Social Security Question

[Captdon]

I'm 66 and I have no intention of retiring from my present job any time soon...but I'm wondering whether there is any substantive upside, in my case, to my waiting till I'm 70 to apply for Security Security benefits.

They urge you to wait by dangling that extra monthly payout - in my case, about $600 - if you wait until you're older. But I've done the math, and between now and when I turn 70, if I apply and start collecting benefits now, I'll collect in excess of $77K during that 3 1/2 years. Not a fortune, but a nice chunk of money. On the other hand, if I wait until 70 to apply, that extra $600 a month would not add up to $77K until I was 81 years old. And given my medical history and condition, that is a considerable long shot; if I make it to 75, quite frankly I'll be surprised.

My Social Security income is always going to be taxable at the maximum 85% regardless of when I take it and whether or not I'm working, because my military pension plus the percentage of the payments they count as income would push me over that threshold at which the 85% kicks in.

If I apply for and start receiving payments now, chances are I would be able to just save or invest the money, so I'm trying to determine whether there is any downside to my doing it now instead of waiting.

Do it now. You did the math.

[Captdon]

I'm a ways off from retirement, but like you, I don't want to retire and I intend to work as long as I can.

Someone here--maybe Dr. Who?--said I should that even though I don't want to retire, I need to apply for (I think) Medicare because otherwise, I'll miss out on something. Darnit! I even printed that advice out and now I can't find what I did with it.

I hope she (or whoever offered the advice) sees this thread.

I'm pretty sure it was important.

Now, I feel as though dementia is setting in and perhaps I should retire early. LOL

If you don't take Medicare at 65 you pay a higher price when you do.

[Standing Wolf]

Do it now. You did the math.

Thanks! I did it this morning online. Pleasantly surprised at how easy and fast it was to do - only about 20 minutes. They even allow you NOT to know certain things, like your ex-wife's social security number.

[Captdon]

I think the other consideration is how SS will be adjusted. I will collect the max but in the last statement I received there was this little warning note saying that the amount provided may be reduced by as much as 30% with no explanation. That statement was a few years ago. I ignored it because there is nothing I could do about it. Having 2 retirements in the PBGC that are now 40% of the promised amounts I am really look at the sale of my business as my retirement. Another reason I really need Trump to stay in office. It is a conventional manufacturing company that actually makes things.

Technically, the fund has to cut the amount. That is never going to happen. Social Security voters will vote one issue.

[Captdon]

Yes, in 3035 checks get slashed by 25% unless Congress does something.

You will be paying more in taxes. That's how the government works.

[Captdon]

Because this is some thing that I will have to deal with, you got me really curious. The on biggest draw back to collecting early is that your wife would only get half of your reduced benefit.
So, if your wife has a long bloodline it could cost her serious money after you pass. The example I saw was that the spouse would collect 32.5% of your benefit if you retire at 65 instead of 50% at 70.

Look here for good information:

https://www.ssa.gov/benefits/survivors/ifyou.html#h5

[Newpublius]

And given my medical history and condition, that is a considerable long shot; if I make it to 75, quite frankly I'll be surprised.

You've answered your question actually. Your own assessment of your personal health is your assessment of your personal health. Right now you are 66, from your avatar I am presuming male. According to a life expectancy table, at 66, you have 17.18 years to live. So if you take benefits today you can do that math easily enough, right? And you can do a NPV calculation based on, say, a 5% discount rate.

But now you have to compare it to something. That's if you take at age 70 get an enhanced payment and live out your years.

Well, that chart says: https://www.ssa.gov/oact/STATS/table4c6.html

IF you make it to age 70 you will have 14.39 years to live because the older you get, the longer you are expected to live.

And you can do that math too and you can reduce that to a NPV calculation TODAY, just remember that age 70 is a year 4 cash flow.

And then of course you have to account for the death probability and that is on the chart too.

determine whether there is any downside to my doing it now instead of waiting

The 'downside' here is if you live longer of course.

Thanks! I did it this morning online. Pleasantly surprised at how easy and fast it was to do - only about 20 minutes. They even allow you NOT to know certain things, like your ex-wife's social security number.

Read this after. OK, so you elected to take them now. Based on what you said in the thread seems like you made the correct decision.
-------------------

Those charts btw? They don't account for corona....

[Common]

I started collecting at 62. I ran all the numbers and I'd be 84 before I'd be ahead to wait. No doubter for me. If you start at 62 and invest the dough rather than spend it, you'll be way ahead.

Wow we agree on something doc

[Docthehun]

Wow we agree on something doc

Even a blind squirrel finds a nut now and then...

[Hoosier8]

I started collecting at 62. I ran all the numbers and I'd be 84 before I'd be ahead to wait. No doubter for me. If you start at 62 and invest the dough rather than spend it, you'll be way ahead.

I waited until official retirement age because I make too much and taking it at 62 would mean I would get nothing.