Social Security-----When should you start drawing? (On Topic Only)

[UpstateNYUPSer(Ret)]

There has been a lot of discussion in other threads as to what would be the ideal age to start drawing from Social Security. There is the school of thought that says it is best to draw it as soon as you are eligible (62) as no one knows how long they will live or how much longer Social Security will be in existence. Then there are those who say that it is best to wait until you reach your full retirement age (66 or 67, depending upon your birth year) as your monthly benefit will have increased by 8% each year for 4 or 5 years. Finally there are those who say that you should wait until you are forced to take it at 70 as this will ensure that you receive the highest benefit possible.

There are a number of factors which will need to be considered before making this decision, such as how much, if any, you have saved in your other retirement accounts, or whether or not you have a pension from your employer. In addition, this decision will differ whether you are single or married and if you plan on working after retirement.

Thoughts?

 

[UpstateNYUPSer(Ret)]

After meeting with my financial adviser yesterday, we have agreed that we are going to wait until I am at least 67, preferably until I am 70, before I start drawing SS. We feel confident that between the money that I have been able to save, my projected income from my pension and part time work and the fact that I will be debt free when I retire will give me the flexibility to delay collecting SS until I am either ready to or are forced to.

My brother is in a much different financial situation. He is 60 and has had some medical issues of late which have his employer basically pushing him out the door. He has not been able to set aside very much, if any, and as a result will begin to collect his SS on the first day of the month that he is eligible. Unfortunately, his spouse did not work enough to be eligible for SS, so they will be depending upon his monthly benefit check, plus whatever they are able to save from the sale of their home, as their sole source of retirement income.

 

[badpal]

Waiting to 70 would be best, but at our ages ones health can go to heck in a handbasket pretty quick. I would guess Mr Upstate you born after 1959 and your full retirement date is 67 as it stands right now ?

 

[UpstateNYUPSer(Ret)]

Waiting to 70 would be best, but at our ages ones health can go to heck in a handbasket pretty quick. I would guess Mr Upstate you born after 1959 and your full retirement date is 67 as it stands right now ?

1961.

Yup.

 

[upschuck]

My thinking now is that I could enjoy it a lot more when I be younger then having more and being too old to enjoy it. Also, you could take it early, and invest it yourself, and beat the bigger amounts.

Not sure what I'll do, yet, too much time to go.

 

[UpstateNYUPSer(Ret)]

My thinking now is that I could enjoy it a lot more when I be younger then having more and being too old to enjoy it. Also, you could take it early, and invest it yourself, and beat the bigger amounts.

Not sure what I'll do, yet, too much time to go.

Keep in mind that it would be treated as income and as such most (85% for me) if not all of your benefit would be taxed.

 

[upschuck]

Keep in mind that it would be treated as income and as such most (85% for me) if not all of your benefit would be taxed.

Gets taxed now or later, that should be a wash, or worse, the higher income might put you in a higher bracket, where if invested in a Roth, grows tax free.

 

[brownmonster]

Not sure yet. We'll have 5 forms of income. Need to decide how to stagger them for maximum long term benefit.

 

[brownmonster]

After meeting with my financial adviser yesterday, we have agreed that we are going to wait until I am at least 67, preferably until I am 70, before I start drawing SS. We feel confident that between the money that I have been able to save, my projected income from my pension and part time work and the fact that I will be debt free when I retire will give me the flexibility to delay collecting SS until I am either ready to or are forced to.

My brother is in a much different financial situation. He is 60 and has had some medical issues of late which have his employer basically pushing him out the door. He has not been able to set aside very much, if any, and as a result will begin to collect his SS on the first day of the month that he is eligible. Unfortunately, his spouse did not work enough to be eligible for SS, so they will be depending upon his monthly benefit check, plus whatever they are able to save from the sale of their home, as their sole source of retirement income.

Even if the spouse didn't work she is eligible for a monthly benefit equal to 50% of his.

 

[twoweeled]

After meeting with my financial adviser yesterday, we have agreed that we are going to wait until I am at least 67, preferably until I am 70, before I start drawing SS. We feel confident that between the money that I have been able to save, my projected income from my pension and part time work and the fact that I will be debt free when I retire will give me the flexibility to delay collecting SS until I am either ready to or are forced to.

My brother is in a much different financial situation. He is 60 and has had some medical issues of late which have his employer basically pushing him out the door. He has not been able to set aside very much, if any, and as a result will begin to collect his SS on the first day of the month that he is eligible. Unfortunately, his spouse did not work enough to be eligible for SS, so they will be depending upon his monthly benefit check, plus whatever they are able to save from the sale of their home, as their sole source of retirement income.

I'm curious. Was there any consideration voiced from your financial adviser, regarding life expectancy? I read mainly, We'll put off SS as long as possible. I assume for the larger payout, but I wonder if life expectancy played any part in the equation. Shorter life span would equate to a smaller payout, in the long run.
My SS at 62 will be approx $2000 month = $24,000 year. I look at how long it will take to recoup that $24K per year (est. $75K for 3 years) waiting. Risky?
I wonder what the main focus was between you and your adviser.

 

[Tired Driver]

My Father worked for Social Security for 20 years. He told me to start drawing as soon as your are able to. I crunched the numbers one day and I would have to be 86 years old until I would profit from drawing later.

 

[twoweeled]

My Father worked for Social Security for 20 years. He told me to start drawing as soon as your are able to. I crunched the numbers one day and I would have to be 86 years old until I would profit from drawing later.

I thought I heard similar numbers. Difficult for me to view that as a good idea if true. At 90, I'd be feeling like I'm scoring (if I'm still alive and moving relatively well). In my case of losing $24K-$25K a year - I just see it as maybe I better take it "while it's still there". I'm still thinking, but I'm leaning towards, take it and run. CPA's are numbers guys. Mine didn't pause for a second! He said, take it as soon as possible.
Probably no correct answer for all.

 

[retiredTxfeeder]

When I retired, I was going thru this same dilemma. Unfortunately, my career ended due to an injury. I had surgery, was off work about 10 months, and when the time came to be relased from the Dr, I made the decision I could no longer do the job. My doctor agreed, and I applied for SSD and was granted it. When I went on SSD, (at 59) I got the maximum rate. (about $2350/mo) at the time. I would have taken the SS at first chance I got, anyway, mainly because of my health at the time.

 

[tarbar66]

I will start drawing mine in a few months at 65. I want SS to pay for my Medicare.

 

[olroadbeech]

it's different for everyone. depends on health, financial status , and a dozen other variables.

we have grandchildren starting college soon and we agreed to help them out so we are going to start drawing at 62. anyways it takes about 18 years to break even if you start at a later age.

being that we are getting along just fine with the pension and not even tapping into the 401k yet ( knock on wood ) we would probably be better off investing some of that SS ourselves or banking it for a rainy day.

You would be better off asking a pro that knows about your situation to make a good decision on this.

 

[TearsInRain]

draw asap

if you honestly need that extra money at that age, you've already ed up

 

[burrheadd]

it's different for everyone. depends on health, financial status , and a dozen other variables.

we have grandchildren starting college soon and we agreed to help them out so we are going to start drawing at 62. anyways it takes about 18 years to break even if you start at a later age.

being that we are getting along just fine with the pension and not even tapping into the 401k yet ( knock on wood ) we would probably be better off investing some of that SS ourselves or banking it for a rainy day.

You would be better off asking a pro that knows about your situation to make a good decision on this.

Back when you were stripping what percentage of tips did you pay taxes on

 

[Catatonic]

There has been a lot of discussion in other threads as to what would be the ideal age to start drawing from Social Security.

Thoughts?

A bird in hand is worth two in the bush.

 

[BakerMayfield2018]

draw asap

if you honestly need that extra money at that age, you've already ed up

So wrong. On so many levels.

 

[Catatonic]

Back when you were stripping what percentage of tips did you pay taxes on

100% taxes x 0 tips = 0