Fed161 , thanks for your input . People have criticized me for taking my SS at age 62 . Yes , I KNOW I could earn more if I waited until FRA which is 66 and a few months for me . I want my money NOW when I have more use for it instead of waiting until I'm older . And the difference in the amount isn't lifechanging anyway .

quote:

Originally posted by GWbiker:
SS is taxed upwards of 85%, depending on your total income at retirement.

(Thank you Bill Clinton)

For a single person, if your Pension income, your SS payment and other income exceed $25K AFTER deduction adjustment, your SS will be taxed.

I chose to fully retire at age 63 and yes I do get taxed on my SS yearly amount because my adjusted income is greater than $25K.

Don't forget, your monthly SS amount will be reduced to pay out for Medicare.

My position also.

There is another site that has been recommended to me for calculating when to take social security. Here is the link: https://opensocialsecurity.com/

In order to know when to take SS, you need to know 2 things:

1. How much other income you'll have coming in while retired.

2. How much it costs you to live.

Pretty simple stuff really. I tried a few of the online calculators and their estimates were all over the place, so I did it another way. I took all the money I was making and put it in investments and we lived off Mrs. Flash's salary for 2 years. That told us exactly how much we needed in terms of income.

Then we moved to a place with a cheaper cost of living, so we had even more money to spare.

quote:

Originally posted by Flash-LB:
In order to know when to take SS, you need to know 2 things:

1. How much other income you'll have coming in while retired.

2. How much it costs you to live.

P

I think there are three things. How long are you and/or your spouse going to live. If you're both in poor health, take the benefits early.

quote:

Originally posted by henryaz:

quote:

Originally posted by Steve in PA:
My plan is to sign up for my SS when I retire from LE in 2024. I'll be 63 if that happens.

I figure with my LE pension and SS, I should be comfortable.

Be wary of the WEP. It might or might not affect you. It greatly reduces SS benefits in some cases where you also have a LE pension. WEP did hit my wife with her LE pension. It cut her SS benefits by more than half.
 
The Social Security Windfall Elimination and Government Pension Offset Provisions for Public Employees.

From what I've read, the big hit is for LE either opted out of having SS deducted from their wages or departments that did not collect it. Our old chief said he took a hit, but we believe that he opted out and did not have SS taken out of his wages.

Another of our officers has a friend that works in the local SS office. We ran this by him and he said as long as you continued to pay into SS while working LE, your SS should be fine.

Obviously, prior to LE, I paid into SS. And, during my current 23 years of LE, I've continued to pay into SS, just like the rest of my department. So, I should be okay. Guess I'll find out in a little over 2 years.

quote:

Originally posted by SR:

quote:

Originally posted by Flash-LB:
In order to know when to take SS, you need to know 2 things:

1. How much other income you'll have coming in while retired.

2. How much it costs you to live.

P

I think there are three things. How long are you and/or your spouse going to live. If you're both in poor health, take the benefits early.

I assumed we were going to live well past 100 and set up things accordingly.

[/QUOTE]
Another of our officers has a friend that works in the local SS office. We ran this by him and he said as long as you continued to pay into SS while working LE, your SS should be fine.[/QUOTE]

Worked for SSA for 43 years before retirement. This is 100% correct. No exceptions. If you are eligible for a pension based on work you did for a federal, state, or local government AND you did NOT pay Social Security taxes, WEP applies. If you paid SSA taxes while working and you also were covered by pension plan for this same employer, WEP does not apply. The fact that you are eligible for a pension from this same employer doesn't affect your benefits at all.

quote:

Originally posted by Flash-LB:

quote:

Originally posted by SR:

quote:

Originally posted by Flash-LB:
In order to know when to take SS, you need to know 2 things:

1. How much other income you'll have coming in while retired.

2. How much it costs you to live.

P

I think there are three things. How long are you and/or your spouse going to live. If you're both in poor health, take the benefits early.

I assumed we were going to live well past 100 and set up things accordingly.

The thread seems to have drifted to factors to consider when deciding when to take SS. I thought your list was really good but some forget to layer in health. Thus I mentioned adding to your list.

Glad to hear you plan to go to 100.

quote:

Originally posted by SR:
Glad to hear you plan to go to 100.

Well, my grandparents on my mother's side made it to about 100 as did my grandmother on my father's side.

I've been collecting SS for a long time and I'm on no prescription drugs of any kind, so I've got a shot at it.

quote:

Originally posted by Fed161:
Knew a guy at church who asked me about collecting early vs waiting for a higher benefit. He went with waiting to get the higher benefit. He was in great health (or so he thought). Exercised regularly. Dropped dead of a brain aneurysm at age 63. Never collected a dime.

And he wouldn't have collect much more than a dime had he retired early.

Average life expectancy of white American males is ±77 years. Average. Relatively few Americans of any race or either gender live particularly healthy lives. If, like me, you are a non-smoker (having quit for over ten years my prior smoking no longer figures-in), maintain healthy nutrition and weight, are reasonably fit, and generally lead a life not fraught with dangerous activities, you can expect to exceed that number by a good many years.

And in good health and condition, too. I just had arthroscopic knee surgery to remove a bone fragment--probably resulting from an injury 10-12 years ago. Surgeon told me my knees should last me the rest of my life, and that was a direct result of my maintaining a physically active lifestyle.

I just took up golf last year. I've got a turn that's as good as guys half my age, because I've worked to maintain flexibility.

I take one prescription drug. 5mg of Lisinopril for marginally high blood pressure. With that, I have the BP of a teenager. I have a resting HR of ±50 and a blood oxy level in excess of 95%.

So I'd say the calculation would depend in part upon your health and lifestyle.

take the reduced amount at 62, no guarantees you'll make 65 or 70!

I did some rough calculations and if you think you will need the "extra" money (monthly increase) due to delaying payment the break even age is roughly 78 years old.

quote:

Another of our officers has a friend that works in the local SS office. We ran this by him and he said as long as you continued to pay into SS while working LE, your SS should be fine.

I wish someone had told me this 20 years ago.

I'm still about 7 years away, but I am planning to take it at 62. I am also probably going to take my pension from my previous job early, possibly as early as next year at 55. In both cases I will be taking reduced payments compared to waiting until 65 or "full retirement age," but I look at them as bonus supplements to the money I have saved through traditional real estate and other financial investments, not as sole sources of retirement income in either case. So I'm willing to take a lower payment in exchange for a longer stream of guaranteed payments during my (hopefully) very long lifetime!

There are a million variables!!!! I'm retired LE, thus have a PERS Pension. I worked enough quarters before LE to qualify for SS, and also my side jobs paid into SS. I checked out benefits before pulling the plug after 25 years. The before tax benefit ammount would have only been about $325.00 a month at 65. I'm in decent health, but have a significantly younger wife and a 10 year old son. If I were to take my meager SS at 62, it would be much lower than if I waited. Taking it early can also effect survivor benefits, something to consider if you have a younger spouse. GENERALLY most advisors will say to hold off as long as possible.

quote:

Originally posted by bigwagon:
I'm still about 7 years away, but I am planning to take it at 62. I am also probably going to take my pension from my previous job early, possibly as early as next year at 55. In both cases I will be taking reduced payments compared to waiting until 65 or "full retirement age," but I look at them as bonus supplements to the money I have saved through traditional real estate and other financial investments, not as sole sources of retirement income in either case. So I'm willing to take a lower payment in exchange for a longer stream of guaranteed payments during my (hopefully) very long lifetime!

If you have a pension, investments, and probably a deferred comp account, I'd hold off with SS. Even if you were to reinvest the money, you'd still get a better guaranteed income through SS.

quote:

Originally posted by selogic:
Fed161 , thanks for your input . People have criticized me for taking my SS at age 62 . Yes , I KNOW I could earn more if I waited until FRA which is 66 and a few months for me . I want my money NOW when I have more use for it instead of waiting until I'm older . And the difference in the amount isn't lifechanging anyway .

Taking it early may also effect survivor benefits.

quote:

Originally posted by MMSIG229:

quote:

Originally posted by selogic:
Fed161 , thanks for your input . People have criticized me for taking my SS at age 62 . Yes , I KNOW I could earn more if I waited until FRA which is 66 and a few months for me . I want my money NOW when I have more use for it instead of waiting until I'm older . And the difference in the amount isn't lifechanging anyway .

Taking it early may also effect survivor benefits.

We are well covered in that regard .

As stated above , everyone is different. I chose to take mine at 62 based on how long the break even point would be , my body would not let me continue for 5 more years in my job , I wanted to get mine up front while I still could. Make wise decisions for you and your families.