Social Security Question

[Standing Wolf]

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.

[Peter1469]

Assuming that the money is not critical now.

Do you feel you have a long time to live? If yes, wait to max out the monthly benefits.

If you have a health problem and don't think you are going to live 10+ years, there is no reason to not start taking it now.

[FindersKeepers]

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.

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

[Common]

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.

Never wait to collect social security, consider what you will collect in the next 4 yrs lets say 2,000 a month 24,000 a year x4
then take what increase you would get at 70 just the difference between todays payout and that at 70, then do the math how long you have to live get your money back.

Also consider this. there are no guarantees in life for ANY of us we will live past this very moment.

Put in your papers and start collecting, its retro till the day you applied

[texan]

I just got done with a financial planning session. They have models based on general averages. Some are good and some don’t really apply. Age and health is one. Peter hits that correctly. I suggest you go through on of those models with a good planner. They can tell you what to do. For eaxample I can retire at 65 and not wait for the max payout. But that doesn’t mean I will retire then.

But life expectancy should be a driver for you.


Great thread BTW.

[Standing Wolf]

.... If you have a health problem and don't think you are going to live 10+ years, there is no reason to not start taking it now.

That was my thinking, too. I dislike being cynical, and my family thinks I'll live forever, but I'm just trying to be as realistic and practical as I need to be here.

.... 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. ....

Oh, my wife got me onto Medicare last year when was I was flat on my back in the hospital and pretty much completely out of it, and I'm very grateful that she did that. I grumble when I have to write those quarterly $400+ checks to the system - that came as a total surprise - but considering all the medical expenses Medicare has covered for me these last eighteen months, it has been a blessing.

Never wait to collect social security, consider what you will collect in the next 4 yrs lets say 2,000 a month 24,000 a year x4
then take what increase you would get at 70 just the difference between todays payout and that at 70, then do the math how long you have to live get your money back.

Also consider this. there are no guarantees in life for ANY of us we will live past this very moment.

Put in your papers and start collecting, its retro till the day you applied

Right, doing the math is what got me thinking in this direction. Practically speaking, I believe collecting now is my safest bet financially. And if I do surprise myself and live to be 81, well...that's okay, too.

I just got done with a financial planning session. They have models based on general averages. Some are good and some don’t really apply. Age and health is one. Peter hits that correctly. I suggest you go through on of those models with a good planner. They can tell you what to do. For eaxample I can retire at 65 and not wait for the max payout. But that doesn’t mean I will retire then.
But life expectancy should be a driver for you.
Great thread BTW.

Thanks to everyone for your input. It is very much appreciated!

[carolina73]

I know a good deal of people that went through this calculation and decided 65 was their best option. That age standard is moving toward 67 now so it depends on the specific age of individuals. I have a shorter expectancy than you do so everything I am doing is oriented toward my wife and her ability to select and how much I can put in the bank before I take that turn and how it effects what she can collect since the difference in income is very substantial.

[carolina73]

I know a good deal of people that went through this calculation and decided 65 was their best option. That age standard is moving toward 67 now so it depends on the specific age of individuals. I have a shorter expectancy than you do so everything I am doing is oriented toward my wife and her ability to select and how much I can put in the bank before I take that turn and how it effects what she can collect since the difference in income is very substantial.

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.

[Docthehun]

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.

[Peter1469]

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.

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