I turned 62 last month and had been planning to wait until full retirement age to claim SS, but now with possible unemployment looming early next year, I'm thinking of taking it a little earlier. I know everyone's situations are different, but I'm curious about your story.
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It is about your health and money. The amount you get from Social Security increases until 70. You pay a substantial penalty retiring before your full retirement age.
Posts: 17622 | Location: Stuck at home | Registered: January 02, 2015
Thanks, Michael. I'm aware of the consequences of taking it early and the 8% increase per year up until 70. I'm just interested to hear everyone else's experiences.
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A friend is going through the exact situation. He turned 62 in March. It all depends on how long you think you'll live. Run the numbers and see how much of a hit you'll take if you collect now vs. in nine years. If you still have earnings over $18,240 (in 2020) you'll get dinged. I'll have a $30k income as long as I'm breathing; some planning will be coming up to maximize return on investment.
I waited until 70 since my earnings were not that high. I was worried about living on the amount I would have received at FRA (full retirement age: 66). Unfortunately the extra time I waited included being laid off and unemployed for some of those 4 years. Assuming that I don't live until 80 something, I will not earn back the loss of not taking it from 66 to 70. Don't know if this helps you at all.
Posts: 103 | Location: Kalifornia | Registered: September 17, 2019
We waited until I hit "full retirement age." This maxed our SS income and let our retirement account continue to experience growth.
No regrets. House is paid off and we're financially secure. As long as both SS and the market don't tank, we should be good until we're on the other side of the grass This message has been edited. Last edited by: ensigmatic,
"America is at that awkward stage. It's too late to work within the system,,,, but too early to shoot the bastards." -- Claire Wolfe "If we let things terrify us, life will not be worth living." -- Seneca the Younger, Roman Stoic philosopher
I took mine at 62. My benefits are low. I did the math but can’t remember just now. You have to live to 78 or 79 (?) before taking the higher amount yields a gain. Another factor will be your earned income after you take your benefits. If it’s too high then you will effectively lose some of your benefits IIRC.
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Posts: 5742 | Location: Ohio | Registered: December 27, 2008
If you can live and be content with the amount of income, and your your emplyment is not your dream job that you would be unfulfilled if you left it, do it early and get on with enjoying your life, and do the things that provide happiness.
You will be surprised as the exponential loss of mobility, sharpness of mind and all the things that degrade over time, and if the 8% is not that important, the money you gain will never offset the loss of time or health that you can ever get back.
"the meaning of life, is to give life meaning" ✡ Ani Yehudi אני יהודי Le'olam lo shuv לעולם לא שוב!
Posts: 44563 | Location: ...... I am thrice divorced, and I live in a van DOWN BY THE RIVER!!! (in Arkansas) | Registered: December 20, 2008
I'm now 76YO. It retired at 62 the very day that I could and don't regret it. Reasons: 1 - A bird in the hand, etc. We don't know what the future holds or what those assholes in DC will do. 2 - If you retire early you get smaller SS checks but more of them. If you're gonna die early, then obviously you should retire ASAP. At the time I smoked cigs, drank too much, and had diabetes. I fixed two of the three things. If you live until your late 70s or early 80s, the number/size of the checks evens out. 3 - If you'll be financially strapped, it might be better to wait a while.
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Posts: 15529 | Location: Virginia | Registered: July 03, 2007
As I approached entitlement age I did an analysis of each option for taking social security. Bottom line was deferring always resulted in having to wait, in most cases well over a decade to "break even" (total $$$ received) with taking the benefit as soon as possible. Adding further to the equation was the possibility, loudly proclaimed at the time, that the fund would grow broke in later years. I said "no contest" and opted to start receiving $$$ at my earliest eligibility.
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Posts: 16586 | Location: Black Hills of South Dakota | Registered: June 20, 2010
Originally posted by Jim Shugart: I'm now 76YO. It retired at 62 the very day that I could and don't regret it. Reasons: 1 - A bird in the hand, etc. We don't know what the future holds or what those assholes in DC will do. 2 - If you retire early you get smaller SS checks but more of them. If you're gonna die early, then obviously you should retire ASAP. At the time I smoked cigs, drank too much, and had diabetes. I fixed two of the three things. If you live until your late 70s or early 80s, the number/size of the checks evens out. 3 - If you'll be financially strapped, it might be better to wait a while.
I took mine at 62 as well , for the same reasons . Well , except for the health issues . The difference between 62 and 66 and 8 months isn't lifechanging money .
Posts: 4360 | Location: Down in Louisiana . | Registered: February 27, 2009
I retired and started SS at 62.5 years of age. My and my wife's health is good. We have more than enough retirement savings to supplement SS so we can live comfortably for the rest of our lives. When I considered continuing to go into work every day as opposed to doing whatever we felt like doing on any particular day, the small increase in our SS payments had we waited to collect didn't even factor into the decision.
I guess the message is you have to carefully evaluate your own situation and decide if it's really worth giving up a few years of retirement bliss for a bigger slice of government cheese. In my case, it wasn't and I have no regrets about my decision.
Posts: 439 | Location: SE Michigan | Registered: June 15, 2010
Originally posted by 64dodge: I retired and started SS at 62.5 years of age. My and my wife's health is good. We have more than enough retirement savings to supplement SS so we can live comfortably for the rest of our lives. When I considered continuing to go into work every day as opposed to doing whatever we felt like doing on any particular day, the small increase in our SS payments had we waited to collect didn't even factor into the decision.
I guess the message is you have to carefully evaluate your own situation and decide if it's really worth giving up a few years of retirement bliss for a bigger slice of government cheese. In my case, it wasn't and I have no regrets about my decision.
Yep !
Posts: 4360 | Location: Down in Louisiana . | Registered: February 27, 2009
I simply asked my mom if I should start SS @ 62 or wait. Without hesitation she said start @ 62, so that's what I did. She lived until the age of 85 and had no regrets starting SS @ 62, nor do I. No numbers crunching, second guessing or anything. I just took mom's advice.
Posts: 4870 | Location: Bathing in the stream of consciousness ~~~ | Registered: July 06, 2008
... I will add that there's no way I could live off SS alone, taken @ 62. It just isn't enough. My mom started SS @ 62 but had other interest income. I have a military retirement pension and SS started @ 62 accounts for only 1/3 of my monthly income. In the real world, the pension is what allowed me to start SS as soon as I became eligible to do so.
Posts: 4870 | Location: Bathing in the stream of consciousness ~~~ | Registered: July 06, 2008
I reach full retirement age next month and I'm going to start getting the benefit in January (to not complicate this year's tax filing). You have to gamble on how long you think you will live. Start early and receive less monthly or wait and receive more monthly. Either way, the benefit plots meet at about 80 years of age.
There are downsides to starting early, like getting taxed more for working if you continue to work after you start receiving benefits.
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Posts: 16681 | Location: Under the Boot of Tyranny in Connectistan | Registered: February 02, 2005
I don't need it to live either way but it certainly is the icing on the cake. Like someone else said you may not be around and in good health by the time you would break even... Regardless of that and any possible political changes in the system we are simply more likely to enjoy the extra cash now while still slightly younger and in good health rather than later.
The extra cash means I can leave more of my investments invested and it allows me to more easily help the kids and grandkids if needed.
This message has been edited. Last edited by: ensigmatic, 
