I retired and took my social security two years ago at age 62. Was it a good decision from a financial standpoint, no not even close. Am I in poor health ... no. I was just sick of working. I quit work and spent my entire Roth buying a boat, and that was not a good financial decision either. But they were the BEST two decisions I have made in my life. It's not always about the money. You are going to die, sooner or later. Have as much fun as you can, as long as you can.
I was always able bodied, love construction work. I injured my back, figured it'll be ok, some ice, chiropractic appts, kept working in pain. Now I am totally messed up, degenerative disc & bone, pinched nerves, permanent bone marrow damage from chemo cancer 3x years ago has accelerated the bone issues. I am really afraid of the financial future. 😕 Social Security is less than the mortgage payment & they are fighting me on disability. As long as you're young & working you're fine but the minute you need help, despite paying into the system for decades, they want to kick you to the curb. 😢 That's a fact. Anyway...just found you guys & wanted to say thank you for putting this info together for us & presenting it as you do. Very helpful & useful. I was not even thinking of this stuff...planned to be working a long time as I loved it when I could physically do it. Well, I'm a subscriber now. You are very in depth with explaining everything. Keep up your good work.
I waited till full. I'm still working as a residential contractor part-time, about 700 hours annually. I love it, I'll stop when I don't enjoy it anymore. I'm very healthy both parents are still breathing at 87 years old. Working until full allowed me to pay off my mortgage and become totally dept free.
You've got to love what you're doing, which it seems you do, otherwise it's wearing the golden handcuffs while you're working. Love and light to you and yours. ❤
I just received my first social security check this month at age 62. I'm investing the money in A.I. and have already made money on my first investment. I figure I'd rather take it, invest it, and at least if I depart this earth prematurely, I'll have at least taken back some of my money.
1:00:48 I think your best move is to plan on retiring without SS and then count it as icing on top when/if it does arrive. If I can set my retirement funds to create a situation in which my projected needs are covered (and possibly some of my wants too) then at least I am not playing the "I can probably skip my meds this month because I have hit the Medicare doughnut hole.
retired at age 50 and fell right into the routine phase: biking, pickleball, swimming, hiking and service work. That's it! I plan to take SS as early as possible, because I never counted on a dime. It's all just gravy! I married and raised 5 kids who all turned into achievers as well. I don't see any of them working past age 50 unless they choose to. I planned my retirement as a teen, and it worked! It's been 10 years, and LIFE IS WONDERFUL! The last thing any of us should do is be in a position where the government is a means of support. That's a prescription for poverty and dependence.
Glad to see a more sophisticated look at the breakeven analysis using the "opportunity cost" of holding on to one's personal investments longer. I did the same and used multiple rates to test different rates of return. The most reasonable rate of return for me pushed the breakeven date from age 78 to age 82. Knowing that, I chose to file as early as possible and use the government's money via Social Security rather than my own.
Did you consider the COLA against the larger benefit. I did and as you said, breakeven point was age 82. As my mom died at 84, and dad is still alive at 90, I am choosing to wait till 70.
Social Security IS your money, not the government's money. Even though it is a horrible retirement plan from a financial standpoint, you would do better in a standard savings account, it is a retirement plan that you and your employer(s) paid into.
Regarding the timing about when to take SS, as I contemplate my decision to wait until 70, my main criteria was to maximize my spouses fixed income in a post-Charles world. But as I listen to your presentation I realize two concepts compete; I feel comfortable taking on investment risk now, but I am sure my wife would be very uncomfortable with it. So to avoid the risk of my passing or the loss of cognitive ability, I choose to hold out to the maximum. It is a TEAM sport!
@@Theretirementnerds - we were born in 1952 and 1953. I started studying SS in my 50s and had the File & Suspend all planned out. That blew up in 2015 (I blame Alicia Munnell), but Restricted Application lasted just long enough for us. BTW, there is virtually no one left that qualifies for Restricted Application (spousal). In a couple more years, we will not have to talk about FRAs 66 vs 67. BTW the last person that could get FRA=65 is 85 today. In the example where the fellow filed and passed away, the spouse should have moved to a benefit that is 82.5% of his PIA; a safety net for spouses of selfish husbands.
I plan to retire at FR at 67. That is 2.5years from now. My benefit amount is way higher than both my x’s spousal portion. One x is on ssdi and the other is on ss. Both are over 65. If either x spouse dies before I take full retirement can I take their benefit as survivor benefits and then take my ss benefit in 2.5 years? Probably won’t happen, but wanted to know the process. Is a x survivor benefit the same amount as what their ss benefit was when they passed?
I’m so grateful to have found Eric’s channel, The Retirement Nerds. Such incredibly helpful information. Thank you! I recommend you to all of my friends and family.
This channel is a great source of information for folks approaching retirement. My wife and I are new subscribers. Thanks for the well-presented, clear, and not overlaying complicated explanation of the basics.
Thank you so much, James! Appreciate you spending time with us! We just released a new video (seconds ago) on Social Security taxability that you may enjoy :) ruclips.net/video/ZetbFdEqi2A/видео.html
This is so informative man. I also listened to the episode on Roth vs traditional. Please keep it up. Would love more episodes like this with this guy. It's seriously wildly valuable.
@90DaysFromRetirement in case you were wondering, none of this is TOO DETAILED! The detail and tangents are so appreciated I can't even express it. Please keep going hard with the substance and detail.
I knew nothing about all this until I started listening to this man, he breaks everything down to it’s smallest denominator, thanks mr. social security explainer: please continue this great teaching…as we continue learning and growing!
@@Fold-p5c for some reason, RUclips just showed us this comment even though it is 3 weeks old. Appreciate you saying this! Means so much to us and helps validate our hope to keep these moving forward. Thank you!!
Taking SS early doesn’t have to mean full retirement early. Perhaps one would like to cut down to part time and use the SS benefit as a means to support this transition. This video raises a lot of good questions. Each situation is unique.
It was so helpful!!! I wouldn't be surprised if the combined benefit of this show to all the listeners who follow the advice to be in the millions of dollars. But there's another important consideration in planning for social security - taxes.
I'm trying to figure out when to take my Social Security as well, so I truly appreciate this video. My spouse and I are both age 68, and he filed for his at 66 and 4 mos. I'm still working full time, so I was letting mine grow, but even letting mine grow to age 70 will still not equal his...it'll sill be short about a hundred bucks or so. He's dying, so I'm considering if I should go ahead and take mine now, then switch to his once he passes on. Ugh! So much math.
Outstanding content. So many variables and SS decisions should be made on an individual by individual, family by family basis. The “growth” discussion as it relates to break even is NEVER discussed. Some other considerations are DAC benefits, caregiver benefits, and the family maximum can add even more complexity. I appreciate knowing there are firms out there who can consider all factors in helping to advise in this decision making. We most likely will be contacting you for a more in-depth review
I appreciate the information given freely and being married i learned some decisions we might make when we retire. Being in are 50's were not ready to retire anytime soon.
Great presentation on the "when to take SS..." topic. One of the few I have seen that suggests you need to look at more than getting the "max" from SS based on longevity. You may be putting yourself at greater sequence of return risk or missing out on portfolio growth opportunity by waiting. As someone who retired early (stopped working) before 62 I have been analyzing at it more in terms of cash flow and portfolio appreciation than "maximizing" SS amount. I have found the New Retirement application helpful to look at SS scenarios in conjunction with expense and portfolio projections.
I just started watching your videos as I am approaching retirement age and finding them extremely useful. I just hadn't realized that there was so much to learn about. I am also enjoying the manner these presentations are made, and find myself glued to them till the end (although I have to admit, I don't always follow everything in which case I can always go back of course). Thank you for what you share and I can't wait to see more of you!
I love the way you guys have the opposite way to treat your hair… one has the perfect comb with jel and the other one looks like just got out of bed… nice 😊!
What is the video that talks about taxing SS? You mentioned it at the 1:10 mark, and said the video is going crazy right now. Just came across your channel, and perfect timing, I retire in one year. Love all the videos I have seen, thanks
Your videos are fabulous and incredibly clear and informative. No hyperventilating or trying to push an agenda, which I pick up from most other YT videos of this type. Just from the few I've watched yesterday and today, I've learned a great deal - and I think I was already pretty well-informed. Great work and thanks.
My dad worked until he was 70 and took SS at 65. He also had a pension, which he paid into all of his working life. He only received 2 years of his pension. Tragic.
Buddy and I used to talk about this and debate it all the time.Sixty two, sixty five, sixty seven, seventy? He turned 61 in October of 2018, two weeks later he was diagnosed with stage 4 pancreanic cancer and died December 18, 2018. The correct answer will be sixty two in my case.
Sorry to hear that. It is an important decision that can have lasting consequences. That's why we avoid the "always take it at __" talk because everyone is different. Thank you for watching!
Yep. My grandmother AND mother both lived past 100. I don't know, but have heard being a centenarian is highly generic. Soooooo, I'm not retiring early because I'm basing retirement on 35 years starting at 70.
@@kennyplay5982 The person that did my Dad taxes along with people talking and articles/government saying social security was going to run out of money.
The quality years you have left are a major factor. Everyday you delay is one less day you have to live healthy or at all. 🤔 I worked with a guy that kept saying he was going to work one more year. He never made that last year and died.
Most people who are motivated to work "just one more year" often aren't ready to retire in the first place. I work with a lot of elderly high income people, and the majority of them will die or be forced into retirement because they are too sick to work rather than getting to enjoy a real retirement. There are a few who genuinely love their work and are invested in the company... But most of them are high income with even higher expenses. Cars, homes, boats, spouces, vacations, supporting lifestyles of adult kids and grandkids, you name it, they are proof to me that income or social security are rarely the reason why people don't retire. They just have so many plates in the air that everything is riding on them to keep working and they feel too damn responsible for everyone else to ever give themselves a break. And that isn't all bad. They mean well by it. But social security is rarely the real reason to work or not work one more year. It is more the unwillingness to stop expanding lifestyle that keeps people in the rat race. If you can manage that, and pay off debts, then the cut in pay of social security would only be a minor consideration of taking it one year vs another.
Planned without SS in the mix. We will get it and when I turn my SS on alone will more than cover all our household expenses and some fun. So investments will just be gravy train baby !
This is so timely and great. A lot of financial advisors do not explain this part of the equation. Very straightforward and concise. He's is so knowledgeable because of this information I'm heading down to SS office this week. Thanks a lot.
Due to politicians !!There are not enough Soc Sec workers so nearly everything online, appt only ! Long hour + wait on phone to get info! Politicians are destroying all help to American taxpayers!! Eliminate FICA tax cap so everyone pays fairly into Soc Sec & medicare etc! What a scam that politicians & rich (+170,000salary) do not pay taxes!!
In this case, it makes sense that it is complicated - and I for one am glad they thought through all the possibile eventualities. They did a great job of keeping SS viable and avoiding people gaming the system - unlike our tax laws that leave too many loopholes for the megarich to game the system so they pay less than us common folk. Let's face it, Life is complicated. And SS has been an amazing success at keeping Americans from abject poverty, complete dependence on others, and/or homelessness - as I have seen in 3rd World countries. My Mother would be in real trouble without her SS. Also folks, it is never too early to look into the costs and logistics of senior care facilities. In my Mom's case, roughly $3k for independent living, $6k for assisted living, and $10k+ for full nursing care.
When to take SS is a serious decision and an individual one as well. Some need to take it early for various reasons. Others, like me who took it at 62 and did not need to was ultimately it was not a good decision. Waiting til 70 which would have worked out as I am now 83 and in good health was a better decision. Add to that, I made a poor choice in investing and put all into what became a Ponzi Scheme! Crap! :-) Fortunately my second wife inherited more than I lost. Sometimes good fortune smiles on you. But that was just plain luck for us. Not all are so lucky.:-)
Everything was much cheaper 14 years ago when I retired at 62. People seem to think that cola makes up for the costs increases. It doesn't even come close. I wouldn't have retired at 62 if I wasn't debt free at that time. But I was and have never regretted retiring early. I also have a decent retirement, so it's different for each individuals circumstances.
I'm 53 with a blood cancer. The average life span after diagnosis is 5 years. So if I make it to 62 I'm definitely going to take it. I will invest it into the S&P500 index which has averaged 10% return since it's inception. If I die that money goes to my beneficiaries. If I don't take it they get $0. Also with an average return of 10% the money will double and if I start pulling it out of my investment at 70, I will be making on average $300-$500 more than if I waited to pull that out from SS at 70. If I invested the money into a ROTH it won't be counted towards taxes.
@@michellepalmer5283 I am so sorry to hear about your blood cancer. Your health and living life to the fullest should be your focus at this point. To that end, I wonder if you can apply for disability in which case your SSN will start soon and will be the same as it would be at your full retirement age. The team here can correct me if I am wrong. You shouldn't have to wait till you are 62 to collect your SSN if you have a terminal medical condition. Please find out and let me know as I will be thinking about you. Hugs.
If you continue to work while collecting social security why does the government continue to withhold social security and Medicare from your paycheck ?
Wages (money earned from a job) are always subject to taxes...some things never change. However, you aren't paying social security taxes on your social security income. Make sense?
I'm 63 on SSDI and a widow who was the higher wage earner. I was told when my SSDI converts at age 67, my FRA, I should suspend my own benefit to let it grow until the age of 70. Then during this time I was told I could not take a Survivor benefit because I had been on disability but that would give me three years without any income in order to end up with a higher Social Security payment on my own record. Now I'm wondering if I should somehow get off disability and claim my Survivor benefit even though it's lower than what I'm getting now. I have asked several so-called experts I Social Security like you and I'm not really getting clarification from what a computer program told me to do. My understanding is that the restricted applications are still available for widows, but the company who ran the program says that that is not the case! Can you please help me with this because the days are taking away and I don't know what the best strategy really would be.
Awsome Information!!!! I will turn 65 in January and I'm trying to learn about Medicare and this information is amazing! I might need a wealth advisor, the first time in my life😊
@@Theretirementnerds I think you are both very brilliant in your own fields!!!! And neither one of you are bad on the eyes or maybe I need to get mine checked👵🏻👵🏻👵🏻 which makes it much easier to listen to you
I am on survivor benefits I took at 60 job closed after working there over 30 years as a bus driver Because Covid now I was going on 60 But when I weighed my options he made way more than me even if I waited til my full retirement age I still would not have made out even left mine on table period and living off my Ex’s never look back everything is just about paid am waiting on housing and no dept But took side hustle am loving it only couple hours a day not real early to be to work plenty time to rest and get off in three hours at almost 64 love it 😊 And love what I do 😊
Now that the kids are grown and I don’t have to rush home to cook dinner or drive someone to soccer, working is actually enjoyable. Plus I can work from home. And I get paid while I’m on vacation. I see no reason to retire- and definitely not until I’m 67 or 70.
I'm pretty sure that Zacc can accomplish accounting for the opportunity cost of delaying filing (as it relates to investor risk tolerance), by setting up the Excel sheet as he described, with inflation adjusted cash flows for different start dates, then using the "net present value" function to sum the cash flows. The "rate" in the NPV function would correspond to the expected return of the assets outside of S.S. When the net present values are equal for different start dates, that is the break even age. There is a little bit more excel work to automate it, but guessing its well within his wheelhouse (or feel free to reach out and I'll share it, I think I'll build it into my model. I appreciate the podcast, it was very informative).
This was so insightful. Especially the point on considering taking money from our investments and losing that interest versus taking ss early. We had not thought of that before.
We call it the difference between the straight break even and the break even with lost growth. We haven’t found calculators/tools that account for it. We had to build them! Wild how all this fits together right?
Is there is a difference starting my social security within Puerto Rico versus the states? I guess my concern is that if I will loose money by applying from being in P.R. After I worked all my life in the states
No. No difference. Puerto Rico is a US territory and as long as you've paid into the SS system, you get your benefits. Sorry it took so long to respond!
@90 Days From Retirement Thank you for your video. I am still confused because my situation is very rare. My wife is 5 years older than I am. I want to take Social Security at 67. She would be 72 at that time. She is ok with retiring at any age after 62 so when, should she take hers and when should she take spousal? My PIA is 2924, hers is 1108, both at 67. Or can you please do a video where the lower earning spousal benefit spouse is older? I've never seen anyone cover that nuance.
Hi Frank! Great comment. You are always free to send me an email to erik@90daysfromretirement.com and I'll connect you with Zacc's team. It is no cost to have a conversation with them and they can give you some direction and a plan around your circumstances
Eric, just finished watching your social security video with Zac and it was an extremely worthwhile chunk of time. Looking forward to watching he followup piece on Roth conversions. Keep up the great work
I will be 62 this year. I’m taking Survivor Benefits from my deceased divorced spouse now so l can pay my debt down and start saving for actual retirement. I still have to work so l will get penalized but it’s still worth it to get the money. I’m leaving my own retirement benefits alone until l am 70 and then will draw on that. It’s like having money in an investment account.
Figuring in the potential for additional investment income while taking SS early was pure gold. I'm going to have my investment manager run the numbers to see if that makes sense for me.
What about a single person . When should i take SS. Im 63 ... my work is physical and I'm tired .. I'm a stylist for 43 yrs don't know if i can make it to 67 . Will it be ok to start at 65 ?
My husband is 20 yrs older than I. He has pension benefits and SS. I'm not sure when i should file since my FRA is 67 and ill be 62 this year. I think my higher amount would be based on his benefit. Does it make sense for me to file sooner or later??
Hi Julie, thank you for leaving this comment! There's still quite a bit that would go into that decision. Would you mind sending me an email to erik@90daysfromretirement.com and we can take a closer look? It will never cost you anything to chat with us about SS - just want to be clear on that up front.
Question! My husband is deceased and was on disability for an illness before full retirement. I will be able to take his at 60. When I went to apply the IRS would not give me any $ amount info with out filing a claim. They were upset that I wasn’t going to take it at this time. Do you know of any way to find his payment scale so that I can do future planning. Thanks! Love your channel and the interviews.
Please help! The info at 35:22 has given me info I didn’t have. Thank you! My question is as a survivor that thought about taking the benefit at 60 they would not tell me how much my husband’s would be at my full retirement. They only told me what it would be now. When he passed there wasn’t an online account set up so I couldn’t look at it. Is there a way to find out what his will be so I can decide how to do this? I didn’t take it this year because they would have taken half of it back and I would have to pay taxes on the rest.
Survivor benefit is a percentage of whenever the living spouse takes the benefit based on whatever the deceased spouse was receiving. If the deceased spouse delayed and had more than the PIA, the surviving spouse's benefit is based on the higher amount. Likewise if the deceased spouse took early and had a reduced benefit, the spouse also has their percentage of the reduced benefit.
Great video. At the 51 minute mark you make a point missed by many which is you need to calculate the growth on assets not spent when you collect SS earlier. In your example you showed a $2000 per month benefit over 4 years gaining $100k and growing to $130k. That would not be impossible if invested in stocks but using a more realistic risk free 4% would lead to $104k not $130k. The math is $24k per year times 5 years is $96k with 4% interest of approximately $8k over the 4 years.
It all revolves around how SS is taxed. This video should help: ruclips.net/video/-NlSlZeoRn4/видео.html Traditional IRA income would count in the equation. Roth wouldn't.
Thanks for the great content, gentlemen! Yesterday, I read that only about 4% of people maximize their Social Security benefits, so there is much room for improvement.😀
Thank you so much for watching David! I always think of you when the more financial videos are published because I know you have a brilliant financial mind. Appreciate you!
A reason to take it at my full retirement age (66 and 2/3), but before age 70, is that I have those working years until age 70 to save or invest the social security payments I don't yet need to live on. I did the math, and it would take me until age 86 to make up the difference between the FRA payment and waiting to take the age 70 payment. Most people in my family die at 83- 85. Even if I live to 100, there is a lost opportunity cost to spend the money at an age I can enjoy it, or lost interest which would be thousands.
Goodie good for YOU. I am a vacc1ne mandated aka medically gRaped nurse Who worked frontline during C0vid while many made MORE THAN ME WHILE SITTING HOME SAFE AND SOUND DOING ... NOTHING.. who is so ill every day of my life trying to still make a living.
RE: Spousal Benefit. My wife and I plan for her to wait until 70 (long genes) and I would claim at FRA. If she files for spousal on my benefit, does that STOP her clock to get to 70 for her delayed benefit?
What about taxes and RMDs ? If getting SS early throws you into a higher tax bracket when you have to do RMDs because your investments grew and your Medicare premiums go up, should that also be factored in ?
I retired early, 61, with a pension. If I wait until full retirement age, 67, my benefit is larger than my x-husband who took his benefit at 62. Can I claim on his now & get my full benefit later?
Hi Kelly, unfortunately, it doesn't work like that anymore. If you file now, SS will give you the larger of the two benefits. You get a percentage of his, not the full benefit (unless he is deceased). If you do take before FRA, either yours or a spousal, your benefit doesn't continue to grow outside the annual Cost of Living Adjustment. Hope that helps!
NEW ???? Earlier you mentioned something about a woman who had been married more than once. I've been twice. I divorced my 1st husband and then he died about 4 years ago and I have been married to my 2nd husband for 15 years. I'm pretty sure my 1st husband made more money. Can I still claim survivors benefits? My benefits are in medical review right now and I'm afraid of them being taken away and I need them because I have seizures and I can't work. ???
2 things. Your first marriage had to have lasted at least 10 years. 2nd, you would need to have remarried your 2nd husband after 60 to be entitled to the survivor from the first husband. Unless your current marriage ends in divorce or death.
In Blind to Billionaire, He just covered this very question. If you were married to your 1st husband for 10 years or longer, the answer is yes, you can! Go for it, girlfriend!
My mom has a state retirement benefit of about $2,100.00 pension. Born in 1942. Applied for social security at 62. And has barely paid in social security. She gets a piddly amount of $400.00 a month. When she retired her husband was alive. He was drawing social security much higher than hers. Can she get a survivor benefit?
I forgot to add her first marriage was to my dad for 11 years he is deceased. So can she get his survivor benefit. But not the second husbands, because she married him before age 60? ?
Im loving all of this information, however I’m not hearing anything if you are single and have always been. Most of this is about survivor or spousal benefits. Did i miss something?
I am 60 and the higher earner (3:1 benefit difference), my wife is 63. I'll be 67 when she is 70. Good health and longevity in the genes. Assuming our retirement planning prioritizes maximizing lifetime SS benefits and the survivor benefit, at which ages should we each file?
There are several other factors in there including the other assets from which you can pull and how long you plan on working. My email is erik@theretirementnerds.com Shoot me an email with the state you live in and we can set up something to go into your specific situation. We never charge anything for Social Security help, conversations, guidance, etc.
Maybe I missed it, but I did not hear you mention anything about the Windfall provision (deduction) for certain pensions (I’m a teacher)…My calculations show that I can only get 45% of my benefit. Can you suggest another video for that deduction?
Have to be almost in perfect health to change from Advantage to Supplement. Wide variety of supplement plans from cheap major med to more expensive covering everything. Have heard horror stories about advantage plans, since insurance co makes care decisions vs. Just your doctor. But it is cheaper. Good luck!
this is very informative - thank you. It would have helped me if the language used were more distinctive, such as Person 1 and Person 2 (i.e. spouses, whether married or divorced or alive or deceased). The informative sentences were often "you you you you.... " or then "spouse spouse spouse"... I couldn't refer back fast enough to understand which person you were talking about, and whether or not I myself was the "You" or "the spouse". Thank you.
If I take SS at 62 and my husband is getting his full amount, you mentioned I could get some of his benefits, is this possible if he’s alive first, also does what I get from him does that take it away from the amount he’s now getting? Thank you
You can. How that all plays out will depend on when you take Social Security though. There are earnings limits if you take before your Full Retirement Age
@@matt75hooper with this economic calamity, is it not better to have been collecting for a period of time rather than risk receiving no benefits at all?
@@Lulu-kt6gr All this retirement strategy comes down to two things : Your health & do you enjoy your work ? A third factor is your spouse if you are the higher lifetime earner. Those years between 62 & 70 are typically very large income years. These experts never ever mention this huge factor. I am head of household. I have been the higher earner these decades. I am super healthy & enjoy my work. I announced I would not retire / collect until 70. My wife will then receive my much much higher Soc Sec check if I pass at 70+. I want her to sleep better at night in her old age. The ONLY reasons to collect at 62 : 1. Terrible health. Short life expected. 2. You are so well funded in other areas you don't even need the check at 62. It's just a little slush fund. Collecting at 62 to 67 has tax consequences if you still work. Bottom line : Most people are terrible with money their entire lives. When these people collect at 62 they live on tomato soup & crackers. At 65 they're working at Wal-Mart & absolutely miserable.
Hi Andrea, there are proposals out there, but not official changes yet. There is an article that is sort of gotten a lot of popularity because is is on the SSA.gov site. It talks about proposals and people are acting like it's official. We'll keep you posted if that changes!
Just at the part about 18:00, spouse taking 50% of my benefits. The question is, she has been on ssi since 1999. Can she still do the spouse benefits from my benefits. Just turned 62 on October 6,2024.
That's what I did when my husband passed away. Even though I wasn't working at the time, I did work my whole life...but needed the money. Now working part time and I'm ok.
Formula : 1. You are healthy. 2. You enjoy your work. 3. You collect at 70 so your wife receives your full benefit even if you drop dead at 70 and a day. She deserves to sleep comfortably at night when you're gone. I am head of household and this was my decision. Also- these videos never take into consideration your income from age 62 to 70. It's typically a good strong income $. The perfect launching pad into retirement.
Yes, having a lower earning spouse played largely into my decision to wait until age 70. My military pension will drop to 55% after my death so having the higher SS benefit is important to offset that drop in income. Great video.
My plan was also to go to 70, and I still might, because my wife will be 63 at that time. But she’s told me I’m not allowed to go before she’s close. She will have a really hard time even though everything will be set. Luckily, I can reduce my pension to 75% and she gets the same for life, she’ll have my high earning survivor benefit, and my maxed 401k (which we’re Roth Laddering near retirement), Mega Backdoor Roth, Roth IRAs, HSAs, and brokerage accounts and my company stocks. The new plan is to retire at 62, when she’s 55. My employer has retirement health coverage, which will also cover her in case of me passing before she turns 65. The aforementioned accounts should still cover us with 8 years of earlier retirement and all that time to enjoy our time together sooner.
Matt, it's such a simple decision for obvious reasons. Unfortunately people either fail to plan or just as bad ignore the obvious and draw early and regret later in life.
I'm hoping you can answer this my husband is 6 years older. He's made significantly more than me if he files at 65 when do I file for spousal benefits when I turn 65 and he's 71?
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I retired and took my social security two years ago at age 62. Was it a good decision from a financial standpoint, no not even close. Am I in poor health ... no. I was just sick of working. I quit work and spent my entire Roth buying a boat, and that was not a good financial decision either. But they were the BEST two decisions I have made in my life. It's not always about the money. You are going to die, sooner or later. Have as much fun as you can, as long as you can.
Thank you for sharing your perspective on this!
So are you living on SS only?
@@rubicon3416 No, I have a Navy pension and a state of Floriduh pension along with social security. I no longer have my Roth, I spent it.
How much was your boat?
@@calebmelton5989 $112k +$23K in Refurb and repair.
I was always able bodied, love construction work. I injured my back, figured it'll be ok, some ice, chiropractic appts, kept working in pain. Now I am totally messed up, degenerative disc & bone, pinched nerves, permanent bone marrow damage from chemo cancer 3x years ago has accelerated the bone issues. I am really afraid of the financial future. 😕 Social Security is less than the mortgage payment & they are fighting me on disability. As long as you're young & working you're fine but the minute you need help, despite paying into the system for decades, they want to kick you to the curb. 😢 That's a fact.
Anyway...just found you guys & wanted to say thank you for putting this info together for us & presenting it as you do. Very helpful & useful. I was not even thinking of this stuff...planned to be working a long time as I loved it when I could physically do it. Well, I'm a subscriber now. You are very in depth with explaining everything. Keep up your good work.
So glad you found us. Thank you for tuning in and So sorry to hear about those struggles! That sounds so hard!
I waited till full. I'm still working as a residential contractor part-time, about 700 hours annually. I love it, I'll stop when I don't enjoy it anymore. I'm very healthy both parents are still breathing at 87 years old. Working until full allowed me to pay off my mortgage and become totally dept free.
Sounds like you're in a great spot I. Life! Thank you for sharing!
Debt free?? Nobody in the US is "totally debt free". There are those pesky income tax's and In your case property tax's too.
Wow God bless you. You're a power of example.
You've got to love what you're doing, which it seems you do, otherwise it's wearing the golden handcuffs while you're working. Love and light to you and yours. ❤
@@kellyname5733that's not debt, it is a recurring expense
I just received my first social security check this month at age 62. I'm investing the money in A.I. and have already made money on my first investment. I figure I'd rather take it, invest it, and at least if I depart this earth prematurely, I'll have at least taken back some of my money.
1:00:48 I think your best move is to plan on retiring without SS and then count it as icing on top when/if it does arrive. If I can set my retirement funds to create a situation in which my projected needs are covered (and possibly some of my wants too) then at least I am not playing the "I can probably skip my meds this month because I have hit the Medicare doughnut hole.
Hoping for the same freedom when the time comes. Donut hole goes away in 2025 😊
My dad started at 62 and was healthy. Dropped dead of heart attack at 65. You never know.
So sorry to hear that!
retired at age 50 and fell right into the routine phase: biking, pickleball, swimming, hiking and service work. That's it!
I plan to take SS as early as possible, because I never counted on a dime. It's all just gravy! I married and raised 5 kids who all turned into achievers as well. I don't see any of them working past age 50 unless they choose to.
I planned my retirement as a teen, and it worked! It's been 10 years, and LIFE IS WONDERFUL!
The last thing any of us should do is be in a position where the government is a means of support.
That's a prescription for poverty and dependence.
I agreed but you must have your major expenses bad for then to be able to have retired so early?!
@@thebobsmith1991 no children in college, cheap house paid for and a govt pension for life with Tricare after retirement from Marines is my guess
Glad to see a more sophisticated look at the breakeven analysis using the "opportunity cost" of holding on to one's personal investments longer. I did the same and used multiple rates to test different rates of return. The most reasonable rate of return for me pushed the breakeven date from age 78 to age 82. Knowing that, I chose to file as early as possible and use the government's money via Social Security rather than my own.
Appreciate you watching and sharing your experience. Few go into the detail you did for your calculation.
The Governments money 'is your money'. You contributed 'your money' to SS every month.
Did you consider the COLA against the larger benefit. I did and as you said, breakeven point was age 82. As my mom died at 84, and dad is still alive at 90, I am choosing to wait till 70.
Social Security IS your money, not the government's money. Even though it is a horrible retirement plan from a financial standpoint, you would do better in a standard savings account, it is a retirement plan that you and your employer(s) paid into.
@@Tsimy876 Amen!!
Regarding the timing about when to take SS, as I contemplate my decision to wait until 70, my main criteria was to maximize my spouses fixed income in a post-Charles world. But as I listen to your presentation I realize two concepts compete; I feel comfortable taking on investment risk now, but I am sure my wife would be very uncomfortable with it. So to avoid the risk of my passing or the loss of cognitive ability, I choose to hold out to the maximum. It is a TEAM sport!
100%! You are wise to look at it as a team sport!
@@Theretirementnerds - we were born in 1952 and 1953. I started studying SS in my 50s and had the File & Suspend all planned out. That blew up in 2015 (I blame Alicia Munnell), but Restricted Application lasted just long enough for us. BTW, there is virtually no one left that qualifies for Restricted Application (spousal).
In a couple more years, we will not have to talk about FRAs 66 vs 67. BTW the last person that could get FRA=65 is 85 today.
In the example where the fellow filed and passed away, the spouse should have moved to a benefit that is 82.5% of his PIA; a safety net for spouses of selfish husbands.
I waited and couldn’t be happier
You could also buy a large term insurance policy if you decide to retire earlier. Yes, its not cheap, but we only live so long...
I plan to retire at FR at 67. That is 2.5years from now. My benefit amount is way higher than both my x’s spousal portion. One x is on ssdi and the other is on ss. Both are over 65. If either x spouse dies before I take full retirement can I take their benefit as survivor benefits and then take my ss benefit in 2.5 years? Probably won’t happen, but wanted to know the process. Is a x survivor benefit the same amount as what their ss benefit was when they passed?
I’m so grateful to have found Eric’s channel, The Retirement Nerds. Such incredibly helpful information. Thank you! I recommend you to all of my friends and family.
Thank you so much Virginia!
This channel is a great source of information for folks approaching retirement. My wife and I are new subscribers. Thanks for the well-presented, clear, and not overlaying complicated explanation of the basics.
Thank you so much, James! Appreciate you spending time with us!
We just released a new video (seconds ago) on Social Security taxability that you may enjoy :)
ruclips.net/video/ZetbFdEqi2A/видео.html
This is so informative man. I also listened to the episode on Roth vs traditional. Please keep it up. Would love more episodes like this with this guy. It's seriously wildly valuable.
Thank you so much! Recording a new one next week 🙂
@90DaysFromRetirement in case you were wondering, none of this is TOO DETAILED! The detail and tangents are so appreciated I can't even express it. Please keep going hard with the substance and detail.
I knew nothing about all this until I started listening to this man, he breaks everything down to it’s smallest denominator, thanks mr. social security explainer: please continue this great teaching…as we continue learning and growing!
@@beverleyboateng566 thank you so much for spending time with us! And we are so glad this is helpful!!
@@Fold-p5c for some reason, RUclips just showed us this comment even though it is 3 weeks old. Appreciate you saying this! Means so much to us and helps validate our hope to keep these moving forward. Thank you!!
FANTASTIC conversation, thank you!! I appreciate your immense knowledge and great clarity on all these subjects.
Thank you so much! So glad it was helpful!
Taking SS early doesn’t have to mean full retirement early. Perhaps one would like to cut down to part time and use the SS benefit as a means to support this transition. This video raises a lot of good questions. Each situation is unique.
That's what I'm ready for
@@Lulu-kt6gr much better to wait until full retirement age
It was so helpful!!!
I wouldn't be surprised if the combined benefit of this show to all the listeners who follow the advice to be in the millions of dollars.
But there's another important consideration in planning for social security - taxes.
I'm trying to figure out when to take my Social Security as well, so I truly appreciate this video. My spouse and I are both age 68, and he filed for his at 66 and 4 mos. I'm still working full time, so I was letting mine grow, but even letting mine grow to age 70 will still not equal his...it'll sill be short about a hundred bucks or so. He's dying, so I'm considering if I should go ahead and take mine now, then switch to his once he passes on. Ugh! So much math.
Why not? Since you’re going to draw his sooner than later. Bank your’s or spend it while he can have some benefit from it.
So sorry for all you're going through.
@@conniefoxx9813 God be with you. Hope all worked out for you!
Guys, I don't have enough quarters to qualify for SS. Do I get it from my husband's SS.
Outstanding content. So many variables and SS decisions should be made on an individual by individual, family by family basis. The “growth” discussion as it relates to break even is NEVER discussed.
Some other considerations are DAC benefits, caregiver benefits, and the family maximum can add even more complexity.
I appreciate knowing there are firms out there who can consider all factors in helping to advise in this decision making. We most likely will be contacting you for a more in-depth review
Thank you for watching and for leaving such a nice comment! We'd be honored to help in any way we can
I retired at 66and 4 months my age, social security had sent me the letter to confirm thank you
I appreciate the information given freely and being married i learned some decisions we might make when we retire. Being in are 50's were not ready to retire anytime soon.
Thank you for watching! It's better to be too early than too late :)
I had to get SS at 62 because I retired under a firefighter retirement system at age 55 and got a retirement supplement that disappeared at age 62.
Im gonna try to go for 125%
Great presentation on the "when to take SS..." topic. One of the few I have seen that suggests you need to look at more than getting the "max" from SS based on longevity. You may be putting yourself at greater sequence of return risk or missing out on portfolio growth opportunity by waiting. As someone who retired early (stopped working) before 62 I have been analyzing at it more in terms of cash flow and portfolio appreciation than "maximizing" SS amount. I have found the New Retirement application helpful to look at SS scenarios in conjunction with expense and portfolio projections.
Thank you for watching and so glad it was useful. Appreciate you sharing your thoughts!
I just started watching your videos as I am approaching retirement age and finding them extremely useful. I just hadn't realized that there was so much to learn about. I am also enjoying the manner these presentations are made, and find myself glued to them till the end (although I have to admit, I don't always follow everything in which case I can always go back of course). Thank you for what you share and I can't wait to see more of you!
this entire series needs more "Likes"
Appreciate you saying this! Thank you so much!
I learned so much from this series of videos.
@@attheworktable did you see the new one released yesterday? Zacc did a remarkable job in that one as well.
ruclips.net/video/flCDgSy25e0/видео.html
I love the way you guys have the opposite way to treat your hair… one has the perfect comb with jel and the other one looks like just got out of bed… nice 😊!
Thank you for explaining this complicated stuff.
Thank you Margaret!! Appreciate you!
I am very grateful for all the information you have shared thank you
Thank you so much for watching Debra!
What is the video that talks about taxing SS? You mentioned it at the 1:10 mark, and said the video is going crazy right now. Just came across your channel, and perfect timing, I retire in one year. Love all the videos I have seen, thanks
Thank you!
Here is the SS taxation video:
ruclips.net/video/-NlSlZeoRn4/видео.html
It is for 2023. We will make another for 2024 soon.
Wow wow wow……so much to learn, thank u, for this valuable information.
So glad it's helpful! Thank you for spending time with us!
Your videos are fabulous and incredibly clear and informative. No hyperventilating or trying to push an agenda, which I pick up from most other YT videos of this type. Just from the few I've watched yesterday and today, I've learned a great deal - and I think I was already pretty well-informed. Great work and thanks.
Thank you so much! Appreciate you taking the time to watch and leave this comment 😊
My dad worked until he was 70 and took SS at 65. He also had a pension, which he paid into all of his working life. He only received 2 years of his pension. Tragic.
Did he have a beneficiary to his pension? If he did, the money would not die with him.
Buddy and I used to talk about this and debate it all the time.Sixty two, sixty five, sixty seven, seventy?
He turned 61 in October of 2018, two weeks later he was diagnosed with stage 4 pancreanic cancer and died December 18, 2018.
The correct answer will be sixty two in my case.
So SAD. SS makes no diff for dis sad case! 😢
@@BuddyDog9267 I am surprised that he didn't apply for disability. If I am not mistaken, it's another arm for Social Security.
They scared my Dad into taking social security at 62 = $600.00 monthly. He lived to age 89 and was sorry he took social security early.
Sorry to hear that. It is an important decision that can have lasting consequences. That's why we avoid the "always take it at __" talk because everyone is different. Thank you for watching!
Yep. My grandmother AND mother both lived past 100. I don't know, but have heard being a centenarian is highly generic. Soooooo, I'm not retiring early because I'm basing retirement on 35 years starting at 70.
who were "they"
Who is "they" that scared him?
@@kennyplay5982 The person that did my Dad taxes along with people talking and articles/government saying social security was going to run out of money.
Thank you verry much!Enormous help with details you have given.
So glad it's helpful! Thank you for watching!
The quality years you have left are a major factor. Everyday you delay is one less day you have to live healthy or at all. 🤔 I worked with a guy that kept saying he was going to work one more year. He never made that last year and died.
Most people who are motivated to work "just one more year" often aren't ready to retire in the first place. I work with a lot of elderly high income people, and the majority of them will die or be forced into retirement because they are too sick to work rather than getting to enjoy a real retirement. There are a few who genuinely love their work and are invested in the company... But most of them are high income with even higher expenses. Cars, homes, boats, spouces, vacations, supporting lifestyles of adult kids and grandkids, you name it, they are proof to me that income or social security are rarely the reason why people don't retire. They just have so many plates in the air that everything is riding on them to keep working and they feel too damn responsible for everyone else to ever give themselves a break.
And that isn't all bad. They mean well by it. But social security is rarely the real reason to work or not work one more year. It is more the unwillingness to stop expanding lifestyle that keeps people in the rat race. If you can manage that, and pay off debts, then the cut in pay of social security would only be a minor consideration of taking it one year vs another.
Planned without SS in the mix. We will get it and when I turn my SS on alone will more than cover all our household expenses and some fun. So investments will just be gravy train baby !
This is so timely and great. A lot of financial advisors do not explain this part of the equation. Very straightforward and concise.
He's is so knowledgeable because of this information I'm heading down to SS office this week.
Thanks a lot.
Due to politicians !!There are not enough Soc Sec workers so nearly everything online, appt only ! Long hour + wait on phone to get info! Politicians are destroying all help to American taxpayers!! Eliminate FICA tax cap so everyone pays fairly into Soc Sec & medicare etc! What a scam that politicians & rich (+170,000salary) do not pay taxes!!
Leave it to government to make this so unbelievably complicated.
INDEED!!! I'd love to see any one of our politicians live for 1 months on what we live on. Lol. Bet they couldn't do it!
Everything at the govt is complicated.
In this case, it makes sense that it is complicated - and I for one am glad they thought through all the possibile eventualities. They did a great job of keeping SS viable and avoiding people gaming the system - unlike our tax laws that leave too many loopholes for the megarich to game the system so they pay less than us common folk. Let's face it, Life is complicated. And SS has been an amazing success at keeping Americans from abject poverty, complete dependence on others, and/or homelessness - as I have seen in 3rd World countries. My Mother would be in real trouble without her SS.
Also folks, it is never too early to look into the costs and logistics of senior care facilities. In my Mom's case, roughly $3k for independent living, $6k for assisted living, and $10k+ for full nursing care.
Wow!! Enjoyed the episode. Lots of great content and I appreciated your respect of the others privacy. That is quite the galley.
Thank you so much for watching!
When to take SS is a serious decision and an individual one as well. Some need to take it early for various reasons. Others, like me who took it at 62 and did not need to was ultimately it was not a good decision. Waiting til 70 which would have worked out as I am now 83 and in good health was a better decision. Add to that, I made a poor choice in investing and put all into what became a Ponzi Scheme! Crap! :-) Fortunately my second wife inherited more than I lost. Sometimes good fortune smiles on you. But that was just plain luck for us. Not all are so lucky.:-)
Everything was much cheaper 14 years ago when I retired at 62. People seem to think that cola makes up for the costs increases. It doesn't even come close. I wouldn't have retired at 62 if I wasn't debt free at that time. But I was and have never regretted retiring early. I also have a decent retirement, so it's different for each individuals circumstances.
I'm 53 with a blood cancer. The average life span after diagnosis is 5 years. So if I make it to 62 I'm definitely going to take it. I will invest it into the S&P500 index which has averaged 10% return since it's inception. If I die that money goes to my beneficiaries. If I don't take it they get $0. Also with an average return of 10% the money will double and if I start pulling it out of my investment at 70, I will be making on average $300-$500 more than if I waited to pull that out from SS at 70. If I invested the money into a ROTH it won't be counted towards taxes.
@@michellepalmer5283 I am so sorry to hear about your blood cancer. Your health and living life to the fullest should be your focus at this point. To that end, I wonder if you can apply for disability in which case your SSN will start soon and will be the same as it would be at your full retirement age. The team here can correct me if I am wrong. You shouldn't have to wait till you are 62 to collect your SSN if you have a terminal medical condition. Please find out and let me know as I will be thinking about you. Hugs.
Thank you for making this video
Of course! Thank you for watching!
If you continue to work while collecting social security why does the government continue to withhold social security and Medicare from your paycheck ?
Wages (money earned from a job) are always subject to taxes...some things never change. However, you aren't paying social security taxes on your social security income. Make sense?
I'm 63 on SSDI and a widow who was the higher wage earner. I was told when my SSDI converts at age 67, my FRA, I should suspend my own benefit to let it grow until the age of 70. Then during this time I was told I could not take a Survivor benefit because I had been on disability but that would give me three years without any income in order to end up with a higher Social Security payment on my own record. Now I'm wondering if I should somehow get off disability and claim my Survivor benefit even though it's lower than what I'm getting now. I have asked several so-called experts I Social Security like you and I'm not really getting clarification from what a computer program told me to do. My understanding is that the restricted applications are still available for widows, but the company who ran the program says that that is not the case! Can you please help me with this because the days are taking away and I don't know what the best strategy really would be.
You guys are SO awesome. Great, clear info and fun together. Thx very much for all you both do.
Thank you so much for spending time with us!
Awsome Information!!!! I will turn 65 in January and I'm trying to learn about Medicare and this information is amazing! I might need a wealth advisor, the first time in my life😊
Thabk you for watching! Zacc and his team are amazing!
@@Theretirementnerds i'm definitely going to contact them!!!! I've listened to both of you guys twice today all the way from beginning to end
@@WigsGlam I'm sorry you have to hear my voice so much! Zacc's is pleasant though and he is so sharp!
@@Theretirementnerds I think you are both very brilliant in your own fields!!!! And neither one of you are bad on the eyes or maybe I need to get mine checked👵🏻👵🏻👵🏻 which makes it much easier to listen to you
Excellent job guys! Thank you.
Thank you so much!!
Thanks for good informations.
You are so welcome! Thank you for watching!
I am on survivor benefits I took at 60 job closed after working there over 30 years as a bus driver Because Covid now I was going on 60 But when I weighed my options he made way more than me even if I waited til my full retirement age I still would not have made out even left mine on table period and living off my Ex’s never look back everything is just about paid am waiting on housing and no dept But took side hustle am loving it only couple hours a day not real early to be to work plenty time to rest and get off in three hours at almost 64 love it 😊 And love what I do 😊
Fantastic video.
One reason to delay not mentioned: as part of a Roth conversion strategy
Now that the kids are grown and I don’t have to rush home to cook dinner or drive someone to soccer, working is actually enjoyable. Plus I can work from home. And I get paid while I’m on vacation. I see no reason to retire- and definitely not until I’m 67 or 70.
Thank you for watching and sharing your thoughts!
I'm in the same situation.... kids gone, working from home at a job I like.... I'm looking at 67 or 67-1/2 for retirement and SS...
If your second spouse has died, can you file for your ex-spouse’s (first spouse’s) benefits if their PIA is larger than second’s spouse’s?
I'm pretty sure that Zacc can accomplish accounting for the opportunity cost of delaying filing (as it relates to investor risk tolerance), by setting up the Excel sheet as he described, with inflation adjusted cash flows for different start dates, then using the "net present value" function to sum the cash flows. The "rate" in the NPV function would correspond to the expected return of the assets outside of S.S. When the net present values are equal for different start dates, that is the break even age. There is a little bit more excel work to automate it, but guessing its well within his wheelhouse (or feel free to reach out and I'll share it, I think I'll build it into my model. I appreciate the podcast, it was very informative).
Your video gave us a lot to think about; excellent - thank you 💙!
Thank you for watching! :)
This was so insightful. Especially the point on considering taking money from our investments and losing that interest versus taking ss early. We had not thought of that before.
Thank you so much for watching, and we're so glad to hear it was helpful!
We call it the difference between the straight break even and the break even with lost growth. We haven’t found calculators/tools that account for it. We had to build them! Wild how all this fits together right?
Is there is a difference starting my social security within Puerto Rico versus the states?
I guess my concern is that if I will loose money by applying from being in P.R. After I worked all my life in the states
No. No difference. Puerto Rico is a US territory and as long as you've paid into the SS system, you get your benefits. Sorry it took so long to respond!
@@dinamedina9005 There should be no difference regardless of where you live, speaking as an expat
Good Information!!!
Thank you so much!
@90 Days From Retirement
Thank you for your video. I am still confused because my situation is very rare.
My wife is 5 years older than I am.
I want to take Social Security at 67. She would be 72 at that time.
She is ok with retiring at any age after 62 so when, should she take hers and when should she take spousal?
My PIA is 2924, hers is 1108, both at 67.
Or can you please do a video where the lower earning spousal benefit spouse is older? I've never seen anyone cover that nuance.
Hi Frank! Great comment. You are always free to send me an email to erik@90daysfromretirement.com and I'll connect you with Zacc's team. It is no cost to have a conversation with them and they can give you some direction and a plan around your circumstances
Eric, just finished watching your social security video with Zac and it was an extremely worthwhile chunk of time. Looking forward to watching he followup piece on Roth conversions. Keep up the great work
Thank you so much! Zacc is amazing!
😊great information guys! Thank you so much!
Thank you for spending time with us 🙂
The information was very good thank you
Thank you for watching!
This was a great topic and really makes me think. Love it!
So glad you enjoyed it! Thank you for watching!
Better analysis in this video than most
Thank you George!
Thank you for some great info by this has been some the best on the net Thur far
Thank you for spending time with us!
I will be 62 this year. I’m taking Survivor Benefits from my deceased divorced spouse now so l can pay my debt down and start saving for actual retirement. I still have to work so l will get penalized but it’s still worth it to get the money.
I’m leaving my own retirement benefits alone until l am 70 and then will draw on that. It’s like having money in an investment account.
Figuring in the potential for additional investment income while taking SS early was pure gold. I'm going to have my investment manager run the numbers to see if that makes sense for me.
So glad it was helpful! Thank you for watching!
What about a single person . When should i take SS. Im 63 ... my work is physical and I'm tired .. I'm a stylist for 43 yrs don't know if i can make it to 67 . Will it be ok to start at 65 ?
My husband is 20 yrs older than I. He has pension benefits and SS. I'm not sure when i should file since my FRA is 67 and ill be 62 this year. I think my higher amount would be based on his benefit. Does it make sense for me to file sooner or later??
Hi Julie, thank you for leaving this comment! There's still quite a bit that would go into that decision. Would you mind sending me an email to erik@90daysfromretirement.com and we can take a closer look? It will never cost you anything to chat with us about SS - just want to be clear on that up front.
Question! My husband is deceased and was on disability for an illness before full retirement. I will be able to take his at 60. When I went to apply the IRS would not give me any $ amount info with out filing a claim. They were upset that I wasn’t going to take it at this time. Do you know of any way to find his payment scale so that I can do future planning. Thanks! Love your channel and the interviews.
Please help! The info at 35:22 has given me info I didn’t have. Thank you! My question is as a survivor that thought about taking the benefit at 60 they would not tell me how much my husband’s would be at my full retirement. They only told me what it would be now. When he passed there wasn’t an online account set up so I couldn’t look at it. Is there a way to find out what his will be so I can decide how to do this? I didn’t take it this year because they would have taken half of it back and I would have to pay taxes on the rest.
in survival benefit does amount stop at PIA, or grow more at 70? Even if other spouse claimed at62?
Survivor benefit is a percentage of whenever the living spouse takes the benefit based on whatever the deceased spouse was receiving. If the deceased spouse delayed and had more than the PIA, the surviving spouse's benefit is based on the higher amount. Likewise if the deceased spouse took early and had a reduced benefit, the spouse also has their percentage of the reduced benefit.
I retired 19 years before my FRA, which will be 67. I may wait until i am 68, 69 or 70 though to start.
Congratulations on such an early retirement!
Fairness
my present checking account got compromised. I OPEN A NEW CHECKING ACCOUNT & is there a form that needs to be filled up? Pls let me know. Thank you.
Thank u for this
Great video. At the 51 minute mark you make a point missed by many which is you need to calculate the growth on assets not spent when you collect SS earlier. In your example you showed a $2000 per month benefit over 4 years gaining $100k and growing to $130k. That would not be impossible if invested in stocks but using a more realistic risk free 4% would lead to $104k not $130k. The math is $24k per year times 5 years is $96k with 4% interest of approximately $8k over the 4 years.
Correction $24k times 4 years is $96k not 5 years.
Great Interview. How can I get more information on IRA Topedo? Thanks.
It all revolves around how SS is taxed.
This video should help: ruclips.net/video/-NlSlZeoRn4/видео.html
Traditional IRA income would count in the equation. Roth wouldn't.
Thanks for the great content, gentlemen! Yesterday, I read that only about 4% of people maximize their Social Security benefits, so there is much room for improvement.😀
Thank you so much for watching David!
I always think of you when the more financial videos are published because I know you have a brilliant financial mind. Appreciate you!
@@Theretirementnerds Thank you, that is very kind of you to say.
I am 66 I. In great health love working and making incredible money. I am waiting til 70 . No reason to take it now..
A reason to take it at my full retirement age (66 and 2/3), but before age 70, is that I have those working years until age 70 to save or invest the social security payments I don't yet need to live on. I did the math, and it would take me until age 86 to make up the difference between the FRA payment and waiting to take the age 70 payment. Most people in my family die at 83- 85. Even if I live to 100, there is a lost opportunity cost to spend the money at an age I can enjoy it, or lost interest which would be thousands.
Goodie good for YOU. I am a vacc1ne mandated aka medically gRaped nurse Who worked frontline during C0vid while many made MORE THAN ME WHILE SITTING HOME SAFE AND SOUND DOING ... NOTHING.. who is so ill every day of my life trying to still make a living.
RE: Spousal Benefit. My wife and I plan for her to wait until 70 (long genes) and I would claim at FRA. If she files for spousal on my benefit, does that STOP her clock to get to 70 for her delayed benefit?
What about taxes and RMDs ? If getting SS early throws you into a higher tax bracket when you have to do RMDs because your investments grew and your Medicare premiums go up, should that also be factored in ?
I retired early, 61, with a pension. If I wait until full retirement age, 67, my benefit is larger than my x-husband who took his benefit at 62. Can I claim on his now & get my full benefit later?
Hi Kelly, unfortunately, it doesn't work like that anymore. If you file now, SS will give you the larger of the two benefits. You get a percentage of his, not the full benefit (unless he is deceased). If you do take before FRA, either yours or a spousal, your benefit doesn't continue to grow outside the annual Cost of Living Adjustment. Hope that helps!
NEW
???? Earlier you mentioned something about a woman who had been married more than once. I've been twice. I divorced my 1st husband and then he died about 4 years ago and I have been married to my 2nd husband for 15 years. I'm pretty sure my 1st husband made more money. Can I still claim survivors benefits? My benefits are in medical review right now and I'm afraid of them being taken away and I need them because I have seizures and I can't work. ???
2 things. Your first marriage had to have lasted at least 10 years. 2nd, you would need to have remarried your 2nd husband after 60 to be entitled to the survivor from the first husband. Unless your current marriage ends in divorce or death.
In Blind to Billionaire, He just covered this very question. If you were married to your 1st husband for 10 years or longer, the answer is yes, you can! Go for it, girlfriend!
My mom has a state retirement benefit of about $2,100.00 pension. Born in 1942. Applied for social security at 62. And has barely paid in social security. She gets a piddly amount of $400.00 a month. When she retired her husband was alive. He was drawing social security much higher than hers. Can she get a survivor benefit?
I forgot to add her first marriage was to my dad for 11 years he is deceased. So can she get his survivor benefit. But not the second husbands, because she married him before age 60? ?
Im loving all of this information, however I’m not hearing anything if you are single and have always been. Most of this is about survivor or spousal benefits. Did i miss something?
I am 60 and the higher earner (3:1 benefit difference), my wife is 63. I'll be 67 when she is 70. Good health and longevity in the genes. Assuming our retirement planning prioritizes maximizing lifetime SS benefits and the survivor benefit, at which ages should we each file?
There are several other factors in there including the other assets from which you can pull and how long you plan on working.
My email is erik@theretirementnerds.com
Shoot me an email with the state you live in and we can set up something to go into your specific situation. We never charge anything for Social Security help, conversations, guidance, etc.
Is there a way to personally know the absolute to either take an advantage plan or supplement?
My mom needs to talk to you!!
Send her our way!
Erik@90daysfromretirement.com is my email address. Have her include what state she's in 🙂
Maybe I missed it, but I did not hear you mention anything about the Windfall provision (deduction) for certain pensions (I’m a teacher)…My calculations show that I can only get 45% of my benefit. Can you suggest another video for that deduction?
Sure can 🙂
Here is a video on those:
ruclips.net/video/n4aHC6xnFFM/видео.html
I love both my dogs! Great video & thank you for the content. I'm still undecided between supplement plan vs Advantage.
Glad it is helpful! Dogs are the best!!
Have to be almost in perfect health to change from Advantage to Supplement.
Wide variety of supplement plans from cheap major med to more expensive covering everything. Have heard horror stories about advantage plans, since insurance co makes care decisions vs. Just your doctor.
But it is cheaper. Good luck!
this is very informative - thank you. It would have helped me if the language used were more distinctive, such as Person 1 and Person 2 (i.e. spouses, whether married or divorced or alive or deceased). The informative sentences were often "you you you you.... " or then "spouse spouse spouse"... I couldn't refer back fast enough to understand which person you were talking about, and whether or not I myself was the "You" or "the spouse". Thank you.
If I take SS at 62 and my husband is getting his full amount, you mentioned I could get some of his benefits, is this possible if he’s alive first, also does what I get from him does that take it away from the amount he’s now getting? Thank you
Second video I watched and such great content. Really good stuff!
Can I take social security and still work for supplemental income?
You can. How that all plays out will depend on when you take Social Security though. There are earnings limits if you take before your Full Retirement Age
No worries you look handsome. Thank you for your advice
So, if you wait till Full Retirement Age to draw, and can do so comfortably, that is the best way to go.
Is that correct?
Are you healthy ? Enjoy your work ? If you said "Yes & Yes" you should wait til 70. Terrible economic calamity is ahead.
@@matt75hooper with this economic calamity, is it not better to have been collecting for a period of time rather than risk receiving no benefits at all?
@@Lulu-kt6gr All this retirement strategy comes down to two things : Your health & do you enjoy your work ?
A third factor is your spouse if you are the higher lifetime earner.
Those years between 62 & 70 are typically very large income years. These experts never ever mention this huge factor. I am head of household. I have been the higher earner these decades. I am super healthy & enjoy my work. I announced I would not retire / collect until 70. My wife will then receive my much much higher Soc Sec check if I pass at 70+. I want her to sleep better at night in her old age.
The ONLY reasons to collect at 62 : 1. Terrible health. Short life expected. 2. You are so well funded in other areas you don't even need the check at 62. It's just a little slush fund.
Collecting at 62 to 67 has tax consequences if you still work.
Bottom line : Most people are terrible with money their entire lives. When these people collect at 62 they live on tomato soup & crackers. At 65 they're working at Wal-Mart & absolutely miserable.
I am going to be 67 in June 2024 . I will have
Cal Per benefits plan . My question is when will be best time to retire? I want to retire soon .
Didn't the spousal benefit change in 2024? If so could you discuss this int the future? Thanks!
Hi Andrea, there are proposals out there, but not official changes yet. There is an article that is sort of gotten a lot of popularity because is is on the SSA.gov site. It talks about proposals and people are acting like it's official. We'll keep you posted if that changes!
Just at the part about 18:00, spouse taking 50% of my benefits. The question is, she has been on ssi since 1999. Can she still do the spouse benefits from my benefits. Just turned 62 on October 6,2024.
You mean still pay in to ss. And not receive? Is that what your saying?
Retirement doesn't necessarily mean not working. Tomorrow is never guaranteed . I'm drawing mine at 62.
Same!
Same here! You get to collect longer that way and you can still make a little over 22,000 a year.
Everyone is different…
That's what I did when my husband passed away. Even though I wasn't working at the time, I did work my whole life...but needed the money. Now working part time and I'm ok.
My spouse will file for my benefit amount. Does she have to wait for me to file or can she file sooner?
Formula : 1. You are healthy. 2. You enjoy your work. 3. You collect at 70 so your wife receives your full benefit even if you drop dead at 70 and a day. She deserves to sleep comfortably at night when you're gone. I am head of household and this was my decision. Also- these videos never take into consideration your income from age 62 to 70. It's typically a good strong income $. The perfect launching pad into retirement.
Yes, having a lower earning spouse played largely into my decision to wait until age 70. My military pension will drop to 55% after my death so having the higher SS benefit is important to offset that drop in income. Great video.
@@brucefredrickson9677 very nice to think of your spouse.
My plan was also to go to 70, and I still might, because my wife will be 63 at that time. But she’s told me I’m not allowed to go before she’s close. She will have a really hard time even though everything will be set. Luckily, I can reduce my pension to 75% and she gets the same for life, she’ll have my high earning survivor benefit, and my maxed 401k (which we’re Roth Laddering near retirement), Mega Backdoor Roth, Roth IRAs, HSAs, and brokerage accounts and my company stocks.
The new plan is to retire at 62, when she’s 55. My employer has retirement health coverage, which will also cover her in case of me passing before she turns 65. The aforementioned accounts should still cover us with 8 years of earlier retirement and all that time to enjoy our time together sooner.
Matt, it's such a simple decision for obvious reasons. Unfortunately people either fail to plan or just as bad ignore the obvious and draw early and regret later in life.
I'm hoping you can answer this my husband is 6 years older. He's made significantly more than me if he files at 65 when do I file for spousal benefits when I turn 65 and he's 71?
Thank you!