When To Begin Taking U.s. Ss Payments

[OnMyWay]

I'm glad this topic was revived as I had not updated my spreadsheet since our second baby was born.  I ended up making new calculations with only SS so it will fit more with this discussion.  The other spreadsheet I need to update is the one that combines anticipated income (nest egg investments) with the SS, projecting out until old age.

Of course there are many reasons that one could choose to take it "early", and most were mentioned.  The most important one is if you really need that SS money to live on at age 62.  If you do, you have to go for it.

Another important one to me is the quality of life you will have WHEN you receive the money.  As Chris mentioned, 55-66 can be some really good years to use some extra money and after that it maybe more difficult to get out and travel, or cycle, etc.  Especially if you crash often, like Chris.

I don't think the system will go completely under, so that is not really a factor for me, but I do think it is possible that benefits will be reduced, very slightly.  Either way, I don't factor that into the decision.

So I reviewed my current numbers.  I have two kids who will also get SS when I start, and I factored that in.  Inflation and inflation increases to SS are not factored in.

Age 62 - kids will be 4.5 and 2.3.  They can get SS until age 19 and this is factored in.  All of my totals include the kids money.

Age 66 & 4 mo - This is my full retirement age.  Kids will be 8.8 and 6.5.  Others mentioned the amount of money received between 62 and 66 & 4 mo, and mine is quite a lot due to the kids.

Age 76.5 - My oldest will turn 19 and stop receiving SS*.

Age 78.6 - For total accumulated SS money including the kids, this is my break even point taking at 62 or 66-4 mo.   By coincidence, this is the same month that my youngest will turn 19 and stop receiving a SS benefit*.

*  It is possible for them to receive for another year if they are in school, but I am not sure if that works for the Philippines.

Age 80 - I have lost about $10,000 by taking it at 62

Age 85 - I have lost about $49,000 by taking it at 62

Age 90 - I have lost about $88,000 by taking it at 62

In the year or two before I retired at age 56, I put a lot of time into calculating how long my next egg + SS would last me.  That was without the kids.  I had decided then to take SS at 62.  Now I come to the same conclusion, and the kids have weighed heavily into the decision.  Taking at 62 works best for our family.

Key factors:

1.  I am living on my next egg since age 56.  If I continue to do that from age 62 to 66, I will draw down my next egg to support the lifestyle we want here.

2.  The kids have bumped up our total monthly SS a lot, and the age 62 amount is more than enough for us to have a very nice lifestyle.

3.  I already bought a house (lease) with part of the next egg.  I would like the nest egg to remain untouched for a while after we get SS.

4.  If I kick the bucket, the kids will still collect SS but my wife is not eligible for SS survivor benefits or child caregiver benefit.  Both require a 5 year residency.  Better to take it at 62.  She can have an inheritance from the next egg but she can't get an SS benefit.

5.  Health - I am fairly healthy but my dad had his first stroke at age 63 and had a massive stroke at around 66.  Although he lived until 87, he was not the same guy after the second stroke and he was a miserable guy.  My oldest sister died of a massive stroke at about 64.  My older brother was a lifelong unhealthy guy with some mental issues, and he died at 64 as well.  My oldest living sister is 67 and has Parkinson's.  My mom lived fairly well until 93 so hopefully I have a majority of her genes!

6.  Mobility - We want to travel with the kids and waiting until 66 means waiting on most of the travel.  It will be much harder at that age.  We hope to do more travelling starting next fall when I will be 61 and the baby is older.

7.  The other reasons I forgot due to my advancing age.  

Again, many different reasons can factor in to the decision of each unique situation, but this is the one for us.

Sorry for the long post, but it helped me to write this all out, and I will save it for future reference.

 

[chris49]

The kids allowance is the Golden Goose of the US SS system.

Mine is lowish as compared to Don above. I worked less years in the USA. $600 USD a month until age 18 with the $600 maintained to the 2nd child even if the first child goes over the age.

Wont anyone in the US wake up to that?

 

[Domino22]

For me like others have said is the health and age thing. Now and hopefully in 21 months I will feel close to like I feel now.I can scuba dive, ride for hours on end, and walk a long way. And I still have the desire to explore around the Philippines. At some point in time I may not want to get off the couch!

[scott h]

2 hours ago, Domino22 said:

At some point in time I may not want to get off the couch!

Hear, hear, take the money and run I say,,,,as fast as our wheel chairs allow us

[davewe]

On 9/30/2016 at 10:16 AM, chris49 said:

The kids allowance is the Golden Goose of the US SS system.

Mine is lowish as compared to Don above. I worked less years in the USA. $600 USD a month until age 18 with the $600 maintained to the 2nd child even if the first child goes over the age.

Wont anyone in the US wake up to that?

 

Fortunately for the system, this is still a pretty rare occurrence. My guess, and it's strictly a guess, is that the benefit was devised for the retired grandparent taking care of a grandchild. I doubt they anticipated geezers like me marrying 20-something Pinays 

This being said, when I went to a Social Security seminar, they called it the "viagra baby option." I felt like raising my hand, pointing to my wife, and saying that viagra was not necessary, but I kept my mouth shut.

Edited October 1, 2016 by davewe

[chris49]

Gina is talking about having another child when she's 40. I would be 80.

Crazy stuff. But in the Philippines is actually works. An 18 year extension of $600/month is plenty for them to live on when I'm no longer around.

[OnMyWay]

8 hours ago, davewe said:

Fortunately for the system, this is still a pretty rare occurrence. My guess, and it's strictly a guess, is that the benefit was devised for the retired grandparent taking care of a grandchild. I doubt they anticipated geezers like me marrying 20-something Pinays 

This being said, when I went to a Social Security seminar, they called it the "viagra baby option." I felt like raising my hand, pointing to my wife, and saying that viagra was not necessary, but I kept my mouth shut.

I think in the U.S. the children's survivor benefits are probably used more commonly.  They are higher than the normal child benefits and I don't think there is an age threshold for the deceased parent.  E.g., if I croak now at 60 my kids can each get 75% of my benefit right away, not when I am 62.  I am sure many kids collect when a parent dies young, but only until they are 18.

In fact, now I remember my best friend (back then) collected SS from age 17-19 after his dad died.  I think his dad died in his late 50's.

[Nephi]

I moved here to the Philippines at 50yrs old. Started collecting Social Security at 62 and am now 64. Where did the time go? For us, it was pre-planned to start collecting at 62 and has worked good so far. Living here, the SS stops when I die eventually. So the idea is to keep the monthly deposits in the bank for the most part. That will give my wife and kids a bit extra for whatever might be needed or wanted in their future.

[chris49]

5 hours ago, Nephi said:

I moved here to the Philippines at 50yrs old. Started collecting Social Security at 62 and am now 64. Where did the time go? For us, it was pre-planned to start collecting at 62 and has worked good so far. Living here, the SS stops when I die eventually. So the idea is to keep the monthly deposits in the bank for the most part. That will give my wife and kids a bit extra for whatever might be needed or wanted in their future.

The guy next door in a very nice house died at 99. He was a Filipino/American

He was getting SS and a USN pension. Can't pinpoint the exact amount but the last 10 years of his life the money accumulated. We probably won't carry on that long but as we get older our needs might drop a little. Nice to hand over a nest egg and hopefully the kid's will start earning by then.

[Nephi]

23 minutes ago, chris49 said:

The guy next door in a very nice house died at 99. He was a Filipino/American

He was getting SS and a USN pension. Can't pinpoint the exact amount but the last 10 years of his life the money accumulated. We probably won't carry on that long but as we get older our needs might drop a little. Nice to hand over a nest egg and hopefully the kid's will start earning by then.

Being able to live here in the islands it really would be great to live that long. Who knows, with the advances in medical ability and medications it just might be possible. Yea, we can't take the $$$ with us and living here there seems to be little need to acquire many items to keep up with the Jones's. That saved amount over the years will come in handy for our wives and children.

Edited October 2, 2016 by Nephi