Social Security - 62, 66 or 70?

/ Social Security - 62, 66 or 70? #41  
There are a number of retirement planners on line. Two good ones are FireCalc and the Fidelity retirement income planner. You input your particulars and the planner tells you basically how much you can spend taking into account historic investment returns and historic inflation levels. If you have done your homework, you already know your expenses, at least in the near term. I like the Fidelity planner as it outputs a spread sheet with a line for every year of the rest of your life with income, taxes, minimum required distributions and remaining portfolio. You can input the start and stop of types of income and expenses, like starting a pension or paying off a mortgage. I agree with spending more while you are "young", as long as it doesn't short you when you are too old to recover a shortfall. This program helped me to visualize it and gave me more confidence in setting a spending limit.
 
/ Social Security - 62, 66 or 70? #42  
Geez... I am in the minority here. I'm 56 with no plans to retire at all. I love my job, get to travel all I want, play around on my 80 acres, and enjoy life more than ever. Don't really understand the fascination of retirement, either. Different strokes for different folks...
 
/ Social Security - 62, 66 or 70? #43  
Geez... I am in the minority here. I'm 56 with no plans to retire at all. I love my job, get to travel all I want, play around on my 80 acres, and enjoy life more than ever. Don't really understand the fascination of retirement, either. Different strokes for different folks...
The goal, at least for me, was to be in a position to retire if I wanted to. I call that financial independence. If you love working, by all means do so. But if your employment situation changes - company sold, real SOB of a new boss, personal health issues - it is pretty nice to say adios. For me, it turns out that a whole world was out there beyond my cube that was / is mine to enjoy all day everyday. The important thing is to be able to do what makes you happy.
 
/ Social Security - 62, 66 or 70? #45  
I am leaning towards taking the SS and putting it into a Roth IRA and taking enough out of my 401/457 to pay The insurance premiums as I believe they are tax deductible.

In retirement you cannot contribute to either type of IRA with SS nor pension income. IRA contributions can only be made in years in which you receive a form 1040 from your employer.

Medical insurance and medical expenses may be deductible but the bar is high. You have to have a lot of medical expenses, relative to income, before they become deductible. For reasonably healthy couples medical expenses, including insurance, will not be be deductible.

At age 68 I am healthy and active. However, my medical expenses are significant as age-related problems crop up regularly, which require medical attention and medications. In the last five years our medical expenses have only been deductible once; when my wife and I both had minor surgery in the same year, got new specs and had some elective dental work done. These medical expenses were planned for one tax year.

Stocks are treacherous investments for retirees. Twice in my working lifetime stocks have had ten year periods with no gain. After inflation the stock returns have been slightly negative.

While we are in a period of low inflation (2014 = 1.6%) but you cannot assume low inflation will continue. The inflation adjustment (COLA) on SS may be vitally important in a few years.

I can clearly remember stagflation misery under Carter. Stagnant economy with inflation.
 
Last edited:
/ Social Security - 62, 66 or 70? #46  
I worked for Social Security for 29 years and am certain that I know more about this subject than any contributor. Maybe my first day on the job an older employee told me never directly answer the question whether a person should take early retirement or wait until full retirement age. Still good advice.
This thread contains some good food for thought, but also some serious mistakes, some half truths, and some out of context statements that can seriously affect people. Person A may have a set of circumstances that superficially sound a lot like what person B has; but application of the law and regulations may result in some very different results. A few of the above pronouncements of "fact" had me snorting with laughter.
You wouldn't take retirement advice from a guy at the corner bar, don't take it from an anonymous poster on the internet. (Jeez, did I even have to say that ?)
Research your own situation, read the Social Security website thoroughly, maybe even schedule an appointment (A.K.A. waste half a day) with Social Security a year or 5 before you consider retiring to run it past people who might have an idea what they're talking about. Be very wary of experts, Social Security can be as complex as you make it, or it can be straightforward and easy.
 
/ Social Security - 62, 66 or 70? #47  
I am 55 years old and will be facing this same decision as everyone else in a few years...
I am fortunate that at 62 I will have 27 plus years into the state retirement system...
So my options are good...
However, I have a job that I love and the pay and benefits are good...
Not physically demanding either...
So I probably will tell wifey who is the same age to hang it up and let her draw at 62 and I will keep on working until 65 or 66 and 10 months...my full retirement age...
But situations do change according to health and I am fully aware of that also...
One comment on life insurance...
At work we were offered a term life option that I could not pass up...
1 time offer, portable, rate fixed until you die, no pre-existing conditions...
200K for me and 100K for her...
$45 a month...
The payout goes to 1/2 that amount at the age of 70 but the rate stays the same...
We already have enough life insurance but I could not pass it up...
Had a minor surgery this summer but had to be put to sleep...
Told wifey is something happened to cash the check...
 
/ Social Security - 62, 66 or 70? #48  
.......... This thread contains some good food for thought, but also some serious mistakes, some half truths, and some out of context statements that can seriously affect people. Person A may have a set of circumstances that superficially sound a lot like what person B has; but application of the law and regulations may result in some very different results. A few of the above pronouncements of "fact" had me snorting with laughter.
You'd do more good if you addressed the inaccurate statement directly, than launching a vague barrage against us dummies here, that didn't spend a lifetime as a government worker.
You wouldn't take retirement advice from a guy at the corner bar, don't take it from an anonymous poster on the internet. (Jeez, did I even have to say that ?)
Right, everyone knows the credibility of fishheadbob.
 
/ Social Security - 62, 66 or 70? #49  
Quoting you:
You'd do more good if you addressed the inaccurate statement directly, than launching a vague barrage against us dummies here, that didn't spend a lifetime as a government worker.

How about I start with this one.

I want to make sure my wife is covered after I die, so she will take it at 62, I will take spousal (half her amount) at 66, then take my full at 70. When I die, she gets my amount.

Last time I looked the law was pretty specific that you can't do this in a life case. Only widowed people can do this.

I really don't want to get into a P*****g contest with anyone; I'd bet that you are pretty good at what you do. I'm pretty good at what I do.

I wouldn't attempt to cover many aspects of Social Security on an internet forum, it's way to complex and subject, as I said, to way too many incorrect conclusions.
 
/ Social Security - 62, 66 or 70? #50  
So many variables to consider....but for me I took the reduced benefit at age 62 because I calculated had I waited four years to get my full benefit, it wouild take me until age 77 to get back what I would get if I didn't wait. And to me it's better to get the payout early because you have no idea what SS is going to be like down the road.

DISCLAIMER: I am not a certified financial advisor, so any risk you take following my advice is just that....YOUR RISK. :laughing: :laughing:
 
/ Social Security - 62, 66 or 70? #51  
Quote Originally Posted by Travelover:
"I want to make sure my wife is covered after I die, so she will take it at 62, I will take spousal (half her amount) at 66, then take my full at 70. When I die, she gets my amount. If she should die first, I'd still get the higher amount."

Quote Originally Posted by Threepoint:
"One thing not yet discussed in this thread is the SS strategy known as "file and suspend." .........."

Actually that is exactly what I described in my post shown above, though I didn't use the term. And the age for maximum benefits is 70. Age 70 1/2 is when you are required to take minimum required distributions (RMDs) from your IRA and 401(k) accounts.

Travelover, I certainly didn't intend to offend you with my post (#30) on "file and suspend." I wasn't even thinking of your post (#18) at the time. Having gone back and looked at it though, what you describe is not at all what I understand to be the file and suspend strategy, sometimes also called claim and suspend. I'm no expert on SS (didn't even stay at a Holiday Inn Express last night), which is why I linked to the SS website rather than try to explain the strategy in my post. There are several third-party sites that also explain it better than I could. What you described seems to be some variant of the "62/70 split" strategy. Maybe it will work for you; fishheadbob seems to think it won't. But in any event I don't want to quibble with any fellow TBNr on this, nor do I think other members want to wade through that. :no:

You are right that maximum SS benefits are obtained by waiting until age 70, not 70-1/2, the age when the MRD requirement kicks in.
 
/ Social Security - 62, 66 or 70? #52  
Quoting you:
You'd do more good if you addressed the inaccurate statement directly, than launching a vague barrage against us dummies here, that didn't spend a lifetime as a government worker.

How about I start with this one.

I want to make sure my wife is covered after I die, so she will take it at 62, I will take spousal (half her amount) at 66, then take my full at 70. When I die, she gets my amount.

Last time I looked the law was pretty specific that you can't do this in a life case. Only widowed people can do this.

I really don't want to get into a P*****g contest with anyone; I'd bet that you are pretty good at what you do. I'm pretty good at what I do.

I wouldn't attempt to cover many aspects of Social Security on an internet forum, it's way to complex and subject, as I said, to way too many incorrect conclusions.

I may be wrong, but then so is Kiplingers.

Here's another valuable strategy. In most cases, it's the lower-earning spouse who collects a spousal benefit. But if you're the higher earner, you can bring in some extra money by applying for a spousal benefit at your full retirement age -- and still allow your own benefit to grow until age 70. Once you turn 70, you can switch to your own benefit and your spouse can claim a spousal benefit, of up to 50% of your primary insurance amount. However, her survivor benefit will equal up to 100% of your delayed benefit if you die first.
Read more at Strategies to Boost Your Social Security-Kiplinger
 
/ Social Security - 62, 66 or 70? #53  
Clearly you have to do a lot of research, especially if you want to use some of the more complex strategies that seem to be in the law. In reading the last few posts, I am reminded that every year a survey is made of the accuracy of the IRS answers to questions and I think last year they dropped below 50% correct. I wonder how much better the Social Security Admin is?
 
/ Social Security - 62, 66 or 70? #54  
If you have a straight forward claim, same employer or very few, no working years that do not count, apply, start recieving, never work again to add to your annuity, you probably will see a Gumint worker once through the process and never again. Your spouse will go through this one more time when you die. Simple process, computer does all the work(if information got into it properly) and all are happy there after.

It is the claims that are complex; have mistakes either in translation from IRS records or with the original inputter of the info, where there is broken service (like being in another pension program), continuing to work after original filing (creates an annual re-computation of annuity), and new income replacing lower earning years in the averaging of annual incomes. My first credible year by the tables referred to in an earlier post was when I was 12 years old. I learned early in my military career to keep meticulous records as back up to my service and pay records. This payed off real dividends when the disputes cropped up.

I disputed my first calculation which threw the local SS office into a tizzey, that I had the audacity to dispute their work, their claim was the computer is never wrong. That is a true statement, it is the information in the computer that is wrong. LSS; I had to appeal to the regional office, send them reams of paper, make a zillion phone calls (they never called me, I had to call them) I finally received an audit report that matched my records. The Regional person changed 3 times through the process and they had to start over. This all consumed over 6 months but I finally got my measly $636/month. Yea what a waste, but there was method to my madness as I planned to continue working and I wanted the base years to be accurate. That started a whole new saga.

It seems like I am a magnet for the problems with the system. Over 12 years of a re-computations I had to appeal again to the regional office as the local office threw up their hands. The first responders would never let me talk to a supervisor so I went over their heads. At the 8 year mark I smelled a rat so asked for the complete accounting I finally received back at the beginning. The local office did not know what I was talking about, their claim, "we never do that". I had to get my Congressman in the act on that one. The letter he wrote to them was not pretty, and he sent a copy to the Head of SS. All was peaches and cream, a lot of yes sirs, they called me for the first time, and fast action (for them).

I know it is a long story, but hopefully it will help some other soul avoid or have insight to the process. With all government programs during a dispute you have to have good irrefutable records, persistence, and the patience of Job. I have won against IRS through the same process.

I certainly do not wish to imply Fish Head Bob is one of the type SS agents I encountered. He would have handled my case at the local office level with his vast knowledge of the system and his strong work ethic; to bring the SS bureaucracy down to a face to face level.

Bob if I have stated something wrong here or in previous posts please bring it to my attention as I don't want to unknowing or through ignorance mislead someone. Sometimes memories of us old farts get us in trouble we do not intend.

Ron
 
/ Social Security - 62, 66 or 70? #56  
Just to clarify my strategy, here it is in graphical format from this site: http://www.blackrock.com/investing/literature/investor-education/strategies-for-collecting-social-security-retirement-benefits-one-pager-va-us.pdf

SS_Strategy.JPG
 
/ Social Security - 62, 66 or 70? #57  
I may be wrong, but then so is Kiplingers.

Kiplingers answer is confusing at best, dead wrong at worst. The Social Security Act as ammended probably runs into ten thousand pages of legalese jibberish. Trying to condense all that into 25 words or less to hold our short attention spans is inviting misinterpretation; especially when written by some kid a few months out of journalism school who can't always make the distinction between Medicare and Medicaid. His second article that day will be on renting Vs buying, then one on extended warranties before he goes home that day. Before you make any long term financial decisions try hard to get it right. Check a lot of sources, ask a lot of questions, read articles with a grain of salt - but it was in the newspaper, it must be true.
Does SSA get it wrong?
Yep.
Is there any recourse when a person receives misinformation from an official source ?
Usually not.

One of my duties was to be the designated speaker. I was the guy who went to your company's pre-retirement planning sessions and did an hour about SS. Once in a while I would run into somebody who was at one of those talks and they would swear that a man from SS came out to their shop and told them ____ . Fill in the blank with whatever nonsense you chose.
I knew that I never told them any such thing, but I also knew that they honestly believed whatever they were telling me; they could easily pass a polygraph. People hear what they want to hear and believe what they want to believe.
I used to get a lot of nice lunches bought me by attorneys and CPAs. Your lawyer doesn't know all the ins and outs of SS law, divorce, real estate, and so forth; but a good one knows where to find out the correct answer.
 
/ Social Security - 62, 66 or 70? #58  
Kiplingers answer is confusing at best, dead wrong at worst. .........
So, if I understand you correctly, only you know the answer and you ain't sayin'. I'll fight it out with the SSA when the time comes. Last year they came after me with an accusation of an overpayment 40 years ago but I got a check and an apology out of it. Others had it worse, see below.


Mary Grice, a federal worker who lives in Takoma Park, Md., never got the refunds she was expecting to see in her mailbox this year. The government seized her checks because of a $2,996 debt that was supposedly incurred under her father痴 Social Security number. Her father died in 1960, when she was 4, and her mother received survivors benefits thereafter.

But 37 years passed between when the Social Security agency says it overpaid someone in the Grice family and when Mary Grice's refund was taken. She was unable to find out from the agency exactly who received the overpayment her mother or perhaps her father's first wife, both of whom are no longer living.
Social Security stops trying to collect on old debts by seizing tax refunds - The Washington Post
 
/ Social Security - 62, 66 or 70? #59  
I retired at 50 and will start collecting SS in a few months at 62. Doing the math.......if I waited to 66.....it would take me 12 years to break even not considering interest/investment. I don't need the money but heck......it's gonna feel good to be on government aid like so many other fine Americans!!:laughing:
 
/ Social Security - 62, 66 or 70? #60  
I retired at 50 and will start collecting SS in a few months at 62. Doing the math.......if I waited to 66.....it would take me 12 years to break even not considering interest/investment. I don't need the money but heck......it's gonna feel good to be on government aid like so many other fine Americans!!:laughing:

Keep in mind, that it's your money...you gave it to the gov to 'hold' for you. It's unlikely you'll ever get back all you paid.

Many of the other 'fine Americans' never paid a cent and are getting what you won't...something for nothing.

Don't ever feel guilty about getting the gov to pay you back...even if you don't need it.
 
 
Top