5 Really Good Reasons to File for Social Security at Age 62
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- čas přidán 3. 07. 2024
- Conventional wisdom says to delay social security benefits for as long as possible, however, that’s not the best strategy in all cases. In fact, there are several compelling reasons why collecting Social Security at age 62 could be the right decision for certain individuals.
Life Expectancy: Many financial analyses focus solely on the break-even point, usually around age 80 or 81. However, if your health history or family background indicates a shorter life expectancy, it's essential to weigh the benefits of early collection versus waiting.
Portfolio Growth: While delaying Social Security can result in a higher monthly benefit, it also means drawing more from your savings in the interim. By starting benefits early, you reduce the amount you need to withdraw from your portfolio, allowing it to continue growing. This strategy can be particularly beneficial if you plan to invest the Social Security funds, potentially pushing your break-even age further into the future.
Age Gap with Spouse: For couples with a significant age difference, collecting Social Security early can be advantageous, especially for the younger spouse. If one partner has a considerably shorter life expectancy, it may not make sense for both individuals to wait until full retirement age or beyond. By starting benefits early, you can maximize your combined income while still considering potential survivor benefits down the line.
Unlocking Family Benefits: Early collection may also unlock additional benefits for dependent children or spouses. In some cases, waiting too long to collect could mean forfeiting these benefits. By assessing your family's financial needs and eligibility for such benefits, you can make an informed decision about when to start collecting.
Immediate Financial Needs: Sometimes, life circumstances dictate the need for immediate income. If delaying Social Security means resorting to high-interest debt or other detrimental financial decisions, it may be more prudent to start benefits early. While this decision may result in a lower monthly payout, it could prevent further financial strain in the short term.
Ultimately, the decision of when to collect Social Security is deeply personal and should be based on a comprehensive evaluation of your individual circumstances.
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⏱Timestamps:⏱
0:00 - Reconsidering deferring SS benefits
1:06 - Life expectancy
2:33 - Grow portfolio
4:19 - Spousal age gap
7:11 - Family benefit
8:17- Financial need
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You left out one of the best reasons! Take it early to enjoy the money with your family, while you are still young enough to get around during your go-go years!
Heck yeah! That’s what I’m gonna do. I’m not waiting till I’ll 70 before I enjoy life.
Amen. You never know how long you have left.
Why not enjoy a larger check with your family?
YES!!!! Why do all of these "experts" ignore that?
?
I retired at 62 and never regretted it.
Tomorrow is not promised. If you can afford to, retire and do the things that make your heart sing. No point in being the richest in the cemetery.
I was forced into retirement by the CV-19 flu. My wife and I both lost our jobs. After two years I had had enough and got another full time job. I don't really need the money, though it is nice, but I need to do something besides leisure. I go to work singing. My dad retired at 66 and played golf for the next 20 years. That is a job I don't want.
Collecting at 62 is foolish.
Amen
True Dat 👍
@@uncareid5557, I will take the golfing for twenty years!
No cemetery headstone ever said, I WISH I SPENT ANOTHER DAY AT WORK.
But there are a lot of tombstones that say "I was dead right".
Why would someone put something so stupid on their head stone. In fact NO ONE puts ANYTHING on their own headstone. That is such an illfated comment! Many people LOVE their work and will never "retire". Retirement is for quitters! If you hate your job, get one you love. Wasteing your life away working at a job you hate is a fools errond. Try coming up with something original!
I collected at 62 and NEVER LOOKED BACK!!! I was working part time, home, and car paid for, no debt... I was used to living off my part time paycheck.. why let the government invest money I've paid in 40 years?? Nope, i drew early.. best decision ever.. for me..
I did the math. I break even at age 76, my life expectancy is that. Took at 62.
and?
Did the same my break even is 76 plus 2.months My wife is 61 and will get my benefit when I pass she will go from a $1300 benefit to a $4200 benefit for the rest of her life.
I took it early and never regretted it. What was nice was when I turned 65, I automatically received my medicare cards without having to apply.
You will regret your decision later. Opting for a small check was foolish
How do you know what someone else will regret when you don't know their situation? Shutup!!!
@@richardargst157…. You know nothing of their planning or resources. 🤐🤐
@@richardargst157 He or she could be a millionaire for all you know.
LMAO
I ll take it 62. Life is short and unpredictable. I don’t care a big money that I have to wait another 3-8 years. I d rather enjoy it as soon as I can.
I took SS at 62. A couple of months later, I maxed out all my credit cards as well. Sold my house and am now renting. I plan to spend it all in the next 4 years. Tomorrow is not guaranteed. Life is short and unpredictable. Enjoy it all now.
@@JKinLVN
are you 5?
This is an important point. People are focused on how many years you have left, but not how many active years you have left. If at 62 you only have 5 active years left, do you want to waste them working or do you want to be out kayaking, hiking, and playing with the grandkids (or whatever your active lifestyle hobbies are)?
In order for me to start collecting at 62 i first need to get a tent and a sleeping bag
lol! Good one
Facts
Savings is the most important bill.
I worked for 46 years and at age 62 I had enough savings on my portfolios and with SS and unions pensions I manage to paid all my bills and have some left over, and also I didn't wanted to push to full retirement age, I was a truck driver for over 38 years and the stress was getting to be a concern for my health now I feel good, better health relax and the good thing for anyone save before retirement just in case you need it. good luck all.
My uncle retired with no savings, just Social Security. At only $1,850 per month, he rents a nice 1 bedroom apt and has plenty leftover after bills. However, he retired in the Phillipines where his rent is only $350/month...including utilities!
I drove semi-tractor/trailer vehicles for a while but developed blood clots in my leg, had to quit. I know what you mean about the stress levels due to trucking. Can't *imagine* doing it for 38 years! Like I say to the military folks, thank you for your service, sir. Drivers are genuine public servants, even though they don't get the credit for it.
Shout out loud. " Life Too Short " File at 62. ❤🎉
Good thoughts. I’m 54 now and had a triple bypass a couple years ago. My mom died at 62 from a heart attack so I HIGHLY doubt I’ll live past 70. So that makes sense to me to collect at 62. If my wife pulls it at 62 also, we can completely not touch our portfolio except for crazy vacations.
The perfect example for taking SS at 62. Sorry for your health issues.
I applied for benefits at age 62 mainly because I just don't trust the crooks and monkeys who run the Congress to keep their hands out of it and not mess with eligibility requirements and/or other criteria (and which I'm sure is coming as the funding crisis gets worse with time) and didn't want the door slammed in my face when I needed the money. I decided to grab while the grabbing is good and don't regret it 1 bit. Also, despite what James said in this video (and his presentation here is actually pretty good), you still have NO IDEA as to exactly how long you're going to live because everyone's situation is different. I've known several individuals who had 'life expectancies' of 75 or more years, but died early due to unanticipated accidents or illness and received nothing. My true feelings are: You've paid into the fund, it's YOUR money, life is short, so eat your dessert first! And don't feel bad about doing it!
You made a very foolish decision that you will regret as each year passes and you realize you could have had a larger check.
@@jacksummer854….. The guy is working his plan which is his choice and his plan…. Good for him.
@jacksummer854 really?
Please explain
40 years of corporate America. I took mine at age 62. Then I cheated and filed for SSDI. It was a 3-year battle, but I won my SSDI. Getting FRB now. I have 1y left for my SSDI to turn back SSB. Downsize to Independent Senior Living. So I'm good.
Just bought a $12000 motorcycle with my SS. If I waited till 70 I would have been saying I could have, I could have.
My Mom died at age 49. Nuf said. I'm taking it early!!!!!
Genius thinking right there.
SMH
Had a friend at work that his Dad who was a twin died at 45. His twin brother is 85. You never know what hand you will be dealt.
Waiting longer to get more is a lure the government made. All that money taken at 62 has to be made up to break even which will take years.. Most people will be dead by that time.
Collecting smaller amount early versus collecting bigger amount later.
Every calculation will show that the total accumulated amount collected between the two will be even at age 75.33. After that age, a person who collected at 67 will get more.
The real question is, where will you be at age 75.5? If you pass away before the age of 75, than the person who collected at 62 beats you. And even If you’re still alive, the extra money that you will be collecting only means you will have extra money to buy more diapers in the nursing home. Or maybe, it will buy you extra massage from the nurse aide, since you will have extra money. But the years that you could have enjoyed early for leasure and travel while you can still walk and run, those years will be forever gone and you will not be able to collect those later.
Well said 😂.
I retired with a pension at 55 and no debt. I've always been active and want to enjoy my abilities while I still can. I'll be taking my SS at 62.
It almost seems like people think that taking it early, your money somehow vanishes into the ether. Take it early, spend some, save the rest/add to your portfolio. If you make it to 75 you'll still have that plus the earlier enjoyment with better mobility.
Or maybe you get hit by a bus at 67.
But they will have to make up all they gave up to break even.
I am currently 55 years old. My SS at age 62 is about $2,100 a month. At age 67 is about $3,100. I will collect at age 62.
Do you live now on $2,100/month? Collecting early might be okay but think about supplemental income via part-time.
So sure you get more a month at 67 but if you wait you miss out of $2k a month for 5 yrs that’s $120k. It’ll take you 3 yrs just to get to that $120k if you wait until 67, just take it early.
Your giving the Government $1000 per month of "your" money by doing that. Stupid. And you must have a good amount in savings. Because you sure aint' going to be able to survive on $2100 a month.
And and it will cost you out of pocket for the 3 years your own health care cost that can run hundreds of dollars a month . Can you afford that? Plus the hit you take on your month check and every year SS takes more and more for Medicare when you hit 65. Plus your additional supplement G plan. Hope you saved up enough.
guess you worked more, mine is 900
Tomorrow isn't promised and for that reason I decided to retire at the ripe old age of 57.
Thankfully my wife and I both have State Pensions, she retired at the age of 55.
I am 2 weeks into my retirement and will wait until the end of the month before I make any major decisions such as trips, vacations, downsizing of our home, etc...
My wife and I will draw my SS as soon as I am able to.
Remember this, we can always make money but we cannot buy time.
Congrats. I retired at 52 and not a moment too soon. I say retire as soon as you can as your time alive is the most precious thing you have as it is indeed limited. You want to make that time as enjoyable as possible. You can "buy" some time though by living as healthy of a lifestyle as you can.
5 years from 62 and ill be collecting then! Toby Keith died at 62!!! We dont know how long we have!!
That's exactly the reason I plan to wait... because I don't know how long I have!
Gene Hackman, June Lockhart, Jimmy Carter, Dick Van Dyke, Clint Eastwoord, etc., are all still alive!
If I die early, I won't regret not taking it... because I'll be dead. And yet if I live to be near 90 or more, I would most likely regret not taking it every single day, for those last ten years of my life.
@@MrEdwardCollins….. Age 62 works for me as it will allow my nest egg to grow which can be passed down to the next generation…. I have ran Monte Carlo simulations for years now and this method is what works for us.…. That is the true beauty of the system is that everyone can adjust it to their own retirement needs.
so????
@@MrEdwardCollinsYou forgot to name the many, many who died BEFORE age 62. Too many to list here.
@@MrEdwardCollinswow you know 5 extremely already wealthy people who lived past 90. Now base your entire life plan on that 👌
I'll take it at 70. I won't need the money before then and I'd rather have the max amount of SS benefits for the rest of my life as I expect to live a long time. I see it as a form of "insurance" that I won't run out of money before I die. Both of my parents are in their 90's and I am in my late 50's, in excellent health, and in great shape.
Your not even promised tomorrow. My papaw liked 1 month to retire at 70 he passed away at 69 and 11 months. You will regret it if the same thing happens to you.
i refuse to take it early if my husband is making good money…why give all that back to the govt thru taxable income?
@@marty64thorntonI doubt he will regret taking social security at 70 once he’s dead.
And it will take you untill 80 to make up what you would have if you took it at 62. The governments trick to get you to wait.
I was perfectly healthy at 50. Then diagnosed with aggressive cancer with zero family history. Good luck with that crystal ball!
I knew a guy at my work he did all the math to the penny he waited till 65 he retired and less than a week later he passed away just go when you can
Very simple we never know when our time is up. I took early retirement at 62 because my 2 brothers never made it to 68 years old.
I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?
@@juangarcia8828…. You will not be getting social security as you’re not qualified.
My brother is still working full time at age 66, and he hasn’t started to collect SS yet. He also has a pretty serious health issue. I can’t talk any sense into him regarding this topic. I’m praying that he retires soon, but I know that he’s on his own journey. 🙏
Biggest kicker is health insurance. I am 66 and my wife is 3 years younger with Krones disease. We are debt free with a pension. BUT without my job's health insurance, we would be toast!
Thanks for another informative video. I’m really impressed with the clarity and straightforward discussion about retirement topics on your channel.
I have several reasons to collect at age 62. First, my wife left me, second, all three children are over the age of 18, Three, the house must be sold, and the last reason is that my job is getting worst, asking me to do more every day. My actually most important reason is that I've seen a lot of people die at say 66 and didn't collect a dime of Social Security. I'm now 81 Y/O.
According to the SSA, the average SS check at 67 is $1,883. Why is it so small? Because fools collected at 62, not their FRA or 70.
Great video James. Very informative and well presented. I totally agree with all you said. One rarely sees this type of advice online.... I really agree w/ #2 - investing your monies at 62. Once one passes on - SS stops (unless spousal) but you can build a great nest egg to pass along to your heirs or favorite cause - this is what I have done for the past 5 years. Be well.
Another very informative video James! Thanks!
Thanks for this. I’ll be 57 in September and I’ve been grappling with this. You’ve given great reasons to go ahead and take my SS in 5 years.
100 percent right my man!
#6 Taxes. Social Security is taxed at a lower rate than say income withdrawn from your 401K or IRA which might have both state and federal income taxes due. Thus not only will your portfolio grow by not taking out money to live, it will grow by the additional amount not taken out to cover taxes. #7 You are single. You don't need to maximize your benefits for a spouse, and in most cases Social Security breaks even, it was designed to break even on average for early and late filers. #8 We spend less as we age and spend more in our earlier retirement go go years, despite the scare tactics that you will need every penny to pay for healthcare the statistics don't support that. While healthcare cost do rise with age, other expense drop more, resulting in less spending as you age. #9 You have had enough and can't stand any more. Taking Social Security may give you the opportunity to change jobs and do something you enjoy that pays less but is more fulfilling.
@jamesalias595 ….. All great points #6 thru #9 well stated and informative.👍👍
I'm taking mine at 62. I'm not waiting. I'm not going to lose out on my money
Great Video James.
Another advantage to pulling the trigger early on SS is it allows the portfolio to have more of a legacy transfer to heirs by taking pressure off earlier withdrawals from the portfolio and it allows your financial advisor to make a few extra bucks off the larger portfolio balance..
The Federal government will pay you 8% per year plus inflation until you are 70. Do not collect early
To heck with the heirs, I need mine at 62, bcs there isn't any portfolio 😂. Military retirement & SS that's it.
@@sleuer66
THIS
screw legacy heirs, thats the sucker mentaility.
And you will pay more in taxes because of that strategy. There is no better way to pay less in taxes than to delay SS and drive down your retirement balance. The last thing you want is to take SS early with a 2 million dollar balance in your IRA and leave that to your heirs. They will lose half of that. Think about that.
26.5 year age gap between me and my husband! Thank you for that scenario! Very helpful!
Great video, thanks.
Great information. Thanks.
Great points, particularly #2. If you invest the money, you’re increasing your risk but will more than likely come out ahead. It therefore comes down to the amount of risk your situation can accommodate.
#2 seems to be the key. Not taking SS early puts additional stress on your portfolio early in retirement, and there's still 20 years before the SS break even.
Take SS at 70. Taking a small check is foolish.
How will you collect at 70 when you’re dead at 69?
@@jacksummer854… Everyone will have a different situation in my case after running multiple Monte Carlo simulations over the years I am confident in taking social security at age 62.
What are you living on in the meantime? Drawing down on your portfolio?
@@Me-fm9zk - That makes sense. Nobody lives past 70. Maybe 1 out of 1000.
If I could collect SS now at age 48 I would. I could live good on $1,000/month in a lot of other countries. Been working for 30 yrs.
Bravo on adding large captions reflecting what you are saying. It's helpful to those of us with hearing loss -- and CZcams's captions are often wrong.
Kinda bummed I’m just seeing the magic #62 since I’ll be 64 next month😂 Dang it!!
Happy Retirement to everyone!!!!
Enjoying your Golden Years is spot on.
good job James..
I worked in the public sector for several years and I’m working in the private sector now. I’m going to get a pension at 62, but I’m going to continue working until I hit my FRA. I’m going to invest my entire pension when I start collecting it and keep investing it until I retire.
I collected at 62, A year and a half later the ACA was starting. I suspended my SS until past 66. I am the second person in my family to have ever collected any SS. I have a modest but tax efficient portfolio, now only with 12% in tax infested money.
If I had it to do over, I would have done more Roth conversions first and then waited longer for my SS.
I am single, and not aware of any children.
Just my story. Outcomes will be different for others.
Interesting. I thought there was a 12 mo. limit on being able to suspend one's SS.
@@penelope5500I suspect he had the SS File and Suspend options that were eliminated April 30, 2016. Obamacare ACA was offered I think beginning on 2011, which would never pass today even if the Dems controlled both Houses. Manchin and 2 other Dem Senators would probably not vote for ACA in today’s political climate. ACA was about 1,000 pages long because the Dems were not 1 thinking, and many compromises had to be made, resulting in a very, very complex program,
My uncle retired with no savings, just Social Security. At only $1,850 per month, he rents a nice 1 bedroom apt and has plenty leftover after bills. Of course, he retired in the Phillipines where his rent is only $350/month...including utilities!
Thank you
My son will be 8 when I hit 62, so I'm definitely retiring then. That's partly because he will also get dependent social security benefit - 50 percent of my normal age retirement benefit at 67. You should cover this topic and social security benefit for dependents.
You can thank the Liberals for getting that benefit for the poor, old people with young children.
Good video!
Your voice is a perfect match for " The Lock Picking Lawyer"
Many thanks. Many persons and counselors consider only the maximum dollar values but my situation is different. I considered other factors that you pointed but you also offered others that also applied to my situation which I can use to justify my application for early retirement benefits.
Im done at 62. Enjoy life before you are too old, you only have 1 go at it.
According to the SSA, the average SS check at 67 is $1,883. Why is it so small? Because fools collected at 62, not their FRA or 70.
I'm not taking social security until 70 for one simple reason. I've been a moderate/high earner and should predecease my wife and I want the maximum benefit for the survivor, either way.
Hopefully you live until 70!
To me, that would be even more reason to start at 62. Given you’re a high wage earner, I’d imagine you’d have a sizable retirement account(s). Starting at 62 means you leave more of that untouched. So that if you happen to go early, your wife has more of the retirement accounts available to her. And she’d be much more in control of it than SS.
Waiting to 70 is fine. But you have to consider the “spousal” strategy of your wife drawing on her PIA, or drawing 50% of your FRA PIA. She can’t draw on your FRA PIA until you draw. So waiting to 70 can mean forfeiting her 50% spousal.
You are absolutely right I did the same thing. As long as your healthy keep working. Taking it early you take a big hit in the amount you get.
100% agreed
I initially considered collecting SS early so I can invest (option 2), but few issues came up:
1. I have significant amount of Roth conversion I need to do once I retire to minimize RMD.
2. While the market on average will outperform the delayed SS benefits, that's the average, not what'll happen each year.
If you retire at 62, you won't have any medical coverage until you qualify for medicare at 65. Getting ill or hospitalized within those 3 years could ruin your financial stability. Am I right or wrong?
It's based on every 2 years So 64 is a good number in that event
James would you please do some more “scenario based” social security claiming videos. My specific case is one working spouse with high lifetime earning. Non working spouse with no ss credits. Show the difference if they claim early or full retirement or 70 to illustrate the effect of the spousal benefits on the total claim value. Thanks!
awesome advise!
What is the rush to get to the Federal welfare trough? You will collect much more SS if you wait until you are 70
@@robertstevens2030… It is not welfare I have paid into the system for over 40 years….You have to qualify with both time and income for social security…. That is what will determine your benefit……
I would love to see a video on you expanding on collecting SS early and investing it and how it can extend out the brake even point assuming returns of say 4% 6% and 8% over inflation..
When I start collecting my benefits it will 100% depend on if I am still working or not. If I have retired before 62 I will start collecting at 62 If I am working beyond 67 I will start collecting at 67.
Right now I am working more because I want to than because I have to. Though that might be changing real soon as I am looking at buying some vacation property that I can not possibly afford if I retired.
The reasons I have for collecting as early as possible.
My parents both died in their mid 60s so I don't expect to have a long life expectancy.
My income from SS will be small as what I have in assets was not from earned income but other means that was not subject to SS taxes so did not help to give me a high SS pay out amount.
What little I collect from SS will save me that amount from withdrawing from my invested growing assets.
Good content! I think the big thing you might also want to weigh, if you can afford to, is whether you think you can earn the roughly 7% increase in SS you get each year by waiting…..
I retired at 55 (2 years ago) and been lucky enough to save and grow my 401k to over 2M during my working career. I do have money outside of my 401K but I’m using the Rule of 55 to access my 401K for living expenses and within the last 2 years, been living off the profits from the 401K without touching the principle. The biggest internal debate I have for myself is, should I take early SS so that I can use that extra money to go on more vacations when I’m younger and able to do more physical activities, and any extra can be reinvested, or spend down my 401K and postpone taking SSN until FRA to avoid higher RMD later down the line. I guess this is a good dilemma to have.
Classic case of a U-shaped retirement spending plan. You want more early to travel, then it’ll settle down after for a decade, and then it may increase due to long term care, etc.
Simple enough to run some numbers with an advisor and then see whether collecting SS early makes sense.
(I do a lot if spreadsheets myself, but I’d go to an expert for this because their spreadsheets are better and looking at all the tax consequences too.)
Roth IRA conversion is another possible strategy to reduce RMDs. Congratulation on being a good worker and saver! 57 here and dreaming about retirement 😀
I’m considering retiring at 55. With the rule of 55 is there a penalty to withdraw from your 401k early?
You need to look at your and your family health history.
Tshay..So hard to give a helpful opinion, without knowing other critical details, such as; do you have a spouse who may survive you, and if so; does he/she have their own retirement accounts? Do you have a mortgage or any other type of debt? Will you and/or your spouse (if there is one) be receiving any type of pension from a former employer? Are there any dependent children still in the picture? These issues could make ALL the difference, in determining whether or not you should wait for your maximum Social Security benefit, at age 70.
I plan to start taking my SS at 62 mainly for your reason #2. Every dollar I get from social security is a dollar I don't need to take from my 401K so it can keep growing. Also I plan to leave a bulk of the money I have in my 401K to my son. When I pass away my son can't benefit from my SS but he gets to have what is in my 401K. I know I need to consider my wife but she has her own income stream to keep her viable.
This is sound advice, thank you. I would add also to your point #2 about investing the SS money, the longer the time of investing, the more time of tax-free growth if one intends on bequesting your children inherited money at the "stepped up" basis. I will add another point to consider: Our US Federal government is constantly in a debate about trimming SS benefits. Grabbing the money now may well secure a "grandffathered" status that will be of profound benefit should Uncle Sam implement SS benefit cuts, most likely by way of means testing. "A bird in the hand is worth two in the bush". 🕊
You feel strongly that the threat of cuts to SS benefits should be considered, yet you feel secure that your benefit will be grandfathered. What makes you think that if SS benefits get cut that the current benefit of recipients would be off limits? Please explain.
We want to travel while we can! And we are expecting to sit around when we get into our 80s.
Would love to see a video about the details of suspending SS.
I’m collecting ASAP. I’ve paid into it all my working life, & tomorrow isn’t guaranteed.
What is the rush to get to the Federal welfare trough? You will collect much more SS if you wait until you are 70
@@robertstevens2030because waiting 8 more years isn't guaranteed that you'll even live that long and then you worked your whole life and collected nothing
i retired at 52 with a small pension i have enough quarters to collect SSN so definitely going to collect at 62 to boost my current retirement income
I got to love a guy who's young and knows everything ! WTF, your a genius!l. Lol!
Collecting at 62 is foolish says one of my friends. He worked until he was 70, passed away at 71.
I see one of my neighbors of my same age goes to work every morning looking so stressed as me and my wife are relaxing and drinking coffee at our patio while planning for our next travel.
Another older friend waited and retired later and wanted to travel, but he can’t because he is now in the wheelchair.
Enjoy your retirement as early as you can and while you can still enjoy it.
We're analyzing this now. Great things to think about. You covered lots of angles to consider. Thank you!
and?
I really hope the experts can use simple cases to illustrate the points. Some of us are not good at abstract thinking. Bring it home for us, please!
I was 61 in 2020 when Covid struck and ended up being laid off (early retirement package) from a very well paying job. I was really hoping to work at the company for 5-6 years longer but what can one do? In October of that year, I was diagnosed with prostate cancer so had to deal that and after turning 62, decided to move back to my home state to be near family. I went ahead and started collecting SS and went on a very strict budget. It truly helped keep me from going through my savings quickly and now at 65 and on Medicare, pull even less from my savings. I don’t have a ton of money saved and unless something major happens, I should be okay for 15-20 years. And who knows if I’ll even live that long. So for the time being, it is truly a godsend. Oh, btw… there have been 2 COLA increases which helped as well.
Main reasons to collect at 62. 1. You earned it and an ACME safe could fall on you a day after your 62nd Bday. 2. At 62 you are still young enough to enjoy your SS earnings. 3. The way government seems to be interested in stopping SS, you should get it while the getting is good.
You did not earn SS. SS is Federal welfare
Yes, with a 34 trillion-dollar deficit the ponzi scheme is over, and they are now adding a trillion dollars to this every 60 days.
💯 agree
Another reason to take your benefit early is if you are the spouse with a significantly lower earnings history. The downside is the lower spousal benefits (about 35% less) and the potential for SS benefits to be taxed if the higher-earning spouse is still working.
I’m looking forward to retirement around 50/52 with a state retirement pension plus a 457 plan. I plan to draw SS as soon as possible because I don’t need the higher payout to make ends meet.
Absolutely. I am planning to take my money out as soon as they let me (62). Decreasing my withdrawals is way more (positively) impactful to my wealth than getting more money from social security 3 or 5 years later. Which makes sense - the government doesn't exactly invest your money in a maximal way.
interesting!
I did some "unscientific" calculations to compare taking it at age 62 and 67. I used the social security website to get the benefit amounts and assumed the same earnings in either case and also assumed I'd retire at age 62 and start taking social security immediately or wait 5 years. If I start taking it at age 62, I would come out ahead (relative to the benefits starting at age 67) up until age 78. Average life expectancy for a man in the US is 76.3 years, so seems like a no brainer to me to start collecting it at age 62. You also get more time to enjoy it.
1) I don't have any idea of my life expectancy.
2) I don't have a portfolio.
3) I'm single and 61.
4) I haven't any children.
5) I need it now.
My Daddy used to say, before he left this cold, cruel world, ''Sometimes you just gotta get what you can get while you can get it.''
A simple excel spread sheet makes it clear. Unless you plan or have to work, or didn't pay in for any serious time, take SS at 62.
James: There is a difference between getting the max SS {of 2024) and stopping work at say 63 and waiting until age 70 to collect. That max SS of 2024 is calculated by working all the way to age 70 and having at least 37 years of work history - (not just the min of 35). I say 37 because when the year the max is 147,000 - when normalized against the National Average Wage Index is not part of the top 35 - it gets wiped out. And that happens on another year also -- so 37 years continuous is what you need to the max of that year. I have to assume you know this ???? You could have stopped working at age 63 and had maxed out each year - but that will not be the same as two people (me and someone else) of which a person who works until age 70 willl get more in SS than me at 63 waiting until 70. The other person will get a larger numerator divided by the 35 and the COLA from 62 to 70. My 35 earning max years at 63 years stays stagnant at the numerator , but only grows by the COLA until 70. Again, I am assuming you know ???
I plan to take mine at 62, which will be next yr. I agree with most of the comments about taking it early, I need the money now. Yes waiting would increase it. I would like to enjoy it now. I'm disabled, but was unable to receive my SSDI. I would like to have my own money again without having to depend on my husband or son. Live is not promised I want to live.(I don't have problems that can take my life) but you just don't know.
What about getting it early because what you will get at 62 will be enough to maintain a comfortable life and you want to enjoy life while your health allows you to do so. Based on my family history, I know that I won't live beyond my mid 80s and the last 10 years will be in poor health. Most of my family don't make it into their 80s. I don't have a single ancestor on either side of my family that has lived to 90 that I can find. I want to get it ASAP and enjoy the time i have left. Tomorrow is never guaranteed.
Break even overall benefits for me, according to the SS benefit calculator, is age 78 (62 vs 67 full retirement age). My life expectancy at age 61 is 81 according to the SS actuarial tables. The difference in benefits between age 78 and 81 is $30-$35k. Not enough to make it worth working another 5 years. Many people still need their salary in their 60's, so collecting early doesn't make sense for them, especially if their salary is large. Every $2 of income above ~$22k/year penalizes your SS benefit by $1 until full retirement age. At that point the reduction is $1 for every $3 above ~$60k. Another decision maker is health insurance which keeps many working until 65 when medicare takes over. Glad to see someone not just looking at the monthly amount as justification for waiting.
TAKE THE MONEY AND RUN!!! I AM 64 AND LOVE GETTING MY MONTHLY STIPEND. WOULD NOT GET MUCH MORE IF I WAITED.
What is the rush to get to the Federal welfare trough? You will collect much more SS if you wait until you are 70
According to the SSA, the average SS check at 67 is $1,883. Why is it so small? Because fools collected at 62, not their FRA or 70.
@@robertstevens2030…. If you have planned properly taking social security at 62 helps to preserve your nest egg which can be passed down to the next generation.
@@robertstevens2030you are assuming you will make it to 70. Quality of life at 64 vs 70. Take it and run.
@@robertstevens2030
Its called being a sucker.
hi James,
is it advantageous to start collecting social security at 62 (let's say now) if we know that in 10 years or so that social security be will reduced to @ 79% because they don't have enough funds?
I'm planning on retiring in the Fall at 64. My wife plans to work for 2 more years until she turns 62 (her job covers health ins). If I take SS then + her salary + my stock dividends = that would pretty much make up our monthly expenses now. I would not have to draw down on any investments. If I delay SS that's $2000+ per month I have to replace for 6 years ($150,000 +). That $150,000 in my portfolio could easily be $250,000 to $300,000 in 2030 when I turn 70. I will be making this decision with my advisor in a few months, but I really don't see much of a reason to delay.
I did I would rather have gotten it now with the dollar now than the penny later
I thought your other videos suggest to delay the SS for Roth conversion.
I dont know when my grandfather or father started collecting social security, but they both passed away at 71. If they waited until age 70 for a higher payout, they only collected benefits for a couple months after a lifetime of work.
Taxation would be a variable also
Plus SS is taxed advantaged compared to IRA/401k withdrawals
Yes, but depending on your income it isn’t a huge difference. For joint filers, it is 85% taxable when you go over $44k on the worksheet.
@@shawnbrennan7526… True, but we will take that 15% tax break vs none on a pension or retirement account.
! point you overlooked, what happens when you end up in a nursing home at 80?
Idk about anyone else but I want to retire at 62 and I will need that money just to get by. Portfolio? I wish, lol
Every American should subscribe to this channel!
Hey Abbott.....im not asking you whose on first
My wife is 7 years older than me. I'm the primary breadwinner. The Spousal Benefit is one reason that I'll likely start collecting at 62, so she can go from 500 a month to 1500 a month on the Spousal Benefit.
James, great info as usual. But this one was tailored for married couples. Could you retitle it or add in for single people thinking about taking SS at 62? Thanks
Also divorced, they ended spousal benefits, totally sucks.
@@jackiesicilian5720
Get a job
Great info again! - I think we will be starting at 62 just so we are not taking our monthly amount 100% out of our principle. Hoping that will extent it - any thoughts?
If you are a couple, one, usually the higher earner should delay somewhat, unless you are very wealthy. Remember that the highest check goes to the last one alive. Both taking early is gambling on good stock returns. The opposite is also true. Rarely does it make sense for both to delay.
My older brother waited till 65 he passed 8 mounths later.
I'm retiring at 62
Excellent point about the difference between a "period life expectancy" from birth to death, and a "cohort life expectancy" from current age to death. The first is about 79 and the later is (for my age group 61) is 84 for males and 87 for females. Not a lot of difference, but realistically speaking, no one should be planning on quality of life, or even life itself past 87. Consequently, the gap between total income from SSN by retiring at 62 and at 70, is significantly diminished when you look at from that perspective.
I personally know families in 80 and 90 year Brackets. Like it or Not. Everything changes after 70 if you are still here. SOMEONE WILL BE CARING FOR YOU going when it's time Has a purpose
There is a reason science came up w 72 that is it
I will be 60 this July and my daughter is turning 13 next month. My 10 year younger spouse doesn’t have enough credits to receive her own benefit. I will probably be retiring from a NY state job at 62 and collecting both, state pension and social security to take advantage of family benefits for my spouse (several months) and my daughter (31 months). My full benefit at 67 is projected to be about $3,000 and about $2,000 at age 62. For tax purposes (my daughter will not owe any taxes on her portion of benefits and my total taxable income will be lower) and for the fact that I could invest the early collected ss benefits, I believe it makes sense to collect early. Not sure how long I’ll be around anyway, having recently lost my 18 year old son…
Sorry for your loss !
Hi where did ya get 31 months from ur daughter?? Isnt if 36 months??
My daughter will be 15 and 5 months when I get my first social security check, and since she gets her family benefit till the age of 18 it is 31 months, if I’m not mistaken, unless they pay differently, will need to confirm it with social security.
Never turn down money!
Never opt for a small check. Collect at 70
@@robertstevens2030… Plan ahead you may be dead by 70.