When To Begin Taking U.s. Ss Payments

[robert k]

Plus anyone can walk into a hospital emergency room and get a cut disinfected and a bandaid, an aspirin, or be admitted after and examination by a doctor that says you need an $80,000 open heart surgery. They don't generally turn people away. There is a lawyer hiding behind every bush ready to sue a hospital that did turn someone away. Illegal aliens have the best free health care in the world. If they don't qualify for welfare as a family there are other things like WIC, women, infants and children that provides a lot of staple foods for low income families. There is another one I can't think of the name for also. If you need it, someone will coach you how to work the system

The kids would be able to attend schools, free of cost, books provided, all they would need is to show up with pencil, pen and paper and gym clothes. The kids would probably also be entitled to free breakfast and lunch at school. They will probably get fat, at least compared to most Filipino kids.

To get back on topic, SS is not going to disappear, it is not going to run out of money either. What will happen is they will reduce the benefit until the money coming in will be sufficient to pay the benefits going out. This is an excellent reason to start collecting because generally when they reduce a benefit it is reduced for new beneficiaries, people who are already collecting usually stay the same. If you could collect $1,500 today at 62 and you waited til you were 70 and they have reduced the benefit for new retirees you might get $1,500 then too.

Edited June 27, 2016 by robert k

[Mr. Bobo]

21 hours ago, robert k said:

To get back on topic, SS is not going to disappear, it is not going to run out of money either. What will happen is they will reduce the benefit until the money coming in will be sufficient to pay the benefits going out. This is an excellent reason to start collecting because generally when they reduce a benefit it is reduced for new beneficiaries, people who are already collecting usually stay the same. If you could collect $1,500 today at 62 and you waited til you were 70 and they have reduced the benefit for new retirees you might get $1,500 then too.

In 1960 the worker to SS beneficiary ratio was 5.1 to 1, in 2009 it was 3 to 1, and in 2030 it will be 2.1 to 1. The SS Ponzi scheme is definitely going to collapse and the US government is going to have to take so action at some point in time. The 75 million baby boomers are a large voting bloc and the politicians know that it is political suicide to take any action vis-a-vis the looming SS problem so they keep kicking the can down the road. I agree with you, the government will have to reduce benefits at some point in time and if you are ALREADY collecting a check they will not probably not reduce it. I also think the government will implement "means" testing. They will look at you total assets at retirement age (pension, 401K, property values, etc. and if your assets exceeds a government determined threshold then you will forfeit all the SS money that you paid into the system or get a reduced payment based on your assets. The 75 million baby boomers are really going to put a financial strain on the system, not just SS but also Medicare as people are living much longer these days. A large percentage of baby boomers have little or no retirement savings and will be totally dependent on their SS checks and we all know how far that will get you if you are living in the US. These financially destitute elderly boomers are going to have no place to turn except the government for survival and this is going to put even more strain on the system.     

[chris49]

15 hours ago, Mr. Bobo said:

In 1960 the worker to SS beneficiary ratio was 5.1 to 1, in 2009 it was 3 to 1, and in 2030 it will be 2.1 to 1. The SS Ponzi scheme is definitely going to collapse and the US government is going to have to take so action at some point in time. The 75 million baby boomers are a large voting bloc and the politicians know that it is political suicide to take any action vis-a-vis the looming SS problem so they keep kicking the can down the road. I agree with you, the government will have to reduce benefits at some point in time and if you are ALREADY collecting a check they will not probably not reduce it. I also think the government will implement "means" testing. They will look at you total assets at retirement age (pension, 401K, property values, etc. and if your assets exceeds a government determined threshold then you will forfeit all the SS money that you paid into the system or get a reduced payment based on your assets. The 75 million baby boomers are really going to put a financial strain on the system, not just SS but also Medicare as people are living much longer these days. A large percentage of baby boomers have little or no retirement savings and will be totally dependent on their SS checks and we all know how far that will get you if you are living in the US. These financially destitute elderly boomers are going to have no place to turn except the government for survival and this is going to put even more strain on the system.     

The US allows double and triple dipping plus whatever the partner's benefits. The only penalty is a higher tax bracket.

A military retiree, who continued working for the government, which is not uncommon. Would have military retirement pay, a 2nd government pension, plus SS, plus whatever the wife has earned. The argument being that all these pensions are earned. Well ok, but the military retirement starts early and there are no contributions. There has to be an overhaul and some combining of pension benefits. But there wont be because the voting block of ex military and government employees is very large.

In Australia there are penalties at every level of income earned past retirement age. The fine is 50 cents for each dollar earned over the limit. If the private income goes above another level, the government pension will stop. Husband and wife both receiving benefits will have their pensions reduced.

An American or an Aussie for that matter can own a 3 million dollar house or real estate without any penalty as long as it's classified as the primary residence.

In the USA reforms are needed. In the interest of fairness.

[Gerald Glatt]

SS comes from the government, the government prints the money, questions?

This may cause run away inflation (think Jimmie Carter) or terrible shortages ( Richard Nixon) but the check will be in the mail.

[Domino22]

I have to take it at 62 for two reasons one is the system is broken and I want to get what ever I can. And second is I am going to need the money retiring early. The downward spiral of the US government will continue. When it all goes away I will be in the PI I will be buying rice with my stock dividends.

[robert k]

1 hour ago, Domino22 said:

I have to take it at 62 for two reasons one is the system is broken and I want to get what ever I can. And second is I am going to need the money retiring early. The downward spiral of the US government will continue. When it all goes away I will be in the PI I will be buying rice with my stock dividends.

I don't blame you. The way the American peso...excuse me dollar is devaluing, the money you get as soon as possible may be worth 2-3 times the money you might get later on.

[Bruce]

2 hours ago, Domino22 said:

I have to take it at 62 for two reasons one is the system is broken and I want to get what ever I can. And second is I am going to need the money retiring early. The downward spiral of the US government will continue. When it all goes away I will be in the PI I will be buying rice with my stock dividends.

Limited thinking. Scare tactics. You will lose 25% of your total SS pension if you take at 62. Now, look at how long your parents lived or may live. If you do not expect to hit 70 because of genetics, then 62 is OK. But if your parents and their parents lived into their late 70s, you may be really hurting your long term income. Just how old are you now?

For those falling into the SS will be broke argument .... the country is broke on paper every fiscal year and every year congress 'fixes' it. If the US can send billions around the world, the SS can be re-funded the same way. Sure the government prints money... Sure there are issues, but the reality is that what ever political party lets SS stop, that party is done. That knowledge will stop any SS failure in our life times. The election nearest to that SS ending prospect, will produce 'saviors' on both sides, each with their own ideas. In any event, SS will go on.

Now, before anyone takes issue this...... we are now in 2016. All those panicky people who KNEW the world was coming to an end on Jan. 31st 1999..... Well look how stupid that appears now. So go ahead and take SS at 62, and when you hit 75 (watch out for that truck!) think back and how misinformed you were 13 years before and took that retirement at 62....  25% lost... All because you listened to Chicken Little and he convinced you that SS was going broke....

What is more likely is that there may be limits or reductions of SS payments. So that potential 25% loss today, might be worse if you live to 75+ and are subjected to a SS cut in benefits.       

I am 60. By parents are 83 /85. By mother's line has people living to 86, 92, 96, 99. I need that 25%! I will take at 66+ or later as for EACH MONTH you wait, the check goes up. Besides.... I like working. I would be bored trying to find things to do.

[davewe]

2 minutes ago, Bruce said:

Limited thinking. Scare tactics. You will lose 25% of your total SS pension if you take at 62. Now, look at how long your parents lived or may live. If you do not expect to hit 70 because of genetics, then 62 is OK. But if your parents and their parents lived into their late 70s, you may be really hurting your long term income. Just how old are you now?

For those falling into the SS will be broke argument .... the country is broke on paper every fiscal year and every year congress 'fixes' it. If the US can send billions around the world, the SS can be re-funded the same way. Sure the government prints money... Sure there are issues, but the reality is that what ever political party lets SS stop, that party is done. That knowledge will stop any SS failure in our life times. The election nearest to that SS ending prospect, will produce 'saviors' on both sides, each with their own ideas. In any event, SS will go on.

Now, before anyone takes issue this...... we are now in 2016. All those panicky people who KNEW the world was coming to an end on Jan. 31st 1999..... Well look how stupid that appears now. So go ahead and take SS at 62, and when you hit 75 (watch out for that truck!) think back and how misinformed you were 13 years before and took that retirement at 62....  25% lost... All because you listened to Chicken Little and he convinced you that SS was going broke....

What is more likely is that there may be limits or reductions of SS payments. So that potential 25% loss today, might be worse if you live to 75+ and are subjected to a SS cut in benefits.       

I am 60. By parents are 83 /85. By mother's line has people living to 86, 92, 96, 99. I need that 25%! I will take at 66+ or later as for EACH MONTH you wait, the check goes up. Besides.... I like working. I would be bored trying to find things to do.

While what you are saying has great merit, everyone has different reasons for taking the money at the age they do. In many cases they flat out need to take it: they are unemployed and incapable of finding comparable work at over 60. My father was a corporate exec his entire life but when he lost his job at 60 and could not find anything close to similar he pulled the trigger at 62. Now 87 I am sure he wishes he could have waited a few years, but you can't live on air.

Think it's different today, an era when we all live a bit longer? Nope. In many industries 60-somethings are flat out un-hirable. I work in high tech. At 63 I am considered to be something close to 100 lol. My well known company just laid off 11% of the work force. Nearly everyone over 60 was fired or offered a generous package to get the hell out; most did. I fell through the cracks and now at the vastly geriatric age of 63 am probably the oldest surviving member of my division; a division of over 900 engineers. I will hold on for another 6 months and then pull the trigger at 64 - and get to the Philippines. I have already waited long enough and see no reason to wait longer for a few extra bucks per month.

Frankly I am envious of those who retired in their 50s or early 60s. I would recommend to everyone that if you can do it early - do it. Don't hang on just for a few extra SS dollars or a few extra dollars in your 401k.

But again that's only my personal perspective. Everyone must do what he thinks is best for him. OTOH, I have had two friends who died in the parking lot at work. That's not gonna be me. I'm gonna die on the beach with a San Mig in hand or die Ger Gering my wife - preferably also with a San Mig in my hand 

[Happyhorn52]

There is already talk about means testing SS payments. Starts out if you are wealthy you don't need SS and will gravitate down to if you already have a pension you will forfeit part of your SS check. The poor need it you don't.

[Bruce]

10 minutes ago, davewe said:

While what you are saying has great merit, everyone has different reasons for taking the money at the age they do. In many cases they flat out need to take it: they are unemployed and incapable of finding comparable work at over 60. My father was a corporate exec his entire life but when he lost his job at 60 and could not find anything close to similar he pulled the trigger at 62. Now 87 I am sure he wishes he could have waited a few years, but you can't live on air.

Think it's different today, an era when we all live a bit longer? Nope. In many industries 60-somethings are flat out un-hirable. I work in high tech. At 63 I am considered to be something close to 100 lol. My well known company just laid off 11% of the work force. Nearly everyone over 60 was fired or offered a generous package to get the hell out; most did. I fell through the cracks and now at the vastly geriatric age of 63 am probably the oldest surviving member of my division; a division of over 900 engineers. I will hold on for another 6 months and then pull the trigger at 64 - and get to the Philippines. I have already waited long enough and see no reason to wait longer for a few extra bucks per month.

Frankly I am envious of those who retired in their 50s or early 60s. I would recommend to everyone that if you can do it early - do it. Don't hang on just for a few extra SS dollars or a few extra dollars in your 401k.

But again that's only my personal perspective. Everyone must do what he thinks is best for him. OTOH, I have had two friends who died in the parking lot at work. That's not gonna be me. I'm gonna die on the beach with a San Mig in hand or die Ger Gering my wife - preferably also with a San Mig in my hand 

Yes. However, you are looking at your situation from an intellectual analytical viewpoint. This is vastly different than other posters who are simply responding in panic mode to a vague possibility that SS will be broke. Sure, based on certain projections, SS will be broke in year ____. However all these projections refuse to consider any replenishment of funds or other rescue plans. Big difference in planning modes....

My reply above was more geared to the impulsive person who takes at 62, even though he might not have to... and then years later when the world fails to blow up... he is stuck.