a wheelchair.
The biggest determinant on whether to retire early should be, do you enjoy your job, and are you still fully capable of doing it? For people like me, who mainly had a job just for the wages, the chance to retire early has considerable appeal. The difference between early retirement and full retirement is 5 years, or about 25% of your remaining expected life span, give or take. Are you willing to settle for a more modest lifestyle rather than "waste" a quarter of your remaining years on a job you don't love? I started planning long ago to be able to retire early, built up retirement accounts and savings, and at 60 I've been retired for two years, living modestly. In about a year and a half I will be eligible for early retirement SS and you can bet I'll be taking it.
I tried to opt out of SS at age 9. If I had been allowed to do so I would be a Multi-Millionaire from private investing of the money stolen from me by a very wasteful failing program.
I mean some people have to keep working full-time so they can have the health insurance that their company helps pay for. So, many people can't stop working until they are 65 when they can get Medicare .
I took my SS at exactly on my 65 th birthday. Mainly because I had lung cancer several years before at 61 and struggled with driving 500 miles a day. I figured by waiting the extra 1 year and 2 months to draw benefits at FRA ,it would take me 13 years to catch up what I'd lost by waiting. My benefits as of this month are over $3000.00 a month , and that's before the 2.5% coming in 2025. Not sure where you're getting those averages, but since you're the pro I take your word for that. I did work full-time for over 47 years so maybe that comes into play. Even still, I'm glad I have a pension and small IRA to carry me
I think where you live and how much you made during your career plays a part in how much you get in SS. The east and west coast tend to make more in wages than the midwest and south because the cost of living is so much higher. Also, if you make $90,000 a year vs. $60,000 will play a part in it as well.
What they don't tell you is although you make less if you take it at 62 vs 70 is that by the time time you reach 70, you've already been drawing for 8 years.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
I started collecting benefits (this year) at my full retirement age of 66 1/2, and I only get $2,078, as I spent a good number of years not paying into Social Security, and I'm still working full time (and saving $3,300 every month).
I retired at age 58 and can afford it. Holding off on drawing SS till 65-67 years old. I do not recommend retiring because your friends have. Living day to day is very expensive and will not get cheaper either. MAKE SURE YOU CAN AFFORD TO RETIRE FIRST. Social security will not save you.
I started Social Security at age 62 my current PIA is $2250/month and with the 2.5% increase for 2025 it will be $2306. It all starts with what does your AIME (average indexed monthly earnings) turn out to be before being run through the BEND POINTS to determine your PIA (Primary Insurance Amount) at FRA (Full Retirement Age). The more money you can earn during your working years the higher your benefit will be, to a point. There is a cap on Social Security benefits. Enjoy sooner than later, because later is not guaranteed. Also, Social Security should not be your only source of income in retirement.
@@dennistyler9852But that work is limited to the earning limit due to IRMMA until your FRA. Why wait almost a year, then pay it all back, when you reduced your work earnings limit due to IRMMA. Which means you changed from a fulltime job, leaving all of your fulltime benefits including health insurance for one that is at the earnings limit threshold because of IRMMA. For 2024 is $22,320. Any amount over the earnings limit they will deduct $1 for every 2 dollars you are over. Many reach their lifetime maximum earnings in their 50's and early 60's, enjoying extended benefits. Those years could replace many low earning years, top off retirement accounts, and savings accounts.
@@Tryp-j9d You or him don't know how long he's going t o live so what you're saying is b.s.I am about to collect at 62 and i did the math,if i waited just till 63 it would take about 14 plus years to make up for not taking it at 62 all the way up to 70 the lowest amount of time it would take to make up for not taking it in any year up to 70 was about 11 plus years so suck it!
The "Spousal Benefit" is what makes many high earners claim early. It turns on the 50% Spousal benefit... This additional $ MORE than makes up for waiting to turn a married couples Primary Earner SS benefit... This is why the Government is looking at eliminating "Spousal Benefit" choices... This would be a good video to make.
I'm leaning towards retiring early as I worry about my long term health and would rather be a little poorer and healthy but still some more time to think on that. Thank You for the helpful videos
I work those four extra years and retired at the full age of 66. I earned about $350,000 those four years. Also it boosted my wife's spousal benefits . People never think of this.
That’s 4 years worth of money that you will need to make up for before you ever see a dime of your money! Now figure your monthly social security check, and adjust it accordingly to how much more you are receiving, and minus that amount from the 350,000 you earned working those 4 years. As far as the time you lost ‘4 years’ you cannot get that back. Now, hope you don’t die in the next 10 years, because if you do, you made a bad move, and they won. Statistically speaking a person who is 56 years old and keeps working loses a year of their life for every 2 years that they continue to work. Those odds are not on our side. Why do you think they keep changing the age of when one can collect their own money? I hope you come out ahead, I really do, but the odds are not in your favor. Read 1 John 5:1 and believe it, and regardless of how long you collect or do not collect, you will come out a winner. Also read Revelation 6:4-8 and look at the world today. When that goes down our payments will disappear along with everything else we have including our lives.
7:00 I didn't think much of it at the time on the full retirement age change. Now as I get close, the whole thing sucks. The whole thing sucks. One statistic that is hard to find, How many people are born say in 1959? How many of those people live to retirement age? I bet a lot of people contributed into the system and never saw a dime in return.
I'm waiting until full retirement age (66 years, 8 months). Should be about $3200/month, and working the extra years has really bulked up my investment accounts. My health is excellent.
I started taking SS at age 70. During my last 18 years of work I held down one full-time and one part-time job, with my good wife's help. I also picked up a little work from a third, intermittent, source. I came close to getting the SS maximum monthly payment, which is considerably more than the average. I also stashed money into my 401k at my primary job, which was a poor investment because the owner of the company had no sense at all about investments---- but it worked for me as an income tax shelter, and immediately after retirement I moved it to a reliable bond brokerage account. We are getting along pretty nicely now. We paid off our mortgage and now have only one car (long since paid for), which will probably last longer than our ability to drive safely. No ocean cruises or foreign vacations for us. Nursing home costs could be a problem, but we will cross that bridge if we come to it. I think you should make mention of the maximum SS payment in addition to the averages.
I’m 63 and recovering from a severe stroke for the last 2 years I finally qualified for disability after all my assets were gone. I recommend, don’t work until you’re dead I paid in for 50 years and to qualify, I had to r have 0 assets sad retirement opportunities and a sorry healthcare system in this country
Thank you for a great video. It's always a personal decision, in my case just don't have the best of health, I'm working to improve that but my body is so tired not sure how long I can continue to work. I will be making 65 next month on Nov.29th, and my full retirement age is not until Sept. 2026.
This is an interesting presentation. However, what is important is your net social security. I am taxed on 85% of my gross SS. In addition I had a 401k plan. The RMD goes up each year causing my Medicare premium to increase. Taking this into account my net SS is slightly over 50%. I am 89 and took SS at 64.
I lost my job at 60,scratched to get to 62,been getting by various means,and now I'm 70,planning to live to 90 or so,in hindsight my plan worked for me ,getting all the bendfits i can as a low income individual.My dear brother and his best friend were confidently going to work till 70 for full benefit,well he got his first s/s deposit,at 66 the day before he died of cancer, his friend is in good shape financially, but in our last conversation he is going out a few months after 66,he was lamenting to me that he only has around 400 thousand in his investment portfolio and his advisor tells him he needs at least 500...i wish i had that problem!!!the point im trying to make is it is different for individual cases, and a lot of it has to do with family history,both physical and psychologically.I am single and my case is a lot different from someone whose wife wants to take the grandkids to Disney...
I retired at 68 but took my SS at FRA of 66 (have been debt free for years). I was then able to collect both SS and paycheck for 2 years, in order to put more money into regular savings. I owned 2 properties when I retired in 2019 and sold one after I retired. I also have a pension and IRA. I've seen and heard too many horror stories from friends and family who retired early and with inflation, property tax increases, etc., are in tight financial situations, and some have had to go back to work. I never cared about the "break even" age people go on about, because I didn't put my life on hold while I was working. I wanted to retire with no worries and if I die before I've been retired 10+ years, I'll be well beyond caring. Here's something most people don't think about: Your Medicare Supplemental plan premiums (if you take regular Medicare at 65, and not the crappy Advantage plans), will increase dramatically as you age (doesn't matter if you're in good health). At 73, my Supplemental is now $195.65 per month (was $135. when I started at 68), plus your prescription and dental premiums, which run me about $45. per month, along with the $174.70 for Medicare. My sister is 77 and the same Supplemental for her is now $300. a month, and our older sister, who is 84 is paying over $400. a month (we all have the G plan). The oldest sister, who passed last year at 87 never told me what she was paying (all our brothers are gone). Think about this scenario: You're getting $1700. a month in SS, then they take out the Medicare payment of (this year) $174.70 and you're 73. The Supplemental would be $195.65, dental/prescription prem $45. (separate policies), which is a total of $415.35 coming out of that 1700. That would leave you with $1284.65 a month to live on and will become less every year as your premiums increase and eats up any COLA. The older you get, and when you'll probably need healthcare the most, you won't be able to afford the Supplemental premiums and will have to go to an Advantage plan (which many doctors and even hospitals are starting to refuse), where an insurance company will control what healthcare you do or don't receive. Thinking only in terms of gross income can be very deceiving.
I joined the Military and did 20 years. The VA PAYS for my Medical (SO FAR OVER $80,000 USD for two Medical Operations..... So do you, Paid my benefits in your taxes. Been there. Done that though. Almost killed 7 times in 172 attacks on our FOB in Baghdad (CAMP VICTORY). SERVED in Korea 5 years and OKINAWA 6 years, Pentagon and many other sites also. Moving overseas for more deductions. I have INTERNATIONAL TRICARE. Military MEDICAL, DENTAL and EYE CARE insurance. AND a MILITARY PENSION too, SS is just "A cake walk on top". FLY HIGH. WORKED 7 years in IRAQ with ITT Over $130,000 a year and AT&T for 5 years. The IRS takes your top earning years and determines your retirement payout. It is my turn.
We have been taking Medicare Advantage through Kaiser Permanente (which has its own hospitals) and it has been excellent; I have heard many stories of the troubles of people who take regular Medicare.
I’m currently 58 and just retired. Right now if I don’t pay another cent into SS I will receive $2,566 per month if I start at 62. If I wait until I am 67 the amount goes up to $3,858. That is a difference of $1,292 by waiting 5 years. I don’t need the money right now so I have calculated that if I save that money starting at 62 into a savings account I will accumulate roughly $154,000 over the 5 years between when I’m 62 to 67. If I were to invest that money I would need a return of 10% annually to match the difference in the payment amounts between starting at 62 and 67. By coincidence, this is roughly the average annual returns of the S&P over the last century. Since starting at 62 gets money into my and my family’s hands sooner rather than later in case something happens to me, the benefits of early withdrawal and then investing that money make good financial sense to me.
Most folks would love to retire at 62, but as you are probably well aware, according to the latest statistics, almost half will run out of money in their later years. If you can hang on to your job a few more years it would really help your future. We waited until 70 as we didn't need the money and we loved our medical careers. Yes our health is great so it worked for us.
Many people in their 50's and 60's are being forced out. They struggle to work after that because of age discrimination. My position was eliminated and I am trying to hang on but it's clear they want me out after 20+ years. My union has helped but it's bad for many older workers.
The MAJORITY of retiring Americans are OBESE. And haven’t done 30 MINUTES of exercise since HIGH SCHOOL. NOT to mention ALL the BOOZE and CIGARETTES they’ve consumed in the last 45 years! They’re DOPES!!!
@@davidperry5631 Never meant for my comment to be a win/lose scenario. No matter what socioeconomic status you are in you must learn to live within or below your means to catch up.
I retired at 62. That makes financial sense because my “break even” age is 85, where retiring at 70 equals the amount paid out since 62. That’s 23 years. I may not even reach 85.
Female longevity runs in my family. My mom is 94 and lives alone with few health problems. So I waited until 70 to take social security. I'm glad I did. I'm healthy and have that added money.
I retired at 51with a pension and i'm about to turn 62 and have already filed to get it in february.I did the math and just waiting a year to get s.s. it would take about 14 plus years to recoup and from 63 to 70 the shortest amount of time it would take to recoup was around 11 plus years,it's a no brainer.
I retired from my job last year at 64 years old in June of 2023 and haven’t earned any money since then except for pension. I haven’t started drawing any social security yet thinking that it will just keep going up the more I delay. By not working and showing any income will it draw down my social security amount since I’m not paying in anymore?
Im taking mine at 62. If I wait till 70 I will have misses out on 168,000 . Yes. They dont want you to focus on that. They want you to focus in the monthly amount. I do receive a pension. If you take it at 62 you can still work but you can only make 22,00 a year. Once you turn 65 you can work as much as you want. Im already retired and have no intension of ever working again.
Without calculation inflation or assuming you invest all the money-if you took it at 70 it would take you 15 years to catch up to the guy that took it at 67- you would then be 85 and current life expectancy is 75
I’ve never heard anyone under 55-60 say anything other than never take SS early…wait!. I’ve also never heard anyone who took it early say they regretted it. I trust the latter group (I’m in it) If you can possibly afford to live, take it.
I have done the math and depending on tax implications I plan on taking as soon as possible. It would take me until almost 79 to take in any extra money by retiring later, Plus I get the 5 or 8 years of freedom and extra time before that.
Retired at age 65. Took SS at my FRA (age 66.2). We are now waiting for my wife to hit her FRA and she will get 50% of mine as her work record is lower. We have 3 years to go. The goal is to protect her survivor benefit and ensure it will be 100% of mine should something happen to me. SS is a critical part of our retirement plan. When there is an age gap and lower earner is younger, you must also plan against the potential impact on the lower earner's survivor benefits when planning when you take SS and your spouse takes SS. What is also a challenge when SS makes up a significant part of your retirement plan is there is a double penalty when a spouse passes. You lose the second SS check and you lose the second tax exemption.
My wife worked her entire life and began drawing her Social security at 72 and was dead 18 month's later.She was receiving 2,200,22 per month.This is not a comfy cozy retirement for anyone who has worked since they were 17 years of age.
@RussCR5187 Sorry, I don't play % ages.Her parents lived into their late 90s.Not sure where you get that logic from.Your obviously not of age or experience.
@@avalon1rae I"m a 79-year-old former CFP. You don't play percentages off family history, you start with national statistics, and only then consider individual situation (including family history).
In cases like this, it would be nice to see the median benefit by age, although it's possible the range of benefits isn't great enough to make a significant difference.
I’m taking it at FRA & will still work as long as I can. I work remotely 3 days per week. Everyone is different. My job is like being semi-retired to begin with & I enjoy it. Working and getting SS benefits is a win-win for me.
My first check will come in February,I’m 62 the amount is $1700.00. I will have banked $50,000 by the age 65 . To wait until 65 only to make $400. More.
I got hurt boarding a Military Sealift Command Vessel a few days after 9/11. I was fired and my attorney told me to file for s/s disability and when they turned me down he would handle my claim. I was approved in 5 months as I recall. I receive the full amount since age 51 and now receive allmost $2600. The Good Lord has blessed me and our family.
Nah, another election ploy. Sounds like lying Biden's $200 a month social security recipients increase he promised while running over 4 years ago and never happened. It's all BS.
Took mine at FRA 66.6 months still working another year since no penalty gave myself a raise paying off bills. Will also adjust upward when recalculated.
As a former CFP, I helped my clients play the percentages (which is what you have to do when planning for the future). Statistically, at the time I was active, people in their 60s had a 90% chance of NOT living past age 93. In other words, a 10% chance of living TO the age of 93. That's the kind of safety margin one should be planning for in retirement, when your options for generating additional income are very limited. So 93 becomes the planning age. It's ALMOST ALWAYS the case that delaying the onset of SS benefits as late as possible is the safest course -- i.e., the one that minimizes risk. Of course, each situation is different, so no rule of thumb is perfect.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@FlorentGulliver Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. MARGARET MOLLI ALVEY, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
I was born in 1956. I retired a few years early (57). I was under the impression that they took your 10 highest consecutive years of earnings and based it off of that. Nothing to do with averaging out 35(?) years of earnings? I started taking mine at 65 the same year as Medicare kicked in. You need to figure how many years it takes to break even when taking it early vs waiting, it’s been awhile since I looked at it but it’s like 7 years? Lots of factors to consider. I’m happy I took it when I did but everyone is in a different position, especially health wise!
You failed to mention the money not received between the ages of 62 to 67 and 62 to 70. Using the lowest average amount of 1,238 per month at 62, the yearly total would be 14,856 multiplied by 5 years of benefits received, which would be 74,280. Using the same example for waiting until 70, the total benefits received would be 118,848. I chose to receive mine at 62. Life expectancy goes down as age increases. My brother, the actuary, also retired at 62.
I lost a leg at work and left permanently 2015 twelve years after the accident I'm recovering social security disability since 2015. I worked a total of 35 years. I'm I eligible for social security at 62 are am I only getting social security disability for the reminder of my life or may also get regular social security at 62? Thanks
Using your numbers, if a person draws $1300 per month at 62, that is about $78k they would draw and bank instead of waiting until 67, and then getting the extra $1k per month. If I am doing my math correct, it would take a little more than 6 years to be at the break even point. (1300x60months=78,000 then 78,000/60months=6.5 years) So, what I normally tell folks is, if you are in good health and do not absolutely hate your job, and think you will live to be over 72, then usually a person is better off to wait on drawing it. However, if you have poor health, and think you may not live past 72-75, then it can be best to file at 62, assuming you have your financial house in order and the $1300 will be enough to supplement your lifestyle. (Also, if you were fortunate enough to have made a fair wage over at least half of your working years, your monthly payment will be higher than that average, as the video points out. Mine is actually more than double that average of $1300, so I am blessed by the good Lord!) Also, if a person is in poor health, there may be an advantage to drawing at 62 so they can get Medicare. While it is not great coverage, it certainly is better than nothing. Lastly - if a person delays until 67, in addition to having the extra each month, they will have the extra income of five years to further build their retirement nest egg. The takeaway - if you can afford it, and/or your health is failing, drawing early may let you have the time off to enjoy the last of your life instead of hitting that daily grind. (But keep in mind, your health may improve and you will still be stuck with that lower payment. You cannot un-ring the bell, so be looking at all potentials before you make the decision) I am already drawing, and my wife has a work from home job that she does not mind doing, so she will work at least to 67, and if nothing changes, she will likely stay with it to 70 so she gets the even higher rate. We use her job for our health insurance, groceries, travels, savings, etc. We use my SS income to pay our monthly basic living costs and this plan works great for us. If her job plays out, or she gets to the point of not liking it anymore, then she will retire at that point. (she is 63 currently, so she could retire at any time and we would have no financial issues, barring a catastrophic event) The ultimate key, is to be debt free. Get rid of all CC debt, car payments, etc....Hopefully, you will not even have a mortgage by then (or if you do, it will be very small like ours is). It is amazing how little money you need to live on when you do not carry debt. Thanks for the video
I hear the same thing over and over. Take it early and ENJOY life?? I enjoy life everyday. Whever I am, whatever I am doing enjoyment is an Attitude. It is not determined by whether I work or not.
I assume that the numbers you are reporting are the nominal/gross benefit amounts. Not the net amount after Medicare and federal taxes have been withheld.
As you get older a big chunk of your ss goes to healthcare on top of medicare which pays a big chunk of doctor and hospital fees but your still required to pay what medicare dosent cover.Healthcare is extremely expensive even with medicare or insurance.A lot of procedures done in the hospital are done by outside specialists and bill separately from a hospital fee.
I have read that the calculations are based on the assumption you will live to 83. If you do, it doesn't matter when you start as you would make the same amount. If you are lucky enough to live beyond 83 then starting later would earn you more.
You left out 2 million state and federal retirees who had their SS reduced under windfall elimination provision Instead of 1500.00 at 65 I got 284.00 . Even though I worked second and third jobs that paid SS. They felt it unfair to get federal pension and SS.
Pension is 2825.00 32yrs service. 2025 insurance goes to 8900.00 from current 7211.00 then you got state and federal tax. Worked 2 yrs after retirement made little over 7000.00 a yr. Got 2.00 added to my monthly social security check. My 93 yr old mom gets 2300.00 no state or federal income tax just Medicare.
Most people that are at their FRA and have an SSA.GOV account and have not yet started taking their SS benefits probably do not fully realize that the projected amounts are low estimates and will be higher than what they are showing for 2 reasons. The 1st reason is the yet to be seen COLA's and the 2nd reason is that the estimates shown are adding in the 8% per year that you gain by delaying from FRA up until 70. And that is where the estimate is low. To get your estimate correctly (w/o COLA's added) you need to add .667% to your FRA total TO EVERY MONTH that you delay after your FRA. That is similar to compounding interest every month. It's not a mammoth gain even over 36 months, but it can add up to being over $125 more per month than the SSA estimate shows at your full retirement age at 70. And to clarify, the figure of .667% is 8% divided by 12 months. For someone like me that is delaying until 70, that extra money that does not show on the benefit chart at age 70 is a very nice boost that I did not know about until I did the math.
That’s not quite accurate. Social Security doesn’t add your delaying credits to your benefit until January 1st of each year at the same time the COLA for that year is added. The only exception to this is when you collect at age 70. Then you get everything added to your first check. So if your birthday is say , in October, you would get the COLA added to your benefit amount in January but the delaying credit of 2/3 of one percent per month (8% per year) would not be added until the following January. If you decided at 68 or 69 to go ahead and draw your benefit on your birthday in October (like in the example) then you would get all of the credits as of January 1st of the year you are in and then on January 1st of the next year the 10 months of delaying credits would be added to your benefit. So you eventually get everything you have coming to you but they don’t credit it to you on a monthly basis while you are waiting to collect. Hope this helps .
@johnscott2746 you are proably correct with what you stated. I was trying to explain that the amount shown at your FRA on your SSA account up until 70 have not been calculated by adding .667% to each month up until age 70 because you gain .667% each for each month that you delay past FRA. That number will end up being a higher amount than just adding 8% to your FRA amount for a 12 month period.
But it won’t! The additional amounts are only added in once per year in January. There is very little compounding effect from doing so. The delaying credits themselves do not compound AT ALL. It is a straight line computation of 2/3 of one percent of whatever your FRA benefit amount is for each month you delay. If your FRA benefit is $2400, then your delaying credit each month until 70 would be $16 or $192 per year and the $192 for the previous year would be added in January of the next year.
@@johnscott2746 I was thinking the calculation of .667% was added in each month, with each month after taking the calculation from the previous month and adding the .667% to that number. Thanks for straightening that out for me.
Nobody in the 1960+ cohort will reach full retirement age for a few more years. I suspect many more people will take early retirement among these than in the past. I'm planning on being employed until 68 anyway for pension reasons. My parents died in their 70s so I can only hope i won't do the same. I have a younger wife and she won't retire for a while so retiring for me is pointless if I'm sitting around while she works. (She enjoys her work and is well compensated). Anyway. We will just pile up money for our kids.
it's more complicated decision for married vs. single, or if there are children in either category. Part of the reason to work longer is for your wife if you're the higher earner. She's younger, so she will "inherit" your higher amount if you predecease her. You're providing additional protection for her the longer you delay collecting. On the flip side, many may decide to collect earlier as opposed to draining resources as they want more to leave to leave to their children. The math becomes a little trickier for a single person, who may be fine taking the lower amount as their financial decision is based solely on themselves. I don't have the answer myself. I'm retired at 65, but I've yet to take Social Security, yet I'm fully aware my father passed at 68, my mother at 72. Blended age is 70, and my older brother just passed at...you guessed it, 70!
I feel you’ve just posted the basics that one cannot see what the actual results mean, especially when considering lifespan. For an honest comparison, I would have like to have seen a comparison showing that if you wait and take SS later, how long it will take you to reach what you would have by taking it as early as you can. On top of that, include the gains you might make with the payments you are receiving early. Then post the average lifespan of a man and woman.
Hi Matt, My question is... I'm 65, if I decide to collect at 67, is the amount I receive at 67 locked in, or does it increase at 68, then 69, and finally at 70, or does my SS lock in at the amount I receive at 67 till I die? Do I wait till I'm 70 to get locked in at the full amount? Thanks
Whenever I read comments regarding SS benefits, it always strikes me how many people say take SS as soon as possible, because you never know how long you'll live. I get the impression many have it in their heads that they'll be dead by 65, when it just isn't so. Plan for yourself to live after retirement, not die.
If I wait till my full retirement age to collect my social security and my ex dies. Can I switch over to his full amount as a survivor? We were married for 13 yrs. If so how much would I get? I believe he started collecting at 65 yrs of age.
It would be useful to see a set of charts or spreadsheets weighing early SS agains retirement savings. If I need X$ a month to live on and I start retirement at 62 does it make more sense to take SS and not draw down my retirement savings or wait to take SS because it will be like leaving money in the bank to collect interest.
If I retire at 56 but I’m collecting a pension and pulling money from a deferred account will that income be calculated as income earned until I start collecting SS at full retirement age?
No, it’s only earned income that you pay FICA taxes on. If you already have 35 years of income that you have paid FICA taxes on then they will use those years to figure your eventual benefit.
You aren't making sense. If someone is 70 y.o., that automatically indicates that they delayed retirement because the earliest age to collect s.s. is 62. So, I have no idea what you are referring to in your chart. 70 years-old means they delayed retirement so what are you talking about?
Look, there are no guarantees. If you enjoy working do what you want. You always have to way the income you'll need to get by, if your body and mind can't do it anymore you have to make exceptions. I've been plumbing for over 30 years my body is shot, but just like the hard work I have to do I keep on getting dressed and put it out of my mind and just do it. You either make it or you don't. If I can get a year of retirement that'll be fine, I not really interested in living beyond a quality of life that nobody wants to deal with. Hell lucky to have made it this long.
Did you show any calculations on if you take retirement early at 62 even though the amount that you get per month you have more life possibility left to live getting it then if you don't take it till 70 how much left do you have for those added dollars not very much in most cases take it early
My grandfather died at 47, my dad at 57, I turn 62 in three months and I’m getting my social security now and my pension from work and I’m very thankful that I have a pension to draw and am still kicking.
Yep I drew mine at 62 never looked back
From 62 to 70, what are those 8 years worth? 8 years of not having to go to work, 8 years of spending time with family, friends, or just what you love doing? Time is the one thing you cannot buy!!
AMEN!!! you said a mouthful
💯❤
I'm still working at 72 and I spend as much family time as I would if I didn't work because they're young and have to work and I'm not allowed to hangout at their workplace .
Get it while the getting is good
Your right. Well said
Im retiring at 62..I don't give a shit.
By the time I'm 62 I will have been working 55 years i guarantee you I will be retiring
Me too!!!
What will you do for health insurance?
I said 55… that was 10 years ago.
@@historybarf Obamacare...just signed up today. It's basically a super high deductible plan. Cost is $0.0 per month because they only factor in CURRENT income and once you retire that's likely not much. You can have millions in investments, and it's not counted towards income for the purposes of obtaining Obamacare.
My wife took hers at 62 and died of an aggressive cancer 8 months later, my uncle died of a heart attack 2 months before his retirement, lesson here, can’t spend it when you’re dead.
My father died before he could take any SS (age 54). In those days (before "federally guaranteed" student loans), I could receive a monthly SS payment to help with my college expenses. It was enough that I split it with my mom to cover her rent. I am eternally grateful for that. The student loans are a racket, and beginning the school year before Labor Day makes it impossible to work most of the summer jobs we used to help with college costs.
The government is betting on you dying young, saving MILLIONS.
@@alanjameson8664 The four year outdated college model is a racket to maintain profits for "education incorporated".....Time for it to go.
My mom died at 57, my dad 2 years later, he was 62, got his first check and died a month later. They both were born in the early ‘30’s, they worked like dogs and got nothing. I’m 62 in 2 years, God willing I’ll be starting it at 62.
Took mine at 62 and happy I did.
I plan on doing the same thing...Even if you are still living many people have health issues, later, that dont allow them to have the quality of life. So while their check is more they have lost some quality of life and cant do the things they did just a few years before.
I started collecting SS at 62 years old. I am almost 74 now and have enjoyed my time away from the rat race. I work at a small part-time job four days a week and greatly enjoy my interaction with my fellow retirees. Money is not everything...it helps!!...but it's not everything!
If you work 4 days a week you are not retired.
and. your part time job still has SS taxes taken out of it, pretty sure your part time job won’t replace one of your pre retirement years income so it doesn’t benefit you at all. Doing away with these taxes on retirement part time income should be right up there with not taxing SS income!
"Wait until 70"
Not sure I have that in me. I'm 55 and am already nearly exhausted.
My brother retired early…… he told me that it was the best decision…. He said “ you get six Saturdays and a Sunday every week.
You worked hard for it. It’s your money, and your life.. Take it whenever you want.
My sister died unexpectedly at 61. Never collected a penny of SS. Take it as soon as you can!
I took mine at 62 as a supplement to my pension. It’s a very personal decision as is retirement. Mine was more than the average at 62 because I worked so much over those 35 or 40 years. Great information ❤️🌵
same here!
I retired at 65 and one month later diagnosed with cancer. Don't wait!
🙏🙏
I retired at 60. I’m fortunate to have a good pension after 40 years with the same company. I plan on taking SS at 62. The men in my family don’t have a long lifespan. I would rather enjoy the extra money when I’m still relatively young and in decent heath. If I live past the break even point, l still would consider that a win because I’m still alive! If I don’t live past the break even point I won’t know because I will be dead.
My FRA is 67...I'll be taking it early, likely at 62...while I'm sort of young and can enjoy it and while it's still there...
Go go years are the early retirement years, slow go is mid and no go are our oldest…Enjoy.
The one thing that is never talked about: How healthy will you be if/when you wait until 'full retirement' and was it worth it? I would rather be a little bit cold and a little bit hungry and still walk, rather than be a millionaire and in a wheelchair.
Tomorrow is not guaranteed.
PLANNING on being dead by age 74…is DUMB!!
@@davidsoncl1So you SHOULD retire at age 17!!!
Saved enough money to retire at 59, started collecting at 62, never looked back.
The biggest determinant on whether to retire early should be, do you enjoy your job, and are you still fully capable of doing it? For people like me, who mainly had a job just for the wages, the chance to retire early has considerable appeal. The difference between early retirement and full retirement is 5 years, or about 25% of your remaining expected life span, give or take. Are you willing to settle for a more modest lifestyle rather than "waste" a quarter of your remaining years on a job you don't love? I started planning long ago to be able to retire early, built up retirement accounts and savings, and at 60 I've been retired for two years, living modestly. In about a year and a half I will be eligible for early retirement SS and you can bet I'll be taking it.
I tried to opt out of SS at age 9. If I had been allowed to do so I would be a Multi-Millionaire from private investing of the money stolen from me by a very wasteful failing program.
While I agree with your math, most would just squander it away .
SS is an actuarial program that depends on everyone participating. Of course, its administration is a different topic.
@@RussCR5187 SS is a Ponzi scheme administered by drunks and incompetent featherbedded disconnected elites.
I mean some people have to keep working full-time so they can have the health insurance that their company helps pay for.
So, many people can't stop working until they are 65 when they can get Medicare .
I took my SS at exactly on my 65 th birthday. Mainly because I had lung cancer several years before at 61 and struggled with driving 500 miles a day. I figured by waiting the extra 1 year and 2 months to draw benefits at FRA ,it would take me 13 years to catch up what I'd lost by waiting. My benefits as of this month are over $3000.00 a month , and that's before the 2.5% coming in 2025. Not sure where you're getting those averages, but since you're the pro I take your word for that. I did work full-time for over 47 years so maybe that comes into play. Even still, I'm glad I have a pension and small IRA to carry me
I think where you live and how much you made during your career plays a part in how much you get in SS. The east and west coast tend to make more in wages than the midwest and south because the cost of living is so much higher. Also, if you make $90,000 a year vs. $60,000 will play a part in it as well.
It depends on what our situation is. I have 4 aneurysms. And I didn't have a choice about retiring. Health issues don't have an age🤬
Financial planning is ALWAYS situation-dependent.
What they don't tell you is although you make less if you take it at 62 vs 70 is that by the time time you reach 70, you've already been drawing for 8 years.
it's well-known the "break even" age is around 80
You mean if you draw at 62 vs 70 you start drawing 8 years earlier? The secret is out!
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
Well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this amazing tip. I just looked the name up and wrote her.
I started collecting benefits (this year) at my full retirement age of 66 1/2, and I only get $2,078, as I spent a good number
of years not paying into Social Security, and I'm still working full time (and saving $3,300 every month).
I retired at age 58 and can afford it. Holding off on drawing SS till 65-67 years old. I do not recommend retiring because your friends have. Living day to day is very expensive and will not get cheaper either. MAKE SURE YOU CAN AFFORD TO RETIRE FIRST. Social security will not save you.
I started Social Security at age 62 my current PIA is $2250/month and with the 2.5% increase for 2025 it will be $2306. It all starts with what does your AIME (average indexed monthly earnings) turn out to be before being run through the BEND POINTS to determine your PIA (Primary Insurance Amount) at FRA (Full Retirement Age). The more money you can earn during your working years the higher your benefit will be, to a point. There is a cap on Social Security benefits. Enjoy sooner than later, because later is not guaranteed. Also, Social Security should not be your only source of income in retirement.
YOU’ve made a HUGE MISTAKE!!! LOCKED yourself into the LOWEST POSSIBLE BENEFIT…..for LIFE!!!!
@@Tryp-j9d: He sounds happy, healthy, wealthy and wise
@@Tryp-j9d A person can change their mind the 1st year and repay the checks taken while continuing to work.
@@dennistyler9852But that work is limited to the earning limit due to IRMMA until your FRA. Why wait almost a year, then pay it all back, when you reduced your work earnings limit due to IRMMA.
Which means you changed from a fulltime job, leaving all of your fulltime benefits including health insurance for one that is at the earnings limit threshold because of IRMMA. For 2024 is $22,320. Any amount over the earnings limit they will deduct $1 for every 2 dollars you are over.
Many reach their lifetime maximum earnings in their 50's and early 60's, enjoying extended benefits. Those years could replace many low earning years, top off retirement accounts, and savings accounts.
@@Tryp-j9d You or him don't know how long he's going t o live so what you're saying is b.s.I am about to collect at 62 and i did the math,if i waited just till 63 it would take about 14 plus years to make up for not taking it at 62 all the way up to 70 the lowest amount of time it would take to make up for not taking it in any year up to 70 was about 11 plus years so suck it!
The "Spousal Benefit" is what makes many high earners claim early. It turns on the 50% Spousal benefit... This additional $ MORE than makes up for waiting to turn a married couples Primary Earner SS benefit... This is why the Government is looking at eliminating "Spousal Benefit" choices... This would be a good video to make.
I'm leaning towards retiring early as I worry about my long term health and would rather be a little poorer and healthy but still some more time to think on that. Thank You for the helpful videos
I work those four extra years and retired at the full age of 66. I earned about $350,000 those four years. Also it boosted my wife's spousal benefits . People never think of this.
@@doorguru168888 Not everyone makes $80 Gs but good for you. All the best. FRA is now 67.
That’s 4 years worth of money that you will need to make up for before you ever see a dime of your money!
Now figure your monthly social security check, and adjust it accordingly to how much more you are receiving, and minus that amount from the 350,000 you earned working those 4 years.
As far as the time you lost ‘4 years’ you cannot get that back.
Now, hope you don’t die in the next 10 years, because if you do, you made a bad move, and they won.
Statistically speaking a person who is 56 years old and keeps working loses a year of their life for every 2 years that they continue to work.
Those odds are not on our side.
Why do you think they keep changing the age of when one can collect their own money?
I hope you come out ahead, I really do, but the odds are not in your favor.
Read 1 John 5:1 and believe it, and regardless of how long you collect or do not collect, you will come out a winner.
Also read Revelation 6:4-8 and look at the world today.
When that goes down our payments will disappear along with everything else we have including our lives.
You could have died at age 63, people never think of that.
I married a retiree and worked only the minimum time to get SS.
When he died, Social Security paid me his Social Security.
@@royharper2003 could've should've would've
7:00 I didn't think much of it at the time on the full retirement age change. Now as I get close, the whole thing sucks. The whole thing sucks. One statistic that is hard to find, How many people are born say in 1959? How many of those people live to retirement age?
I bet a lot of people contributed into the system and never saw a dime in return.
A lot more people never contributed a single dime and are drawing off it for their whole families. Not to mention the illegals…
I'm waiting until full retirement age (66 years, 8 months). Should be about $3200/month, and working the extra years has really bulked up my investment accounts. My health is excellent.
I retired at 65 but waited to collect until age 68.5. The delayed benefits do pay for all my required monthly expenses.
I started taking SS at age 70. During my last 18 years of work I held down one full-time and one part-time job, with my good wife's help. I also picked up a little work from a third, intermittent, source. I came close to getting the SS maximum monthly payment, which is considerably more than the average. I also stashed money into my 401k at my primary job, which was a poor investment because the owner of the company had no sense at all about investments---- but it worked for me as an income tax shelter, and immediately after retirement I moved it to a reliable bond brokerage account. We are getting along pretty nicely now. We paid off our mortgage and now have only one car (long since paid for), which will probably last longer than our ability to drive safely. No ocean cruises or foreign vacations for us. Nursing home costs could be a problem, but we will cross that bridge if we come to it. I think you should make mention of the maximum SS payment in addition to the averages.
we did the same and i have no regrets waiting til 70-my health is great at 73
Smart choices! You were obviously paying attention.
I’m 63 and recovering from a severe stroke for the last 2 years I finally qualified for disability after all my assets were gone. I recommend, don’t work until you’re dead I paid in for 50 years and to qualify, I had to r have 0 assets sad retirement opportunities and a sorry healthcare system in this country
It's more than just the healthcare system. It's the overall system where wages don't keep up with inflation.
Thank you for a great video. It's always a personal decision, in my case just don't have the best of health, I'm working to improve that but my body is so tired not sure how long I can continue to work. I will be making 65 next month on Nov.29th, and my full retirement age is not until Sept. 2026.
This is an interesting presentation. However, what is important is your net social security. I am taxed on 85% of my gross SS. In addition I had a 401k plan. The RMD goes up each year causing my Medicare premium to increase. Taking this into account my net SS is slightly over 50%. I am 89 and took SS at 64.
Sounds like you prepared well for Retirement and have lived well.
I lost my job at 60,scratched to get to 62,been getting by various means,and now I'm 70,planning to live to 90 or so,in hindsight my plan worked for me ,getting all the bendfits i can as a low income individual.My dear brother and his best friend were confidently going to work till 70 for full benefit,well he got his first s/s deposit,at 66 the day before he died of cancer, his friend is in good shape financially, but in our last conversation he is going out a few months after 66,he was lamenting to me that he only has around 400 thousand in his investment portfolio and his advisor tells him he needs at least 500...i wish i had that problem!!!the point im trying to make is it is different for individual cases, and a lot of it has to do with family history,both physical and psychologically.I am single and my case is a lot different from someone whose wife wants to take the grandkids to Disney...
We never know if we will see another day; all we can do is what seems best at the time.
I retired at 68 but took my SS at FRA of 66 (have been debt free for years). I was then able to collect both SS and paycheck for 2 years, in order to put more money into regular savings. I owned 2 properties when I retired in 2019 and sold one after I retired. I also have a pension and IRA. I've seen and heard too many horror stories from friends and family who retired early and with inflation, property tax increases, etc., are in tight financial situations, and some have had to go back to work. I never cared about the "break even" age people go on about, because I didn't put my life on hold while I was working. I wanted to retire with no worries and if I die before I've been retired 10+ years, I'll be well beyond caring.
Here's something most people don't think about: Your Medicare Supplemental plan premiums (if you take regular Medicare at 65, and not the crappy Advantage plans), will increase dramatically as you age (doesn't matter if you're in good health). At 73, my Supplemental is now $195.65 per month (was $135. when I started at 68), plus your prescription and dental premiums, which run me about $45. per month, along with the $174.70 for Medicare. My sister is 77 and the same Supplemental for her is now $300. a month, and our older sister, who is 84 is paying over $400. a month (we all have the G plan). The oldest sister, who passed last year at 87 never told me what she was paying (all our brothers are gone). Think about this scenario: You're getting $1700. a month in SS, then they take out the Medicare payment of (this year) $174.70 and you're 73. The Supplemental would be $195.65, dental/prescription prem $45. (separate policies), which is a total of $415.35 coming out of that 1700. That would leave you with $1284.65 a month to live on and will become less every year as your premiums increase and eats up any COLA. The older you get, and when you'll probably need healthcare the most, you won't be able to afford the Supplemental premiums and will have to go to an Advantage plan (which many doctors and even hospitals are starting to refuse), where an insurance company will control what healthcare you do or don't receive. Thinking only in terms of gross income can be very deceiving.
The biggest mistake is thinking you can live on ss alone. It was never meant to be lived on, its meant to be supplemental.
I joined the Military and did 20 years. The VA PAYS for my Medical (SO FAR OVER $80,000 USD for two Medical Operations..... So do you, Paid my benefits in your taxes. Been there. Done that though. Almost killed 7 times in 172 attacks on our FOB in Baghdad (CAMP VICTORY). SERVED in Korea 5 years and OKINAWA 6 years, Pentagon and many other sites also. Moving overseas for more deductions. I have INTERNATIONAL TRICARE. Military MEDICAL, DENTAL and EYE CARE insurance. AND a MILITARY PENSION too, SS is just "A cake walk on top". FLY HIGH. WORKED 7 years in IRAQ with ITT Over $130,000 a year and AT&T for 5 years. The IRS takes your top earning years and determines your retirement payout. It is my turn.
We have been taking Medicare Advantage through Kaiser Permanente (which has its own hospitals) and it has been excellent; I have heard many stories of the troubles of people who take regular Medicare.
I’m currently 58 and just retired. Right now if I don’t pay another cent into SS I will receive $2,566 per month if I start at 62. If I wait until I am 67 the amount goes up to $3,858. That is a difference of $1,292 by waiting 5 years.
I don’t need the money right now so I have calculated that if I save that money starting at 62 into a savings account I will accumulate roughly $154,000 over the 5 years between when I’m 62 to 67.
If I were to invest that money I would need a return of 10% annually to match the difference in the payment amounts between starting at 62 and 67. By coincidence, this is roughly the average annual returns of the S&P over the last century.
Since starting at 62 gets money into my and my family’s hands sooner rather than later in case something happens to me, the benefits of early withdrawal and then investing that money make good financial sense to me.
Most folks would love to retire at 62, but as you are probably well aware, according to the latest statistics, almost half will run out of money in their later years. If you can hang on to your job a few more years it would really help your future. We waited until 70 as we didn't need the money and we loved our medical careers. Yes our health is great so it worked for us.
Many people in their 50's and 60's are being forced out. They struggle to work after that because of age discrimination. My position was eliminated and I am trying to hang on but it's clear they want me out after 20+ years. My union has helped but it's bad for many older workers.
The MAJORITY of retiring Americans are OBESE. And haven’t done 30 MINUTES of exercise since HIGH SCHOOL. NOT to mention ALL the BOOZE and CIGARETTES they’ve consumed in the last 45 years! They’re DOPES!!!
@@katt-w2dunion?? Then layoffs are SUPPOSED TO BE ONLY by SENIORITY!!! You have a CRAPPY UNION!!!
Congratulations! You’re the winner! If you would have worked a low paying grunt job you wouldn’t have waited.
@@davidperry5631 Never meant for my comment to be a win/lose scenario. No matter what socioeconomic status you are in you must learn to live within or below your means to catch up.
I retired at 62. That makes financial sense because my “break even” age is 85, where retiring at 70 equals the amount paid out since 62. That’s 23 years. I may not even reach 85.
That is the oldest breakeven I ever heard of. Usually, breakevens are in the early 80s.
Female longevity runs in my family. My mom is 94 and lives alone with few health problems. So I waited until 70 to take social security. I'm glad I did. I'm healthy and have that added money.
Very smart! Especially if you don't need the cash flow when younger.
I am taking mine early . I have watched too many family member wait and they ended up passing in their 70s, they didnt even get 10 years in retirement
A man I knew was getting ready for retirement, had a heart attack and passed. just before retiring. Had a cabin, a great retirement pension.
So YOU are planning to die in your SIXTIES!! BRILLIANT!!!
I retired at 51with a pension and i'm about to turn 62 and have already filed to get it in february.I did the math and just waiting a year to get s.s. it would take about 14 plus years to recoup and from 63 to 70 the shortest amount of time it would take to recoup was around 11 plus years,it's a no brainer.
I retired from my job last year at 64 years old in June of 2023 and haven’t earned any money since then except for pension. I haven’t started drawing any social security yet thinking that it will just keep going up the more I delay. By not working and showing any income will it draw down my social security amount since I’m not paying in anymore?
I retired at 62. Took SSI. Didn’t need. Tripled the amount by investing in stock market by age 70.
SSI is welfare. Retirement is SSA.
but you invested it.and did not enjoy it. so you basically waited till 70 to collect you ss! dont make much sense!
Andrew I don’t think you read her comment.
@@johnscott2746Retirement is SS. SSA is Social Security Administration.
He's talking more in line of us poor folks not the Didn't needs
Im taking mine at 62. If I wait till 70 I will have misses out on 168,000 . Yes. They dont want you to focus on that. They want you to focus in the monthly amount. I do receive a pension. If you take it at 62 you can still work but you can only make 22,00 a year. Once you turn 65 you can work as much as you want. Im already retired and have no intension of ever working again.
You can make more than $22K, but it will affect your benefit in the years that is the case.
Without calculation inflation or assuming you invest all the money-if you took it at 70 it would take you 15 years to catch up to the guy that took it at 67- you would then be 85 and current life expectancy is 75
are there any charts for people on survivor benefits for breakeven points when to switch to your own benefits?
I’ve never heard anyone under 55-60 say anything other than never take SS early…wait!. I’ve also never heard anyone who took it early say they regretted it. I trust the latter group (I’m in it) If you can possibly afford to live, take it.
If you do not need it, wait till 70.
I have done the math and depending on tax implications I plan on taking as soon as possible. It would take me until almost 79 to take in any extra money by retiring later, Plus I get the 5 or 8 years of freedom and extra time before that.
Retired at age 65. Took SS at my FRA (age 66.2). We are now waiting for my wife to hit her FRA and she will get 50% of mine as her work record is lower. We have 3 years to go. The goal is to protect her survivor benefit and ensure it will be 100% of mine should something happen to me. SS is a critical part of our retirement plan. When there is an age gap and lower earner is younger, you must also plan against the potential impact on the lower earner's survivor benefits when planning when you take SS and your spouse takes SS. What is also a challenge when SS makes up a significant part of your retirement plan is there is a double penalty when a spouse passes. You lose the second SS check and you lose the second tax exemption.
My wife worked her entire life and began drawing her Social security at 72 and was dead 18 month's later.She was receiving 2,200,22 per month.This is not a comfy cozy retirement for anyone who has worked since they were 17 years of age.
I’m sorry your wife passed away. I love her hard work ethic.
All you can do is play the percentages. Some people get lucky and live longer, some don't.
@RussCR5187 Sorry, I don't play % ages.Her parents lived into their late 90s.Not sure where you get that logic from.Your obviously not of age or experience.
@@avalon1rae I"m a 79-year-old former CFP. You don't play percentages off family history, you start with national statistics, and only then consider individual situation (including family history).
@RussCR5187 Yeap ,Her parents died 92 dad,mom 93 .Her father's brother 102.
In cases like this, it would be nice to see the median benefit by age, although it's possible the range of benefits isn't great enough to make a significant difference.
I’m taking it at FRA & will still work as long as I can. I work remotely 3 days per week. Everyone is different. My job is like being semi-retired to begin with & I enjoy it. Working and getting SS benefits is a win-win for me.
I'm 65 divorced, married for over 10 years, what percentage will my Ex -wife get in benefits from my retirement income. if I start SSB. thank you
My first check will come in February,I’m 62 the amount is $1700.00. I will have banked $50,000 by the age 65 . To wait until 65 only to make $400. More.
same here just waiting a year it takes about 14 years plus to make up for not taking it,if you need it take it!
I got hurt boarding a Military Sealift Command Vessel a few days after 9/11. I was fired and my attorney told me to file for s/s disability and when they turned me down he would handle my claim. I was approved in 5 months as I recall. I receive the full amount since age 51 and now receive allmost $2600. The Good Lord has blessed me and our family.
My spouse died at 72. Her amount was higher than mine. Can I collect the difference even though I started at 62?
Will federal taxes be eliminated on SS in 2025?
Nah, another election ploy. Sounds like lying Biden's $200 a month social security recipients increase he promised while running over 4 years ago and never happened. It's all BS.
I'm hoping trump will keep his word on that and i think he will!The money has already been taxed.
Thank you for your help
Retire at 62! There’s no guarantee you’ll be 63 ! If you want to keep working and want to, Do It , !
You can't. There is a cap on how much you can earn and still collect and it's pretty low.
Took mine at FRA 66.6 months still working another year since no penalty gave myself a raise paying off bills. Will also adjust upward when recalculated.
As a former CFP, I helped my clients play the percentages (which is what you have to do when planning for the future). Statistically, at the time I was active, people in their 60s had a 90% chance of NOT living past age 93. In other words, a 10% chance of living TO the age of 93. That's the kind of safety margin one should be planning for in retirement, when your options for generating additional income are very limited. So 93 becomes the planning age. It's ALMOST ALWAYS the case that delaying the onset of SS benefits as late as possible is the safest course -- i.e., the one that minimizes risk. Of course, each situation is different, so no rule of thumb is perfect.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@FlorentGulliver Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. MARGARET MOLLI ALVEY, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@@Elina-k0 Oh please I’d love that. Thanks!
@@FlorentGulliver MARGARET MOLLI ALVEY
Lookup with her name on the webpage
I was born in 1956. I retired a few years early (57). I was under the impression that they took your 10 highest consecutive years of earnings and based it off of that. Nothing to do with averaging out 35(?) years of earnings? I started taking mine at 65 the same year as Medicare kicked in. You need to figure how many years it takes to break even when taking it early vs waiting, it’s been awhile since I looked at it but it’s like 7 years? Lots of factors to consider. I’m happy I took it when I did but everyone is in a different position, especially health wise!
They base it your highest 35 years. If you worked 40 years total, those last 5 years would replace 5 lower years when you first joined the workforce.
You failed to mention the money not received between the ages of 62 to 67 and 62 to 70. Using the lowest average amount of 1,238 per month at 62, the yearly total would be 14,856 multiplied by 5 years of benefits received, which would be 74,280. Using the same example for waiting until 70, the total benefits received would be 118,848. I chose to receive mine at 62. Life expectancy goes down as age increases. My brother, the actuary, also retired at 62.
I lost a leg at work and left permanently 2015 twelve years after the accident I'm recovering social security disability since 2015. I worked a total of 35 years. I'm I eligible for social security at 62 are am I only getting social security disability for the reminder of my life or may also get regular social security at 62? Thanks
taking SS is an individual decision based on individual needs. not a one-size-fits- all and knowing the average... does nothing for anyone.
Using your numbers, if a person draws $1300 per month at 62, that is about $78k they would draw and bank instead of waiting until 67, and then getting the extra $1k per month. If I am doing my math correct, it would take a little more than 6 years to be at the break even point. (1300x60months=78,000 then 78,000/60months=6.5 years)
So, what I normally tell folks is, if you are in good health and do not absolutely hate your job, and think you will live to be over 72, then usually a person is better off to wait on drawing it. However, if you have poor health, and think you may not live past 72-75, then it can be best to file at 62, assuming you have your financial house in order and the $1300 will be enough to supplement your lifestyle. (Also, if you were fortunate enough to have made a fair wage over at least half of your working years, your monthly payment will be higher than that average, as the video points out. Mine is actually more than double that average of $1300, so I am blessed by the good Lord!)
Also, if a person is in poor health, there may be an advantage to drawing at 62 so they can get Medicare. While it is not great coverage, it certainly is better than nothing.
Lastly - if a person delays until 67, in addition to having the extra each month, they will have the extra income of five years to further build their retirement nest egg.
The takeaway - if you can afford it, and/or your health is failing, drawing early may let you have the time off to enjoy the last of your life instead of hitting that daily grind. (But keep in mind, your health may improve and you will still be stuck with that lower payment. You cannot un-ring the bell, so be looking at all potentials before you make the decision)
I am already drawing, and my wife has a work from home job that she does not mind doing, so she will work at least to 67, and if nothing changes, she will likely stay with it to 70 so she gets the even higher rate. We use her job for our health insurance, groceries, travels, savings, etc. We use my SS income to pay our monthly basic living costs and this plan works great for us. If her job plays out, or she gets to the point of not liking it anymore, then she will retire at that point. (she is 63 currently, so she could retire at any time and we would have no financial issues, barring a catastrophic event)
The ultimate key, is to be debt free. Get rid of all CC debt, car payments, etc....Hopefully, you will not even have a mortgage by then (or if you do, it will be very small like ours is). It is amazing how little money you need to live on when you do not carry debt.
Thanks for the video
I hear the same thing over and over. Take it early and ENJOY life?? I enjoy life everyday. Whever I am, whatever I am doing enjoyment is an Attitude. It is not determined by whether I work or not.
I'm retiring at 62, what's the point of waiting a few extra bucks? I'd rather have my life.
I'm 61 and on SSDI. is there a point where I will be forced to give up my disability and take regular social security?
Yes at retirement age. I am in the same boat as you. I was forced onto SSDI in 2019. I am now 61. 2400 a month is a pain to live on.
I assume that the numbers you are reporting are the nominal/gross benefit amounts. Not the net amount after Medicare and federal taxes have been withheld.
As you get older a big chunk of your ss goes to healthcare on top of medicare which pays a big chunk of doctor and hospital fees but your still required to pay what medicare dosent cover.Healthcare is extremely expensive even with medicare or insurance.A lot of procedures done in the hospital are done by outside specialists and bill separately from a hospital fee.
I have read that the calculations are based on the assumption you will live to 83. If you do, it doesn't matter when you start as you would make the same amount. If you are lucky enough to live beyond 83 then starting later would earn you more.
It's safest to assume you will outlive your average life expectancy. If you think about it, half of people do.
@@RussCR5187 If you make it to age seventy your odds are even higher.
My question is: how can "estimate" social security by age, when it depends on how long the person worked, & if they have the credits to qualify
ssa.gov
Social security dot gov will tell you how much you will receive
Took SS at 62, had two pensions, living good!
Pensions are the Holy Grail.
You left out 2 million state and federal retirees who had their SS reduced under windfall elimination provision Instead of 1500.00 at 65 I got 284.00 . Even though I worked second and third jobs that paid SS. They felt it unfair to get federal pension and SS.
62 I only get $333.00
Government pension is much more than Social Security I believe.
You leave out how much total you received, not being honest
Pension is 2825.00 32yrs service. 2025 insurance goes to 8900.00 from current 7211.00 then you got state and federal tax. Worked 2 yrs after retirement made little over 7000.00 a yr. Got 2.00 added to my monthly social security check. My 93 yr old mom gets 2300.00 no state or federal income tax just Medicare.
I got $2300 at 62, with the wife and two kids I get $4751 monthly, life is good.
That's true. Benefits for kids aren't well-known by many, but can be a big difference.
@$2300 @62 ?? God Bless you man..
Most people that are at their FRA and have an SSA.GOV account and have not yet started taking their SS benefits probably do not fully realize that the projected amounts are low estimates and will be higher than what they are showing for 2 reasons. The 1st reason is the yet to be seen COLA's and the 2nd reason is that the estimates shown are adding in the 8% per year that you gain by delaying from FRA up until 70. And that is where the estimate is low. To get your estimate correctly (w/o COLA's added) you need to add .667% to your FRA total TO EVERY MONTH that you delay after your FRA. That is similar to compounding interest every month. It's not a mammoth gain even over 36 months, but it can add up to being over $125 more per month than the SSA estimate shows at your full retirement age at 70. And to clarify, the figure of .667% is 8% divided by 12 months. For someone like me that is delaying until 70, that extra money that does not show on the benefit chart at age 70 is a very nice boost that I did not know about until I did the math.
That’s not quite accurate. Social Security doesn’t add your delaying credits to your benefit until January 1st of each year at the same time the COLA for that year is added. The only exception to this is when you collect at age 70. Then you get everything added to your first check. So if your birthday is say , in October, you would get the COLA added to your benefit amount in January but the delaying credit of 2/3 of one percent per month (8% per year) would not be added until the following January. If you decided at 68 or 69 to go ahead and draw your benefit on your birthday in October (like in the example) then you would get all of the credits as of January 1st of the year you are in and then on January 1st of the next year the 10 months of delaying credits would be added to your benefit. So you eventually get everything you have coming to you but they don’t credit it to you on a monthly basis while you are waiting to collect. Hope this helps .
@johnscott2746 you are proably correct with what you stated. I was trying to explain that the amount shown at your FRA on your SSA account up until 70 have not been calculated by adding .667% to each month up until age 70 because you gain .667% each for each month that you delay past FRA. That number will end up being a higher amount than just adding 8% to your FRA amount for a 12 month period.
But it won’t! The additional amounts are only added in once per year in January. There is very little compounding effect from doing so. The delaying credits themselves do not compound AT ALL. It is a straight line computation of 2/3 of one percent of whatever your FRA benefit amount is for each month you delay. If your FRA benefit is $2400, then your delaying credit each month until 70 would be $16 or $192 per year and the $192 for the previous year would be added in January of the next year.
@@johnscott2746 I was thinking the calculation of .667% was added in each month, with each month after taking the calculation from the previous month and adding the .667% to that number. Thanks for straightening that out for me.
Nobody in the 1960+ cohort will reach full retirement age for a few more years. I suspect many more people will take early retirement among these than in the past. I'm planning on being employed until 68 anyway for pension reasons. My parents died in their 70s so I can only hope i won't do the same. I have a younger wife and she won't retire for a while so retiring for me is pointless if I'm sitting around while she works. (She enjoys her work and is well compensated). Anyway. We will just pile up money for our kids.
it's more complicated decision for married vs. single, or if there are children in either category. Part of the reason to work longer is for your wife if you're the higher earner. She's younger, so she will "inherit" your higher amount if you predecease her. You're providing additional protection for her the longer you delay collecting. On the flip side, many may decide to collect earlier as opposed to draining resources as they want more to leave to leave to their children. The math becomes a little trickier for a single person, who may be fine taking the lower amount as their financial decision is based solely on themselves. I don't have the answer myself. I'm retired at 65, but I've yet to take Social Security, yet I'm fully aware my father passed at 68, my mother at 72. Blended age is 70, and my older brother just passed at...you guessed it, 70!
Your income history can’t be emphasized enough as it can mean big differences in monthly pay outs.
I feel you’ve just posted the basics that one cannot see what the actual results mean, especially when considering lifespan. For an honest comparison, I would have like to have seen a comparison showing that if you wait and take SS later, how long it will take you to reach what you would have by taking it as early as you can. On top of that, include the gains you might make with the payments you are receiving early. Then post the average lifespan of a man and woman.
Best to take it at 62 Who knows if any will be left for you Got mine and doing fine Now will it last?
Hi Matt, My question is... I'm 65, if I decide to collect at 67, is the amount I receive at 67 locked in, or does it increase at 68, then 69, and finally at 70, or does my SS lock in at the amount I receive at 67 till I die? Do I wait till I'm 70 to get locked in at the full amount? Thanks
Stop calling it EARLY They've had your money all these years. IT'S DUE AT 62. Take it. Stop playing the game....
Whenever I read comments regarding SS benefits, it always strikes me how many people say take SS as soon as possible, because you never know how long you'll live. I get the impression many have it in their heads that they'll be dead by 65, when it just isn't so. Plan for yourself to live after retirement, not die.
If I wait till my full retirement age to collect my social security and my ex dies. Can I switch over to his full amount as a survivor? We were married for 13 yrs. If so how much would I get? I believe he started collecting at 65 yrs of age.
Yes, you will get the full benefit according to the calculations that apply to him.
This was very helpful for me today! Thank you very much!
Social Insecurity is there as a safety net. Buy assets while you're working💪
If you add for inflation, cat food will be expensive to eat!
Vote for Kamela and that's what everyone will be eating.
It would be useful to see a set of charts or spreadsheets weighing early SS agains retirement savings. If I need X$ a month to live on and I start retirement at 62 does it make more sense to take SS and not draw down my retirement savings or wait to take SS because it will be like leaving money in the bank to collect interest.
If I retire at 56 but I’m collecting a pension and pulling money from a deferred account will that income be calculated as income earned until I start collecting SS at full retirement age?
No, it’s only earned income that you pay FICA taxes on. If you already have 35 years of income that you have paid FICA taxes on then they will use those years to figure your eventual benefit.
What the poverty level in the USA ??
"The official poverty rate in 2022 was 11.5 percent, with 37.9 million people in poverty."
Is the SS Benefits By Age chart you displayed showing before or after tax amount?
You aren't making sense. If someone is 70 y.o., that automatically indicates that they delayed retirement because the earliest age to collect s.s. is 62. So, I have no idea what you are referring to in your chart. 70 years-old means they delayed retirement so what are you talking about?
Some people started collecting at 62 and are 70 now, so they collect a lesser amount.
@@IndigoStarrAz So, how is that " delayed retirement?"Which is what his chart column indicates.
Look, there are no guarantees. If you enjoy working do what you want. You always have to way the income you'll need to get by, if your body and mind can't do it anymore you have to make exceptions. I've been plumbing for over 30 years my body is shot, but just like the hard work I have to do I keep on getting dressed and put it out of my mind and just do it. You either make it or you don't. If I can get a year of retirement that'll be fine, I not really interested in living beyond a quality of life that nobody wants to deal with. Hell lucky to have made it this long.
Did you show any calculations on if you take retirement early at 62 even though the amount that you get per month you have more life possibility left to live getting it then if you don't take it till 70 how much left do you have for those added dollars not very much in most cases take it early