7
   

Social Security Question

 
 
Reply Sat 21 Aug, 2010 11:16 am
I'll be 62 in May of next year and I'm thinking of taking early retirement.

I realize that by not waitng until I'm 65 it's a lesser amount of money and I can't earn as much on the side without affecting the payment, but I am healthy, my genetic footprint is long life and it's been put forth that if you add up the money if I live to be say 85, and most everyone in my family lives at LEAST that long, I'll end up with more money in the long run.

I'd very much like to hear your opinions and advice.

I already have a new affordable health plan. If I get sick I'll go the the ER whether I have any money or not and pay what I can. Healthcare and the government HAD their chance to make real change and said **** it.... so I'll be one of those government tit suckling scumbags. Laughing
 
tsarstepan
 
  2  
Reply Sat 21 Aug, 2010 11:43 am
@blueveinedthrobber,
Quote:
so I'll be one of those government tit suckling scumbags.

Well that's fine if you decide to live this lifestyle but by law you must drive a 1970's Cadillac Eldorado coupe with an 8 track cassette tape player.

I don't understand the law but that's how it goes.
roger
 
  2  
Reply Sat 21 Aug, 2010 01:06 pm
@blueveinedthrobber,
............CAUTION

MINEFIELD AHEAD


If you retire before your "Full Retirement Age", earnings above a certain limit will reduce your social security payment by one dollar for every two dollars earned above that limit. Last time I looked, that limit was something on the order of $13,500 or thereabouts. Also, if earned income plus 1/2 your social security benefit exceeds something like $25,000, your social security benefit becomes taxable as ordinary income. If your income is unearned, that is, investment income, you might have a different answer. Medicare still starts at age 65, regardless of when you elect to accept ss benefits.

PS: Look again. Your full retirement age is not 65. It is at least 66 1/2.

PPS: Now, aren't you glad you asked before making a decision.

roger
 
  2  
Reply Sat 21 Aug, 2010 01:09 pm
@roger,
Other than that, I think you've got a good plan.

"Other than that, Mrs. Lincoln, how did you like the play"?
blueveinedthrobber
 
  1  
Reply Sat 21 Aug, 2010 03:20 pm
@tsarstepan,
I'm somewhat familiar with that rule., but I may be just a hair too tall for my face to be obliterated by the steering wheel....
0 Replies
 
blueveinedthrobber
 
  1  
Reply Sat 21 Aug, 2010 03:24 pm
@roger,
is that your way of saying bad idea?
roger
 
  1  
Reply Sat 21 Aug, 2010 04:02 pm
@blueveinedthrobber,
Nope. Just my little way of passing along a couple of ideas that may not have been included in your calculations.
blueveinedthrobber
 
  1  
Reply Sat 21 Aug, 2010 04:15 pm
@roger,
well rog, that's why I came here, to see if could get some helpful advice.
0 Replies
 
edgarblythe
 
  1  
Reply Sat 21 Aug, 2010 04:57 pm
@tsarstepan,
I don't know the statistics, but they limit your earnings way too drastically at 62.
0 Replies
 
edgarblythe
 
  1  
Reply Sat 21 Aug, 2010 05:00 pm
They did not deduct for income tax from my SS check last year. I ended owing them $640. I turn 68 next month, so my situation is not exactly like yours. In other words, don't take my advice. Get someone who knows.
CalamityJane
 
  1  
Reply Sat 21 Aug, 2010 08:27 pm
Can you afford to have 25 % less retirement income per month?
If the answer is yes, then you could retire at 62. I would not advice it though.
65 is not that far ahead and if you could hold out until then, you'll be glad
later on.
roger
 
  1  
Reply Sat 21 Aug, 2010 08:34 pm
@edgarblythe,
If you want them to, they will make deductions for you. You will have to drop in and complete the equivalent of a W-4. Your options are 7 1/2%, 10%, or 15%.

The good news at your age is that you can earn all you want without a reduction in payments. Actually, your full retirement age was probably 65. I think I missed the cutoff by about 1 year.

roger
 
  1  
Reply Sat 21 Aug, 2010 08:38 pm
@CalamityJane,
I repeat myself, but there was a cutoff date for full retirement at age 65. May of 1944 was the wrong side of the line. Not that I am suggesting early retirement. I listed several reasons not to take it in my first post.
0 Replies
 
edgarblythe
 
  1  
Reply Sat 21 Aug, 2010 09:39 pm
@roger,
roger wrote:

If you want them to, they will make deductions for you. You will have to drop in and complete the equivalent of a W-4. Your options are 7 1/2%, 10%, or 15%.

The good news at your age is that you can earn all you want without a reduction in payments. Actually, your full retirement age was probably 65. I think I missed the cutoff by about 1 year.



My year of 1942 was the cutoff for 65 and 10 months. Not sure what it is now.
0 Replies
 
roger
 
  2  
Reply Sat 21 Aug, 2010 09:47 pm
Mesquite posted a couple of good links in this post.

http://able2know.org/topic/90747-1

They were very helpful to me, at that particular time.
0 Replies
 
CalamityJane
 
  1  
Reply Sat 21 Aug, 2010 09:48 pm
Well, I have to work until age 67 if I want full benefits http://msnsmileys.net/k/smileys/Kolobok_He_and_She/girl_sad.gif
0 Replies
 
IRFRANK
 
  2  
Reply Sat 21 Aug, 2010 10:55 pm
@blueveinedthrobber,
I had this same decision and I took the early retirement. I figured the totals out for 10 - 15 - 20 years and it took a long time to make up the amount I will get for the 3 years between 62 and 65.

I think what really matters is whether or not you NEED it. If you don't, wait.
0 Replies
 
mesquite
 
  3  
Reply Sun 22 Aug, 2010 12:19 am
@blueveinedthrobber,
Here is a chart from the SS site with an example that matches your full retirement age of 66.

http://www.socialsecurity.gov/pubs/10147_clip_image002.gif
When To Start Receiving Retirement Benefits

The break even point for beginning at 62 vs 66 is 16 years, meaning that if you live longer than age 78, you will be getting less total dollars if you started drawing at age 62. Up until that point you would be money ahead by starting at age 62.

Of course that analysis is only looking at the total dollars without regard to monthly income. For me the decision was to wait until three months shy of full retirement age which gave me a reduction of only 1.5%.
Miller
 
  1  
Reply Sun 22 Aug, 2010 12:23 am
@blueveinedthrobber,
blueveinedthrobber wrote:

If I get sick I'll go the the ER whether I have any money or not and pay what I can.


And the rest? You'll be hunted down till you drop dead. The hospital will send bill collectors out to hunt you down and eventually, they'll stick your reitrement plan with the amount due plus interest.

Go to any ER and the first words out of their mouth are " How will you be paying for this"?
Miller
 
  1  
Reply Sun 22 Aug, 2010 12:24 am
@roger,
roger wrote:

............CAUTION

MINEFIELD AHEAD


If you retire before your "Full Retirement Age", earnings above a certain limit will reduce your social security payment by one dollar for every two dollars earned above that limit. Last time I looked, that limit was something on the order of $13,500 or thereabouts. Also, if earned income plus 1/2 your social security benefit exceeds something like $25,000, your social security benefit becomes taxable as ordinary income. If your income is unearned, that is, investment income, you might have a different answer. Medicare still starts at age 65, regardless of when you elect to accept ss benefits.

PS: Look again. Your full retirement age is not 65. It is at least 66 1/2.

PPS: Now, aren't you glad you asked before making a decision.




The retirement age will rise to 70 in the very near future.
0 Replies
 
 

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