Working while Receiving Social Security
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- čas přidán 24. 02. 2023
- Working While Receiving Social Security - The New rules
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You should also do a video of working while collecting Social security disability.
Please need some help on this.
My FRA would be this year( 2023) in JULY but I want to receive my SS in March of this year (four months early of FRA).
I also want to continue working until Sept. of this year. So do I fall under the 21,000 or 56,000. If I'm understanding it correctly this is the year I reach FRA so it would be 56,000.
@@rossneidish6574 It is $56,520 in the calendar year that you reach your FRA.
@@rossneidish6574 There’s NO WAY you can start SS in MARCH, DUMBBELL!!!!
.
I took SS at 63 and continued to work fulltime. I knew there would be the cut in my benefit and the penalty for exceeding the income level. It worked for me because I used the additional income to pay down my debt. What I didn't expect and it came as a pleasant surprise was that, because I was working and still paying into the system, my benefit continued to increase every year until it reached and exceeded the original amount I was going to receive. It really worked for me...I ended up retiring at 70 with more SS than I was expecting, plus I had paid off my mortgage and my credit card debt. Yay!
Awesome for you.😀🇺🇸👍✌️
You're blessed you lived long enough to retire.
It’s good for you Sir
The money that they held back was actually money held for you until you reached your full retirement age,plus you worked until 70…all that is re-calculated once you stop working
That is a wise decision you made
I know quite a few people who didn't even live to reach early retirement, let alone full retirement of 67. I'm taking mine early.
My dad was one of them! My neighbor croaked 2 weeks after retirement!
Yep
Yes, great point!
unfortunately, that’s what they count on. your early death
The government counts on this which is why they keep moving the age like now they are trying to get the age to 70.
People. are facing a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000Read more
It depends on your personal preferences and comfort level. However, one option is to keep things simple and consult an asset manager. They can help you determine your risk appetite, avoid common mistakes, and provide a broader perspective on your investment landscape. I have about ($1.25m) in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little in retirement accounts. To be completely honest, the information provided by managers can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Mind if I ask you to recommend this particular manager?
Her name is “Sonya lee Mitchell” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
You should be able to work and collect social security without penalties. It’s your money.
Your benefit for retirement.
Sorry Tess but that's common sense. :) When you are working you also pay in more of your dollars to SS.
No you shouldn't collect social security and still work
@@DonnaLeslie-hv3rk It's your money Donna. And you can't live on SS alone. Can you live on $1500 a month?
@@tixximmi1 yes I can
How about cutting off congress benefits if they receive any other funds? Where is there limit? Accepting lobbyists money should be against the law too.
They should be on the same system as the general public and have term limits.
They were voted in, we can vote them out.
Especially AIPAC $…unregistered … therefore illegal foreign lobbyists who buy our representatives … bribery !!
I heard Congress, if they served 2 terms,they would get 200,000 per year in retirement benefits. That's what MTG is hoping for!
I can't believe congress is punishing people for wanting to work, if they want to take retirement early. Why did they pass these stupid laws. We worked for that money it came out of our paychecks that we worked hard for. This is ubsurd that they put these penalties on us. Just some more hoops to o make things harder for the elderly. I'm angry that congress doesn't get together and change these laws, it's not fair to all Americans.
True😢
You can thank the G.D. Democrats for any and all of this B.S. They need ALL your money as they know how to spend it better than you do!
@Jonathan Bolz lol, the Republicans aren't any better. They want us to work longer cause we "love to work" 😂😂😂
@@jonathanbolz2449 But, those GOPs/REBs wanted to do away with SS or privatize it. In any program, one has to establish cutoffs to allow efficient operations of that program, if not, it would cause many complications. Some people will be disgruntled or unhappy, the greater good is important. We are all very fortunate to even have a SS program.
They are not laws… only codes
The income limit should either be raised significantly or better yet, removed completely.
Agree
The last 2 years I worked full time & received six sec. The IRS taxed 50% of my doc sec. Because my income was over their max limit.
I paid into soc. Sec. for over 50 years...and face this scam!
they’ll never do that because it benefits us
I guess I might be for that...maybe. If they removed the upper limit, then even millionaires who are still working, would be filing for SS. You can argue that they paid into the system, but that's not the reason SS was created for.
@@JKinLVN Just one of the many ways our legislators limit our prosperity.
The cap on the max amount of money you can make will drawing Social Security was set in 1983, and placed in force in 1990 If you adjust for inflation the cap today should be $80,000 People should contact their Congressperson to ask for this inflation adjustment
62 and working two days a week. It’s awesome. It’s as good as it’s going to be for me
My plan also
sweet five days off each week.
@@wisconsinfarmer4742 hell yeah. I’m able to pursue my active hobbies while I can still do them.
Me too , I only work up to 5 to 6 days per month! Was working 12 hour shifts sometimes 7 days straight with maybe 1 day off as a Pharmacist. When I hit 62 I was done! 30 years!
Same here!
I retired this year at 62. Never mind "making it" to 70- it's best for me to retire now. I, like so many others, never held a "high paying job with 6 figures." I'll be getting $1091 a month starting in September. I'll be working side gigs and online items to make extra money. At that time, it's MY choice to work or not. As long as I stay under $21k per year, (no problem there), I'll be fine. I'm happy with my decision.
Only you know what's right for you....this info is general
And your situation is almost the same as mine. I retired a few years ago from a low paying job that wrecked my health so now I work when I want to. I will be receiving my benefits in a few months at age 62.
@@09michaeleright! I hv 2 additional incomes that are not counted by ss. Everyone has to look at their individual situation. Agreed. 😊😊
21k including social security benefits or just your earning? I am very confused.
@@chopin9684not including your social security benefit
I took mine at 62. Don’t wait till your to old . Live sensibly
Smart Woman. 😉
The essential thing that everyone should be thinking about right now is investing in non-government sources of income. Especially in light of the current global economic crisis. It is still a wonderful moment to invest in gold, silver, digital money, and stocks.
I'll pass on the stocks for now, (maybe in two years) but continue with the metals and crypto.
That's it investing in NON_ GOVERNMENT BUSINESS Thank YOU
It really is and I think it's so much better for people that it's not going to be something that seemed possible to most people. I would be doing so many things differently than our government. LoL
I bet Congress is exempt from this.
As far as I know, most government workers do not pay or receive SSA benefits. It's all about pensions.
Government pensions are fat
Need to Eliminate Congress Golden Parachutes!
@@maggiemmoore There are other ways to legally not have to pay into social security. (investment rules) The best plan is to not have to need social security when you retire!!
@@wendyarbes9514 yes. Many get 80% of their gross annual salary if they have the years of service.
We should get all of it at 62
Something like 95% of people who receive a chunk of money have nothing left in a year. Most people appear to be completely untrustworthy.
Same 😁
Just another way for the government to put Americans last while blindly spending on wars and illegal aliens
I agree ❤
Must be a s Democrat.
What makes me furious is the fact that we aren't teaching this in school, and how important it is to start saving and investing at a young age! I have drilled it into my sons to save and invest now while they are young so that in 20 or 30 years they will be comfortable! I'm on target to retire at 62 because I have investments and praying they continue to grow I will be comfortable!
Man with logical plan.Good to see these days.Bad times ahead
Schools can't teaches everything. This is why kids have parents.
You can only make 1770 month or u pay back 1 doolar for every dollar
I believe this in not taught in school because the “system” wanted to keep you poor and dependent. I was lucky, my parents always drove good finances into my head, maybe because they grew up during the Great Depression. I am thankful for the financial lessons I learned at an early age.
began my investment journey at the age of 37, primarily through hard work and dedication. Now at the age of 42, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.
Every case is different...I did the math and I got to the conclusion that if I retired at 62 I will work only 4 days a week instead of 5, and with the 900.00 that I am getting from SSA I will end up making more money and work less...I don't think that I will never regret to retired at 62...
The advice to wait until full retirement age to collect presumes that the person will have the same job & income till then. In actual fact, many people lose their jobs to age discrimination and can never find another full time job that pays them what they had made. I originally planned to wait until 70, but I lost my job at 61. I tried for over a year to find another comparative full time job with no success. I had only 6 months of unemployment, so I had to start collecting social security at 62 and a half. By then I had a decent part time job, but it paid me less than 20% of my former salary. According to the chart, if I could have waiting till 70 to collect social security, I would have gotten another $750 a month, so I was very stressed about having to take it early. But I spoke with someone at my local social security office and she explained that in actual fact, given what I was now making working part time, I'd only get another $200 a month by waiting til 70. In the meantime, I'd have lost all that needed social security income till then. PLUS, because I am paying taxes on my part time income, my social security checks will rise each year, more than the COLA raise. Less than 3 years later, I'm already getting more than $200 a month more because I'm working. My advice to people is, don't stress about the coulda, shoulda, woulda; it's your money. Collect it when you need it!
Super cool thank you. I've qualified for my early pension soon as I just turned 62, this June. A early penalty wouldn't make a difference in my case. Also eligible to apply for disability benefits due to extensive on the job injury and medical foul by a chiropractor. Really blessed prayed to God for a long time and persevering while been on and off work for years. Ended with a 2 day a week job last November just surviving. Believe it's also helpful in making my case stronger.., got my benefit card today to be activated to receive next month. I'm so pleased after much stressful pain and struggle.
@thAvenueCollective
Age discrimination is my fear if something happens to my current employment. I'm 61.
amen, i love your thinking, i am 64 and have heart trouble, i applied for My SS starting in june 2024 and will worl part time as a grocery stocker, i have been with my company for almost 7 years as a full time employee,.
I do not understand everyones desire to retire early. I am a 64 year old lineman and still climb poles every day.
I will work as long as I can and hope to go to at least 70. Working is a joy and blessing. It provides social interaction, self worth, a positive feeling of contributing to society and provides money not only for yourself but for your family. I am able to help my grand children in college.
If I die before I collect SS, who cares, I have a great life with people who love me and I am happy.
Love your family, contribute to others , and be gratefull that God has blessed you with the rare opertunity to work and enjoy life.
Being happy is a personal choice and only you can decide to be happy and love the blessings we have been given.
Amen brother! I feel the same way!
That was one long platitude! Bully for you if you like making other people rich off your labors. Many folks idea of a "blessing" is reaping the benefits of working and paying into a system where now they can get that money back for relaxing and doing other activities besides work.
Yes Sir, I too am working 67+. Love the interaction with people keeps me much more physically young and happy.
You're tough as nails and active but you know ALOT of people are fat and out of shape and lucky to make it as far as they have.
Enjoy what you do on those poles while retirees on the beach watch you do it
At 55 I retired. At 62 I started SS. $2343.00 per month. No way was I ever going to leave that money on the table. I've worked since I was 13.
And yet if you live past the break-even age, you have the possibility of leaving lots of money on the table. You'll be leaving all of the money on the table that you were entitled to, that you will no longer collect, had you simply waited a few more years before you filed.
No matter what your decision is, to file early or to file late, there's the possibility of "leaving money on the table."
The lifespan of an average 62-year-old man is 81 years old according to the Actuarial Life Tables. (84 years of age for a 62-year-old female.) And yet the break-even age from 62 to 67 is only 78 years and 8 months.
The thing is, what if you die before you reach full retirement age, and you didn't claim any benefits. The only winner there, is the government because you contributed, but they don't have to pay you because you are dead. For some of us, we need to claim at age 62 so we get back some of what we put in.
I have chronic illnesses, including two rounds with cancer. The odds of living a longer life aren't in my favor, but I'm hopeful. I decided to semi-retire and live life while I could, and took SS early. I will be penalized.
mindset should be health not wealth.
Your wife can get the benefits if you die
Not a problem. But I think many might give up the desire to live past 85. Not easy to live on $2K per month for a long time.
They count on that
Many people work hard and don't live to collect ss benefits for a long time, let alone receive it at all. Lots of people died and never live to collect ss benefits. Smh. I collected mine early and have no regrets. life is not promising to anyone of us. Just saying. Thanks for sharing this video, it was very informative.
There shouldn't be ANY penalty to work and draw early. Screw this corrupt government
At age 60 I had to have a heart valve replaced - this significantly reduced my longevity AND ability to hold a full time job. I hung on at work till I was 62.5. I opted for early benefits at retirement, but still make more on SSA than most people. I do work seasonal part time but am mindful of the reduction if I go over.
hello there , i am at that stage now with Afib And Congestive heart failure, i know i am Sick, i still want to work part time,but applied for my SS at 64 1/2 oh well it happens, we gotta do what we gotta do.
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
For lower income folks a smarter move is take a tiny amount each check (I know, it's hard, sometimes it's only $1 or less) But when you get about $20-25 you can buy vintage silver coins from a reputable coin business. No matter what happens in the world if you have a precious metal (like silver, gold, copper, etc) then when the economy crashes (which it will, it cycles through growth & self-correction) then you have something to trade for basic needs like food, housing, clothing. ALL financial advice videos & strategies are addressed to wealthier people. Poor people don't have money to risk. Tangible assets (like precious metals or land) are the best hedge for poor people. *disclaimer: I am not a certified financial advisor, just an elderly grandparent who learned how things work.
Social security benefits are adjusted for inflation annually, PLUS earn 8% more every year you wait until full retirement age and, last but not least, SS benefits are essentially risk free unlike the stock market.
I'm happy with gold and silver.
@@wrennspencer3512 - Buy a quality metal detector and go find your own!
I'll stick with metals.
Here's my opinion:
If you take your SS benefits at age 62, it may be a small amount but you get to enjoy it for a long time.
You get to spend it while you are still (hopefully) strong & healthy / alive.
If you take take it at FRA or delay it till RMD, you will getting more $ for sure but what good is it if you are too old to enjoy it?
What good is all these money you kept saving if you are too old to spend it.
I have friends that died before they even reach 62.
I took my SS benefits at 62. Smaller amount but Im enjoying it while I can / before I expire.
My 2.5 cents.
My parents both worked and took there's at 62 they are 80 now I'm 60 I'm taking mine at 62 also. I don't know how long I'll live . It's definitely a PERSONAL CHOICE.😊
Yes but if you work they take the ss back. That is the point/
@Angel of A Million Years True but you can make up to 17,000- to 19,000 something in that range. Then you pay 1 for every 3.
@@anthonydorazio9650 That is my point. That is unfair because you have worked for years. The need to stop penalizing you for making more than $ 20k. $ 20 K is not much money. Thanks
@Angel of A Million Years Absolutely 💯. My friends who I trained are running these big companies and can't get any help. I retired 5 years ago and help them like three days a week. Your right the government needs to remove those restrictions.
It isn't just about acquiring more money. Quality of life is also important. More money doesn't always equal a better quality of life.
My boyfriend wanted to wait to get his “full retirement benefits.” He died at the age of 64.
@@believer7733 my cousin died just before starting his social security at 65.
Social Security does not pay enough to live on unless you have saved.
@@angelofamillionyears4599 well now Angel that depends. That depends on how are you worked and how much you paid in. And the biggest factor is how much money do you owe. In my case my house and cars are paid for. Actually I save a thousand dollars every month from my social security and have plenty of money to pay bills and buy groceries. Those people that cheated on their taxes for many years probably don’t get enough to live on from social security. I live in a nice but modest home and not a 3 thousand 5 bedroom 3 bath house and I drive good vehicles but not expensive cars. Some months I can save as much as twelve hundred dollars just from my social security check.
I was in law enforcement and have a government disability retirement after 30 years. I plan on waiting till full retirement age to start collecting. Because I have a pension, I heard that social security will take out at least 60% of my social security pay. Is that true?
With the labor shortage , please lobby for the SS penalty to be dropped !! We need workers ! Thanks
BAN people from starting SS before age 65!!!!! How about THAT???
Probably why they are bringing in migrants to cover this
SS has a money shortage.
I retired at 62 less per check but it is there every month. That means actually more checks. I went back to work at full retirement. Money pays bills no matter the source.Thanls for the article
I am a father of three children, an immigrant with American citizenship. The method of explanation and data in the video is very beautiful and academic. Thank you very much.
Great Explanations! You are the first person who has been able to clearly explain the Process and Implications of SS Retirement. I am clear on this now. Thank you!
Thanks
don't die waiting for age 70.....lol
Yes, they tax it if you make over a certain amount. However, you already paid taxes on the income you made when they took out social security from your paycheck when you worked it.
For example, you worked 40 hours the week of March 1st-7th in 1995 and when you get your paycheck they took out money for social security. So now they say you may get taxed on your social security retirement benefits when you already paid them back in March of 1995.
You are actually being doubled taxed.
It's one big racket
Yes,yes that is the game our government is playing. It's like John Lennon said in his song the tax man, if you brush your teeth I will tax the brush . I would really like to know what happens to the ss money that doesn't get paid out when someone dies a month before they become eligible to collect ss benefits? A friend of mine just passed away his only beneficiaries are his son and daughter both are past their 35th year, are they eligible to collect his "benefits". That's the other funny thing they call them benefits when it is actually my money.
No. you paid a tax into a fund, not a savings account. Now you're receiving money from the fund in far greater amounts than you ever contributed so that's basically like paying tax on earned interest.... so you're being taxed a small amount on this benefit you qualified for by particpating...
Yeah, gotta throw the tea in the bay again.
@@ronstokes7588 Thak comment of yours made me smile you see I grew up on Gasspie peninsula in Warwick R I in the early 60's my bed room window looked out over Narragansett Bay I could see three huge poles sticking out of the water up at the end of my street there was a plaque that told the story of the schooner Gasspie which was the Rhoad Island end of the Boston Tea Party. When I was stationed at the Newport navel base there was a guy named Stokes onboard . I love a good coincidence!!!
Two people who wait until 70. Personality in which the person enjoys what they are doing so much, they won’t leave; and those who have no choice but to continue until 70. If you have a choice, draw as soon as allowed
I took mine at 62. Politicians are hoping you die before age 70. You have to do the math and know what your breakeven age is.
Sometimes it pays to wait. My sister retired at 70 and her bosses were begging her to stay. She's fine financially, actually gets more money retired than a lot of people do working two jobs. She was a nurse and quit just before Rick Scott damaged the Florida Retirement system (like he wants to do to Social Security). She had people tell her how lucky she was when she quit, they lost loads but she wasn't lucky. She was smart. And if the Democrats are weak and the public is stupid and the republicans get their way with SS like they've griped about for years and repeated what they did with Roe vs Wade, you'll have more to gripe about than you know. Personally, I'm not going to count too heavily on Social Security. If it's still around, I'll probably wait until I'm 70. CDs are pulling 4 to 5% interest now and may be on track to hit 13.5% like in the 80s if the fed keeps raising it b/c people are spending their money.
@@shihtzusrule9115 I just started my draw last month. Should I wait- it is 185,000 dollars not deposited in my investment account. Not worried about trying to gain a few bucks on the other end.
Impressive presentation that led to my taking the SS report offer and then the retirement course. My foundational understanding was better than I thought, and with pensons (taxable) and SS secondary, benifits of medical expenses in my retiremnet plan, etc. provided yet more opportunity with Lane , once I achieve accredited inventor status in a few years. I think Lane has information to assist you in preparing for the best retirement that you are willing to work toward. Thank you Lane!
Amazing thank you. Most of us are not educated in this field although it effects us greatly. Keep up the good work. Tim
6:22
Sorry but Tim is lying
The reason most people aren't savvy on money issues is because the the Government, Banks, Wall Street, etc.... want to keep the average person dumb about finances!!
I wish there was someone like you that was there when we needed it .
Excellent and easy to understand video covering exactly what folks like me need to understand. Thank you.
I was disabled when I was 62,now I am 67 and I did not know that I can work and get in trouble for tax stuff. Great information, I'm going looking for a job tomorrow! Good information for a guy like me,
I appreciate the clear explanations given here. Lane Martinsen is not in a hurry. His patient way of speaking helps me follow along. The graphs are professionally done. CZcams lets you pause the graphs. After a moment, you get an unobstructed view of them.
Some other financial planners talk as if they are in a hurry to get onto the next subject. I find myself not fully understanding what they just said, and already they are talking about something else.
Everyone says that there are no penalties if you wait untill full retirement age but what they don't tell you is that most likely the two incomes will put you into a higher tax bracket ,which like in my case caused me to pay the IRS rather than have the IRS refund me my over payment. Which can be tuff to take when the ss benefits don't come close to paying your bills,which is why I am in favor of incomes under $100,000 per year should not be taxed at all !!!! I think that would get the economy running again.
Just a FYI Couples this year on SS wit a combined income of $110,000 are in the 12% tax bracket or a little less
I'm coming up on 62 and because of learning from your video I'm going to try and make it to 70 before retiring. Thank you for the valuable and highly pertinent information you've provided!
When I retired I waiting til 67 and some months, cant' remember exactly so reach FULL retirement age and also got the house paid off. I WISH I could have waited til 70 but I just couldn't.
Its better to wait. Keep working if possible. I plan to work even past 70....sit home and do what, get old?
that’s bs that i good money and get penilized twice a a lower rate and max cap of 22k
I have no choice, I have to retire next year at 62...because im sick with diabetes and it's killing me...I need to get out while I still have some years left to live. I will also receive a pension check that will make up for that 30% in lost social security.
look up Dr Ken Berry, Dr Jason Fung on you tube....example: Dr Ken D Berry: diabetes. If you will go low carb, you can reverse your diabetes....
Thank you so much for this expert clarity on SSI, it is baffling to understand whether you are receiving correct monies after years of paying into SS. I’m still learning, truly appreciate your explanation.
Thank you addressing my question regarding pension income . You are the only site that has addressed this issue .
This is the best explanation. Thank you for explaining the ins and outs. Now I understand.
Collecting Social Security is like collecting money in Vegas, the odds are stacked against you.
Then don’t take yours, DUMBA$$!!
If we are being honest with ourselves, taxes may be a major pain, just like they are for the wealthy. Taxes on income, goods and services, real estate, etc. It's wonderful to pay taxes, but we may also establish our own tax havens. Since stock market appreciation is not taxed, I personally invest most of my money there. When I sell, though, I discover ways to make the profit tax-deductible. I’ve been sitting on over $745K equity from a home sale and I’m not sure where to go from here, is it a good time to buy or do I wait?
(I find it upsetting that such basic concepts are not taught in schools, yet people constantly whine about taxing the wealthy as though they should be made to pay for their own ignorance. I have been utilizing the market to insulate myself from the market, doing the same thing. However, because I detest making routine decisions, I just invest through a financial advisor, earning decent returns and avoiding taxes with minimal effort.)
Stock market are, in fact, taxed. 7:45
Forced poverty...this is pure evil.
I think many people are finding that the $600 per week take home after taxes in a $20 per hour job is not enough to maintain their rent and bills..medicine and such.. So They will chose to get that $1,000 per month SS and go to a part time job or $400 per week and the $1,000 bonus. Can't live on either one but forced to chose the lesser of two evils.
Unless you invest some.
A single person wouldn't have any problems living on $600 take home a week.
@@Drumbeat52 I do.. And I have no car payment or medicines to pay on.
Me too! Where is this fantasy land at? A rental house in Austin area is $2000 a month. That doesn’t include utilities, car payment, or even car repairs. The cost of living has skyrocketed. As opposed to pay. Take at look at the minimum wage. It’s been stagnant for decades. My grandmother retired in 1977 and was collecting $900 a month SS and a $230 pension. Last time I checked I was going to collect $1700 a month if I wait for my full retirement. 1977 until 2024 a $700 increase. In 1977 $1000 would pay for a modest home, entry level car and utilities and you could but a little bit of money away. Now $1700 won’t even cover rent except in the ghetto parts of town. Something is wrong somewhere.
@@mortimersnerd9175 I live in a $875 apartment. Michigan. Single person earning $600 a week after tax income. No car payment.. Phone and electric $100. Insurance $100 .. Food $300.. Beer and cigarettes $400.. About $2,000 USD cost per month.. Gasoline and clothing another $100. $300 per month in extra spending or savings is my buffer zone.. Dog is extra 35-$40 I forgot..food and sue charge added to rent. So I have about $50 in case of emergency per week.
Thank you for explaining this so eloquently. I'm dyslexic with numbers (they confuse me) so making this kind of decision is very difficult. One thing I know for sure: I would like to retire while I'm still physically able to do activities on my bucket list, but I want to finish paying my house off first to decrease how much income I "need" to have, making retiring much easier.
Most excellent tutorial. I've just filed for my early retirement.. you helped answer every question.
Thanks
Tim R. Texas
So glad I found this channel! I’ll be 60 this year.
You are an awesome man for taking time to inform us.l thank you for all of us 61 yr olds out there
Sir...this is the most genuine and informative video I have seen in a long time...thank you..
This is the most informative information about SS that I have seen. The graphics you displayed were quite helpful. I thought my pension would doom my social security, but it won't. OMG, I was sooo sweating that. I'm still working fulltime in a well-paying job and I've only got about two more years until I take SS at 70. Thank you for doing this video. You have a new subscriber.
Wait... you're 68 and not collecting until you're 70? Why?
Rollyb I'm doing the same. My CO pension has a windfall provision so I will only get about 40% of Social Security. I figure why not keep working and keep adding to it.
@@JimmyYuma7 - none of your business why rolly is choosing to wait until 70. Choose your own age to collect.
@@warriormanmaxx8991 You're a good little sheep! Never ask questions, just trust the government! 😂 Hows your booster jabs working out for you?🤡
@@JimmyYuma7 the benefit goes up several percent each year from FRA to 70.
Clear and concise. REALLY helpful! Thanks so much.
Something to think about. Everyone doesn't get the same amount of social security benefits. It all depends upon how much you put in according to the income you made over the years.
My stepdad was a former Fire Chief and in the state he worked they didn't pay into the social security system. They had a firefighter system the paid into. He got about $550.00 a month in social security benefits because he worked a second job that paid into the social security system.
Also, when you hit 65 they take out roughly $165.00 for Part B Medicare monthly. So all this time you pay it was only for Part A hospitalization. If you choose to not pay for Part B and want it later than they add up all the months you didn't pay it from the time you became 65 and I believe 10% of that total is added onto the $165.00 and you pay that much.
So, say you opt out of getting it for 12 months.
$165.00x12= $1,980.00
$1980.00x 10=$198.00
So, regular amount of $165.00 plus $198.00 = Your new monthly Medicare Part B premium that is taken out of your social security benefits of '$363.00.
So, it ends up you are paying a 10% penalty on every month you didn't pay the $165.00 which means you're paying a penalty for someone you never got a benefit for and you pay until you die.
Bottom line is, if they can get money out of you they will. One way or another.
So, if you got a social security benefit of (let's say $1,000.00 and month you would be getting $835.00 with Medicare Part B taken out of $165.00.
If you have to pay a penalty (for not selecting it at the age of 65) then subtract the amount in addition to the 165.00. So,
$198 + $165= $363.
1,000.00 - 363 = makes $637 as your monthly social security benefit. That's not including if you make an annual income greater than the limit amount stated to so they then take more money from your benefits.
TOTALLY WRONG, you IDIOT!! The Part B penalty is 10% PER YEAR!!!! If you delay 12 months your starting YEARLY premium would be $1980 PLUS 10%. Aka $2178. Aka $181.50 per MONTH!!!!!! NOT $363. YOU …are VERY STUPID!!!
it is 10% penalty for every 12 months you did not take it when you should have so it is 16.50 added to 165.90. Not 363.00
you actually think people will understand all that , when they are ready to retire, and can't remember where they parked the car, and can't find the phone?....LOL
You've reinforced my choice to retire in 2022 at 63, which was partly made because the company I had loved working for was closing its doors. I don't know that I'm maximizing my potential retirement income, but I've got a goodly chunk of mutual funds from a previous career, and I'm really liking living on my SS retirement, using the mutual funds to just supplement my income if I need it, and watching the mutual funds continue to grow. I'm also taking full advantage of my greater time to develop the product I want to start selling when it's mature, so "opportunity cost" has a lot of meaning for me. I'm doing the work I love , in my workshop.
Taking mine at 62 while I can still, hike, mountain bike, backpack, dive, hunt and other feral activities, most spend less in old age, oatmeal and soft foods are cheap
That was explained clearly! Thank you!
Great presentation and visuals. You make things clear and concise. Thx!
Well done! That's probably the best explanation I've seen on effects of working and taking Social Security.
Great information. Thank you very informative. Understandably, every person situation is distinct. I would love to see actual numbers and comparisons to the scenario you see talks about. You obviously can't go into every scenario but generally speaking to give a better and clearer picture. Video actually covered a question that I had in my mind for some time
The biggest gamble is life expectation. Everything else can be done on paper. I'm 58 now, I'm taking it at 62. Family history, health, risk of taking the dirt nap unexpectedly from anything besides health issues...not worth the risk. Heck SS wasn't even made for my generation, so we're milking this cow to death. I might not even make it to 62. Taking it at 62, no regrets.
How true. My mom passed at 67. She only collected SS for 5 years...guess who won on that one? On the other hand, my Dad collected SS for 30 years until he passed last year at 92. If we all had a crystal ball, deciding when to start collecting SS would be easier. I plan to start collecting in early to mid 2025 when I am 64, unless my job goes south before then.
From my experience receiving your retirement benifits as soon as you are elgible is the best way to go, do not delay. You will recieve the most money when compared to waiting. If you do not need the money invest it in your retirement if you go with a mutual fund you most likely will earn about 10 to 13% annually which is better than an average annual increase of about 6% you'll receive from Social Security.
I got my full retirement at 66 and still working full-time. I’m almost 70 but everything is so expensive and I’m still working if I didn’t work I wouldn’t be able to buy things that I need and food and be able to go out to vacation and visit my grandchildren so I’m still working.
These numbers need to be doubled to truly help people out. Hard times ahead!!
How about if one just opts out of social security entirely early in life, take the 12.4% of earnings, buy a disability policy in case you can't work and then invest the remainder for retirement? If one is actually intelligent like at 25, that is 40 years of earnings into a retirement fund that you know is not going to be squandered by politicians.
I rather claim at age 62. Now a day people are not living longer. I'll rest and manage in the amount that I get. Life is all about resting in your last days. We met money here and we are going to die and leave it.
Thank You so much for sharing your knowledge in this area!
I reached my full retirement age last year. It was nice that I could make as much as I wanted, but no one mentioned how much the government would tax me for doing this. I get to pay the highest taxes in my life this year.
Here is a video about taxes on SS benefits you may find helpful czcams.com/video/Vf8vU7f3QfI/video.htmlsi=Ejp1UYo817gu_TIX
If this was you private pension you would keep it all! This is such a affront to our people who paid their money for this pension! You wonder why government is hated? Only the rich get to keep their money in America!
It's not a pension
SS is a benefit paid from a fund you paid into but isn't really tallied and paid interest specifically to your own benefit. You pay the SS tax during working years and get a benefit calculated from your years and level of contributions, but it's still a benefit and NOT a pension, per se.
I still dont understand why I would be penalized when I am paying into Fica by working.
Thank you. Your videos are clear and concise. You answered all of my questions.
This is so clearly explained. Thank you!
Thanks for this information. There was a lot that I did not know. Due to me being pushed out of a job three years ago, my limited personal savings and investments, my health, and not being able to find another position, I have to take SS early. Nice to know about income limitations - I hoping to eventually find a part-time job. I'm not expecting that what I will receive from SS will cover all of my basic bills.
by drawing my social security at 62 while I am working it will allow me to pay off my home and outstanding debts in 2 years otherwise a home mortgage and debts would have followed me into retirement. This payoff allows my wife to retire at 62 but not draw her SS until FRA 67. I think everyone's strategy going into retirement will be a little different.
I've told people who wanna keep working til 65, 67, etc don't. Take it at 62. Then go find some part time job you actually enjoy doing, that isn't too crazy, but allows you to still have purpose. Either that or start a business, or take up a craft that you can do at your leisure but still make some money. Once you're 60, you only maybe got 10-25 years of good life left. Enjoy it with your family and friends.
OHMYGOSH!! I am so grateful I stumbled across your CZcams channel. 🙏 This video was so eye opening.. and came at the right time. Thank you!!!
Very informative video, and no edits! Thanks Lane!
My situation is probably is probably similar to a lot of people. I’m 62, work full time for a decent income, by most standards middle class. If I quit, take ss, and work part time at the 21k limit, my financial standard of living goes down dramatically. I have some investments, but not enough to draw on to make up the difference. A lot of people in the comments seem to be willing to retire poor, or near poor for the rest of their lives.
Self employed at 62 the early retirement money can be useful immediately when younger at 62. If substantial more money is made in this earlier time, well, that's like investing in yourself, your business and your own ROI.
Letting the government hold onto your money till 67 is investing in the Gov. and their limited fixed ROI. A lot can happen within 5 years in your 60's, a person could get OLD, injured, sick or even die from stress. All that instead of more stress free time engaging health and creativity making more at a younger more capable age. Invest in yourself or the governments static ROI. If life has been good to you $ , well, enjoy your healthy luck and ride off into the sunset without a care in the World. One more thing, it's not the start, or the middle, it's how you play in the 4th quarter and overtime at the finish. If you are still on the field and flexibly in the game you are winning. I kick field goals after touchdowns so I am in and out of the game both.
Amen 🙏 I love this comment ❤❤❤
He is absolutely right it’s what works for u go part time yes and do a side gig or investment if u know what u are doing am 61 but am from Jamaica 🇯🇲 had no knowledge of investment only knows to work I made a little over 100,000 as a nurse but I wana just chill relax and travel while am healthy but again I have mortgages car payment plus credit card s 😢what do I do my. Job is not hard don’t get me wrong but I wana live and enjoy my Social Security 😂😂😂😂😂😂. Give me advice my friends
Well explained, thank you sir.
I love your channel & info!
Thank you for your explanation. I’m planning to retire early at age of 62 because I’m a housekeeper and I can’t manage anymore for this kind of work. Been a housekeeper/nanny for forty years. I can still work another kind of job especially driving, I never get tired and maybe I’ll just apply as family driver or assistance driver
I started SS at 62. This let me keep my cash while spending SS monthly, instead of spending my savings while waiting to get SS at 66+. If you spend all your money waiting to get SS and then die early there is nothing for your family.
Great video and very informative!
The "baby " of the 6 kids in my family are so excited that no one will be working. My sister is retiring at 62 next month.
Thank you for the clear explanation of recieving social security while working. This is going to allow me to prepare for my retirement. Considering i don't have nothing saved. Im still not sure what to do. Thank you!
I decided to take my SS retirement early I am 62 now and I still working full time and I know there will be penalties and I am ok with that. I did it because if I don't do it like this I would lose around 60,000, so be it. Your info was really helpful though and thank you 👍🇺🇸
Check is too small at 62. I am waiting until 70. I will get a huge check.
@@JohnDavis-yz9nq By the time you get 70 years old, I won't be so much money by then with the way inflation is going up every day.
@@ericspwncer1274 next year I will be 70. By waiting I will be able to live on just my social security if I want to. Starting at 62 I would not be able to. But I know what you are saying. The average social security check back in 1985 was less than $500.00. My dad was able to live on it back then. Now you could not even start to live on $500.00 a month. His working years were when people didn’t make over $100.00 or more a week.
@@ericspwncer1274 I will be 70 in 11 months. I am so glad that I waited because had I started my social security at 62 inflation sure would have eaten up the smaller checks.
@@JohnDavis-yz9nq "By the time you get 70 years old, I won't be so much money by then with the way inflation is going up every day." They apply a cost of living adjustment every year on the base calculations for new payout, and when you're receiving it you'll get a COLA too - last year was an exceptional year but the check went up over 8.5% for this year... it's based on one of the inflation metrics for the month of Jul, Aug, Sept averaged compared to the same months the prior year.
The government is hedging bets that you won't live until your full retirement age. Enjoy life while you can. The disability penalty is worse. Most cannot live on even full SSDI .
Lets remember that SS was NEVER meant to “support” anyone. It’s an income supplement. That’s why you should save and invest. And work a job with a good retirement pension.
@@mrs.c5471 well when applying for disability the wonderful government strips you of all financial assets , 401K , etc, while waiting for approval. Obviously you are not familiar with that. Be glad you have good health and temper your observations with understanding or just choose to remain silent about that which you are unfamiliar with.
Phenomenal video! I appreciate the insight. Thx Lane👊🏾
Thanks for taking the time to explain this rule.
I’m surprised you didn’t mention life expectancy, which has a profound impact on the decision.
Life expectancy is discused in this video czcams.com/video/4Gpzw5wcFo4/video.html
Signed up for SS retirement at 62, signed up at 61 and nine months to the day. I work 5 days a week the last 3 years, and I usually got a good tax refund. No regrets taking it early, lose 30%, but I get 60 checks they would of kept. I might not make it to 67, who knows?
You have answered my question through the video. Thanks.
It always is written to affect women who took time to raise children the most. Less IRA, 401K, etc. More likely to be working until older to fill in the missing years.
Thank you very helpful
For all of us who barely have any savings, and with this crazy inflation, it makes 100% sense to work until at least Full Retirement Age.
I'm a new subscriber...thank you for the information, I will look at your other videos
Thank you sincerely for posting this information.