I will try not to take it too early. My goal for social security is to have it at least cover a small studio or 1 bedroom apartment away from the cities and cover my medicare too. At the least. I only have small dreams now, the main one is not being homeless.
The big thing you missed in this video is the fact that taxes on Social Security should be illegal in the first place. Double taxation is illegal and that is exactly what is happening. SS recipients have already paid taxes on the wages when they were working and now when retirees desperately need this income the most to live the government gives them the shaft! Retirement may become a problem for Americans
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
Finding financial advisors like Annette Christine Conte who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Depends of course on the person. Different people look at "retirement" in different ways. I was foolish and believed people (pretty much everyone I knew) said SS wouldn't be there when I was 65. So I figured I'd better get my act together. When a person prepares to finance their own retirement the age range 62-70 no longer means anything. Turned out I was ready at 45 so I stopped working at a salary job. Didn't mean I wouldn't be productive. I like being productive. So I did hobbies that could bring in money. Slow flipping houses was my main money maker. This meant I didn't millions of dollars saved. I also found I liked living simply so I did that and my expenses fell a lot (down to $600/mo). If I were to take SS today it would be $3080. But I don't need it. I look at SS as insurance, which is what SS was set up to be. Most people seem to look at SS as a 20-40 year vacation. If I wait until 70 I get $3800/mo (today's dollars). That's better insurance imo. Taking SS early and investing it would be silly for me. I'm not Warren Buffett. If I wait until 70 I earn 8% interest and I get COLA. I don't think I could come close to beating that return. Plus I'm retired. Investing is a job and it's a job I don't like. I've had no investments (other than house) for more than 25 years. When everyone else is stressed about stock market crashes I don't care. Or stressed when to sell when markets are up. And all those hours of watching the market and researching. Not fun for me so I don't.
New subscriber here. Thank you so much for this clear information on how ssi works. Im 54 now and am preparing myself to pay off any debt I have so i can make a better decision on when would be the best time for me to retire. 😊
If you are still working fulltime and you retire you get a reduced payment because of penalties but when you reach full retirement age they basically give back the amount withheld for the years you continued to work. Not in one lump sum but added to your new monthly amount at FRA! You should know that! So you dont actually LOSE it, its just delayed.
Amen. All the utubers just say you get severely penalized and they never ever say that you get anything back. Not sure why they scare you away with that
Please correct your video. You stated that SS goes up 8% a year between 62 and 67. The actual early penalty is 1/2% per month you start collecting before your FRA. That is 6% per year. You may be thinking about the delay credit you get for claiming after FRA. The delay credit is 8% per year after FRA.
Keith's service helped me avoid being misled into signing up for a Medicare Advantage program from a high-pressure insurance agent (who admitted he was given my contact info from my employer who was trying to get me off their insurance plan at enrollment).
Even though my 401 will be very healthy in my 60s (well above what the national average/median is), I am taking SS at 62. That's because I will have an 11yo child. So they get 50% of my FRA ! They'll get that for 88 months. Plus, my wife will get "Child-in-care" and receive 50% of my FRA for about 50 months till they reach 16yo. So while I am taking about a 2k hit from 62 to 70, combined I am making about 35% more than what I get at 70. When my wife's child-in-care ends, I'll make just $120 less then what I'd get at 70. Yes, before I am on medicare at 65 I have to get coverage (plus my family) But we are still ahead of the game. So for me, it's 62.
Turning 62 in a couple months and sure as hell applying for my SS , getting it while I can , have no faith in this government it needs a total reset and the people need to be in charge and stop giving politicians to much power
I was going to try and wait to take my S.S. until 66&10 or wait even until 70. I then decided to take it at 65 instead. I applied for my S.S. and then had a heart attack and a triple bypass 3 weeks before my 65th birthday. I didn't know if financially l could wait until full retirement to get my S.S. but never thought physically it would be a problem at all. I was almost one of the " never collected a penny of S.S. " crowd. I have now collected 4 S.S. checks and looking forward to many more! I am healthier now than prior to my heart attack. Numbers are just that "numbers" and when you add a human life into the equation and all that can happen to a person to end their life at any given moment it taints all the formulas. Numbers don't lie but our life expectancy is not a given. And if l live until 90 no regreats , l would rather have more money at 65 -70 when l can enjoy it more than and be more active than 85-90😊 But above all else, you do you and decide what is going to work best for you!
I just subscribed to your channel, very good video, thank you. I work for the Postal Service and what I heard from this video my postal pension won’t count as income to affect my social security Thanks again Marco
40 years of corporate America. I took mine at age 62. Then I cheated and filed for SSDI. It was a 3-year battle, but I won my SSDI. Getting FRB now. I have 1y left for my SSDI to turn back SSB. Downsize to Independent Senior Living. So I'm good.
Thank you for the super informative video. Would you happen to know what the break even point would be if you made more than $34,000 and getting taxed at 85%?
I will have a pension starting at age 62. If I wait for a larger SS check, will I end up paying too much in taxes? Maybe it would be better to have smaller checks (starting at 62)? I don’t know how to figure this out. My pension will be around $3600 a month (with cola). SS - $1800, if I collect early (62). $2850 at 67.
There is no reason that most people shouldn't try & get the full Obamacare subsidy & that is how you get cheap health insurance for those 2 or 3 years until Medicare kicks in. Remember Obamacare ONLY looks at income not assets. I plan on essentially living on Cash for a couple of years until I turn 65. Obviously if you are high income this isn't going to work but when when we retire we essentially don;t have income anymore anyway other than social security if we take it (I won;t apply until 65).
Maybe I'm wrong but the taxation on SS benefits, isn't that dependent on what state you live in? There are 12 states that tax...Nebraska, where my brother lives is one of them. South Carolina where I live, isn't...to my understanding.
A break-even analysis is basically useless when talking about more than 10 years into the future, because as you pointed out, it does not take into account that you can invest this money. The breakeven point also does not take tax impacts into consideration. I hate the term full retirement age. It is not really the age at which you get your full retirement benefits, since you can wait until 70 and get more. In my opinion, everyone gets their full retirement benefit no matter at which age they start benefits. They get 100% of what they are entitled to collect based on the rules. Full retirement age is just a nonsensical statement. For those born after 1960, they can just call age 70 full retirement age and then show a chart that displays reduction percentages if you start before this.
New subscriber here. Great information, thank you! Do IRA withdrawals count towards the earnings equation for the SS withholding consequences prior to FRA?
Not me I took it at 60 no reason to switch to mine later his would still be way more than mine still so of course I earned way lesser I took a cut from his but am still good and because of Covid lost my job so it definitely was on time 😊
In his "New Deal" FDR also didn't set it up so that our Social Security payments, over our working lifetimes, go into individual escrow accounts via social security number. Instead, all social security payments have been dumped into the "General Fund" of the government, which has been bankrupted for decades. Instead of sending billions of OUR tax dollars to countries who do nothing for U.S., those funds should be dispersed back to the citizens who earned them imo. Over-taxed and under-represented equates to full-on h@tred of the swamp.
I turned 65 in 2024, my full retirement age is 66 plus 10 months. If I take my SS now then when I reach full retirement age I can work as many hours I want? I don’t know whether to wait or get it now, I want to keep working full time. Help
I 'm in the same boat as you. I turned 65 in March of 2024 and immediately went on Medicare, I thought I would wait until 66 and 10 months to collect my full retirement but right now I 'm just exhausted being a nurses aide and starting to have back problems so I 've just applied for social security and plan on supplementing my income with a part time job of my choice. We need to start enjoying life.
I am in the same boat as you. Turned 65 in Jan 2024. Got on Medicare. Love my supplement Plan N. I have been grappling with taking my social security at my full retirement age of 66 years 10 months or waiting until 68 to get another $400 per month. After talking to a retiree accountant client of mine today he said to take it at my full retirement age. I would be leaving $35,000 on the table in 14 months. I can take that money while I am still working and put it in the bank. Plus after your full retirement age there is no limit as to how much I can make without it taking away from my social security. So glad that decision is made!
I am no expert, but your SS will be taxed. I am not sure how they calculate the taxes when you have other income. I assume they either calculate tax on what you are given, or 20% right off the bat.
Let me give you an example. Sixty five year old couple receiving $50,000 in SS and another $20,000 from a IRA,401K etc will pay no Federal tax after doing the SS formula and the standard tax deduction for people over age 65.
@@randolphh8005 File a federal tax return as an "individual" and your combined income* is Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable. File a joint return, and you and your spouse have a combined income* that i Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits. More than $44,000, up to 85% of your benefits may be taxable.
Everybody's situation is unique, but none of us are promised tomorrow. So although I will have a pension, a DROP account just shy of 7-figures, a 6-figure 457(b), $150k+ in Roths, and another $200k+ in a high yield savings account, I will still be taking Social Security at 62. Why? Because like I said, we aren't promised tomorrow. And like you said, it can be invested. If it's taken at 62 and invested, what's the break-even point vs taken at 67 or 70 instead? Would you ever break even by taking it later if you invested it? So I'm taking it at 62 and investing it semi-to-aggressively since it will basically be "play money." Then, should I pass away, I can will that investment account to my kids. Something I wouldn't be able to do if I let the government hold onto it for an additional 5-7 years.
If you still can work until age 66 is the best and if you are still healthy keep on working cause you do not have penalty . You can work as much as you can . The good thing when you retire at 66 and you still work full time you will save you Social Security money and your monthly income while working is your extra income
Can I go on Medicare before I begin to collect SS? I’ll be 65 this December and may begin Medicare A and B with the medical plan. Do I have to claim my SS benefits at that point?
I’m divorced from a railroad worker so as per our Quadro and divorce agreement I’m getting half of his tier one Railroad Retirement instead of Social Security I’m also getting other things as well but I’m putting off taking Social Security until I’m probably 70 years old🎉
I turned 65 this past November.. My SS check alone is not enough to pay my bills.. I’m thinking about going back to work.. I would be making roughly $1000 week there.. I know I can make a Certain amount before being penalized.. My Question is can I have my SS checks suspended while I’m working in order to avoid paying any penalties ??
Within the first year (and only in first year), you can give back all the SS money received and then claim when you are older. You can’t suspend payments.
My wife passed a few years ago at 63. She was a stay at home mom most of her life and never earned the required 40 credits. How does this affect me and am I entitled to anything?
Acording to the World Health Organisation The average life span of a man in the USA (2024) is ~64 years, the SSA is not truthful. According to the numbers ~40% of Americans eligible to receive SS die before receiving benefits.
It’s always lower starting at age zero, and always higher starting at 65 or 67. Someone who lives to an older age has a longer expectancy than someone who didn’t.
When taking SS at any age 62-70, do yourself a favor, consider your long term health outlook & quality of life (probabilities vs possibilities),,, because at 75-80 & your crappin your pants & can't remember your name, SS & your decision to utilize it varies from one person to the next, its not a cookie cutter mold, do your homework on it!
Keith, I can say I am waiting because I have a pension plus my wife will benefit from the 50% rule (she will be eligible to get a bump in her SS to up to 1/2 of my ss at my full retirement age). In our case it makes sense to wait. Also my break even point for just myself is about 89. My father died on his 89th birthday mom died at 87. This would all be so easy if you knew when you were going to die.
@hightide4782 How can you make a statement like this when you have no idea what my numbers are. I can use a SS calculator and it would be wrong since it didn't count on ages how much out of pocket $$ I am spending yearly before I draw etc etc. PLEASE don't comment on something you have no idea about.
There is 2 different tile of cuts. Forest if you are under full retirement age with is permanent cut and the second is cut because of you still working . This cut is refundable when you get to full retirement age . Let’s you work for full time and apply for Ss benefit ,than can cut as much as all of it but once you get full retirement they will pay back all cut money ,so you not loosing anything . Lots of people don’t know this
This does not discuss is how later in life you typically spend less as activities decline due to age. More money when you can get around as well and dont spend as much may not make as much sense as getting money when you can enjoy using it. There is not one right time for everyone, it is an individual analysis that differs for everyone due to many goals, health and assorted variables.
If you take SS early and invest it it may or may not earn much, HOWEVER, that money will be in your family even if you die whereas the SS you did not take will not be paid to your beneficiaries. Just another thing to consider. Thoughts?
Not true - from age 62-67 (FRA) doesn't go down by 8% a year. The actual amount is 5% a year and goes up 6.67% the last 2 years before FRA (67) After FRA (67) it does increase by 8% a year.
We would never know for sure which age is best to retire; therefore one of us claimed at 62 and one claimed at 70. We played both ways. We hope we do well by the average 😂❤
I took mine at 68 after calculating that my break-even point would be in 11 years (79 Yrs of age) if not waiting until 70 - at which time I would realize a monthly increase of $250.
I was married for 26 years then unfortunately, got divorced. My ex-husband makes more than double than I do. He is 2 years younger than me. He might retire early because he does have a health issue. How is my social security affected? Do I collect off of his and do wait until he starts collecting?
I am now 63 and be 64 mid September i am wanting to retire April or May of 2025 i have pulled up my SS on compuer i could live off of it only thing worries me is no health coverage for a few months i am pre diabetic high blood presdure meds and taking ozempic any advise ....i work a very hot factory job epically hot in summer time i dont think.i can make another summer of it ...thanks any advise
People that tend to wait till the end of their careers and take SS income are employed in jobs that don’t require them to work hard 40 hours a week 5 days a week… Fire fighters here make over 100k a year just staring out and the rank chiefs make much more and they all bank tons of money in overtime same as the police departments here…Overtime abuse is rampant here but it’s a city issue and no one seems to ever want to cut the budget when it comes to so-called first responders here… During COVID they all got a $10,000 pay increase because of the Flu virus! They make more money than the average citizen and those jobs are filled by DEI hires and friends who know someone.
There should be NO reason to limit your income if you draw early. We paid in. Plus still paying taxes on earned income! All of Government both sides do NOT care.
When you first consider the question of what is the "right" age, you might be inclined to believe that it's a more conservative approach to defer your payment until later. Good investors are taught that instant gratification is a vice, and there's a lot of truth to this; those of us who saved money our whole lives instead of spending it are in a better financial position. But in the case of deferring your SS payment, I don't think you're doing the "conservative" thing. Instead, you're actually making a very speculative bet that you're going to live long. Like the gambler at the roulette wheel, you're optimistically believing that things will work out on the next spin.
Anyone who plans to INVEST their Social Security, but needs this money at some point, is being reckless by investing it, since investment returns are not guaranteed, but increased checks for waiting are. Rich people can invest, but not regular folks should not.
I read that the average American life span is 80 years old. Majority of people will expire around the number. For the people that do live into their 90's half of those seniors will be all screwed up and have to live in nursing homes and needing aides to watch them around the clock. So isn't age 65 probably the best age to retire before you kick the bucket?
If I had started taking it at 62 I would have collected a grand total of $0 before reaching FRA. I literallly dodged the penalty the year I reached FRA by one paycheck. I decided the smart move was to start taking it once I reached FRA and simply invest it. My "break even" point over waiting will be never.
If you claim SS at 62 how much can you earn working until they take out $1 for every $2 you earn in SS. Than at 67 how much can you earn without being dinged on your SS?
He showed that in video as of 2024. The amount goes up annually. Once you are 67 or fill retirement age, you can make as much as you like without being dinged on SS.
At 65 and 4 months still working, not collecting yet. Why I waited? Well still healthy working at a job I love watching this video while working. Also If you take it early you are only allowed to make a certain amount before being penalized. One last point if you wait it will grow, unlike the stock market which can go up and down, So it was a win win for me. Looking at January 2025 as I will get $2,900 a month estimate. Still won't need it but feel like I will waited long enough. Great Video!
What RUclips retirement/Medicare/Social security gurus seldom address - but should address - is the prospect of taking FRA Social Security WHILE CONTINUING TO WORK! And I don’t mean working at some piddly side hustle. I mean working at your full time corporate job. Yes, there ARE actually valid reasons to do that.
The most important part of the equation is how long will you live? Without that information it’s like standing in a pitch black room and deciding what is the best color.
Alright take it when you old and can't move all you can do is sit on the porch and look at cars going by. And if you don't take it and you're widow the government keeps it
SS says online that by waiting until 70 you can see an 8% increase per year in monthly distributions and equaling 32% increase from one’s FRA. Not exactly true. If my FRA is at 66-4 months, then if I wait until 70, the difference would be 3 yrs, 7months for a total of 28% increase. SS should calculate online a monthly increase X the # of months from one’s FRA to their birthdate when reaching 70 years of age.
There is no "best age" for everyone to take SS. We all have unique financial lives. BUT...as a general rule...the longer you wait the better financially. IMO I would only take at 62 if I absolutely needed it to feed and house me -OR- if I am absolutely convinced that I will die before 80. Otherwise...wait at least until you are 67 and even better to wait until 70. The extra 30% made between 62 and 67 will be very valuable later in your life.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
I will try not to take it too early. My goal for social security is to have it at least cover a small studio or 1 bedroom apartment away from the cities and cover my medicare too. At the least. I only have small dreams now, the main one is not being homeless.
Also don't go by the generic rate SS calculator gives you. You need to sign in with your SS and get real numbers huge difference from generic calc.
Yes!
Correct and if married one needs to look at the impact of when you are taking benefits and the impact on survivor benefits.
I took it at 70, retired at age 80 and am now 83. If we knew how long we would live, the choice would be easier.
Duh, if we could predict the future, we would all be better off.
Duh!
The big thing you missed in this video is the fact that taxes on Social Security should be illegal in the first place. Double taxation is illegal and that is exactly what is happening. SS recipients have already paid taxes on the wages when they were working and now when retirees desperately need this income the most to live the government gives them the shaft! Retirement may become a problem for Americans
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
Finding financial advisors like Annette Christine Conte who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Depends of course on the person. Different people look at "retirement" in different ways. I was foolish and believed people (pretty much everyone I knew) said SS wouldn't be there when I was 65. So I figured I'd better get my act together. When a person prepares to finance their own retirement the age range 62-70 no longer means anything. Turned out I was ready at 45 so I stopped working at a salary job. Didn't mean I wouldn't be productive. I like being productive. So I did hobbies that could bring in money. Slow flipping houses was my main money maker. This meant I didn't millions of dollars saved. I also found I liked living simply so I did that and my expenses fell a lot (down to $600/mo).
If I were to take SS today it would be $3080. But I don't need it. I look at SS as insurance, which is what SS was set up to be. Most people seem to look at SS as a 20-40 year vacation. If I wait until 70 I get $3800/mo (today's dollars). That's better insurance imo.
Taking SS early and investing it would be silly for me. I'm not Warren Buffett. If I wait until 70 I earn 8% interest and I get COLA. I don't think I could come close to beating that return. Plus I'm retired. Investing is a job and it's a job I don't like. I've had no investments (other than house) for more than 25 years. When everyone else is stressed about stock market crashes I don't care. Or stressed when to sell when markets are up. And all those hours of watching the market and researching. Not fun for me so I don't.
New subscriber here. Thank you so much for this clear information on how ssi works. Im 54 now and am preparing myself to pay off any debt I have so i can make a better decision on when would be the best time for me to retire. 😊
Thanks for subbing!
If you are still working fulltime and you retire you get a reduced payment because of penalties but when you reach full retirement age they basically give back the amount withheld for the years you continued to work. Not in one lump sum but added to your new monthly amount at FRA! You should know that! So you dont actually LOSE it, its just delayed.
Depends on how long you live
Thanks for that information
If you are working and taking Social Security, your benefits may be taxed based on the provisional income calculation.
Amen. All the utubers just say you get severely penalized and they never ever say that you get anything back. Not sure why they scare you away with that
@@williamrogers1219 Put it into a 401 k or ira and that amount wont be taxed. Can put up to 8500 in a ira and 25000 in 401k
Please correct your video. You stated that SS goes up 8% a year between 62 and 67. The actual early penalty is 1/2% per month you start collecting before your FRA. That is 6% per year. You may be thinking about the delay credit you get for claiming after FRA. The delay credit is 8% per year after FRA.
Yep. I was going to take at 62 and now will wait until 67. That's a little over $800 more a month difference.
Yup!! He’s incorrect. good job.
62 for me 👍☺️🙏
@@DiFinni GREAT! I'll be 66 this winter and I'm going the same route. I wasn't aware it was THAT much of a difference!
Yep 30% difference beteeen 62 and 67@@JamminClemmons
Keith's service helped me avoid being misled into signing up for a Medicare Advantage program from a high-pressure insurance agent (who admitted he was given my contact info from my employer who was trying to get me off their insurance plan at enrollment).
Even though my 401 will be very healthy in my 60s (well above what the national average/median is), I am taking SS at 62. That's because I will have an 11yo child. So they get 50% of my FRA ! They'll get that for 88 months. Plus, my wife will get "Child-in-care" and receive 50% of my FRA for about 50 months till they reach 16yo. So while I am taking about a 2k hit from 62 to 70, combined I am making about 35% more than what I get at 70. When my wife's child-in-care ends, I'll make just $120 less then what I'd get at 70. Yes, before I am on medicare at 65 I have to get coverage (plus my family) But we are still ahead of the game. So for me, it's 62.
I found out about that when I retired at 62. they keep that benefit very secret. I was shocked
Turning 62 in a couple months and sure as hell applying for my SS , getting it while I can , have no faith in this government it needs a total reset and the people need to be in charge and stop giving politicians to much power
Plus they keep change the age to later
I was going to try and wait to take my S.S. until 66&10 or wait even until 70. I then decided to take it at 65 instead. I applied for my S.S. and then had a heart attack and a triple bypass 3 weeks before my 65th birthday. I didn't know if financially l could wait until full retirement to get my S.S. but never thought physically it would be a problem at all. I was almost one of the " never collected a penny of S.S. " crowd. I have now collected 4 S.S. checks and looking forward to many more! I am healthier now than prior to my heart attack. Numbers are just that "numbers" and when you add a human life into the equation and all that can happen to a person to end their life at any given moment it taints all the formulas. Numbers don't lie but our life expectancy is not a given. And if l live until 90 no regreats , l would rather have more money at 65 -70 when l can enjoy it more than and be more active than 85-90😊 But above all else, you do you and decide what is going to work best for you!
Not me Son,but Who said we will live to be 64,but I am 63 now,I want to enjoy what I worked for
My name is Lois Sterling
What happens when you love to 90
Being in love until 90 shouldn’t affect your social security. If it does, you picked the wrong person to be with long ago.
@@Sword_of_justice103if you live to 90 you be living on baby food thats the problem with this country no one is living to 90 and living the dream.😂😂😂
Exercise is the best path forward. My dad walked 1 hr in the morning and 1 hr in the evening and lived to be a healthy 94. ❤
I just subscribed to your channel, very good video, thank you.
I work for the Postal Service and what I heard from this video my postal pension won’t count as income to affect my social security
Thanks again
Marco
The best age to take S.S. is when you are still healthy enough to enjoy it.
That would be vey true!
40 years of corporate America. I took mine at age 62. Then I cheated and filed for SSDI. It was a 3-year battle, but I won my SSDI. Getting FRB now. I have 1y left for my SSDI to turn back SSB. Downsize to Independent Senior Living. So I'm good.
Very true
@@thebootieloverwhat was your disability?
@mattdonna9677 ‘still healthy enough’- what is your specific measure?
Thank you for the super informative video. Would you happen to know what the break even point would be if you made more than $34,000 and getting taxed at 85%?
70... I work maybe 10 hours a week, my job is easy, no reason to retire...
Sounds awesome
Thank you for this and all your videos!
I will have a pension starting at age 62. If I wait for a larger SS check, will I end up paying too much in taxes? Maybe it would be better to have smaller checks (starting at 62)? I don’t know how to figure this out. My pension will be around $3600 a month (with cola). SS - $1800, if I collect early (62). $2850 at 67.
Taxes lol you could be long gone by then
@ I could be gone tomorrow. But I still need a plan in case I am not.
I have watched about 10 of these and this one is by far the best ONE!! Thanks!
There is no reason that most people shouldn't try & get the full Obamacare subsidy & that is how you get cheap health insurance for those 2 or 3 years until Medicare kicks in. Remember Obamacare ONLY looks at income not assets. I plan on essentially living on Cash for a couple of years until I turn 65. Obviously if you are high income this isn't going to work but when when we retire we essentially don;t have income anymore anyway other than social security if we take it (I won;t apply until 65).
NObamacare.
Then need to subtract the medicare cost from it.
The fact that we still have to pay taxes after we retire sucks
Maybe I'm wrong but the taxation on SS benefits, isn't that dependent on what state you live in? There are 12 states that tax...Nebraska, where my brother lives is one of them. South Carolina where I live, isn't...to my understanding.
Federal taxes affect everyone
A break-even analysis is basically useless when talking about more than 10 years into the future, because as you pointed out, it does not take into account that you can invest this money. The breakeven point also does not take tax impacts into consideration. I hate the term full retirement age. It is not really the age at which you get your full retirement benefits, since you can wait until 70 and get more. In my opinion, everyone gets their full retirement benefit no matter at which age they start benefits. They get 100% of what they are entitled to collect based on the rules. Full retirement age is just a nonsensical statement. For those born after 1960, they can just call age 70 full retirement age and then show a chart that displays reduction percentages if you start before this.
I didnt think rental income counted. Are you sure its not for real estate brokers?
New subscriber here. Great information, thank you! Do IRA withdrawals count towards the earnings equation for the SS withholding consequences prior to FRA?
Not for withholding but you can increase your chance of having your SS taxed due fed income rules.
I’m 61, collecting survivors benefits now, I’ll wait until 70 to collect my SSi
Not me I took it at 60 no reason to switch to mine later his would still be way more than mine still so of course I earned way lesser I took a cut from his but am still good and because of Covid lost my job so it definitely was on time 😊
FDR said it would not be taxed and many other lies because government.
In his "New Deal" FDR also didn't set it up so that our Social Security payments, over our working lifetimes, go into individual escrow accounts via social security number. Instead, all social security payments have been dumped into the "General Fund" of the government, which has been bankrupted for decades.
Instead of sending billions of OUR tax dollars to countries who do nothing for U.S., those funds should be dispersed back to the citizens who earned them imo.
Over-taxed and under-represented equates to full-on h@tred of the swamp.
Republican Ronald Reagan taxed ss. Wait for Trump to get started in 2025.
How much do you charge for a consultation
No charge
I turned 65 in 2024, my full retirement age is 66 plus 10 months. If I take my SS now then when I reach full retirement age I can work as many hours I want?
I don’t know whether to wait or get it now, I want to keep working full time. Help
I 'm in the same boat as you. I turned 65 in March of 2024 and immediately went on Medicare, I thought I would wait until 66 and 10 months to collect my full retirement but right now I 'm just exhausted being a nurses aide and starting to have back problems so I 've just applied for social security and plan on supplementing my income with a part time job of my choice. We need to start enjoying life.
It all depends on your health. No one knows when we leave this world .
I am in the same boat as you. Turned 65 in Jan 2024. Got on Medicare. Love my supplement Plan N. I have been grappling with taking my social security at my full retirement age of 66 years 10 months or waiting until 68 to get another $400 per month. After talking to a retiree accountant client of mine today he said to take it at my full retirement age. I would be leaving $35,000 on the table in 14 months. I can take that money while I am still working and put it in the bank. Plus after your full retirement age there is no limit as to how much I can make without it taking away from my social security. So glad that decision is made!
Is there a phone number that I can call and speak with you about the Medicare plans? I just turned 63. Please let me know when you get a chance.
8977-885-3784 or fill in your info on my website www.medicareonvideo.com
When you say SS will be taxed are you saying that I will be taxed on the income from SS or is it income outside of SS ?
I am no expert, but your SS will be taxed. I am not sure how they calculate the taxes when you have other income. I assume they either calculate tax on what you are given, or 20% right off the bat.
Your SS payment will be taxed :(
Most people who only get Social Security won’t be taxed, but ANY other income can change that, including IRA/401k withdrawals
Let me give you an example. Sixty five year old couple receiving $50,000 in SS and another $20,000 from a IRA,401K etc will pay no Federal tax after doing the SS formula and the standard tax deduction for people over age 65.
@@randolphh8005
File a federal tax return as an "individual" and your combined income* is
Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.
More than $34,000, up to 85% of your benefits may be taxable.
File a joint return, and you and your spouse have a combined income* that i
Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
More than $44,000, up to 85% of your benefits may be taxable.
Everybody's situation is unique, but none of us are promised tomorrow. So although I will have a pension, a DROP account just shy of 7-figures, a 6-figure 457(b), $150k+ in Roths, and another $200k+ in a high yield savings account, I will still be taking Social Security at 62. Why? Because like I said, we aren't promised tomorrow. And like you said, it can be invested. If it's taken at 62 and invested, what's the break-even point vs taken at 67 or 70 instead? Would you ever break even by taking it later if you invested it? So I'm taking it at 62 and investing it semi-to-aggressively since it will basically be "play money." Then, should I pass away, I can will that investment account to my kids. Something I wouldn't be able to do if I let the government hold onto it for an additional 5-7 years.
If you still can work until age 66 is the best and if you are still healthy keep on working cause you do not have penalty . You can work as much as you can . The good thing when you retire at 66 and you still work full time you will save you Social Security money and your monthly income while working is your extra income
Can I go on Medicare before I begin to collect SS? I’ll be 65 this December and may begin Medicare A and B with the medical plan. Do I have to claim my SS benefits at that point?
You can defer SS benefits after age 65, but you will be required to take it at age 70.
Penalty base on gross or net?
I’m divorced from a railroad worker so as per our Quadro and divorce agreement I’m getting half of his tier one Railroad Retirement instead of Social Security I’m also getting other things as well but I’m putting off taking Social Security until I’m probably 70 years old🎉
Leech
@@Mrmajellan123 I was thinking Blood sucking leech.
Exactly why I never got married!
In the building trades, I can’t afford a divorce from a leech!!!
I turned 65 this past November.. My SS check alone is not enough to pay my bills.. I’m thinking about going back to work.. I would be making roughly $1000 week there.. I know I can make a Certain amount before being penalized.. My Question is can I have my SS checks suspended while I’m working in order to avoid paying any penalties ??
Within the first year (and only in first year), you can give back all the SS money received and then claim when you are older. You can’t suspend payments.
My wife passed a few years ago at 63. She was a stay at home mom most of her life and never earned the required 40 credits. How does this affect me and am I entitled to anything?
Thank you! Great video
I’m on SSDI (age 56) and FERS disability. When will my income change from disability to retirement (at age 67?)
When full retirement age.
@ Thanks
In reference to the penalty withheld, don't you get that money back after you reach FRA? Meaning basically it's deferred until FRA?
You are correct!
What happens when you calculate inflation into the equation?
You get less per month.
Is rental property income considered wages when taking SS benefits before FRA?
No.
Acording to the World Health Organisation The average life span of a man in the USA (2024) is ~64 years, the SSA is not truthful. According to the numbers ~40% of Americans eligible to receive SS die before receiving benefits.
It’s always lower starting at age zero, and always higher starting at 65 or 67. Someone who lives to an older age has a longer expectancy than someone who didn’t.
@@Dave--gp1qx
How about I'm 66 can l get ss no and start working
If you were born in 1958, your full retirement age is 66 years 8 months. After that you can work as much as you like with no SS penalty for working.
When taking SS at any age 62-70, do yourself a favor, consider your long term health outlook & quality of life (probabilities vs possibilities),,, because at 75-80 & your crappin your pants & can't remember your name, SS & your decision to utilize it varies from one person to the next, its not a cookie cutter mold, do your homework on it!
And we have Biden and Trump running for President oh lord help us
Yeah, look at the crazy Brandon, shaking hands with demon's and loosing load from diapers in front of king Charles
You said you would tell us exactly when you personally would choose to take your SS, but you never did. Please let us know.
Once you get SSB are you allowed to work? or No?
Keith, I can say I am waiting because I have a pension plus my wife will benefit from the 50% rule (she will be eligible to get a bump in her SS to up to 1/2 of my ss at my full retirement age). In our case it makes sense to wait. Also my break even point for just myself is about 89. My father died on his 89th birthday mom died at 87. This would all be so easy if you knew when you were going to die.
@hightide4782 How can you make a statement like this when you have no idea what my numbers are. I can use a SS calculator and it would be wrong since it didn't count on ages how much out of pocket $$ I am spending yearly before I draw etc etc. PLEASE don't comment on something you have no idea about.
Does this apply for canada😊
No
There is 2 different tile of cuts. Forest if you are under full retirement age with is permanent cut and the second is cut because of you still working . This cut is refundable when you get to full retirement age . Let’s you work for full time and apply for Ss benefit ,than can cut as much as all of it but once you get full retirement they will pay back all cut money ,so you not loosing anything . Lots of people don’t know this
No tax in Fl
He is talking about fed tax.
This does not discuss is how later in life you typically spend less as activities decline due to age. More money when you can get around as well and dont spend as much may not make as much sense as getting money when you can enjoy using it. There is not one right time for everyone, it is an individual analysis that differs for everyone due to many goals, health and assorted variables.
Thanks 🙏
You’re welcome!
If you take SS early and invest it it may or may not earn much, HOWEVER, that money will be in your family even if you die whereas the SS you did not take will not be paid to your beneficiaries. Just another thing to consider. Thoughts?
He covers that aspect of it briefly between minute 12 & 13 but he doesn't spend very long on it.
Not true - from age 62-67 (FRA) doesn't go down by 8% a year. The actual amount is 5% a year and goes up 6.67% the last 2 years before FRA (67) After FRA (67) it does increase by 8% a year.
In addition to the 8% increase after age 67 you also get the COLA on the increase. A 3% COLA makes it 8.24% more each year delayed.
I’m thinking 64
We would never know for sure which age is best to retire; therefore one of us claimed at 62 and one claimed at 70. We played both ways. We hope we do well by the average 😂❤
I took mine at 68 after calculating that my break-even point would be in 11 years (79 Yrs of age) if not waiting until 70 - at which time I would realize a monthly increase of $250.
I was married for 26 years then unfortunately, got divorced. My ex-husband makes more than double than I do. He is 2 years younger than me. He might retire early because he does have a health issue. How is my social security affected? Do I collect off of his and do wait until he starts collecting?
You are entitled to 50% of what ever he gets. If you didn’t remarry until after 60 you would be entitled to 100% of his if he kicks off.
So I'll get 40% more if I wait until age 67 rather than 62? (example: $1000 age 62 would be $1400 age 67)
Does your pension or rental income count toward reducing your Social Security amount
No
No. I receive rental payments monthly.
Take it with Medicare
I am now 63 and be 64 mid September i am wanting to retire April or May of 2025 i have pulled up my SS on compuer i could live off of it only thing worries me is no health coverage for a few months i am pre diabetic high blood presdure meds and taking ozempic any advise ....i work a very hot factory job epically hot in summer time i dont think.i can make another summer of it ...thanks any advise
You can look into individual plans for the time in-between. Depending on income, may have subsidies.
People that tend to wait till the end of their careers and take SS income are employed in jobs that don’t require them to work hard 40 hours a week 5 days a week…
Fire fighters here make over 100k a year just staring out and the rank chiefs make much more and they all bank tons of money in overtime same as the police departments here…Overtime abuse is rampant here but it’s a city issue and no one seems to ever want to cut the budget when it comes to so-called first responders here…
During COVID they all got a $10,000 pay increase because of the Flu virus!
They make more money than the average citizen and those jobs are filled by DEI hires and friends who know someone.
What about Rental income?
Taxed and goes toward the income test
Not to be mean. How many times you spoke about this in your channel? 😊
It gets views!
There should be NO reason to limit your income if you draw early. We paid in. Plus still paying taxes on earned income! All of Government both sides do NOT care.
When you first consider the question of what is the "right" age, you might be inclined to believe that it's a more conservative approach to defer your payment until later. Good investors are taught that instant gratification is a vice, and there's a lot of truth to this; those of us who saved money our whole lives instead of spending it are in a better financial position. But in the case of deferring your SS payment, I don't think you're doing the "conservative" thing. Instead, you're actually making a very speculative bet that you're going to live long. Like the gambler at the roulette wheel, you're optimistically believing that things will work out on the next spin.
Anyone who plans to INVEST their Social Security, but needs this money at some point, is being reckless by investing it, since investment returns are not guaranteed, but increased checks for waiting are. Rich people can invest, but not regular folks should not.
Nor necessarily. There are investments that have downside protection, and that produce dividend income.
I read that the average American life span is 80 years old. Majority of people will expire around the number. For the people that do live into their 90's half of those seniors will be all screwed up and have to live in nursing homes and needing aides to watch them around the clock. So isn't age 65 probably the best age to retire before you kick the bucket?
70! My parents are still alive and I'm making more than I ever have while building up my SS balance.
Imagine all those people who waited till 62 then find out all the sudden they needed to wait 5 more years, they’ll change it again
Government only withholds ss before FRA on EARNED income
Getting taxed 85 percent of SS is better than getting taxed 100 percent of the withdrawals! Age 70 is best time to take SS for me!
I took mine at 68, after factoring that the break-even point for me if waiting to take distributions at 70-would be in Nov. when I turn 79!
If I had started taking it at 62 I would have collected a grand total of $0 before reaching FRA. I literallly dodged the penalty the year I reached FRA by one paycheck. I decided the smart move was to start taking it once I reached FRA and simply invest it. My "break even" point over waiting will be never.
Is there a certain age that you can take money from your 401 without penalty to pay off debt
59 1/2.
There is also the issue of Congress reducing SS in the future.
I want to start at 67 but work until 70 it gets more complicated then to if it is worth it.
If you claim SS at 62 how much can you earn working until they take out $1 for every $2 you earn in SS. Than at 67 how much can you earn without being dinged on your SS?
He showed that in video as of 2024. The amount goes up annually. Once you are 67 or fill retirement age, you can make as much as you like without being dinged on SS.
You mentioned about being penalized for making over a certain amount what you left out is at age 67 you get that money that was taken back
At 65 and 4 months still working, not collecting yet. Why I waited? Well still healthy working at a job I love watching this video while working. Also If you take it early you are only allowed to make a certain amount before being penalized. One last point if you wait it will grow, unlike the stock market which can go up and down, So it was a win win for me. Looking at January 2025 as I will get $2,900 a month estimate. Still won't need it but feel like I will waited long enough. Great Video!
Awesome!
Are you sure about that $2900 figure? It sounds pretty high.
it's not really a penalty because they just put the money back into your account to be paid out after FRA
@masterlee4370 If I had a job and time during my scheduled hours to watch videos about retirement, I would work a lot longer. Must be nice as h***!
That video 9 month a go right now no more tax on social security
Depends, but 62 was best for me.
I'm 1 1/2 years away from medicare. So I'll be watching your videos.
😃👍No limits on earnings at FRA
😩👎Medicaid premiums & Taxes ⬆️
What about 64 year
What RUclips retirement/Medicare/Social security gurus seldom address - but should address - is the prospect of taking FRA Social Security WHILE CONTINUING TO WORK! And I don’t mean working at some piddly side hustle. I mean working at your full time corporate job. Yes, there ARE actually valid reasons to do that.
The most important part of the equation is how long will you live? Without that information it’s like standing in a pitch black room and deciding what is the best color.
Alright take it when you old and can't move all you can do is sit on the porch and look at cars going by. And if you don't take it and you're widow the government keeps it
SS says online that by waiting until 70 you can see an 8% increase per year in monthly distributions and equaling 32% increase from one’s FRA. Not exactly true. If my FRA is at 66-4 months, then if I wait until 70, the difference would be 3 yrs, 7months for a total of 28% increase. SS should calculate online a monthly increase X the # of months from one’s FRA to their birthdate when reaching 70 years of age.
If wait until you full retirement age to retire can you still work fulltime and make as much as you want without penalty?
Yes!
Bs don’t wait,take it asap.The way it looks right now you won’t be able to retire till 65
If the id_ts in congress would balance the checkbook like we do we,d be fine.
1956 FRA is 66 + 4 Months
lol - it sounded funny when I said it!
There is no "best age" for everyone to take SS. We all have unique financial lives. BUT...as a general rule...the longer you wait the better financially. IMO I would only take at 62 if I absolutely needed it to feed and house me -OR- if I am absolutely convinced that I will die before 80. Otherwise...wait at least until you are 67 and even better to wait until 70. The extra 30% made between 62 and 67 will be very valuable later in your life.
The best age to take social security is the age you take it
Could be the worst age too...lol
Best age depends on circumstances. If you don't need it but take it early, it's still not a bad choice
My name Is Lois Sterling