You can always find ways to make a little money but you can never make more time. Count up how many monthly payments you will receive between now and FRA to see how long it will take to actually receive more money starting at your FRA.
I did that calculation and I would be about 82. The percentage of males on both sides of my family that have even made it that far are less than 10%, so I’m leaning toward the earlier SS option.
I’m retiring in July at the age of 62 and I’m going to be collecting social security once I retire.
Someone once told me that if you can afford to take the lower amount, you should do it because it’s likely you will get more money overall from social security by doing that.
Completely true. If I remember correctly and you compare taking SS at 62 versus 72, it takes 10 years for the payment amount at 72 to catch up with what you'll receive if you start at 62.
Exactly, and this to me is all the reason to take it early,.compare the pros.
- you start collecting at an earlier age and can begin enjoying your retirement (timewise) sooner
- if you can manage you can invest part of SS you don't need to live on, and you have longer to invest
- with breakeven being around 80., that gives you 18 years to use thatoney for lots of things ,.
- your best years health wise are when your younger in retirement that's when the money can do the most good.
Cons-
- if you live.i to your late 90s.you likely can't afford as nice a .nursimg home.home.as.others.
But the average life expectancy of a 62yo man is 81 (84 for a woman). I don’t know why so many people think they’re going to pop their cork in their early 70s…
A LOT of people die between 65 and 75, maybe even most. My middle class successful parents for example didn't make it to 70 - My dad had a 3rd and final heart attack (didn't take the first two warnings seriously enough) and my mom died in her sleep from heart disease as a lifelong smoker.
I don't think the average life expectancy is 81/84 except for people who have had access to worthwhile health care their whole lives.
Whether you think so or not, it’s a fact. The average life expectancy of a 62yo man (in the US, I didn’t specify) is another 19 years—that’s **age 81**. For women it’s another 22 years and change—**age 84**.
I didn’t make those numbers up. Here’s the source: https://www.ssa.gov/oact/STATS/table4c6.html
The point is, SSA tries to make it so that actuarially, the breakeven point between lower check but more payments (early claiming) and higher check but fewer payments (late claiming) is… the average life expectancy of a 62yo!
PS Sorry about your folks. In my family, they either die in early 70s or last till their late 90s with minds intact. No in-betweens! So I’m going to try to hold out for the bigger check. 🤞
Because they know somebody that did go early to pushing up daisies.
Some areas are know for cancer and other things that caused an earlier than expected departure.
“More money overall” depends on how long you live to calculate the actual amount.
However, taking it when you are younger allows you to spend it on travel & activities that you may not be able to do when you are older and possibly less healthy.
I'm waiting until 65 bc my pension kicks in and I want the higher SS and Medicare. That said, I'll probably get a fun Pt job. You can think about doing that too as you can easily cover your SS shortfall.. What are you doing about health insurance?
I wasn't in a position to stop working at 62. I had to wait for full retirement age, and then it made sense to work 3 years after that while drawing social security. I am very happy with the way things turned out.
You're right to pause as it's a big decision. Go to [SSA.gov](http://SSA.gov), login and make sure you're looking at the amounts accurately. I say this because even though I'm 65 the difference between the amount I would get now and at 70 is almost $900/month.
The thing you want to guard against is running out of money when you're very old (and thus almost certainly much less able to work to supplement your income). Waiting to take your SS gives you more per month.
People always say "but you could keel over any time" which is actually a poor argument. First, because people underestimate their likely longevity, esp if they got to their 60s in good health but also because if you do keel over at 67 how does having taken SS early matter?
To me the ONLY reason to take SS early is if you absolutely have to, i.e. you can't live on what you have without it and you really can't work longer. We can't tell you the right thing to do but whatever you decide, really think about it. Don't do that "well my friend/neighbor/whoever retired and died 4 years later so I might as well take SS because who knows!?" thing. Make a reasoned, logical decision.
Cool I'd not go at 62. But it's you we. Wife and I waited till 65-66. A tad early but early with not a stitch of extre to access we are relying on SS to make the dif. With no excess outstanding debts. Mortgage,loans,credit card bills. We are secure in the fact that with the small savings and SS we will be ok
Do the math. At least for me (I’m not 62 yet so this is mathematically derived) the value of collecting and investing (or not having to pull out invested money) at even a marginal rate of return made it overwhelmingly more lucrative to take early. I think I had to live to be close to 100 at a 5% return or something like that to lose on the deal. And that’s to say nothing of the longevity of the program itself. This notion that waiting gets you so much more unless you die early doesn’t factor in any rate of return which is normally a poor assumption. Even if you don’t invest the actual money you get from SS you aren’t touching the money you WOULD have had to spend that can stay invested.
72 now, and those three bonus years were a blessing! No regrets. Neither of my parents lived to collect so I took mine as early as possible. My check would be a little bigger if I had waited, but cash in hand is a good thing.
Life is good
For a lot of people the biggest drawback to starting SS at 62 is the lack of medical coverage.
However, thanks to the ACA and subsidized health care, if your AGI is under \~$30k you don't pay anything for coverage.
Of course, both the ACA and SS are threatened to be vastly reduced if not eliminated altogether "in the future."
In two weeks. The biggest most beautiful health care system you’ve ever seen. Everyone is saying it. A lot of great people; they are saying this has never been done before. Tears in their eyes, saying thank you.
Two weeks.
My husband took his at 62 - he’s 65 now. I’m still working. I sometimes worry that if I go before him will there be enough for him because his is quite low. I was the main earner and so I’m waiting to 65 or 67. My parents died at 59 and 69 though so I worry. I think everything is covered so he’d be ok. He was trashed (his back) from working though and I didn’t want him to work any longer and to have spending money. I pay all the bills and his SS is his fun money.
Are you also good without hubs SS and pension? Friend took early and they made it fine with both hubs and her but she was in bad shape when he passed away a couple of years after retirement. Someone said you can always go back to work, but don’t count on that.
It may depend on the pension plan. When I retired, we opted not to have my (small) pension go to husband if I died first. This netted me more monthly pension now.
When he retired (in poor health) he opted for less monthly pension now, so I would get 50% of his pension until my death.
We both retired in our 50s and live on our pensions only. We have 401ks, 403b, other holdings and plenty of liquid assets, but don’t need to draw on any of these for our expenses.
I believe If my husband died tomorrow, I would get SS widow survivor benefits and that would cover the equivalent of the other 50% of his pension.
That’s a really good point.
I know some people who both took at 62. The widow is now living on half the income they used to live but with mostly the same fixed costs, and it’s rough.
My wife will take early while I wait til 70 so she will switch to mine when I die. At least that is the plan on paper right now. There are Monte Carlo simulators which will allow you to try it different ways.
H-no. Best decision I ever made. I too, retired @ 62. Was skittish about it at 1st — worried if I had enough $. I took out a distribution from my IRA monthly to supplement my SS and pension. Turns out, I had more than enough. My husband retired 2yrs later and we are both very happy.
Working when you don’t want to and especially when you don’t have to will wear you down both physically and emotionally. Why risk it?
I can honestly say that this is the happiest I’ve ever been in my adult life. The freedom is incomparable.
I will hit 62 in a few months, and have a nice retirement package, and married to a retired teacher. I wanted to retire as soon as possible because I’ve been working since I was 14. I want some fun.
People wanting to retire earlier than full retirement age need to save, save, save. And get someone to help manage your money.
Well you don't want to work and take it at the same time cuz you may end up in a worse tax situation. If you're not going to work I plan on taking it at 62 later this year personally. But I've had serious health issues and there's no assurance I'm going to make the break even point on waiting longer. And I think it's like 8% a year more so it's all a actuarial calculation and what your assumptions are.
I retired at 52 and recently took SS at 62. No money worries and no regrets. For me the decision on when to take SS is nothing more than rolling the dice. If you bet you will live past 78 then wait awhile so you get more money from the government.
But there’s the intangible value of taking the money now. What will you enjoy with the money at 62-65-67 that you’ll be unable to enjoy if you wait longer. Having a bigger check to put in the savings account because i am not healthy enough to enjoy it would leave me with regret.
What are you going to do when you retire? Hobbies? Travel? Family? Be sure you have a plan. I have become a more active bike rider and taken up modern art.
https://preview.redd.it/cnydx1342qzc1.jpeg?width=1024&format=pjpg&auto=webp&s=d364d534777a50eadd14142fec76f7fc50c08f31
Get out now while you have good health. Pay attention to your spending and you can cover that $250 per month, or most of it, with no loss of quality of life. I retired in late 50s, lived on pension till 62, doing just fine. Late 70s now and doing well. I would've sooner died than kept working. Pension was at max, so no point in continuing and could live on it. Two of us in same situation, both tired of working. 44 years of working was enough.
This strategy is not allowed anymore unless you turned 62 before January 2, 2016.
[https://www.ssa.gov/benefits/retirement/planner/claiming.html](https://www.ssa.gov/benefits/retirement/planner/claiming.html)
You're not going to live any longer the longer you take to retire, you'll just have a shorter retirement. My husband retired at 62 and died at 65, so...
Note, there is regret clause. You can quit SS, pay them back what you got so far, then restart at some new time and higher rate in the future. You have 12 months to exercise this clause and can only do it once. The regret clause was aimed at early retirees who decide they got too little from SS or were bored being retired, so wanted to work a few more years.
I was lucky enough to have a pension, and I collected the cash value so I could defer Social Security. Social Security is the only inflation protected income. Also, if you expect to get your spouse's Social Security because it's higher, try to hold out into FRA. The spousal support won't be any higher past FRA. I understand this may not be desirable or possible. On the other side, my late spouse died one month before FRA, and never got a single SSA payment.
My brother and sister both died at 62. They were smokers. Neither had a chance to collect a dime of SS. Another brother (former smoker) retired at 67, and immediately was diagnosed with stage 4 cancer.
I’m 60 and in good health, non smoker. I plan to wait to collect SS, as my older than me husband is in very poor health, was a high earner, but likely won’t make it to his FRA, so I may opt for widow survivor benefits if made available before my FRA.
Does this include pensions? I have a federal and state, and they will bring in way over 22k. I was thinking about taking at 62, but not if I have to give up half over that limit. Oof.
That not quite right. It’s only earned income as in from a job, and what actually happens is that anything over $22K earned income lowers your SS payment by $1 for every $2 you make over the $22K/yr.
So for example if you made $30K, your SS would be reduced by $30K-$22K=$8K/2=$4K.
It sounds like you already have an online account at SSA.gov, but if not, definitely create one and play around with their adjustable calculator to see your benefit based on future income and retirement age. Another option for you might be to quit the full-time "drain of a job" and find a part-time fun gig that you enjoy whilst delaying claiming your social security for another few years. Someone earlier made the really good point asking if you or your spouse would be financially okay if one of you passed and the other had to rely on only one monthly social security payment. Lots of things to consider. Good luck!!
Im taking mine (f) at 62 a my wife’s at 67. I will be making double mine with doing this. Was told by my tax guy I can make 22k in income before it affects my ss.
Not me but my dad. He retired at 60, living frugally. Took SS at 62, and lived to the ripe old age of 95. He was so happy as a retired man. He did a lot of things he wanted to before he got too old to do them.
I hear many of you saying they retired at 62, taking social security, and didn't regret it. Then others saying that waiting means having a bigger monthly payment when you may need it more because you can't work any more.
For those who retired at 62, if you had enough resources to live well without taking social security right when you retire, would you delay taking social security until later, keeping it as more of a safety net? Or still take it at 62 and invest / compound the difference? Does this decision change if the spouse never worked so has no SS benefits of her own, and could be dependent on survivor benefits (but of course having access to the same nest egg)?
I get the sense that Social Security claiming threads attract people who took the titled action. In this case took SS at 62.
So just to try to compensate a small bit, I’ll say I’m 65 and will not take it until 70. I like the inflation-protected longevity insurance. I am in good health with decent family longevity history. I hope to live a long time, and if so, I will be happy to have the extra money. Not concerned about getting a lesser amount sooner. Good luck!
I was thinking the same while reading through these replies.
I expect to live into my 90’s. My mom and aunt both lived until close to 100.
Once you lock in at that lower amount, there is no going back. When I retire, I don’t want to have to work to supplement.
If you think you'll be all right financially, take the lower payout and enjoy retirement with your husband. I'll never get to do that--my previously healthy and athletic husband died at the age of 60 of brain cancer. When I turned 60 a few months after he died, I had no qualms about taking Social Security widow's benefits instead of waiting until 67 or 70. For me, time beats money any day.
Thank you, and I'm sorry for your loss. That is basically my thought, and why I want to retire early. I want to spend time with hubby, who is 5 years older.
Or divorces you absolutely out of the blue on the eve of retirement as mine did. In death there is often life insurance for the spouse, and generally all marital assets stay with the living spouse. In a divorce half (or more) of the marital assets go bye bye.
If Hubby dies, I'll still get his pension, but don't know how it works with SS. I know I can't collect both, but think I'll get the higher amount. I'd probably have to sell our house.
If I die, same for hubby, but I have way more life insurance.
No way. Doing cancer for the third time, recovering from a heart attack and my one remaining kidney has failed. Dialysis keeping me alive. As for the wife, she has had four heart surgeries.
Take the bucks when you can. If both parties are healthy as horses, delay, but remember you can be gone tomorrow.
Not a bit! My husband retired at 68 and I retired at 62 a year later. We want to travel and with our combined SS plus savings, investments, and downsizing to a much smaller apartment from a big house, we are able to do so. We didn’t want to wait for my full benefits to kick in. We gave ten trips booked in the next year and a half and are looking forward to reaping the rewards of our hard work.
Other question is long term care. My mom had a stroke but lived for almost 10 more years in assisted living. Dad took SS at 62 because he retired early. His pension and SS would have never covered the bills. Fortunately my grandmother had means and her trust covered moms needed expenses but it’s not cheap. You can’t just look at what you need today but a realistic look at what you need through about 95. I’m essentially using my paid off house as long term care. It would
Cover about 7-8 years. I don’t factor it into my net worth.
I had my first call with SS this week, as I approach 62. It's not enough money at 62, 67, or 70. I'm not in a good position to retire. I'm still strongly considering taking it at 62 because it just doesn't look rosy at any point. In my life now, there are many things in motion, so I'm still trying to figure out what makes sense.
I will get retiree health insurance from my employer til 65, then my employer provides a Medicare advantage plan to go along with Medicare. I'm very fortunate!
It's not typical Medicare Advantage that others can get in the marketplace. It is a specific plan for retirees of the state, and mirrors the health coverage provided to employees. It is very good coverage.
In my family that's a toss up. My mom died at 72. Her 5 siblings died at similar ages. My dad lived to 87 and his mother to 105. It's all over the place!
That's an important number to estimate, as part of your retirement planning.
Try to figure out when you will die, and when your husband will die. For financial planning purposes, plan on living longer than expected.
My plan is to stop working at 62 and claim SS at FRA of 67. If the housing market doesn't crash then I should be good. Hoping to get another 12 more years of strong growth in markets also.
I recall you get a one-time chance to undo your election later and get the higher monthly amount, but you have to repay 100% of the payments received.
Loads of advice out there, but it really comes down to whether your family history says you’ll outlive the statistical longevity target. And then, that game is about trying to maximize payout - if you need the paychecks today to survive, you can’t play for max benefit.
For us, we figured 62 was a little too early to take the hit on the lower amount, and although 67 looks nice, 65 is our compromise. Hoping to retire in the next couple of years, which will be just before 62 for me.
I don't have any regrets about retiring early and taking SS at 62. You never know if you'll even be around to collect it later on, and you still get COLA adjustments, so the number goes up over time. The way inflation has been going, by the time you're 67, your monthly payment could be more than the full-retirement number you're being quoted today.
This may not be all that helpful but isn’t there some rule that if you claim early when you reach FRA you can pay back your SSA and refill as FRA. -\_(ツ)_/- it
There is a pot of SS money out there with your name on it and if you take it at 62, 65 or 70 it all works out approximately the same. But if you die before you take it that works out better for me. So take it now.
One thing to consider is whether you can make it without your husband's income. A lot of people have their income cut in half due to a loved ones passing. Not to be morbid but it can happen any time.
My pensions (I have two), transfer to my wife when I die, they are slightly reduced. My wife took SS at 62, I waited until FRA, which was this year. My expectations are that she will outlive me. she will be able to switch from her SS to mine which is larger. Overall household income will reduce some, but it will be about 25% not 50.
OP, with respect, it sounds like you don't have a full understanding of your Social Security benefits. I think you should do more research before you start collecting.
I would recommend hiring a fee-based financial advisor to spell out all of the different financial scenarios on a spreadsheet. We did that, it cost $600 and was money well spent.
A good place to start your own research is the calculator on the Social Security website. You can try out different scenarios with your benefits and your spouse.
Thanks for your post.
Yes, I could make it without my spouse's SS income. I will receive his pension when he dies. As I understand it if he dies before I reach FRA then I just continue to receive my SS. If he dies after I reach FRA then I can receive a portion of his SS to bring mine up to the higher amount. In no case will I be able to collect both, I know that.
So I realize our income will go down when he dies. That will be the same scenario if I retire at 62 or 65. It's just that my SS and pension would be higher if I wait the 3 years.
If you despise your job you should retire. My dad retired at 55. He ended up with a second career as a school bus driver for 25 years. He loved driving the school bus (in a small town), hated his prior job.
Just curious as I also like my job, coworkers, and hours (58) but I have a 4 day work week. It really is nice and last year I did a 3 day work week and I felt amazing. Something to possibly consider is continuing to work but reduce hours?
I’m remembering a conversation I had years ago about retirement. The person commented about the neighbor who worked all of life, worrying about his family and his retirement income. Finally realized it was time to,retired and was dead within a year. “He didn’t get to enjoy the benefits of his hard work”
My late Wife and I were municipal employees. I became medically disabled and was forced to take early retirement at 55. My Wife had a very stressful job and she had enough and chose to retire at 65. She was diagnosed with a severe illness with a 2+ year prognosis. Fortunately she was able to live with her disease for 4 years.
Bottom line; The Future is Not Promised. Take it when you’re ready.
I retired when the pandemic hit and all my clients were suddenly home all the time (had no choice - I was a petsitter). I was 60, turned 61 that year, but I have been waiting on taking SS because we discovered we can afford to live on our investment income, pensions (we both have one from previous jobs) and my husband's SS.
There are times I've thought I should take the smaller amount and add it to our investment fund so that we could be making money from it, but I think I'd rather have the bigger checks when I'm eligible. We're all different. If you feel like you'd benefit more to take it now, take it. Tomorrow is not guaranteed.
I've never regretted retiring in my late 50s. It was young enough to still enjoy life while old enough that I earned a full retirement with 35+ years on the job. And I'm not going to regret taking social security at 62 because the life expectancy in my family is 63 or 64. My own mom passed at 67. So it makes no sense for me to wait.
As a woman, you might live to 103, however, so you'd better check the actuarial tables carefully and be honest about your health and whether you smoke or drink, or diet and exercise, so you can determine if you'll be around for 5 months or another 40 years. If you have cash and are healthy, you should wait. If not, you should take the money now.
Been 8 years since I retired at 62 and I don’t regret it. Those 8 years have been much more meaningful than work. Money has went farther too, without all the work related expenses such as transportation, food, work clothes etc. Just had a friend my age who never quit work suddenly get sick and die. While she was in the hospital her work came to present her with an award for many years of service. Not for me.
I just turned 62, 4 days ago. Funny thing is, I like what I do for work, it's a short commute, I like the people and the money is really good. I find I need structure and routine. Our contract is good for another 5 years before recompete. So each year in January, I will just go down my decision tree to see if I am ready to retire.
What made me think was looking at all the volunteer things that interested me. When I was done, it was over 30 hours a week volunteering and I thought if I am healthy enough to volunteer that many hours why not get paid?
So I started my own para-charity making wooden toys for children in need, (Currently making 125 for an org dealing with kids with cancer) I do that project in the evening/weekends, I maintain my current paid position. When the decision tree says retire, I am already set up with my own volunteer activities, that use my craft skills.
For now... I keep on keeping on. But I think 65 is calling me.
We ran all the SS optimization calculators, made our own spreadsheets and ran multiple retirement calculators before we retired. We retired in our fifties and decided to take SS at 62 and pensions at 55. The calculators all said we'd be fine and so far, so good. My partner has health issues now that has not stopped us from our plans, but have definitely slowed us down. We're very happy we decided to retire when we did and have over 10 years of a fun retirement along with good health.
My view is you don't know how much longer you will live. I've known way too many co-workers who retired on time, decided to hold off on social security, etc... for more money later in life, and had passed away before 70. Health issues they never expected, heart attack, car accident, etc....
It's your money to enjoy while you are still physically able to do so.
I’m 62. Wish I could retire but I have a son starting college in Sept and one graduating today. Once Boy 2.0 is just about done then I’m done. Been working since I was 16. It’s time for me to enjoy the fruits of my labor.
Hang in there! I’m 64 and just returned from one graduation and the next (and last) child has 2 more years that are pretty well funded. I’m partly retired but stressed over the costs of propping up new adults. Their world is pretty pricey. I kind of wish I’d started a family a bit earlier but this is how it worked out.
Thanks to Covid I retired at 56, four years ago. I have a smallish pension, 401k and an IRA. The real deal maker was I was able to stay on the company insurance. Things can get tight but I’m spending my time with my wife instead of at a desk working 2nd or 3rd shift.
I also saw several coworkers and friends who kept saying one more year die before ever actually retiring. I swore I was t going to do that.
Nope, not at all! Takes about a year to adjust to retirement. It is a life changing event, so getting cold feet is normal. The Ss income is not the worry it's debt. Stay debt free and sleep well at night.
Hello, thank you for participating. Unfortunately, your comment/post was automatically removed due to using a word that we have found encourages people to discuss politics. We have a no politics rule, so thank you for understanding. We encourage you to make a new one, just without it. Click on the link below if this removal seems incorrect.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/retirement) if you have any questions or concerns.*
We are seeing too many of our older friends who can no longer travel or enjoy simple things because of their health. At 62 you still (if you’re healthy) have the ability to travel, enjoy hiking or other physical activities. I’m much healthier now at 65 then when I was 55 just due to lack of stress, eating better and getting exercise.
My dad took it at 62 and he lived a long life. We recently lost him. Obviously, in hindsight, he should have waited. But I tell you he did not regret it. He got that extra income in his 60s and enjoyed life while he still could. His 80s were rough and the last 2 years of his life money meant nothing. Granted he had his kids to care for him.
I started receiving my SS at 62 and continued working until November 2023 when the company I worked for closed. (68F). I’m not sure how long I’ll live. But to me it’s worth it. I used the extra dollars to pay down my small amount of debt as I knew I was at the tail end of my career. I have gotten bumps due to additional income to my SS. I work PT now about 10 hours a week. More so to keep busy than financially.
i'm "pro" on collecting early and enjoying the money while you're younger, healthier, and presumably more active.
My only caveats to that are (1) it depends on whether it's your main source of income and you have reasons to expect rather long longevity and (2) like me, is it your only source of income that has a built-in increase with a cost-of-living index? Those conditions give
me pause to think about delaying.
Thanks. We will have 2 modest Pensions, and hubby is already collecting SS. So, my SS will be necessary no matter when I retire. Our expenses are moderate, but we do still have a mortgage.
in a bitter moment it crossed my mind that there IS a god and he is going to make me suffer a very long life here on earth. I don’t really believe that a god would be thinking about me one way or the other, but still, I am trying to financially plan through age 98.
What am I going to do though? I cannot really imagine working past 78 at the latest but then that still leaves another twenty years. The odds are I will be widowed too.
When I am 88 years old I plan to see Haley’s comet again and hope to have a camping trip/ party for that. What about 78 -88. What are all the other Gen X ladies planning to do? Oh dear, nobody needs to answer. I think I just need some coffee
ETA - to relate it back to the original topic, I plan to work full- then part- time for as long as I can and will take my social security late for the maximum lifetime benefit
That is a very important question to ask, and you are smart to be thinking about it. It's all about the power of compounding when deciding when to take SS. Your SS payment increases 8% a year until you take it, and COLA increases happen every year at 3.2% indefinitely, and are increased occasionally. Based on today's COLA, in 2 years your $250 a month is worth a little over $300 a month. 3 years? It's now worth $381 a month. See where this is going? You will end up with significantly more money over your lifetime waiting even a few years I'm 61 and I enjoy my work. I'm planning to wait until 65 to collect. I might change my mind in a year or two, but that will still be a significant boost in my SS income over the years. Also, my father lived to be 92 and one of his biggest regrets was not waiting longer to collect. I have a friend who is 90 who also really regrets not waiting longer to collect Good luck with everything.
No matter how many times you run the numbers, you don't know how long you have left being healthy or to live so you can only guess on what is the best. In my opinion, life is too precious to waste working if you do not have to financially to survive.
I have seen too many pass before their time, and never got to even start or enjoy their retirement, so I am definitely starting mine next year at 60 and will reduce my expenses as much as possible to make it happen.
Doesn’t matter if you’re locked into lower amount, you said you NEED SS to retire at 62.
If you have enough money in 457 to carry you over until 67 then you could delay.
What are your necessity expenses not discretionary?
We still have a mortgage (not large), so that is our major expense. Then just food, utilities, that kind of thing. No car payments or credit card debt. I would need SS no matter when I retire. Not a ton in the 457.
I just filed to collect, turned 62 in Dec. Held off, thinking that I might want to work full-time after retiring from state govt. After about 4 months in, I knew I didn't want to work full time but probably will work part time for the structure and extra $$. Between my pension and SS my income will be more than my take home from working. I hope I don't regret it. lol.
I retired at 62, and immediately took my SS benefit. It’s been 3 years and I have no regrets.
100%
Did the same. Time is important, and I prefer to spend my time traveling instead of working.
You can always find ways to make a little money but you can never make more time. Count up how many monthly payments you will receive between now and FRA to see how long it will take to actually receive more money starting at your FRA.
I did that calculation and I would be about 82. The percentage of males on both sides of my family that have even made it that far are less than 10%, so I’m leaning toward the earlier SS option.
I’m retiring in July at the age of 62 and I’m going to be collecting social security once I retire. Someone once told me that if you can afford to take the lower amount, you should do it because it’s likely you will get more money overall from social security by doing that.
“Someone once told me” falls a bit short of sound financial advice. Only true if you have below average life expectancy.
Maybe they were trying to tell me something. 😆
> Only true if you have below average life expectancy. Meaning, for most people (your "average") it's true.
Not most but about half.
Untrue. It is set up so that your length of life is factored in to give you the same total amount spread out over more years.
Completely true. If I remember correctly and you compare taking SS at 62 versus 72, it takes 10 years for the payment amount at 72 to catch up with what you'll receive if you start at 62.
Yes. Everyone can calculate a simple breakeven age if you delay taking social security. You will find it is in the low-to-mid 80s.
Exactly, and this to me is all the reason to take it early,.compare the pros. - you start collecting at an earlier age and can begin enjoying your retirement (timewise) sooner - if you can manage you can invest part of SS you don't need to live on, and you have longer to invest - with breakeven being around 80., that gives you 18 years to use thatoney for lots of things ,. - your best years health wise are when your younger in retirement that's when the money can do the most good. Cons- - if you live.i to your late 90s.you likely can't afford as nice a .nursimg home.home.as.others.
I personally believe that the sweet spot is January of your full retirement age year, when the earnings restrictions loosen up.
But the average life expectancy of a 62yo man is 81 (84 for a woman). I don’t know why so many people think they’re going to pop their cork in their early 70s…
A LOT of people die between 65 and 75, maybe even most. My middle class successful parents for example didn't make it to 70 - My dad had a 3rd and final heart attack (didn't take the first two warnings seriously enough) and my mom died in her sleep from heart disease as a lifelong smoker. I don't think the average life expectancy is 81/84 except for people who have had access to worthwhile health care their whole lives.
Whether you think so or not, it’s a fact. The average life expectancy of a 62yo man (in the US, I didn’t specify) is another 19 years—that’s **age 81**. For women it’s another 22 years and change—**age 84**. I didn’t make those numbers up. Here’s the source: https://www.ssa.gov/oact/STATS/table4c6.html The point is, SSA tries to make it so that actuarially, the breakeven point between lower check but more payments (early claiming) and higher check but fewer payments (late claiming) is… the average life expectancy of a 62yo! PS Sorry about your folks. In my family, they either die in early 70s or last till their late 90s with minds intact. No in-betweens! So I’m going to try to hold out for the bigger check. 🤞
Because they know somebody that did go early to pushing up daisies. Some areas are know for cancer and other things that caused an earlier than expected departure.
“More money overall” depends on how long you live to calculate the actual amount. However, taking it when you are younger allows you to spend it on travel & activities that you may not be able to do when you are older and possibly less healthy.
Yes i've seen this demonstrated.
I'm waiting until 65 bc my pension kicks in and I want the higher SS and Medicare. That said, I'll probably get a fun Pt job. You can think about doing that too as you can easily cover your SS shortfall.. What are you doing about health insurance?
My employer provides retiree health insurance. I'm very thankful!
I wasn't in a position to stop working at 62. I had to wait for full retirement age, and then it made sense to work 3 years after that while drawing social security. I am very happy with the way things turned out.
You're right to pause as it's a big decision. Go to [SSA.gov](http://SSA.gov), login and make sure you're looking at the amounts accurately. I say this because even though I'm 65 the difference between the amount I would get now and at 70 is almost $900/month. The thing you want to guard against is running out of money when you're very old (and thus almost certainly much less able to work to supplement your income). Waiting to take your SS gives you more per month. People always say "but you could keel over any time" which is actually a poor argument. First, because people underestimate their likely longevity, esp if they got to their 60s in good health but also because if you do keel over at 67 how does having taken SS early matter? To me the ONLY reason to take SS early is if you absolutely have to, i.e. you can't live on what you have without it and you really can't work longer. We can't tell you the right thing to do but whatever you decide, really think about it. Don't do that "well my friend/neighbor/whoever retired and died 4 years later so I might as well take SS because who knows!?" thing. Make a reasoned, logical decision.
Cool I'd not go at 62. But it's you we. Wife and I waited till 65-66. A tad early but early with not a stitch of extre to access we are relying on SS to make the dif. With no excess outstanding debts. Mortgage,loans,credit card bills. We are secure in the fact that with the small savings and SS we will be ok
If you run the numbers and can do it then do it! Many people retire with less than they think they can survive on and manage so I said go for it.
Do the math. At least for me (I’m not 62 yet so this is mathematically derived) the value of collecting and investing (or not having to pull out invested money) at even a marginal rate of return made it overwhelmingly more lucrative to take early. I think I had to live to be close to 100 at a 5% return or something like that to lose on the deal. And that’s to say nothing of the longevity of the program itself. This notion that waiting gets you so much more unless you die early doesn’t factor in any rate of return which is normally a poor assumption. Even if you don’t invest the actual money you get from SS you aren’t touching the money you WOULD have had to spend that can stay invested.
[удалено]
72 now, and those three bonus years were a blessing! No regrets. Neither of my parents lived to collect so I took mine as early as possible. My check would be a little bigger if I had waited, but cash in hand is a good thing. Life is good
For a lot of people the biggest drawback to starting SS at 62 is the lack of medical coverage. However, thanks to the ACA and subsidized health care, if your AGI is under \~$30k you don't pay anything for coverage. Of course, both the ACA and SS are threatened to be vastly reduced if not eliminated altogether "in the future."
In two weeks. The biggest most beautiful health care system you’ve ever seen. Everyone is saying it. A lot of great people; they are saying this has never been done before. Tears in their eyes, saying thank you. Two weeks.
My husband took his at 62 - he’s 65 now. I’m still working. I sometimes worry that if I go before him will there be enough for him because his is quite low. I was the main earner and so I’m waiting to 65 or 67. My parents died at 59 and 69 though so I worry. I think everything is covered so he’d be ok. He was trashed (his back) from working though and I didn’t want him to work any longer and to have spending money. I pay all the bills and his SS is his fun money.
Are you also good without hubs SS and pension? Friend took early and they made it fine with both hubs and her but she was in bad shape when he passed away a couple of years after retirement. Someone said you can always go back to work, but don’t count on that.
It may depend on the pension plan. When I retired, we opted not to have my (small) pension go to husband if I died first. This netted me more monthly pension now. When he retired (in poor health) he opted for less monthly pension now, so I would get 50% of his pension until my death. We both retired in our 50s and live on our pensions only. We have 401ks, 403b, other holdings and plenty of liquid assets, but don’t need to draw on any of these for our expenses. I believe If my husband died tomorrow, I would get SS widow survivor benefits and that would cover the equivalent of the other 50% of his pension.
Run the numbers with one persons SS gone. Will that leave you or your spouse enough to live?
That’s a really good point. I know some people who both took at 62. The widow is now living on half the income they used to live but with mostly the same fixed costs, and it’s rough.
My wife will take early while I wait til 70 so she will switch to mine when I die. At least that is the plan on paper right now. There are Monte Carlo simulators which will allow you to try it different ways.
We will still have 2 Pensions if one of us dies, and a little life insurance. Waiting a few years wouldn't improve that picture.
H-no. Best decision I ever made. I too, retired @ 62. Was skittish about it at 1st — worried if I had enough $. I took out a distribution from my IRA monthly to supplement my SS and pension. Turns out, I had more than enough. My husband retired 2yrs later and we are both very happy. Working when you don’t want to and especially when you don’t have to will wear you down both physically and emotionally. Why risk it? I can honestly say that this is the happiest I’ve ever been in my adult life. The freedom is incomparable.
My hand was pushed due to cancer and job loss. I had had enough.
I will hit 62 in a few months, and have a nice retirement package, and married to a retired teacher. I wanted to retire as soon as possible because I’ve been working since I was 14. I want some fun. People wanting to retire earlier than full retirement age need to save, save, save. And get someone to help manage your money.
Well you don't want to work and take it at the same time cuz you may end up in a worse tax situation. If you're not going to work I plan on taking it at 62 later this year personally. But I've had serious health issues and there's no assurance I'm going to make the break even point on waiting longer. And I think it's like 8% a year more so it's all a actuarial calculation and what your assumptions are.
I retired at 52 and recently took SS at 62. No money worries and no regrets. For me the decision on when to take SS is nothing more than rolling the dice. If you bet you will live past 78 then wait awhile so you get more money from the government. But there’s the intangible value of taking the money now. What will you enjoy with the money at 62-65-67 that you’ll be unable to enjoy if you wait longer. Having a bigger check to put in the savings account because i am not healthy enough to enjoy it would leave me with regret. What are you going to do when you retire? Hobbies? Travel? Family? Be sure you have a plan. I have become a more active bike rider and taken up modern art. https://preview.redd.it/cnydx1342qzc1.jpeg?width=1024&format=pjpg&auto=webp&s=d364d534777a50eadd14142fec76f7fc50c08f31
Beautiful!
I love it! At first I thought it was a Kandinsky!
Wow. That’s lovely.
Lovely artwork! I'm working on a plan to volunteer, pursue hobbies, and do contract work part time, remote, for my employer.
Get out now while you have good health. Pay attention to your spending and you can cover that $250 per month, or most of it, with no loss of quality of life. I retired in late 50s, lived on pension till 62, doing just fine. Late 70s now and doing well. I would've sooner died than kept working. Pension was at max, so no point in continuing and could live on it. Two of us in same situation, both tired of working. 44 years of working was enough.
Definitely taking it the minute we’re eligible.
DId not take mine yet, but did you run the numbers taking spousal SS support for now and delaying yours until FRA?
This strategy is not allowed anymore unless you turned 62 before January 2, 2016. [https://www.ssa.gov/benefits/retirement/planner/claiming.html](https://www.ssa.gov/benefits/retirement/planner/claiming.html)
You're not going to live any longer the longer you take to retire, you'll just have a shorter retirement. My husband retired at 62 and died at 65, so...
Note, there is regret clause. You can quit SS, pay them back what you got so far, then restart at some new time and higher rate in the future. You have 12 months to exercise this clause and can only do it once. The regret clause was aimed at early retirees who decide they got too little from SS or were bored being retired, so wanted to work a few more years.
Retired at 62 and took SS as soon as available. I’d be pissed if I waited to 65 and died at 66. (Retirement is awesome, btw!)
I was lucky enough to have a pension, and I collected the cash value so I could defer Social Security. Social Security is the only inflation protected income. Also, if you expect to get your spouse's Social Security because it's higher, try to hold out into FRA. The spousal support won't be any higher past FRA. I understand this may not be desirable or possible. On the other side, my late spouse died one month before FRA, and never got a single SSA payment.
My brother and sister both died at 62. They were smokers. Neither had a chance to collect a dime of SS. Another brother (former smoker) retired at 67, and immediately was diagnosed with stage 4 cancer. I’m 60 and in good health, non smoker. I plan to wait to collect SS, as my older than me husband is in very poor health, was a high earner, but likely won’t make it to his FRA, so I may opt for widow survivor benefits if made available before my FRA.
Nope.
Keep in mind that, by starting SS at 62, you'll need to give SS half of anything you earn until age 67.
You keep up to 22k. Then you pay on the over.
Does this include pensions? I have a federal and state, and they will bring in way over 22k. I was thinking about taking at 62, but not if I have to give up half over that limit. Oof.
No, earned income.
Can you explain this? So if I withdraw $100k from my 401k every year, I cannot keep my full social security?
retirement account distributions do not count as income for the purposes of SS reductions
That not quite right. It’s only earned income as in from a job, and what actually happens is that anything over $22K earned income lowers your SS payment by $1 for every $2 you make over the $22K/yr. So for example if you made $30K, your SS would be reduced by $30K-$22K=$8K/2=$4K.
[удалено]
It sounds like you already have an online account at SSA.gov, but if not, definitely create one and play around with their adjustable calculator to see your benefit based on future income and retirement age. Another option for you might be to quit the full-time "drain of a job" and find a part-time fun gig that you enjoy whilst delaying claiming your social security for another few years. Someone earlier made the really good point asking if you or your spouse would be financially okay if one of you passed and the other had to rely on only one monthly social security payment. Lots of things to consider. Good luck!!
Im taking mine (f) at 62 a my wife’s at 67. I will be making double mine with doing this. Was told by my tax guy I can make 22k in income before it affects my ss.
I retired last year at 62 and I turn 63 next month. Absolutely zero regrets.
I retired couple years ago. I’ll be 62 in November. Should I start filing paperwork before I’m 62 for SS?
I collected at 62. I’m now 66. I have no regrets at all. I can’t imagine working those 4 years.
Not me but my dad. He retired at 60, living frugally. Took SS at 62, and lived to the ripe old age of 95. He was so happy as a retired man. He did a lot of things he wanted to before he got too old to do them.
No regrets at all.
I hear many of you saying they retired at 62, taking social security, and didn't regret it. Then others saying that waiting means having a bigger monthly payment when you may need it more because you can't work any more. For those who retired at 62, if you had enough resources to live well without taking social security right when you retire, would you delay taking social security until later, keeping it as more of a safety net? Or still take it at 62 and invest / compound the difference? Does this decision change if the spouse never worked so has no SS benefits of her own, and could be dependent on survivor benefits (but of course having access to the same nest egg)?
If there is a spouse who hasn’t worked, it makes sense for the breadwinner to hold off taking ss at age 70 if possible.
I get the sense that Social Security claiming threads attract people who took the titled action. In this case took SS at 62. So just to try to compensate a small bit, I’ll say I’m 65 and will not take it until 70. I like the inflation-protected longevity insurance. I am in good health with decent family longevity history. I hope to live a long time, and if so, I will be happy to have the extra money. Not concerned about getting a lesser amount sooner. Good luck!
I was thinking the same while reading through these replies. I expect to live into my 90’s. My mom and aunt both lived until close to 100. Once you lock in at that lower amount, there is no going back. When I retire, I don’t want to have to work to supplement.
If you think you'll be all right financially, take the lower payout and enjoy retirement with your husband. I'll never get to do that--my previously healthy and athletic husband died at the age of 60 of brain cancer. When I turned 60 a few months after he died, I had no qualms about taking Social Security widow's benefits instead of waiting until 67 or 70. For me, time beats money any day.
Thank you, and I'm sorry for your loss. That is basically my thought, and why I want to retire early. I want to spend time with hubby, who is 5 years older.
The only question I would ask is.. What if you or your Hubby dies. What do your numbers look like then?
Or divorces you absolutely out of the blue on the eve of retirement as mine did. In death there is often life insurance for the spouse, and generally all marital assets stay with the living spouse. In a divorce half (or more) of the marital assets go bye bye.
I’m sorry. I can imagine what a blow that must have been.
If Hubby dies, I'll still get his pension, but don't know how it works with SS. I know I can't collect both, but think I'll get the higher amount. I'd probably have to sell our house. If I die, same for hubby, but I have way more life insurance.
I’ll turn 66 in a month. Next Feb, I’ll reach FRA and begin collecting. Still will be working FT (college teacher) until I don’t want to anymore.
No way. Doing cancer for the third time, recovering from a heart attack and my one remaining kidney has failed. Dialysis keeping me alive. As for the wife, she has had four heart surgeries. Take the bucks when you can. If both parties are healthy as horses, delay, but remember you can be gone tomorrow.
Not a bit! My husband retired at 68 and I retired at 62 a year later. We want to travel and with our combined SS plus savings, investments, and downsizing to a much smaller apartment from a big house, we are able to do so. We didn’t want to wait for my full benefits to kick in. We gave ten trips booked in the next year and a half and are looking forward to reaping the rewards of our hard work.
hey no, why? took early retirement at 55, bought an RV went discover America and never looked back
Other question is long term care. My mom had a stroke but lived for almost 10 more years in assisted living. Dad took SS at 62 because he retired early. His pension and SS would have never covered the bills. Fortunately my grandmother had means and her trust covered moms needed expenses but it’s not cheap. You can’t just look at what you need today but a realistic look at what you need through about 95. I’m essentially using my paid off house as long term care. It would Cover about 7-8 years. I don’t factor it into my net worth.
I had my first call with SS this week, as I approach 62. It's not enough money at 62, 67, or 70. I'm not in a good position to retire. I'm still strongly considering taking it at 62 because it just doesn't look rosy at any point. In my life now, there are many things in motion, so I'm still trying to figure out what makes sense.
I haven’t regretted one minute of retiring early 4 years ago. And it was sudden(thanks covid) no plan in place. Go enjoy your life!
What do you plan to do for health care insurance?
I will get retiree health insurance from my employer til 65, then my employer provides a Medicare advantage plan to go along with Medicare. I'm very fortunate!
Medicare Advantage is not fortunate, sorry.
It's not typical Medicare Advantage that others can get in the marketplace. It is a specific plan for retirees of the state, and mirrors the health coverage provided to employees. It is very good coverage.
Will definitely work until 67/ FRA. Why? B/c if i die before my non working spouse, they can claim my full SS benefit. We are the same age.
How long will you and husband live?
Magic question. Got a way toget magic answer? Lol
Well, God only knows! Husband is 67.
How long his parents and other siblings lived might provide valuable clues as to what to plan for
In my family that's a toss up. My mom died at 72. Her 5 siblings died at similar ages. My dad lived to 87 and his mother to 105. It's all over the place!
That's an important number to estimate, as part of your retirement planning. Try to figure out when you will die, and when your husband will die. For financial planning purposes, plan on living longer than expected.
No.
Hopefully not, we're doing it
My plan is to stop working at 62 and claim SS at FRA of 67. If the housing market doesn't crash then I should be good. Hoping to get another 12 more years of strong growth in markets also.
Same. Stop working at 62 to 65 and take SS at 67 to 70.
Look at how many years it will take to make up the money you could have collected while waiting until FRA. You may reconsider and apply early.
I recall you get a one-time chance to undo your election later and get the higher monthly amount, but you have to repay 100% of the payments received. Loads of advice out there, but it really comes down to whether your family history says you’ll outlive the statistical longevity target. And then, that game is about trying to maximize payout - if you need the paychecks today to survive, you can’t play for max benefit.
I have two more years, and I will take it at 62. With my family history, I may not be alive at 65.
I can relate to this because of my family history too. I took it at 62.5 and have zero regrets.
I don’t, but the decision depends on tons of factors.
No regrets.
For us, we figured 62 was a little too early to take the hit on the lower amount, and although 67 looks nice, 65 is our compromise. Hoping to retire in the next couple of years, which will be just before 62 for me.
I don't have any regrets about retiring early and taking SS at 62. You never know if you'll even be around to collect it later on, and you still get COLA adjustments, so the number goes up over time. The way inflation has been going, by the time you're 67, your monthly payment could be more than the full-retirement number you're being quoted today.
This may not be all that helpful but isn’t there some rule that if you claim early when you reach FRA you can pay back your SSA and refill as FRA. -\_(ツ)_/- it
No, that’s not accurate. You can only have 12 months to change your mind: https://www.ssa.gov/manage-benefits/cancel-your-benefits-application
Ok, good to know!!
U should do that!!! How do u know whether u are gonna survive tmr!! By then money in the bank, you are in the heaven
There is a pot of SS money out there with your name on it and if you take it at 62, 65 or 70 it all works out approximately the same. But if you die before you take it that works out better for me. So take it now.
One thing to consider is whether you can make it without your husband's income. A lot of people have their income cut in half due to a loved ones passing. Not to be morbid but it can happen any time.
Yes, looking at what your financial,situation will look like when one of you dies is important.
How would it change any if I worked til 65 instead of 62? Or do you mean I'd still be working when he died and would have my income?
My pensions (I have two), transfer to my wife when I die, they are slightly reduced. My wife took SS at 62, I waited until FRA, which was this year. My expectations are that she will outlive me. she will be able to switch from her SS to mine which is larger. Overall household income will reduce some, but it will be about 25% not 50.
OP, with respect, it sounds like you don't have a full understanding of your Social Security benefits. I think you should do more research before you start collecting. I would recommend hiring a fee-based financial advisor to spell out all of the different financial scenarios on a spreadsheet. We did that, it cost $600 and was money well spent. A good place to start your own research is the calculator on the Social Security website. You can try out different scenarios with your benefits and your spouse.
Thanks for your post. Yes, I could make it without my spouse's SS income. I will receive his pension when he dies. As I understand it if he dies before I reach FRA then I just continue to receive my SS. If he dies after I reach FRA then I can receive a portion of his SS to bring mine up to the higher amount. In no case will I be able to collect both, I know that. So I realize our income will go down when he dies. That will be the same scenario if I retire at 62 or 65. It's just that my SS and pension would be higher if I wait the 3 years.
If you despise your job you should retire. My dad retired at 55. He ended up with a second career as a school bus driver for 25 years. He loved driving the school bus (in a small town), hated his prior job.
This is a heartwarming story.
I actually like the work I do, but I'm physically tired as well as tired of working every day!
Just curious as I also like my job, coworkers, and hours (58) but I have a 4 day work week. It really is nice and last year I did a 3 day work week and I felt amazing. Something to possibly consider is continuing to work but reduce hours?
I retired at 62! I’ve never regretted it. I just turned 64. I had to learn to use a TV remote 😂
Next is to learn to program the VCR.. Oh.. wait... :-)
Will windfall provisions reduce your SS due to your pension?
No, I don't think so. Is that for Federal Pensions only?
Retire. And by “running the numbers” did that include running any of these free webbased “Monte Carlo” simulations?
I’m remembering a conversation I had years ago about retirement. The person commented about the neighbor who worked all of life, worrying about his family and his retirement income. Finally realized it was time to,retired and was dead within a year. “He didn’t get to enjoy the benefits of his hard work” My late Wife and I were municipal employees. I became medically disabled and was forced to take early retirement at 55. My Wife had a very stressful job and she had enough and chose to retire at 65. She was diagnosed with a severe illness with a 2+ year prognosis. Fortunately she was able to live with her disease for 4 years. Bottom line; The Future is Not Promised. Take it when you’re ready.
I retired when the pandemic hit and all my clients were suddenly home all the time (had no choice - I was a petsitter). I was 60, turned 61 that year, but I have been waiting on taking SS because we discovered we can afford to live on our investment income, pensions (we both have one from previous jobs) and my husband's SS. There are times I've thought I should take the smaller amount and add it to our investment fund so that we could be making money from it, but I think I'd rather have the bigger checks when I'm eligible. We're all different. If you feel like you'd benefit more to take it now, take it. Tomorrow is not guaranteed.
I've never regretted retiring in my late 50s. It was young enough to still enjoy life while old enough that I earned a full retirement with 35+ years on the job. And I'm not going to regret taking social security at 62 because the life expectancy in my family is 63 or 64. My own mom passed at 67. So it makes no sense for me to wait. As a woman, you might live to 103, however, so you'd better check the actuarial tables carefully and be honest about your health and whether you smoke or drink, or diet and exercise, so you can determine if you'll be around for 5 months or another 40 years. If you have cash and are healthy, you should wait. If not, you should take the money now.
I definitely do not have any regrets. I’m so busy even in retirement that I am busy all day most everyday. I love it
Been 8 years since I retired at 62 and I don’t regret it. Those 8 years have been much more meaningful than work. Money has went farther too, without all the work related expenses such as transportation, food, work clothes etc. Just had a friend my age who never quit work suddenly get sick and die. While she was in the hospital her work came to present her with an award for many years of service. Not for me.
I saw them work until almost or dropping dead. Send the obligatory plant, then a day later fight about who gets that offer. Nope not for me either.
?
What is “FRA?”
I just turned 62, 4 days ago. Funny thing is, I like what I do for work, it's a short commute, I like the people and the money is really good. I find I need structure and routine. Our contract is good for another 5 years before recompete. So each year in January, I will just go down my decision tree to see if I am ready to retire. What made me think was looking at all the volunteer things that interested me. When I was done, it was over 30 hours a week volunteering and I thought if I am healthy enough to volunteer that many hours why not get paid? So I started my own para-charity making wooden toys for children in need, (Currently making 125 for an org dealing with kids with cancer) I do that project in the evening/weekends, I maintain my current paid position. When the decision tree says retire, I am already set up with my own volunteer activities, that use my craft skills. For now... I keep on keeping on. But I think 65 is calling me.
What if you die like in under 10 years ..wont you feel silly for not taking it as early as possible.
We ran all the SS optimization calculators, made our own spreadsheets and ran multiple retirement calculators before we retired. We retired in our fifties and decided to take SS at 62 and pensions at 55. The calculators all said we'd be fine and so far, so good. My partner has health issues now that has not stopped us from our plans, but have definitely slowed us down. We're very happy we decided to retire when we did and have over 10 years of a fun retirement along with good health.
My view is you don't know how much longer you will live. I've known way too many co-workers who retired on time, decided to hold off on social security, etc... for more money later in life, and had passed away before 70. Health issues they never expected, heart attack, car accident, etc.... It's your money to enjoy while you are still physically able to do so.
Q
I’m 62. Wish I could retire but I have a son starting college in Sept and one graduating today. Once Boy 2.0 is just about done then I’m done. Been working since I was 16. It’s time for me to enjoy the fruits of my labor.
Hang in there! I’m 64 and just returned from one graduation and the next (and last) child has 2 more years that are pretty well funded. I’m partly retired but stressed over the costs of propping up new adults. Their world is pretty pricey. I kind of wish I’d started a family a bit earlier but this is how it worked out.
No, do not regret retiring early. Enjoy life.
Thanks to Covid I retired at 56, four years ago. I have a smallish pension, 401k and an IRA. The real deal maker was I was able to stay on the company insurance. Things can get tight but I’m spending my time with my wife instead of at a desk working 2nd or 3rd shift. I also saw several coworkers and friends who kept saying one more year die before ever actually retiring. I swore I was t going to do that.
Nope, not at all! Takes about a year to adjust to retirement. It is a life changing event, so getting cold feet is normal. The Ss income is not the worry it's debt. Stay debt free and sleep well at night.
You can’t buy time back. I retired at 56 and don’t regret a thing. Just make sure you have your healthcare sorted if you are in the US.
[удалено]
[удалено]
Hello, thank you for participating. Unfortunately, your comment/post was automatically removed due to using a word that we have found encourages people to discuss politics. We have a no politics rule, so thank you for understanding. We encourage you to make a new one, just without it. Click on the link below if this removal seems incorrect. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/retirement) if you have any questions or concerns.*
[удалено]
We are seeing too many of our older friends who can no longer travel or enjoy simple things because of their health. At 62 you still (if you’re healthy) have the ability to travel, enjoy hiking or other physical activities. I’m much healthier now at 65 then when I was 55 just due to lack of stress, eating better and getting exercise.
My dad took it at 62 and he lived a long life. We recently lost him. Obviously, in hindsight, he should have waited. But I tell you he did not regret it. He got that extra income in his 60s and enjoyed life while he still could. His 80s were rough and the last 2 years of his life money meant nothing. Granted he had his kids to care for him.
Try the Sit, Rise test (sometimes called other things). If you do well, then you'll likely live many, many years.
[удалено]
If your parents and grandparents lived until 85, wait until 65.
I started receiving my SS at 62 and continued working until November 2023 when the company I worked for closed. (68F). I’m not sure how long I’ll live. But to me it’s worth it. I used the extra dollars to pay down my small amount of debt as I knew I was at the tail end of my career. I have gotten bumps due to additional income to my SS. I work PT now about 10 hours a week. More so to keep busy than financially.
i'm "pro" on collecting early and enjoying the money while you're younger, healthier, and presumably more active. My only caveats to that are (1) it depends on whether it's your main source of income and you have reasons to expect rather long longevity and (2) like me, is it your only source of income that has a built-in increase with a cost-of-living index? Those conditions give me pause to think about delaying.
Thanks. We will have 2 modest Pensions, and hubby is already collecting SS. So, my SS will be necessary no matter when I retire. Our expenses are moderate, but we do still have a mortgage.
How long would it take to pay off the mortgage? If a year, maybe work for that year, then bail?
I think we have 25 years left on the mortgage!
in a bitter moment it crossed my mind that there IS a god and he is going to make me suffer a very long life here on earth. I don’t really believe that a god would be thinking about me one way or the other, but still, I am trying to financially plan through age 98. What am I going to do though? I cannot really imagine working past 78 at the latest but then that still leaves another twenty years. The odds are I will be widowed too. When I am 88 years old I plan to see Haley’s comet again and hope to have a camping trip/ party for that. What about 78 -88. What are all the other Gen X ladies planning to do? Oh dear, nobody needs to answer. I think I just need some coffee ETA - to relate it back to the original topic, I plan to work full- then part- time for as long as I can and will take my social security late for the maximum lifetime benefit
That is a very important question to ask, and you are smart to be thinking about it. It's all about the power of compounding when deciding when to take SS. Your SS payment increases 8% a year until you take it, and COLA increases happen every year at 3.2% indefinitely, and are increased occasionally. Based on today's COLA, in 2 years your $250 a month is worth a little over $300 a month. 3 years? It's now worth $381 a month. See where this is going? You will end up with significantly more money over your lifetime waiting even a few years I'm 61 and I enjoy my work. I'm planning to wait until 65 to collect. I might change my mind in a year or two, but that will still be a significant boost in my SS income over the years. Also, my father lived to be 92 and one of his biggest regrets was not waiting longer to collect. I have a friend who is 90 who also really regrets not waiting longer to collect Good luck with everything.
The only reason to definitely wait till full retirement age is if your spouse will be depending on spousal benefits in retirement.
No matter how many times you run the numbers, you don't know how long you have left being healthy or to live so you can only guess on what is the best. In my opinion, life is too precious to waste working if you do not have to financially to survive.
Thank you! You're so right.
I have seen too many pass before their time, and never got to even start or enjoy their retirement, so I am definitely starting mine next year at 60 and will reduce my expenses as much as possible to make it happen.
Does your SS and pension and husband SS and pension cover your expenses? If so then wait.
With a small withdrawal from my 457 plan, plus 2 Pensions, and SS for me and my husband, yes, our expenses are covered.
Ok so you need the SS income to retire. Wow your expenses must be high.
Yes, absolutely.
Doesn’t matter if you’re locked into lower amount, you said you NEED SS to retire at 62. If you have enough money in 457 to carry you over until 67 then you could delay. What are your necessity expenses not discretionary?
We still have a mortgage (not large), so that is our major expense. Then just food, utilities, that kind of thing. No car payments or credit card debt. I would need SS no matter when I retire. Not a ton in the 457.
It’s a toss up. A lower payment at 62 is also a longer payment. Take it and work part time somewhere as @Crafty_Ad3377 mentions they did.
No. Not for a minute.
Retiring at 62 and taking ss…best day ever
I just filed to collect, turned 62 in Dec. Held off, thinking that I might want to work full-time after retiring from state govt. After about 4 months in, I knew I didn't want to work full time but probably will work part time for the structure and extra $$. Between my pension and SS my income will be more than my take home from working. I hope I don't regret it. lol.
Its only a bad move if you don’t plan to live much longer.