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When to start drawing my SS

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robinjopo

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I will turn 62 on my birthday and my husband and I are discussing when I should start drawing. Even though it's less money, I think I should start at 62 and apply most to any debts we have and add the rest to my son's Trust in case something happens to me.

My number one concern is for him to have sufficient $$$$ so my daughter won't be burdened with monetary problems.

Husband says if I wait 4 years, I get $400 extra per month. The $$$$ I will receive if I start at 62 seems like the best bet to me.

It's not money I need for food or shelter. I just want to clear up everything for my son.

Please give me your input. Thank you for indulging me. I did put this in off topic, so don't yell at me. Lol
 

DrHenley

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There is no guarantee on how much you will get in the future. You could die, or SS could become insolvent.

I had no choice, my company was downsizing and I had to go to part time and I needed that partial SS check to make ends meet. If I were younger I would have just found another job, but the job market in my field is full of young studs that think they know everything and can fool their prospective employers into believing it, LOL.

But...I still had full health benefits paid 100% by my employer, so financially it made the most sense to stay on part time and draw partial SS.

I got quite an education about SS when I retired. There were some big surprises, and they were GOOD surprises!

I had a windfall in a side programming project I was working on about a year before I retired, and it bumped my income up so high for two years that my SS payments were dramatically increased. I had mistakenly thought that your SS payments were based on your lifetime earnings. NOPE! It is weighted towards your most recent income. And I had recent income 6 times as high as what I was making before. It was only for two years, but those two years counted more than previous years because they were the most recent. The adjustments to my base kicked in after I started taking SS, which meant that the SS payments kept going up and up and up.
 

Morgan101

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I will turn 62 on my birthday and my husband and I are discussing when I should start drawing. Even though it's less money, I think I should start at 62 and apply most to any debts we have and add the rest to my son's Trust in case something happens to me.

My number one concern is for him to have sufficient $$$$ so my daughter won't be burdened with monetary problems.

Husband says if I wait 4 years, I get $400 extra per month. The $$$$ I will receive if I start at 62 seems like the best bet to me.

It's not money I need for food or shelter. I just want to clear up everything for my son.

Please give me your input. Thank you for indulging me. I did put this in off topic, so don't yell at me. Lol
From the analysis I have done the payback period is about 12 years. Determine what you would be paid if you start taking it at 62. How much would that be? At 66 you will get an additional $400 per month? How long would it take to surpass the total amount you received had you started at 62?

Another question or something to consider. Do you still work? If you start taking SS when you are 62 the amount of income you can earn is capped around $15,000 per year. If you exceed that your SS will be reduced. If you wait until you are 66 you can earn whatever you want, and your SS will not be reduced. IMHO 66 is the optimum age.
 

Urbanprep

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Simple math I used for myself. Example: At 62 = $10,000 pr yer (number for ease of calculation) --- at 65 =$300 per month increase

Deferred income:

First year = $10,000 + 7% inflation = First year income $10,700
Second year = $10,700 + 7% inflation = Second year income $10,749
Third year = $10,749 + 7% inflation = Third year income $10,752.43

The total income for the three years (62 to 65) equals === $32,201.43 ( just example numbers, you will need to plug in your actual numbers)

Now divide that number ($32,201.43) by the monthly increased amount ($300) and you will know how long it takes to just brake even. In my case it was ten years, to reach the break even point. I decided to draw at 62. YMMV.
 

robinjopo

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Simple math I used for myself. Example: At 62 = $10,000 pr yer (number for ease of calculation) --- at 65 =$300 per month increase

Deferred income:

First year = $10,000 + 7% inflation = First year income $10,700
Second year = $10,700 + 7% inflation = Second year income $10,749
Third year = $10,749 + 7% inflation = Third year income $10,752.43

The total income for the three years (62 to 65) equals === $32,201.43 ( just example numbers, you will need to plug in your actual numbers)

Now divide that number ($32,201.43) by the monthly increased amount ($300) and you will know how long it takes to just brake even. In my case it was ten years, to reach the break even point. I decided to draw at 62. YMMV.
That's exactly how I did it. I'm terrible with math , but I thought that's how it should be. I'm smarter than I thought. Lol
 

TexasFreedom

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Robin, I too advise to take it early. You have no idea how long you'll live, you have no idea how long SS will stay solvent. It will bump up every year, so that is the carrot they hang out there. You'll be 70 or older before you cross over the break-even point.

It's like voting: vote early, vote often.
 

Maverick

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If you can afford it, take the early retirement to get locked in and if you're eager, work a job that doesn't pay more than $1200 a month while drawing SS, that will help you when you turn 65 if you decide to quit working, your SS should go up a little. once you decide to take your SS at 62 you have 1 year to decide if you want to continue with early retirement. You only get one chance in your life time to cancel drawing within your first year.
 

grayghost668

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I will turn 62 on my birthday and my husband and I are discussing when I should start drawing. Even though it's less money, I think I should start at 62 and apply most to any debts we have and add the rest to my son's Trust in case something happens to me.

My number one concern is for him to have sufficient $$$$ so my daughter won't be burdened with monetary problems.

Husband says if I wait 4 years, I get $400 extra per month. The $$$$ I will receive if I start at 62 seems like the best bet to me.

It's not money I need for food or shelter. I just want to clear up everything for my son.

Please give me your input. Thank you for indulging me. I did put this in off topic, so don't yell at me. Lol
do the math,,,if you wait in the end you don't get as much,,,,,,you only live so long
 

Brent S

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I believe that with the current debt our country is in the possibility of SS being cut down is very real. Based on that alone I feel taking it early is worth it. Of course everyone has to weigh their own factors for themselves. Does your family have several that lived into their 90’s? Do you have health risks that will likely keep you from living to a ripe old age?
no matter what you decide I wish you well in your retirement. Living long enough to make it to that point isn’t a given, but a privelidge. My advice is do something you always wanted to do, while you still have the energy and drive to!
 

Morgan101

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Either way you look at this you are betting on your future, and how long you expect to live. In my family the women live long lives. The men don't. My father died at 80; his father died in his 50's. My mother's father died at 70. My payback or break even was about 12 years. I figured I had a pretty good chance of making it to 74, so I opted for getting more later. I also had every intention of working as long as possible, so I did not want to limit my income to get Social Security.

I do not buy any of the doom and gloom theories "take it now or you will never see it." The Social Security Administration takes in billions of dollars every day. The money is there. It is the politics of administration that are suspect. There is always money for welfare. There is always money squandered on illegal aliens. There is always money for every pet project the Federal Government chooses to support. There will be money for Social Security.
 

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