When To Begin Taking U.s. Ss Payments

[rw191010]

I am 61, so I am coming up to a decision point for taking my Social Security.  I can take a reduced amount at 62 or increasingly larger amounts the longer I delay taking it.  I am fully vested at 66 years old, which means I won't  be penalized for my military pension or if I take a 401K distribution.

 

The real question is how to maximize my return.  You can find out your projected monthly income online now.  You can go to the website: www.ssa.gov/myaccount.  I found that my projected SS payment would be about $1800 per month if I took it at 62, $2,400 at 66 and $3,200 at 70. 

 

So, the question is how much do we need and when to start.  I did a simple projection, ignoring the time value of money (I forgot all those formulas long ago).  I found the following results:

 

• Beginning at 66: if I live till 80, I'll get $406,000; if I  live till I'm 90, I'll get $696,000.
• Beginning at 70: if I live till 80, I'll get $400,000; if I live till I'm 90, I'll get $800,000.

Obviously, I plan to live till I'm at least 95, but we all know that is not a given.  Even though I'd make more money by waiting till I'm 70, I have to take quality of life into account.  I am in good health and I don't smoke.  I drink moderately.  But, after 80, it is pretty unrealistic to think I'll be traveling the world like I do now. 

 

Given all the variables, I'm going to begin taking my SS at 66 so that I can receive a nice check and have money while I'm still healthy enough to enjoy it. 

 

I know lots of you are making the same decision.  I hope this helps out.

[Jack Peterson]

Given all the variables, I'm going to begin taking my SS at 66 so that I can receive a nice check and have money while I'm still healthy enough to enjoy it. 

 

 

At 61 now sir, May I wish you all the health and happiness 5 years is not long but long enough to have problems.

I really do wish you well

Fingers crossed the $/peso does not let you down.

 

JP :tiphat:

 

Morning All  :morning1:

[scott h]

I'm still healthy enough to enjoy it.

 

Good thought provoking topic..Being only 57 my thoughts at this time is take it at 62 (a pension in the hand is worth 2 in the bush :mocking: ). But that might change, I have 5 years 

[OnMyWay]

My situation is similar to yours but I am 58.

 

You could have a baby like I did and that will bump up your SS!  Of course, you need to take care of them for the next 18 years!

 

There is a recent discussion of when and why people took their SS on Morningstar forums.  I have not read it all yet but there are some excellent ideas there and a lot of things I would never think of on my own.  If the link below does not work go to Morningstar and search for Post #3628000.

 

http://socialize.morningstar.com/NewSocialize/forums/p/347472/3628000.aspx#3628000

[stevewool]

What would happen if you dont make it that far, have to think about today , tomorrow, next week and so on , yes plan for the future, but live for the day too

[stevewool]

Can i ask what is this social security you are saying you can get at 62 and so on, is it like our state pension we get in England

[OnMyWay]

Can i ask what is this social security you are saying you can get at 62 and so on, is it like our state pension we get in England

 

Yes, I think it is a similar scheme.    We pay in when we are working.  The employer and employee both pay in.  The amount you get is based on 35 years of work.  If you have more than that, I think they use the highest years.  If you have less than than 35 you get 0 for those empty slots.  Earliest that you can claim the benefit is age 62, latest age 70.  "Normal" is about 66 now.  The longer you wait the more your monthly benefit will be.  They say that waiting from 66 to 70 earns you about 8% return.  If you die at 68 your are screwed!

 

There are spousal and child benefits too.

 

I'm planning are starting at age 62 or somewhere before age 66.  My daughter will get a benefit too and it would probably be a lot harder for her mom to get that started if I kick the bucket before it is started.

[Thomas]

Beginning at 66: if I live till 80, I'll get $406,000;

Beginning at 70: if I live till 80, I'll get $400,000

  I suppouse that small difference depend of it's counted at the average death age, which is (slighty) different from 80. (In Sweden it's 80,7 or so. I suppouse it's similar in USA.)

Given all the variables, I'm going to begin taking my SS at 66 so that I can receive a nice check and have money while I'm still healthy enough to enjoy it.

IF it had been only the factors you write, then I would wait.  Earlier I had planned to wait to sometimes after 70.

BUT I have CHANGED my mind after thinking of the second of the following OTHER factors:

1. Future CURRENCY VALUE changes and what you will get for money where you will live.

2. What you will DO with the money you get EARLIER.  In other topics I have written how some extra money can be "grown"  :)  e g by "harvest sharing"  (=finance farming and get part of the harvest) which is COMMON in Phils.

[intrepid]

 

Can i ask what is this social security you are saying you can get at 62 and so on, is it like our state pension we get in England

 

Yes, I think it is a similar scheme.    We pay in when we are working.  The employer and employee both pay in.  The amount you get is based on 35 years of work.  If you have more than that, I think they use the highest years.  If you have less than than 35 you get 0 for those empty slots.  Earliest that you can claim the benefit is age 62, latest age 70.  "Normal" is about 66 now.  The longer you wait the more your monthly benefit will be.  They say that waiting from 66 to 70 earns you about 8% return.  If you die at 68 your are screwed!

 

There are spousal and child benefits too.

 

I'm planning are starting at age 62 or somewhere before age 66.  My daughter will get a benefit too and it would probably be a lot harder for her mom to get that started if I kick the bucket before it is started.

 

Just an added note to those not aware of the US ss system.  These ss (social securty) benifits are in addition to any private or employer sponsered retirements, and of course savings a person may have.

[scott h]

What you will DO with the money you get EARLIER

 

 

Spend it!!!!!!!!!!!!!!!!!. I for one wish to do things while I am still healthy enough to enjoy it. (Vacations and the like).

 

But then again its is just my wife and I (both the same age and no children).