Should I Collect Social Security Early and Invest it?
Vložit
- čas přidán 3. 07. 2024
- When you go to collect Social security, you want to make sure you’re selecting the option to open the most amount of dollars in your pocket over the course of your retirement. Some people think it’s best to take social security at 62 while others believe it’s better to delay social security and collect a larger benefit. In today’s video, we are going to talk about what is the best age to file for social security retirement benefits and what are the pros and cons of taking social security early versus delaying it.
Learn the tips & strategies to create your secure retirement.
⏰ TIMESTAMPS
00:00 - Introduction to Social Security
1:25 - Benefit Options
3:20 - Who Comes Out Ahead?
6:35 - Investing Wins? It Depends!
9:02 - What If You Collect Early And Don't Invest?
11:37 - Benefits of Delaying SS
13:54 - Consider Your SPOUSE!
15:19 - 7 Reasons To Delay Social Security
Free Retirement Checklist Here: rootfinancialpartners.lpages....
SUBSCRIBE HERE: / @rootfp
_ _
For more resources and content, check us out below!
Website // rootfinancialpartners.com/
Podcast // readyforretirement.co/
Instagram // / rootfinancialpartners
Facebook // / rootfinancialpartners
LinkedIn // / 18347030
Other videos we think you'll like:
Why I Started Root Financial Partners // • Why I Started the Read...
How Would You Feel If You Knew You Could Retire Today? // • Why I Started the Read...
What Makes Our Approach Different? // • Why I Started the Read...
So if I start collecting SS at 62 the break even if I would have started at 67 is Age 78, how many of us are going to live past 78? How much longer than 78 will we live? You need to retire as soon as you can afford it. My dad is 84 & his day is mostly just watch TV & reading books, he can't walk more than a few steps & is in a nursing home. The actual amount of your retirement when you can actually "Do" stuff may be shorter than you think. We need to look at functional life span versus just actual lifespan.
Agreed. This is just looking at how to maximize lifetime benefits without respect to how healthy the latter years are.
When you collect Social Security, should have nothing to do with how much you spend in your retirement. It should be based on all factors. For me it's spending down my 401k that is the biggest Factor
If one is already 62 then for male is a little over 20 years to live. So 82.
For females it’s 22 years so 84
If one is 67 then for male 16.49 years so 83.5.
My parents are 82 and in good health. They walk and travel.
My father worked up to 65. My mom was part time and retired at 70. She didn’t earn much. They collected SS at FRA which was 65 for them.
My wife and I plan to take SS at 67 and retire around 62/63.
75% live past 78.
62 life span is 81 to 84.
Break even depends on how it does in the market if you invest it.
3/18/24: Here’s how to watch James’s videos: (1) Get out your retirement spreadsheets, notes, worksheets. (2) Watch one of James’s videos while taking notes on new perspectives and ideas (or watch while you are on the elliptical and take notes later). (3) Revise spreadsheets, notes, worksheets. (4) IF MARRIED, casually mention only most salient point from video to spouse and explain (if they let you) until their eyes glaze over. 5) Watch another one of James’s videos. (6) Repeat steps (3), (4), and (5) until you have watched them all. (5) Force your spouse to watch (with you, of course) the three videos that cover the topics that your spouse understands the least. Hopefully James will continue making these great videos for people like me. Thanks James!
This actually was the best articulated, most succinct discussion on social security that I've seen and heard. Congratulations on that!
Thank you!
If a person can afford to take early, and knows how to invest, Early will always be better. But it does not work for less intelligent people.
@@geraldclough2870 That’s why for many people, a good financial advisor can make a big difference.
@@geraldclough2870 not so much intelligence but knowledge and discipline of investing.
Retiring at 58 and collecting at 62.... for this exact reason. It takes so many years to break even, while giving up 5 years of enjoying retirement. This is an easy decision!
and then what happens if you live past age 78?
@@ltlarrow1 SS doesn't stop. So I continue to receive that same amount, and the inflationary adjustments that are also given. And I continue to access funds from my 401 and investment portfolio.
I agree....I"m shooting for age 60...and then collecting at 62......while SS is still around and the Dems and Libs DON'T spend it.
@@dancalmpeaceful3903 Or before the Republicans pilferage SS to support the tax cuts for corporations and the wealthy. The Republicans consider SS an entitlement program. They've said it publicly.... to the chagrin of 99% of the public.
I Agree 100%... Get Out Early And Enjoy The Rest Of Your Life.. You Can Even Invest In Yourself.. By Doing The Things You've Always Wanted To Do, But Never Had Time To Do Because You Worked For Someone Else.. Then? It Won't Be "Retirement" Per Se.. It'll Be Enjoying Your Ladder Years Because You're Enjoying Doing What You Love To Do.. Jus Sayin.. Yep...
I personally think people suffer this decision to much. Make your decision , and enjoy your life..... There is only so much in your life time wealth bucket.... Nice analysis....
My father always said “ Make an important decision in haste, live to regret it in leisure”. Time & analysis are needed to make the right decision for yourself & your future happiness
Depends on the type of person you are. If you hate thinking about financial things, sure don't punish yourself with detailed analyses. If you enjoy the analysis and optimizing your finances, make it part of your retirement hobbies.
Different strokes for different folks.
Way too much weight is put on avoiding regret. It's a destructive and useless emotion. Make a decision, look forward.
Had read about the benefits of going out @ 62 and this Army retiree already made up his mind. 20 years in the Army, 20 years in a PICU, and had worked in some capacity since age 10! (Also could not see myself rolling ventilators around, taking critically ill kids to scan after scan @ 65) So paid the mortgage off 27 years early as my retirement gift and enjoying four + years of retirement!!
My dad and my brother both passed at age 63, from different reasons. Sorry, but take the SS. Like the investing idea. And btw, ‘working’ a little part time - keeps you active & is FUN.
(OK, I’m working 2 days a week at my favorite golf course as a caddy...yes it is ‘fun’.😎)
Some great information, I think I am going to retire at 62, which is May of 2022 for me. Biggest reason is I still want to do things while I have the energy to do such. If I live past my break even age of 78, so be it, at that point probably won't have the drive and energy to do much anyway.
So, what did you do and how is it working out?
One thing that was not discussed here but actually can have a big impact on the SS collected is the healthcare cost between 62 and 65. Medicare doesn’t start until you turn 65. You would be spending your early collected SS on health insurance since most of the people get their health insurance through their employers. I think retiring and collecting at 65 is the best of both worlds.
I am asking because I don't know: If you retire and collect at 65, don't you get the same SS amount as if you retired at 62? Or, does you benefit amount increase every year ($2100 at 62, $2300 at 63, $2500 at 64, or something like that)?
If you need and have a health insurance
@@makeupgirl8886 Retiring and Collect Social Security are two different things. Retiring simply means you quit going to work. It has nothing to do with when you decide to start taking back your Social Security money. The other important thing you need to know is that if you take your SS at age 62 your montly amount will be less. It's not a penalty for taking the money early, it's just that if you take the money early you will be getting more checks. More checks equal less per month the same way that waiting will get you a larger check, but you will get fewer of them. All of the mothly rates come even on total dollars around age 80. It helps if you know in advance when you are going to die. If you have that information deciding which choice will net you the most total dollars is easy. None of these videos tell you that part. Just remember more per month does not mean more total money and less per month does not mean less total money. I started taking back my money at age 62. Almost 8 years in and I have zero regrets about that choice. My family history does not show longevity past 80. My dad died when he was 80. He did have a brother who lived to 87, but he also had a brother and a sister who died in thier 60's. My older borther died when he was 70 and our son died at 61. How much money do you want to leave behind for you family to fight over?
@@makeupgirl88868% per year. Between Full Retirement Age and age 70 it's about a 30% bump. EX: $2,000 vs. $2,600 per month.
@@makeupgirl8886 The amount you collect goes up every month after you turn 62. For me, it goes up about $12 per month for every month I delay, so every year I delay means around $144 more per month. But that figure will obviously vary widely.
I really appreciate your knack for covering the many sides of an issue clearly, breaking it down in a readily understandable points, without dumbing it down or oversimplifying. Good stuff.
Thanks Kevin!
I got a letter from social security that tells you what you can expect when you start collecting. It also had a planned reduction in benefits by 2030. I’d say take it out while there’s something to get.
The Govt wastes our tax money!
You are spot on.
Yup.
Oh how wonderful! I’ve slaved all my life to put into SS and with inflation sky rocketing….my government now tells me they’re reducing what I’ve rightfully earned?!? American dream!!!
and so what happens if you're wrong?
This is a good basic boiler-plate comparison of SS early versus late options.
It gets more complicated when individual situations and personal considerations each person has and what they consider priority quality of life issues are added in.
That's why these videos are useful (extremely), but they are only a starting point (versus "the answer") for individual/personal decisions on when to take the money and run (or walk)!
This is a very well done video. But there are two additional benefits to taking it early. If you're single and have children and you die before 70, your children get nothing. So take it early and build your estate to pass on to your children. The other benefit to taking it early is to have play money for nicer vacations, dining out, toys, etc. If the break even point is 81, think about what you'll be doing at 81 and would the little bit extra you might get at that point mean anything compared to the fun you could have had in your 60s.
Good point on the children (or spouse) if you die early. But if you get to 81 and only have SS to rely on, you may regret it. Life is hard enough at that age without worrying about money.
Deciding to collect Social Security should have nothing to do with how much money you spend. You haven't saved enough for retirement if that is the choice you're having to make
@@johngill2853
I’m a little confused by your comment and what point you’re trying to make. If I’ve saved plenty for retirement but I decide I want to live a little more lavishly by spending more on vacations, fine dining, nicer clothes, etc., then deciding to take Social Security early by all means can be helpful in that. So the decision to take SS early can definitely play a role in allowing me to spend what I want. If you were replying to Bob’s comment, I don’t really see how your reply fits with what he wrote. It could be that I just don’t understand what you were trying to say.
@@Dr.TJ1 you said take Social Security early so you have more money when you're younger to take better vacations. My comment is when you collect Social Security should have nothing to do with what you spend in retirement. Being short of money to do the things you want to do in retirement, shouldn't be dependent on when you collect Social Security. If it is you probably haven't saved enough.
@@Dr.TJ1 I'm hope I didn't come off as low down but your advice to me is just crazy to give people. Take Social Security early and spend the money on vacation and later on when you're 85 or 90 what happens? The last thing Americans need to do is spend more money in most cases
A lot of ifs ! I am going to wait until as close as I can to my full retirement at 66.6 yrs old. My 401 is still growing, my SS is still growing, and I'm still collecting my FULL paycheck.
Have u thought about how long u r going to live with the stress of working for someone till yr full retirement age?
62 is my goal. Not guaranteed to live til 80, 90, etc. Get it while you can and spend wisely!
My too. My rental paid off last year and my home will be paid off in 2 year when I reach 51. based on my earning and 401K, SS is just gravy, I will use it to buy medical insurance until 65.
The big unknown is what happens to SS benefits once the SS Fund runs dry in a few years. Unless Congress passes SS reform, benefits will be cut based on what they collect every year (to about 80-85%). I'm going to collect as soon as I can, because I want as many full SS payments as I can get.
can you imagine what Senators or Congressman would not vote to save SSN - it would be a no brainer politically to vote to save it, just tax the billionaires or a slight increase in tax rates
Stop voting republican
As with everything the republican to privatization of government programs
So their buddies can make money and then not pay taxes on that income
@@johnlittle8267 SS is financed by individual contribution
They have been saying this for years. Congress is not going to risk reducing social security benefits and then the media showing people starving and losing their homes because of a benefit cut. They will find a way to keep propping up the system and the most likely thing is to raise social security payroll tax from the current 12% combined for the employer and the employee. The business community and your kids will bear the cost of this, not retired people.
@@SandfordSmythe Only up to like $146K, people who make more don’t pay any extra in. They can always raise that number.
Another benefit of delaying is drawing down your qualified plans between 62 and 70 means you’ll have lower RMD at at 72. Also the choice of delay gives you more agility to change your mind. You can always change your mind and take it early.
Excellent point!
Yes, but another advantage of taking it early is that you can use more overhead in your 60's to do a ROTH conversion and you could "afford" to do more conversions since you don't need as much to live on (and stay below a particular tax tier).
Remember, up to 85% of SS is taxable, whereas 100% of your IRA/401K withdrawals is taxable. If you pull $50K from SS in a year (for both people), you will only have about $43K in taxable income, so you could put another $7K into a ROTH conversion that year, so $37K to get you to the next tax tier, whereas if you were pulling from an IRA/401K, you would have $50K in income and you could only do another $30K to get up to the next tax level. That's a big difference; about 20% more and that will help pull the money out of your IRA/401K faster to help resolve the RMDs in your 70's.
I hear this argument all the time. It feels like it’s one of those good problem to have issues. “I’m taking in so much money that I’m being heavily taxed on it”
My plan is to draw to where I am at the top of the current 12% tax bracket, and invest outside my 401k money I don't spend. I will run some scenarios with taking or delaying SS and determine where I will be based on the 30 year history of my portfolio. My goal is to never pay the current 22% tax.
@@Csmonk848, it is called preparing for the future. So many Americans waste so much money on car payments, houses larger than they need, eating out, subscription services they barely use, etc.
Thank you for this. A very clear explanation. You gave all the angles to think about.
Wow.....finally the kind of information that can help us make a decision !!!
excellent presentation on this subject. Thank you.
Excellent explanations for the different scenarios.
Really well done. Thanks for covering this.
Thanks Chris.
Very informative and well explained. Thank you very much for taking the time to educate us.
1). Get out of debt.
I know its easier said than done but you cannot go into retirement in debt.
If you cannot get out of debt before retirement try this test.
Find out your actual ss benefit minus taxes and compare that to your budget.Don’t forget to add medical into that number.
If your SS covers your budget and you can continue to work then start collecting ss and use all of your working money to pay off debt.
If your ss does not cover because your in debt and cannot work then you are like me and most other people. I wish I had gotten out of debt before retiring.
Wow, this is so well thought through. Thank you.
The cleanest, most articulate explanation out there!
Thanks for the great information as in the deciding process as well.
A huge factor not mentioned in any discussion regarding the early withdrawal of SS and re-investing it, is the added cost related to the loss of potential Tax credits from the ACA medical administration! This is especially true when one is in early retirement (thus pre Medi-care age) and need private medical insurance through the ACA, and one is living on a relatively low annual retirement income. By increasing the income (in order to re-invest your SS receipts), you are potentially going to lose up to around $1800/month in tax credits (subsidy), as it is directly proportional to income. This factor MORE than offsets any small net gain one might have had by re-investing SS receipts rather than delaying SS withdrawals.
true, you can do both (get the credit and the early SSN) if your other income is low enough
@@johnlittle8267 the point here is that every dime extra you add to your income in order to reinvest is subject to much reduced subsidies. So much that it makes zero sense to add any income, almost regardless of the average stock market return received with any excess money (it is therefore better to NOT withdraw excess funds over what is needed for day to day living expenses as the cost of the lost subsidy related to any excess withdrawals will almost certainly never be offset by investment gains from such investment.
You sir earned a sub! I'm young but I thank you for the education as time stops for no one! Better to start preparing now! Thank you and Happy New Year! May 2022 bring us all good health and good fortune 🙏
Thank you very much for your videos and podcasts. I'm Canadian, but can easily apply your common sense, logic, and insights to my situation! Many thanks!
Good planning however what is the purpose of investing if you are in your last chapter of your life. Enjoy your money while you can🙂
Also true!
Many folks go into long-term care the last 2-3 years of their lives, which is very expensive. You want to make sure the surviving spouse still has money to live on since a nursing home costs on average $100,000 a year, and most folks need it for 2 to 3 years, then they pass on. If there is no spouse, then it doesn't matter.
Excellent review..and great to know
Outstanding video! Very well done. Thank you
Every year I wait to collect the monthly payment goes up 8% with today's (2022) cost of living currently at 5.9%, I'm waiting because I cannot get an investment that will guarantee me 13.9% annually. If I collect early, I will loose the 8%. I like the 8%. I'm healthy, love my job, make good money and my dad lived until 93. I'm waiting till I'm 70 years old and will start collecting in 2024. It's right around the corner.
It is only 8% for the first year. All following years it is 8% against the base year. Not 8% more than each prior year. So the increase year to year is less than 8% and decreases with each year.
Awesome video! Thanks a lot for explaining this!
Thank you!
Good exploration of the topic James! One thing that might make your comparison more 'apples-to-apples' is to include the SS Cost of living adjustments. Those are adding up even before you begin collecting.
Great video, James. This has been top of mind for me lately as I am in my mid-50's and trying to optimize for my personal scenario. Thank you for explaining this so clearly.
Great information
Hi James, before discovered your channel I was so unsure when should I collect SS. Your clear and detail analysis had helped me tremendous in making decision to decide when to collect my SS. Thank you very much for what you’re doing and looking forward to watching your new videos
Stellar video. Thank you.
Glad you enjoyed it!
This is one of your best videos . One of the best I have seen on the topic by anyone. The trick is to live long enough to make it (delaying SS) pay off! Good job, now go out and get yourself some waves🌊
Very good information, Thanks for a great job
This is absolutely the BEST video on how to think through this decision, combined with some of your other videos on social security. Between you and Mike Piper's book, I'm set.
If we all knew when out "Time is Up" then this decision becomes less complicated. Thanks again for great info
Great video! Explained very well, thank you for sharing.
Thanks Kathy!
Good illustration about collecting early and preserving your retirement savings to continue to grow through investment. A lot of folks don’t think about this. It also can give you more options (if you are frugal) for when you are still healthy and active.
Your videos are amazing! Best of the best! Thank you!!!
You are so welcome!
Excellent analysis! Wonderful explanation! Thank you.
You are very welcome!
This video is extraordinary. Very clever strategies and your delivery of such a complex topic and “outside the box” thinking is simply amazing. Kudos!
Thanks Paul!
Excellent information. One thing I have not really heard anyone mention is if you die before taking SS you do not get any. By taking SS early you can keep your investments and that will go to your family. Your SS is not paid out, it stays in the SS Administration.
Your videos are well thought out. I really enjoy watching them as they are chalk full of useful information, well organized, and presented in a straight forward and concise manner.
One potential risk related to delaying is the possibility that the social security payments could be reduced by as much as 20% beginning sometime in the 2030-2035 period if the trust runs out of funds. At least there are some projections that this could happen. How far is the break even date extended if that scenario becomes reality.
I just discovered your channel. Excellent information easily understood and I like the way it’s presented. Thank you.
Excellent analysis. Very clear and informative. The wildcard here is your health.
Glad it was helpful!
Super good!! Thank you! I never thinking about that! Thank you very much! I’m going to review this information every year to check if is convenient for me doing in that year!!👏👏👏
You’re welcome!
Very informative. Thank you!!!!
You are welcome! Thanks for watching!
You’re informative. I like your sites. I will continue watching and following you 👍👍👍
Thank you!
Great Video!
I think the same way. I like your ideas and explanations very clear. Thanks.
Thank you!
You helped me solve the SS conundrum for my situation!
Glad to hear that!
Great insight thanks!
You’re welcome!
Good analysis. Enlightening
Thank you, Charles!
Brilliant!!! A new subscriber here, thank you!
Well, I'm turning 62 later this year and as an avid stock market investor it really doesn't make sense to take money out of my portfolio while the market is down. So I'm strongly leaning to collecting social security early. In fact, I think the overall status of the stock market is a key factor not mentioned in this video. Nonetheless, I found your video to be excellent and thorough!
Thank you Henri!
I think I'm gonna do the same in 10 years. I'd rather not wait until 67 or 70. Most of us would be so lucky to live that long. :).
What kind of "investor" has 100% in stonks? A diversified portfolio should always have ~5% in cash. WTH
This is the clearest explanation I’ve ever seen.
Thank you, I’ll have my husband watch.
Great!
A really nice unpacking of the many considerations. I found it helpful.
Glad to hear that
@@RootFP One thing I learned from your videos is that I have over saved even though I contributed just enough to get the full match of my non-profit employer. You've given me lots more now to think about. Thanks.
That was a really thorough and insightful discussion. Of course, the fact is none of us know how long we’re going to live, if we did, this would be a much easier discussion.
This is a great breakdown. I have been thinking about this exact issue for a while now. Do I collect it early and squirrel it away or wait. I think that with the need to do some ROTH conversions with pension income impacting my ceiling between the next higher tax bracket, it makes sense to wait until my ROTH conversions are all done. Otherwise collecting SS would get me to the next tax bracket before doing the conversions and impact the strategy to the negative. Keep up the great and thoughtful videos. This becomes very real as one approaches these decision points.
I really enjoyed your video!
Thank you!
Great video!
Thank you!
Thank you for this video. This is what I’ve been looking for. My original plan was to wait till FRA. However, I plan on reinvesting my Social Security benefits, so I’m gonna start taking it right now at 64. 👍
You won my subscriptionship! I was always troubled by professionals that calculated break-even without considering the compounding of your investment accounts.
Thanks John!
Yes but no discounting to NPV here either on stream of payments. Too many assumptions.
Perfectly summarized & stated throughout. This is exactly what I've been trying to explain to friends for years, especially the part about investing and how taking from SS means taking less out of one's portfolio. The "break-even" points at a conservative 5% investment rate (without tax considerations) is age 88 (between 62 & 66) & and 91 (between 62 & 70).
Given the benefit is probably going to be reduced due to insolvency around 2033 or so, I'll take mine early & keep more in my portfolio to grow, thanks! (Your points in the 2nd half notwithstanding.)
James, I just listened to this video again (after a year) and I'm impressed with how inciteful it is. My calculations support yours. In addition, I am in the process of converting our IRAs to ROTHs during the first years of retirement. Since I don't have the cash to pay taxes, I use the wife's SS to pay the taxes on the conversions. In effect, the SS money goes into a ROTH and is not taxed again (even better than the 15% savings on SS taxes). I'm delaying my own SS until 70.
Very thorough......glad you mentioned the importance of considering the spousal survival benefit when filing early. None of my early filing friends are investing their SS $---lol. Some are considering it "fun money", while others are combining it with their spouse's SS for living expenses. Anyone who does actively invest it probably already has sizable investment accounts for retirement.....and will not rely much if at all on SS.
Thanks Laurel!
True
I have been struggling with my decision on when to start benefits. Your presentation was helpful and very informative. Thank you!
You’re welcome!
Great video. Watching a lot and social security.. And was bringing up all the things you touched on with With drawing early.... Reinvestment karma takes the burden after all investments etc. Etc. Just the video I wanted to find.. Very thorough !! We've saved a lot in thirty years... So social security We'll be extra.... And if it covers just medical costs, well be happy
yes , good thinking strategies
Good video James! You did your homework. After watching your entire video and reading dozens of comments, never once did I hear anything about our current 7-9% annual inflation rate that is eroding the purchasing power of our dollars. Just because you have more dollars by deferring retirement age, at the end of the day, those dollars purchase less goods in the future. Get the retirement funds as early as possible and buy as much silver as you can afford to invest.... after the global debt market collapses, you'll be glad you did.
They have COLA increases.
Thumbs up. This is first one to suggest take SS early at 62 that i have seen.
With no real bills, can currently live on SS and save IRA/401s (but will draw some since in the go-go phase for travel). Not sure if living past 78 is achievable but losing some by not waiting is made up by less used from IRA.
There are many variables. If you collect sooner and invest it , you have possession of your money and so does your spouse as an heir. There are also a small % of people that still have young children at an older age that would get extra monthly $ benefits up until they graduate high school or turn 19 I believe. Thanks for helping me see other view points.
Good info James! I'm 58 and trying to figure it all out.
Thanks Tony!
The big point is your earnings at 62 because taxes would be a big drag at 62. The Social Security administration pentallizes on you working and collecting at 62
Thank you, James for the information! I am rooting for you that one of these days, you’re going to the most popular and successful CFP in USA 🙏🙏🙏
Thank you! 🙏🏼
I have begun planning my retirement, in earnest, in just the last couple of months (17 years into my career). Though I started real planning late and am only now beginning to understand the myriad details, I AM ABSOLUTELY CERTAIN OF JUST ONE THING: I will begin receiving my Soc Sec as soon AS HUMANLY POSSIBLE. There is NO other option.
I'm retiring at 55.
Taking my SS at 62.
My husband is retiring at 67/70 and then collect.
Soon as I can get my SS, I WANT IT!!
Thanks for the excellent explanation about SS benefits but What is not mention is the body age declines after 62 and without a healthy body you won’t enjoying life. That is why I getting my social security reduced benefits at 62 and enjoy life
Man, where have you been all my life? Love the structured way things are explained - and with no judgement whatsoever on one approach vs another.
Glad you enjoyed it!
Smart and knowledgeable kid. Thanks.
You’re welcome!
Good stuff
Thanks Josie.
Awsome never looked at it like that 🙃🙏
Glad I could provide another perspective.
Good video as usual! I will say though, everyone always talks about 62 vs 67 vs 70, when I'm always thinking 63 vs 65 vs 67 as options I'd consider!
Thanks Jim! And yes, there are “in between” ages to consider as well.
One also has to consider years worked vs retirement age.
My father started collecting social security at 62, and will be 67 next year. Mother did the same thing. Often wondered if Social Security will make changes to the age qualification from 62 to something higher I still have a lot of years to work yet. Knowing my luck by the time I get there it will be age 64.
This was a really good video. By the time I retire... I'm sure SS will be empty lol. But if I had to pick, I'd take the 62 and invest it. Get it while it's there!
Great point on forced savings. I'm often better off not having it go through my hands, similar to automatic payroll savings.
The social security officer told us to collect when you can so at 62 I got my check
I'm surprise he/she said that. They are NOT allowed to give recommendations..
Marital status is a huge variable here. Delaying social security means larger spousal and survivor benefits, at the expense of depleted retirement accounts, which can be willed to non-spousal survivors.
Finally, someone has run the numbers. Excellent points- I really don't think it's a close call. If your not working at 62 take the money especially if you have no intention of going back to work and have sufficient savings. This is not the boilerplate advice and I commend you for pointing out that taking SS is more tax efficient than raiding your differed accounts and that money is fungible.
would have loved to see some graphs representing many of these comparisons. Overall, this is a great comparison of influencing variables for when to take $ from what "bucket" ... thanks
Your analysis of the benefits of collecting early only makes sense if you’re actually not working past the age that you start collecting. Else once the income crosses $21,000, you have to pay back 50% of your Social Security benefit.
Excellent Video. Thumbs up. 1 thing you overlooked, is that inflation alone is about 6% (they'll ADMIT to thaaaaat amount. In reality, it's even more than 6%.) Yes, I know, SS is indexed to currency debasement (inflation) but still, that is a consideration.
Additionally, though you get the benefits back if working while collecting, (and earning over the limit) .... I'm not sure?? But I think they're amortized over you life expectancy starting at your FRA. Spousal benefit maxes out at 67 I THINK??