Best Time To Start Collecting Social Security

Joined
Apr 30, 2005
Messages
2,026
Location
Southern Cal
My FRA is June 2021.
I'm pretty sure I'm going to start in Jan 2021.
That $18k penalty becomes $48k in your FRA year.
They will penalize me a little for 6 months but it will let my wife start collecting a spousal benefit from my account rather than hers. She is 3 years older than me and has been been collecting from her account since she was 62. She doesn't get much as she did not work that much being a stay at home Mom.
Wow, we're up to 80+ replies on this thread.
I did not feel this thread would be that popular since it has nothing to do with Nikon or photography.
That's one of the reasons why I love this place.
You can talk about anything and the company is fantastic.
 
Joined
Mar 21, 2019
Messages
6
You could die tomorrow. I had an unexpected heart issue when I thought I was perfectly healthy. Get it while you can. Smell the roses.
Just my thoughts.
 
Joined
Jan 28, 2009
Messages
1,115
Location
Indiana
Dave, I hope there are others here who can provide a better perspective on your rather complex situation. Mine was much simpler but at least I can explain how I went about making a decision.

I took a very attractive early retirement offer when I was 61 years old. I elected to take SS when I first became eligible at age 62 because my calculations showed that I would have to live 18 years beyond my full benefit age to collect the additional amount I would between first eligibility and full benefit age. That would put me 83 years old, which was a long way from 62!

Things have worked out very well for us so I have no regrets.
I did the same thing. Retired at age 62.5 and took SS right away. And like you, I'd have to live to 80+ just to "break even".
 
Joined
Jun 5, 2009
Messages
4,666
Location
USA-Today
I just retired Jan 2020 (age 64) and will start taking it on my birthday when I turn 65... our financial planner said grab it while its there as it may not be there in a few years but once you have it, you wont lose it.
 
Joined
Apr 30, 2005
Messages
2,026
Location
Southern Cal
I just retired Jan 2020 (age 64) and will start taking it on my birthday when I turn 65... our financial planner said grab it while its there as it may not be there in a few years but once you have it, you wont lose it.
Sounds like a good plan.
You can sign up 3 months in advance if you want.
Don't forget to sign up for Medicare while your doing that.
Then you can shop around for supplemental policies for the 20% Medicare does not pay and prescription coverage as well.
 
Joined
Dec 7, 2005
Messages
514
Location
MN, USA
As others have said, there is no one perfect answer. Everyone's circumstance is different from health history (and family health history), to accumulated retirement savings, to retirement goals, to family circumstances, to your own financial risk tolerance, to expected expenses and on it goes.

Add to all that the uncertainty of life, health, the economy, and the whims of our political system and you begin to grasp that the difference between a smart and a lucky choice is vanishingly small. The best advice is to take a hard cold look at your expenses, post-retirement income, and goals and run the numbers to see how you can make it work for what you need and want.
 
Joined
Dec 16, 2006
Messages
21,244
Location
South Florida
Coming back to the thread on the Medicare issue. This helped. Got me moving in the right direction.

Research showed me my best option was to talk to USAA (my regular insurance company), as they offer Medicare plans and act as a consultant, instead of the myriad consulting offers I got in the mail. They were great and offered good plans for all the different parts and options, from big reputable Insurers. I went with Aetna Medicare Advantage (through USAA to manage and collect payments when needed).

The experience was much better than I expected, on such a complex issue. Signed up yesterday and it starts on June 1st (the month I turn 65).

Thanks all for the help. This thread is great.
 
Joined
Oct 9, 2005
Messages
24,339
Location
Moscow, Idaho
Coming back to the thread on the Medicare issue. This helped. Got me moving in the right direction.

Research showed me my best option was to talk to USAA (my regular insurance company), as they offer Medicare plans and act as a consultant, instead of the myriad consulting offers I got in the mail. They were great and offered good plans for all the different parts and options, from big reputable Insurers. I went with Aetna Medicare Advantage (through USAA to manage and collect payments when needed).

The experience was much better than I expected, on such a complex issue. Signed up yesterday and it starts on June 1st (the month I turn 65).

Thanks all for the help. This thread is great.
Yeah, the amount of hype that gets mailed in is amazing. Plus all the cr%$* on TV and in print. Yup, you done did good :)
 
Joined
May 18, 2005
Messages
9,995
Location
Western Slope of Colorado
Wow, we're up to 80+ replies on this thread.
I did not feel this thread would be that popular since it has nothing to do with Nikon or photography.
That's one of the reasons why I love this place.
You can talk about anything and the company is fantastic.
Dave, I couldn't have said it better. The Café is truly a special place, whether for photography or simply as an online community. And we hope and expect that sense holds true for those of our members who aren't even *nearing* the need to begin thinking about Social Security! :D
 
Joined
Jun 5, 2009
Messages
4,666
Location
USA-Today
another item to keep in mind, is SS has a 8% bump each year, and that is a guarantee for now.. so if you can afford to delay a year, you get an 8% bump.. you may not earn 8% in your investments, so sometimes is best to tap into other savings or such, and allow SS to bump up the 8% each year until you need that. all part of the equation on when to take the US Social security.. you can take medicare independently
 
Joined
May 5, 2005
Messages
21,827
Location
SW Virginia
.. you may not earn 8% in your investments, so sometimes is best to tap into other savings or such, ...
You're very unlikely to earn 8% on an investment unless you're pretty lucky or risky, but that's not really the way to look at it. By delaying you're only gaining on future income. If you collect the SS and invest it, you've then got the assets. If you don't collect you've got nothing but a promise of higher income in the future (if you live to collect it).
 
Joined
May 5, 2005
Messages
21,827
Location
SW Virginia
Here's an illustration.

Suppose you can collect $20,000/yr now and you have a safe investment earning 3%. If you take the payments and invest them, after 5 years you would have $109, 368.

If you wait 5 years to start collecting you would collect $29, 387/yr. Now start investing that at 3%. In another 5 years you would have $160,700. But by then that $109,368 will have grown to $236,156!
 
Joined
Sep 13, 2007
Messages
14,528
Location
Northern VA suburb of Washington, DC
Over the VERY long term we are all dead.
All of your analyses assume none of the Social Security payments are spent. Thus, all of the money is being saved for the estate's beneficiaries. If those beneficiaries have no need to spend the money they receive from the estate, they can continue investing it. In those scenarios, the investments are being made over what you call the VERY long term. That then gets us back to assessing the likelihood of the S&P 500 continuing to return about 9% on average annually over the VERY long term.

Naturally, we should remember that most retired Americans don't have sufficient cash flow to live without spending at least part of their Social Security payments.
 
Joined
May 5, 2005
Messages
21,827
Location
SW Virginia
All of your analyses assume none of the Social Security payments are spent. Thus, all of the money is being saved for the estate's beneficiaries. If those beneficiaries have no need to spend the money they receive from the estate, they can continue investing it. In those scenarios, the investments are being made over what you call the VERY long term. That then gets us back to assessing the likelihood of the S&P 500 continuing to return about 9% on average annually over the VERY long term.

Naturally, we should remember that most retired Americans don't have sufficient cash flow to live without spending at least part of their Social Security payments.
We can probably argue about what constitutes the VERY long term in your scenario, but I agree with what you say in general. Can you then suggest a better way to assess the costs/benefits of waiting to collect?
 
Links on this page may be to our affiliates. Sales through affiliate links may benefit this site.
Nikon Cafe is a fan site and not associated with Nikon Corporation.
Forum post reactions by Twemoji: https://github.com/twitter/twemoji
Copyright © 2005-2019 Amin Forums, LLC
Top Bottom