I have had this conversation with many friends. The best advice I could give anyone is really to make up your mind. I don’t mean that in a bad way but I had to demonstrate to people how waiting for two years was a total waste of time. So many people planned to wait for two years not realizing that those first two years are only penalized by 5% per year. I told them that making up those 2 years of benefits with a check only 10% higher would take 14 years in almost all cases. So either take it at 62 or wait until at least your full retirement age.
My investments are all doing well. I took at 62 based on my family’s normal life span. I took my father and mothers family history into account. Then I did the break even analysis. This is working for me. Maybe not everyone.
Love how you said that. Your self-awareness to understand your situation is unique and not ascribable to everyone is wonderful. So glad you feel good about your decisions!
Great Video! You covered a lot of things I’ve been researching lately. My husband was born in 1961 so his FRA is 67 but he’s having back issues. His Neurologist told him to relieve his back pain he needs surgery but it will be a career ender. He has a very back breaking job working in the Oil Fields all across America so a lot of his back pain happens when he is just driving from one job to another. If he retires before 65 he won’t be able to apply for Medicare until he’s 65. If he can qualify for Disability he’s looking at not being able to apply for Medicare until after he’s been certified disabled for two years. Before Obama/Biden we used to pay $300 a Month for our Medical Insurance but now we pay $300 a week out of my husband’s weekly checks. Plus he has a $2,700 Deductible and a $4,000 out of pocket every year per person. The cost of Medical insurance, deductibles and out of pockets climbed substantially for the 8 years Obama/Biden was in office and they all started climbing again with Biden/Harris. This was one reason of 100s why we walked away from being Democrats raised by Democrats and became registered Republicans. We went online to his Social Security Account and found out that an estimated difference between him retiring at 65 verses 67 is about $330 less a month. He could make that up working odd jobs here and there. Plus at 65 he can qualify for Medicare which will reduce his medical costs. So since he can’t qualify for Medicare until 65 or two years after being certified disabled, if he has his back surgery that would mean, if his company will let him, he would have to go COBRA and therefore he would end up paying for the about $300 a week plus what his company pays which is half. So that would mean about $600 a week plus his high annual and per person deductible and out of pocket. There is no way we could pay for that even if the company allows him to go COBRA until he’s 65 and even if he qualified for disability. I qualified for disability after 19 surgeries and now I’ve had 21 surgeries with more pending. My Medicare, supplemental and deductible cost me about $550 a month on top of what my husband pays through his job. So we know that when he is able to qualify for Medicare we will still be paying a lot for Medical but less then he is paying through his job. Qualifying for disability is hard. I went through the red tape to qualify for disability and one of my sisters was got diagnosed with Cancer at 42 and it took her years and a lawyer to qualify for disability and she died at 47. We know that he could go years before he could even qualify for disability then if he’s not 65 he will have to wait two years to qualify for Medicare. A lot of my family died of Cancer or other causes before they reached FRA so we definitely already know he’s not going to wait any longer then 65 when he can also qualify for Medicare. So right now we are doing everything we can to get him through until he can retire at 65. We are buying heating and massage Vests and heating and massage Car seat covers and he’s going to talk to his doctor about shots in his back and prescription pain pills. But his pain pills will also have to be safe enough for him to be able to drive and do his back breaking and dangerous job.
Yes sir, all your videos are very helpful especially to us the old/senior people. Thank you so much for doing this. As always never miss watching your videos. Very informative.❤
The site is growing as I knew it would. That alone makes my day. So turning 65 later this year, still working, not collecting yet on social security or my IRA Accounts. In the process of moving my 3 IRA Accounts with 3 different firms to just one company. Wife has a friend she went to school with who has been with Edward Jones for a long time, and she has her stuff with her. An issue with me is all my life I worked to build up my 401k or IRA Accounts and in the future which is really not that far away in the chapters of life I find it hard to accept that eventually I will have to watch the money come down and not continue to grow. It's something I never really thought about, but it is a part of the whole concept in saving for retirement. Just me I guess. Also in this video I liked how you showed the percentages at different ages. It helps in deciding for some people depending on their situation. So if it is 10% of $2,000 which is $200 a month. Is it worth it for them to wait, especially if they do not like their job, or the $200 will not break the bank. It's a great point in showing that as some may realize they would rather have their extra retirement time instead of $200 a month. Others might think the opposite. But it helps people to decide. Great Job!
Thank you, my friend! Based on this comment and several of your others, you seem like a very good planner and all of your ducks are in a row as you reach 65. Planning takes a lot of the stress and apprehension out of the bigger decisions so kudos to you for being so proactive!
For the purposes of the increasing benefits the FRA is not really any different than any other years. It's just a year along the way if you plan to wait until after it. It's not like benefits take a big jump in your FRA year. It's nearly a flat increase from age 62 to 70. So it's really only if you continue to have earned income over the cap that it matters prior to your FRA.
The calculations becomes more complex when you have a 401K (or equivalent). If you can afford it, go with FRA (Full Retirement Age) to minimize the draw-down on your retirement savings, particularly if it's sitting in a bank account getting 1% interest.
try running a spreadsheet where you invest the money at 5% above inflation and draw out what you would if you wait. you will be over 100 before you break even, if you live until you are 70 you will have 8 years of income if you took it and 0 if you didn't. if you invested that 8 years of income it will beat anything you will ever get after 70. a dollar in your hand is worth 2 in the bush and 10 in the hands of the federal government. a wise man makes his money work for him, a fool works for his money. if you are getting 1% your money is not working for you
I just got a statement Saturday in the namel tell me that I can get a higher amount if I cause I'm on spousal benefits but they said that I could get a hard benefit from my social security because I took my retirement from my when my husband died at 60 years old and I just turned 69 so I think yes I need to hurry up and find out tomorrow
A Question I hope you can answer. I want to start taking SS January 2025. The SSA instructions say that I must to choose the month before the month I want to begin receiving SS payments. That means choosing December 2024. BUT no one seems to know what amount SSA will use to pay my benefits in January 2025. There is about a $200/month jump in benefits between December 2024 and January 2025. I worry that if I follow the SSA guidelines and "choose December 2024" for payments to begin in January 2002 that SSA will use the December 2024 benefit amount and not the January 2025 amount. I want benefits to begin January 2025 but at the January 2025 benefit amount not the amount of the month before. Does my question make sense?
If I start collecting social security benefits in October 2024, when I reach FRA full retirement age, will I receive a cost of living increase in January 2025??
You get a cost of living adjustment each year in January once you are taking SS benefits. The cost of living adjustment is not added to your PIA if you are not taking benefits, just to your benefit amount once you start taking benefits.
Unless I’m not aware of something, I don’t see anything magical about FRA. From the age of 62 on, the payment goes up 8% per year, every year until the age of 70. 70 should be called FRA, because it’s when you truly max out on the monthly payment. 67 is just one stop between 62 and 70. Is there something I’m missing here??
I just have one question:I plan to retire early in Jan or Feb 2024..,if I work an additional month and make more than my allowed amount..1770 for the month..is that overage paid at the end of the year at tax time ?
I’m wondering what day of the month I can retire if my birthday is at the end of the month, can I retire on the first of the month? My full retirement is 66 and eight months. Would that be the first of the month or on my birthdate?
I asked SS same question last week, same as you my birthday is end of month, they said I don’t need to wait till end of month, 1st of month I could retire.
Why is it I became disabled 2012 now I'm 68 they took me off disability and put me in on socially security and told me I'm full retirement age..and no longer disability.havent made difference in pay...?
They only pay disability up till your full retirement age, and the amount of disability you get is same as yr full retirement age. Then they switch you over to your SS benefits which in your case stays same.
So if I turn 66 in 2024 but in September and my fra is 66 and 10 months does my earning cap go up in 2024 when I turn 66 or in 2025 when I reach fra (66 and 10 months, roughly around June 2025) that of course will dictate whether or not I plan to take it or wait.
1959 - I'm reading a lot of different info. Four months into my 66th year the calendar changes - just trying to figure out if my earning cap is in the twenty's or fifty's.
My math may be shaky, but if your birthday is September, 1959, that puts your 66th birthday at September 2025, correct? And your FRA at 66 and 10 months, so FRA is August 2026. Whatever your FRA is, it includes the months. So, you would have an earnings limit prior to that time. If your FRA is 66 and 10 months, there is an earnings limit prior to that 10th month, and after that, there is not limit.
Social security age should only get lower. It should never have to be raised. If government kept their stealing hands off of it and didn't give any to illegals the age should only be lowered
Great video. Can you please tell me If on my full retirement age I would apply for 50% from my husband sosh security benefits, because I still don't have 10 years work. And when I will still work for 2 years. Call I later switched for my own sosh security benefits, because my at this time will be much higher. Thanks
90 Days From Retirement has the best content in the RUclips Financeverse! Well done!
Appreciate you so much David! 🙏🙏
@@Theretirementnerds My pleasure, indeed.😀
I have had this conversation with many friends. The best advice I could give anyone is really to make up your mind. I don’t mean that in a bad way but I had to demonstrate to people how waiting for two years was a total waste of time. So many people planned to wait for two years not realizing that those first two years are only penalized by 5% per year. I told them that making up those 2 years of benefits with a check only 10% higher would take 14 years in almost all cases. So either take it at 62 or wait until at least your full retirement age.
My investments are all doing well. I took at 62 based on my family’s normal life span. I took my father and mothers family history into account. Then I did the break even analysis. This is working for me. Maybe not everyone.
Love how you said that. Your self-awareness to understand your situation is unique and not ascribable to everyone is wonderful. So glad you feel good about your decisions!
Great Video! You covered a lot of things I’ve been researching lately.
My husband was born in 1961 so his FRA is 67 but he’s having back issues. His Neurologist told him to relieve his back pain he needs surgery but it will be a career ender. He has a very back breaking job working in the Oil Fields all across America so a lot of his back pain happens when he is just driving from one job to another.
If he retires before 65 he won’t be able to apply for Medicare until he’s 65. If he can qualify for Disability he’s looking at not being able to apply for Medicare until after he’s been certified disabled for two years. Before Obama/Biden we used to pay $300 a Month for our Medical Insurance but now we pay $300 a week out of my husband’s weekly checks. Plus he has a $2,700 Deductible and a $4,000 out of pocket every year per person. The cost of Medical insurance, deductibles and out of pockets climbed substantially for the 8 years Obama/Biden was in office and they all started climbing again with Biden/Harris. This was one reason of 100s why we walked away from being Democrats raised by Democrats and became registered Republicans.
We went online to his Social Security Account and found out that an estimated difference between him retiring at 65 verses 67 is about $330 less a month. He could make that up working odd jobs here and there. Plus at 65 he can qualify for Medicare which will reduce his medical costs. So since he can’t qualify for Medicare until 65 or two years after being certified disabled, if he has his back surgery that would mean, if his company will let him, he would have to go COBRA and therefore he would end up paying for the about $300 a week plus what his company pays which is half. So that would mean about $600 a week plus his high annual and per person deductible and out of pocket. There is no way we could pay for that even if the company allows him to go COBRA until he’s 65 and even if he qualified for disability.
I qualified for disability after 19 surgeries and now I’ve had 21 surgeries with more pending. My Medicare, supplemental and deductible cost me about $550 a month on top of what my husband pays through his job. So we know that when he is able to qualify for Medicare we will still be paying a lot for Medical but less then he is paying through his job.
Qualifying for disability is hard. I went through the red tape to qualify for disability and one of my sisters was got diagnosed with Cancer at 42 and it took her years and a lawyer to qualify for disability and she died at 47. We know that he could go years before he could even qualify for disability then if he’s not 65 he will have to wait two years to qualify for Medicare. A lot of my family died of Cancer or other causes before they reached FRA so we definitely already know he’s not going to wait any longer then 65 when he can also qualify for Medicare.
So right now we are doing everything we can to get him through until he can retire at 65. We are buying heating and massage Vests and heating and massage Car seat covers and he’s going to talk to his doctor about shots in his back and prescription pain pills. But his pain pills will also have to be safe enough for him to be able to drive and do his back breaking and dangerous job.
A lot going on for you and your husband. Hopefully health improves and doesn't get more complicated for the two of you!
Let's keep it real. You have horrible genetics (and are maybe both overweight?).
Yes sir, all your videos are very helpful especially to us the old/senior people. Thank you so much for doing this. As always never miss watching your videos. Very informative.❤
Always love seeing your comments come through! Thank you for the support and so glad these are proving helpful!
Very easy to understand info and the fact that we can reach out to you for free advice on SS is great! Just subscribed and sent you my info!
Thank you so much! Happy to help!!
My email is erik@theretirementnerds.com if you'd like to reach out directly
Your videos are immensely helpful. Thanks so much for the work you put into them.
Thank you for watching!
The site is growing as I knew it would. That alone makes my day. So turning 65 later this year, still working, not collecting yet on social security or my IRA Accounts. In the process of moving my 3 IRA Accounts with 3 different firms to just one company. Wife has a friend she went to school with who has been with Edward Jones for a long time, and she has her stuff with her. An issue with me is all my life I worked to build up my 401k or IRA Accounts and in the future which is really not that far away in the chapters of life I find it hard to accept that eventually I will have to watch the money come down and not continue to grow. It's something I never really thought about, but it is a part of the whole concept in saving for retirement. Just me I guess. Also in this video I liked how you showed the percentages at different ages. It helps in deciding for some people depending on their situation. So if it is 10% of $2,000 which is $200 a month. Is it worth it for them to wait, especially if they do not like their job, or the $200 will not break the bank. It's a great point in showing that as some may realize they would rather have their extra retirement time instead of $200 a month. Others might think the opposite. But it helps people to decide. Great Job!
Thank you, my friend! Based on this comment and several of your others, you seem like a very good planner and all of your ducks are in a row as you reach 65. Planning takes a lot of the stress and apprehension out of the bigger decisions so kudos to you for being so proactive!
Great information
I have been retired 17 years. I know my FRS for the longest time many many many years I’an currently am 54. My FRA is 67.
For the purposes of the increasing benefits the FRA is not really any different than any other years. It's just a year along the way if you plan to wait until after it. It's not like benefits take a big jump in your FRA year. It's nearly a flat increase from age 62 to 70. So it's really only if you continue to have earned income over the cap that it matters prior to your FRA.
The calculations becomes more complex when you have a 401K (or equivalent). If you can afford it, go with FRA (Full Retirement Age) to minimize the draw-down on your retirement savings, particularly if it's sitting in a bank account getting 1% interest.
try running a spreadsheet where you invest the money at 5% above inflation and draw out what you would if you wait. you will be over 100 before you break even, if you live until you are 70 you will have 8 years of income if you took it and 0 if you didn't. if you invested that 8 years of income it will beat anything you will ever get after 70. a dollar in your hand is worth 2 in the bush and 10 in the hands of the federal government. a wise man makes his money work for him, a fool works for his money. if you are getting 1% your money is not working for you
I just got a statement Saturday in the namel tell me that I can get a higher amount if I cause I'm on spousal benefits but they said that I could get a hard benefit from my social security because I took my retirement from my when my husband died at 60 years old and I just turned 69 so I think yes I need to hurry up and find out tomorrow
A Question I hope you can answer. I want to start taking SS January 2025. The SSA instructions say that I must to choose the month before the month I want to begin receiving SS payments. That means choosing December 2024. BUT no one seems to know what amount SSA will use to pay my benefits in January 2025. There is about a $200/month jump in benefits between December 2024 and January 2025. I worry that if I follow the SSA guidelines and "choose December 2024" for payments to begin in January 2002 that SSA will use the December 2024 benefit amount and not the January 2025 amount. I want benefits to begin January 2025 but at the January 2025 benefit amount not the amount of the month before. Does my question make sense?
If I start collecting social security benefits in October 2024, when I reach FRA full retirement age, will I receive a cost of living increase in January 2025??
You get a cost of living adjustment each year in January once you are taking SS benefits. The cost of living adjustment is not added to your PIA if you are not taking benefits, just to your benefit amount once you start taking benefits.
Unless I’m not aware of something, I don’t see anything magical about FRA. From the age of 62 on, the payment goes up 8% per year, every year until the age of 70. 70 should be called FRA, because it’s when you truly max out on the monthly payment. 67 is just one stop between 62 and 70. Is there something I’m missing here??
Not quite 8% pre-FRA is probably the biggest reason. 5-7ish% pre-FRA, 8% post-FRA.
Great thoughts!
@@Theretirementnerds Thanks.
I just have one question:I plan to retire early in Jan or Feb 2024..,if I work an additional month and make more than my allowed amount..1770 for the month..is that overage paid at the end of the year at tax time ?
Allowed amount? Are you collecting SS at 62? Wait until you are 70.
Thank you
I’m wondering what day of the month I can retire if my birthday is at the end of the month, can I retire on the first of the month? My full retirement is 66 and eight months. Would that be the first of the month or on my birthdate?
Yes, it's within the month, not to the day 🙂
I asked SS same question last week, same as you my birthday is end of month, they said I don’t need to wait till end of month, 1st of month I could retire.
What happens when the SSA changes the retirement age while you're drawing benefits. For example: the recent change from 65 to 67 in 2022?
They usually Grandfather sections of the population based on birthday and their changes apply to younger folks
@@Theretirementnerds So it should remain at 65 for people born in 1960?
@kevin-xx4te here is the chart from SSA with the birthday and FRA:
www.ssa.gov/benefits/retirement/planner/agereduction.html
@@Theretirementnerds thanks
Why is it I became disabled 2012 now I'm 68 they took me off disability and put me in on socially security and told me I'm full retirement age..and no longer disability.havent made difference in pay...?
They only pay disability up till your full retirement age, and the amount of disability you get is same as yr full retirement age. Then they switch you over to your SS benefits which in your case stays same.
So if I turn 66 in 2024 but in September and my fra is 66 and 10 months does my earning cap go up in 2024 when I turn 66 or in 2025 when I reach fra (66 and 10 months, roughly around June 2025) that of course will dictate whether or not I plan to take it or wait.
Want to make sure we get this accurate. Your birth year is 1958?
1959 - I'm reading a lot of different info. Four months into my 66th year the calendar changes - just trying to figure out if my earning cap is in the twenty's or fifty's.
My math may be shaky, but if your birthday is September, 1959, that puts your 66th birthday at September 2025, correct? And your FRA at 66 and 10 months, so FRA is August 2026.
Whatever your FRA is, it includes the months. So, you would have an earnings limit prior to that time.
If your FRA is 66 and 10 months, there is an earnings limit prior to that 10th month, and after that, there is not limit.
Your math is right I put the wrong year down. I get it - Its not counted against me until I start taking the benefit unless I take it before FRA.
@@markinfusino8351 You got it! Great questions!
Social security age should only get lower. It should never have to be raised. If government kept their stealing hands off of it and didn't give any to illegals the age should only be lowered
Great video.
Can you please tell me
If on my full retirement age I would apply for 50% from my husband sosh security benefits, because I still don't have 10 years work.
And when I will still work for 2 years.
Call I later switched for my own sosh security benefits, because my at this time will be much higher.
Thanks
No, unfortunately it does not work like that. Once you take SS, your own or your spousal benefit, your personal benefit does not grow anymore.
Thanks