WHEN TO START COLLECTING SOCIAL SECURITY

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Jan 2, 2012
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British Columbia
I will be 65 next month, looking forward to a discount haircut and 10% off a zoo pass :D
But the $1K per month from the Fed will help my bar tap.
 

Butlerkid

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Apr 8, 2008
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Rutledge, Tennessee
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Karen
If she's not at FRA I believe there would be a reduction in her benefit too.
I don't believe that is correct. I am not at an age that requires I start distributions. I am claiming benefits off my husband's account while my account continues to grow. When I do start collecting there is not a penalty for having claimed my benefits under my husband's account. At least that is how several accountants/finanacial advisers have explained it to us.

Truly, any financial decisions should be based on guidance from qualified individuals who have reviewed the details of your specific situation.
 
Joined
Jan 29, 2005
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St. George, Utah
When I reached 62 my company was going through some downsizing and offered me a golden parachute to leave early. When contemplating SS and FRA I found it to be sort of a crap shoot as to taking SS at that time or to wait until I reached the full retirement amount. I chose to take it at age 62. You are sort of betting on how long you will live. Like Pa in his post above it would have taken me a significant number of years to make up the difference I would get by taking it early. Well, guess what, I have outlived the actuary tables and at a heathy 86 I would have been better off to have waited to start my SS. Would I do it different if I were faced with the same choice again, probably not.
 
Joined
Sep 23, 2006
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Pennsylvania
I don't believe that is correct. I am not at an age that requires I start distributions. I am claiming benefits off my husband's account while my account continues to grow. When I do start collecting there is not a penalty for having claimed my benefits under my husband's account. At least that is how several accountants/finanacial advisers have explained it to us.
I was going by the following from the Soc. Sec. website but please don't anyone base a decision on what I say:

A spouse can choose to retire as early as age 62, but doing so may result in a benefit as little as 32.5 percent of the worker's primary insurance amount. A spousal benefit is reduced 25/36 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.

For a spouse who is not entitled to benefits on his or her own earnings record, this reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount.
 
Joined
Aug 6, 2008
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Virginia
It is a complex answer and depends you need to talk to someone who understands and has your information. I do this for a living and it is a puzzle and each situation is different as well. That is why you get different answers. The changes in tax laws also affect things. You can bet there will be more to come as there always is.
 
Joined
Sep 20, 2009
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17,072
This kind of complex puzzle makes me happy about the 12,5% that goes off my gross wages, complimented by twice that amount paid by my employer, from the 1st month I started working.
Ensuring medicare, dental care, unemployment pay and a pension for me and every other citizen. Unemployment pay and pension depend on your wages, since the amount paid is also dependant on what you make.
Nice and simple.
Next to that there's a tax deductible saving scheme you can start with from the first moment you pay taxes.
There are also long term saving schemes - formally know as life insurance - that are tax deductible up to the official retirement age, 65.
Lots of companies pay for an extra pension for their employees and a hospitalisation insurance that covers anything the official healthcare plan wouldn't cover.

Just to illustrate what's done on the other side of the pond :)
At least in my country.
It won't surprise you the system is different in each country over here :rolleyes:

btw: the official retirement age is going up to 66 just from the year after I'll reach 65. 2 months actually.
And a short time after that, it'll go up to 67.
 
Joined
Feb 4, 2006
Messages
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Location
San Antonio, TX
There's only one thing you need to know to figure how to maximize the dollars into your pocket and that is your date of death.
I put together a spreadsheet and for me, best guess was to wait a couple years after full retirement age to turn it on.

Of course there are other factors that may add complexity: future taxes (these days, half of your soc sec goes into the income side of the tax form), future tax law changes (especially if you have other income), inflation (which may run away if the Fed loses control)-may be wise to get and spend money now while it buys something.

As part of the plan to save soc sec, folks with high incomes will likely see theirs go completely away.
 
Joined
Mar 28, 2008
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OH - IO
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Mike
Do the math. Consult with your local SSA office. Consult your financial advisor. I did all three and they told me to start at age 62. Everyone's situation and goals are different. You have to do what's right for you.
 
Joined
Apr 30, 2005
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Southern Cal
  • Thread Starter Thread Starter
  • #33
Do the math. Consult with your local SSA office. Consult your financial advisor. I did all three and they told me to start at age 62. Everyone's situation and goals are different. You have to do what's right for you.
I never planned on starting to collect before my FRA since I still work.
They would have taken back just about everything they would have given me.
The article in post #29 lets me do both.
I can start collecting at the beginning of the year when my FRA will come and I will not get penalized for working as the limit is much higher until I reach my FRA. Once I reach my FRA there are no penalties for working except for taxes. Granted my regular monthly benefit will decrease by about $100 but the amount I will receive from January until my FRA offsets that. It definitely makes sense for me to go that route.
 

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