Social Security

[Mbroady]

Originally Posted by CASD57

Just remember any income over $17640 they hold back $1 for every $2 you make over the $17640,. So like me that would eliminate my SS and and my daughters part,. So im waiting till FRA,. I was ready to take it this year at 62 but couldn't because of my income.

Much comes down to what my RMD from IRAs would be. The plan is to have enough between SS and the mandatory distributions as to not have to work. I/we live frugally. But you make a good point and this will be part of the calculus when the time comes. I can say with some certainty, my guitar buying days will be limited

[reeve21]

Hi Kerbie,

Good discussion. My situation seems pretty simple to me. I'll be 62 next year. No plans to retire. I'll always have a job if I want to work, and I plan (hope ) on doing so until age 70 or so (I'm self employed). I won't be taking it any time soon, as my income would reduce the benefit, and I don't need it now. I guess I could take it without penalty in about 6 years, but if I don't need the money and am healthy I'll probably wait until 70 when I have to. That 8 per cent a year if you wait is a pretty good ROI for someone who is healthy and has a good chance of living well into their 80's (like my folks who are alive and well).

My wife is the same age. She plans to retire in about 2 years. She will have a sizeable benefit, much more than half of mine. I've encouraged her to wait until at least full retirement age, as we shouldn't need the money while I'm working. She has a pension that will replace some of her income and a 401(k) if we need more.

Every situation really is different. For us, being healthy and not in dire need of the money now, I think it make sense to wait.

[Edgar Poe]

If you choose to delay payment, Make sure you get all of your rights in writing.
My Mom delayed receipt of Medicare because they told her iof she had an active medical insurance policy through the company she worked for she did not have to sign up for medicare..
She received as condition of retirement from Disney Corporation, lifetime paid health insurance. She was told because of that she did not have to sign up for Medicare.
Well 6 years later she is notified that because she did not sign up she will be penalized 33%. So instead if paying $135.00 a month, she now pays over $200.00 a month. And has been for the past 23 years.
Their reasoning is, The insurance is no longer provided by her EMPLOYER.. NO KIDDING, SERIOUSLY IT WAS A RETIREMENT BENEFIT. SHE IS NO LONGER EMPLOYED.

Ed

[Murphy Slaw]

Originally Posted by Edgar Poe

If you choose to delay payment, Make sure you get all of your rights in writing.
My Mom delayed receipt of Medicare because they told her iof she had an active medical insurance policy through the company she worked for she did not have to sign up for medicare..
She received as condition of retirement from Disney Corporation, lifetime paid health insurance. She was told because of that she did not have to sign up for Medicare.
Well 6 years later she is notified that because she did not sign up she will be penalized 33%. So instead if paying $135.00 a month, she now pays over $200.00 a month. And has been for the past 23 years.
Their reasoning is, The insurance is no longer provided by her EMPLOYER.. NO KIDDING, SERIOUSLY IT WAS A RETIREMENT BENEFIT. SHE IS NO LONGER EMPLOYED.

Ed

I thought EVERYBODY (in the USA) HAD to sign up for Medicare at age 65 ?

[Murphy Slaw]

Great thread Kerbie, I'm facing age 62 in Feb. and trying to decide myself.

My gut tells me to go ahead and jump, but I have a daughter in college and hate to face the pay cut.

However my wife has a good job and a good pension and we have little to no debt.

It's a frightening decision either way for someone who has worked all their life.

[Kerbie]

Thanks, Murph... and for participating. It is a tough choice. It's a gamble based on how long we're all going to live. We all have valid information that goes into guessing how long that might be, but we really don't know.

[The Watchman]

My decision is based on the feeling that its better to get less, longer, than more, later. Not a purely financial calculation. My gamble is that I will not live long enough to reach the break even point. If I do, then its a bonus. So, I am going to start drawing at 63.

[reeve21]

Originally Posted by Murphy Slaw

I thought EVERYBODY (in the USA) HAD to sign up for Medicare at age 65 ?

They can't force you to, but as Ed says they will penalize you if you try to sign up later.

Signing up for medicare at 65 and electing to take social security benefits are 2 different questions.

[Mr. Jelly]

I think the main thing for me going to my FRA was to set myself up to get what was allotted to me and not have any hidden gotchas. From SS or Medicare. I looked at all the ins and outs in all directions and decided I didn't want to play anymore. I'd won, enjoy it. And I am.

Some of my thoughts at the time were that I wanted to retire as work had nothing to offer other than money any longer. And I didn't need any more. I'd been there and done that several times over. I wanted to try a different life. The goal of retiring at my FRA was just another goal. I did that mainly for a feeling of completion. Allot of the decision is about money and health. Retirement may last a long time and making it today on what you get from SS may not cut it twenty years from now. Once retired what's to do? The people that took care of their business make something up in some fashion. Which is great don't get me wrong. The others have it thrust upon them.

[catdaddy]

Originally Posted by jpd

Kerbie,

Health was my #1. Financial set-up # 1A. Job burn-out #2. If you are relatively healthy, and financially good to go, it makes sense(cents) to use your time and assets to do what you have always wanted to do. Of course, if you have a career that is in that vein.....

Those were pretty much my considerations for retiring at age 62, and taking Social Security at that age. Starting to use that income when I was young enough, healthy enough to enjoy it, and being financially secure enough without having to max out SS made it an easy decision for me. As others have mentioned, the big caveat is: YMMV!!

[KevWind]

It is so complex and individual,vary hard to advise.
What we did.
Both my wife and I will start taking it next year at age 70
Because we were financially set up and both in relatively good health, we waited.

[keith.rogers]

Been said over and over, but it's that weird calculus that requires knowing the answer to when you will die, and if you have a spouse that will draw on your account after you die, when she will die!

My wife is younger and still working for a couple more years. I deferred until earlier this year - a bit past midway between my FRA and 70 because we've got stuff we want to do around the house and like to travel a lot (and not on the cheap, it turns out), so it came down to whether we draw from SS before 70 or the IRA before the RMD thing kicks in. I picked SS, gambling that leaving the IRA alone for another year or so would pay off more. Plus I get a tiny bit of tax break on the SS $, and none on the IRA withdrawal. This [decision] will potentially impact my wife's SS, but it's close, and getting closer to whether that will be significant $, even over 20 or 30 years (hah). Whether this choice will matter, I may never find out. Crazy.

[Jim Owen]

Hi Kerbie,

Okay, so I’m mulling it, too. A sticking point to me is the amount of coin I can pocket annually without it subtracting from my monthly check if I retire and file prior to my FRA of 66.4.

That may drive me to work through the 21/22 academic year. I can’t tell my boss, “Hey, I’ll come back next year, but only teach the fall term.” I reckon I could tell him that, but he’d not respond with a civil tone.

My buddy who waited til 70 got quite a bump to her check. But her social security is the major source of her retirement income. I have a pension so long as the governor of my state doesn’t trade our fund for some magic beans. So I ain’t waiting til 70.

I’ve heard that if you go talk to the SS folks, they can be very helpful.

[Kerbie]

Yeah, Jim... we're just about there, aren't we?

[Jim Owen]

Originally Posted by Kerbie

Yeah, Jim... we're just about there, aren't we?

I believe I get there first.

It ain’t hypothetical. And because of the rhythm of academic life, I have to put in my notice a year in advance. And right now, my adopted state has a hiring “chill,” meaning that at the college level, my chair and Dean don’t wish me to give notice because I teach a lot of students.

On the other hand, there are some folks who keep measuring the windows and floor space in my office and casually asking if the book shelves are my personal furniture. . . .