social security question at 62

[Villageshooter]

I turn 62 in June how much can I make before it affects my Social Security monthly payment starting in June and is that amount prorated for half the year, Will investment income be counted also or is it just W-2 income ? I now make approximately $20,000 on my part time job, just wondering how much it will affect my social security payout that I was thinking about taking at 62

[asianthree]

make an appointment..there are different ways to make it work

[Cajulian]

Last year, I think it was 14,600. This year it is a little higher.

For every 2 dollars over the annual cap you give 1 back.

Only earned income counts (like your part time job earnings). Interest income is not earned income.

Once you reach your full retirement age (that would be either 66 or 67 for you), you can have unlimited earned income from a job, no cap.

[Xavier]

This year you can earn up to $15,120 without changing the amount that you get from Social Security.

Xavier

[l2ridehd]

The very best investment you can make is to wait longer before taking SS. 8% a year increase in payout. So as long as your working even part time, wait. If possible wait until your 66. And for the very best return wait until your 70 before starting SS. Remember your spouse is eligible for 50% of your SS. So by waiting until your 70, her share increases. By starting at 62 you get about 68% of the amount your entitled to receive. And when your spouse is eligible she gets half of that or 34%. By waiting until 66 you get 100% and she gets 50%. By waiting until your 70, you get 132% and she receives 66%.

Another good plan if she is eligible on her own, is for her to use your SS at the 50% rate and wait until 70 until she applies. This can also work in reverse. Have her apply, you receive 50% of hers and wait until 70 to apply on your own.

Really look at all those options and use a plan to maximize the SS payout.

[dewilson58]

It's good to wait, IF you are going to live. If not, take it now.

[yabbadu]

Why not contact the people who run the Social Security. ?

[Bogie Shooter]

Why not contact the people who run the Social Security. ?

Boy, that makes sense......................................

[tpop1]

The very best investment you can make is to wait longer before taking SS.

Here is another very different opinion.

I decided long ago that I would start taking my SSI as early as I could. I am a Bell System retiree and once heard that the average Bell System retiree collected only 17 monthly pension checks before they died.

Made my decision easy.

Calcultions that I did and studies I found,that depending on taxes, inflation, and investment returns, the range of break-even ages goes from 81 to 86 1/2.

It was a bet I hope I lose!!!!


What's Your Social Security Break-Even Age? - The Best Life (usnews.com) (http://money.usnews.com/money/blogs/the-best-life/2013/02/13/whats-your-social-security-break-even-age)

[dewilson58]

:agree::agree::agree:Here is another very different opinion.

I decided long ago that I would start taking my SSI as early as I could. I am a Bell System retiree and once heard that the average Bell System retiree collected only 17 monthly pension checks before they died.

Made my decision easy.

Calcultions that I did and studies I found,that depending on taxes, inflation, and investment returns, the range of break-even ages goes from 81 to 86 1/2.

It was a bet I hope I lose!!!!


What's Your Social Security Break-Even Age? - The Best Life (usnews.com) (http://money.usnews.com/money/blogs/the-best-life/2013/02/13/whats-your-social-security-break-even-age)

[JourneyOfLife]

The very best investment you can make is to wait longer before taking SS. 8% a year increase in payout. So as long as your working even part time, wait. If possible wait until your 66. And for the very best return wait until your 70 before starting SS. Remember your spouse is eligible for 50% of your SS. So by waiting until your 70, her share increases. By starting at 62 you get about 68% of the amount your entitled to receive. And when your spouse is eligible she gets half of that or 34%. By waiting until 66 you get 100% and she gets 50%. By waiting until your 70, you get 132% and she receives 66%.

Another good plan if she is eligible on her own, is for her to use your SS at the 50% rate and wait until 70 until she applies. This can also work in reverse. Have her apply, you receive 50% of hers and wait until 70 to apply on your own.

Really look at all those options and use a plan to maximize the SS payout.

Good comments.


Remember with a married couple, once one of the spouses dies, the survivor's household income will be reduced because one SS payment stops.

The surviving spouse gets to retain the higher SS payment. Waiting till an older age can reduce the potential financial impact.

Most people do not bother to understand all of the issues. Instead they think about it simply and wing it.


Of course, SS has certain special rules regarding people with certain types of public pensions (e.g. public school teachers). So people should get the facts from The Social Security Administration too, just to make sure they understand their situation with regard to SS and their options.

[obxgal]

My X died at 61 1/2 in a car accident and didn't get a chance to collect anything.

Decided to take mine a 62 ... never know when your #'s up.

[BS Beef]

Why not contact the people who run the Social Security. ?

Yeah cause they're doing a bang up job with it :oops:

[er9027]

I am a BELL retiree also....Look at your family history...Mine die earlier...why would you wait till 66,,,Most of mine are gone... SIMPLE decision ,,,,look at your history..Good Luck! Remember the first 100 years will be the worst.

[rjm1cc]

Why not contact the people who run the Social Security. ?
That is true of a lot of questions but I think it is a very good idea to read the web site and ask questions here. Then confirm with a live SS employee.
I went to the SS office and the person said they were familiar with what I wanted to do (file and suspend). The person seemed very competent. But in the end I spent over 6 months getting my payments to be made correctly and about a year latter got a letter from SS saying they under paid me. Point is best to learn as much as you can before going to SS office.

[Tweety Bird]

Go to the SS office in Leesburg. Make an appointment. They are very helpful!!!

[ureout]

The very best investment you can make is to wait longer before taking SS. 8% a year increase in payout. So as long as your working even part time, wait. If possible wait until your 66. And for the very best return wait until your 70 before starting SS. Remember your spouse is eligible for 50% of your SS. So by waiting until your 70, her share increases. By starting at 62 you get about 68% of the amount your entitled to receive. And when your spouse is eligible she gets half of that or 34%. By waiting until 66 you get 100% and she gets 50%. By waiting until your 70, you get 132% and she receives 66%.

Another good plan if she is eligible on her own, is for her to use your SS at the 50% rate and wait until 70 until she applies. This can also work in reverse. Have her apply, you receive 50% of hers and wait until 70 to apply on your own.

Really look at all those options and use a plan to maximize the SS payout.

MAXIXUM PAYOUT? wow if everyone used your plan SS would never run out.....the majoritry of people will pass away before even breaking even with your plan. plus the fact that waiting until 70 means 8 more years of figuring out how to supplement your income without SS.....sit down figure it out then take the $$$$$ and run.

[dewilson58]

MAXIXUM PAYOUT? wow if everyone used your plan SS would never run out.....the majoritry of people will pass away before even breaking even with your plan. plus the fact that waiting until 70 means 8 more years of figuring out how to supplement your income without SS.....sit down figure it out then take the $$$$$ and run.


:agree::agree::agree:

[KayakerNC]

MAXIXUM PAYOUT? wow if everyone used your plan SS would never run out.....the majoritry of people will pass away before even breaking even with your plan. plus the fact that waiting until 70 means 8 more years of figuring out how to supplement your income without SS.....sit down figure it out then take the $$$$$ and run.

You have an interesting concept of math.
Life Expectancy at age 62 for a man is age 81.4 (19.4 years), for a woman age 84.3 (22.3 years). Half will make it that far, half won't. For the AVERAGE person, the choice to start receiving retirement benefits early will ultimately mean receiving a smaller total lifetime benefit.

[784caroline]

Dont Fall Into These Social Security Traps | Bankrate.com (http://www.bankrate.com/finance/retirement/social-security-traps-7.aspx)

[Average Guy]

The Social Security Administration uses actuary science to determine the amount of the reduction for collecting benefits at an earlier age. If you expect to live beyond the average age, it would pay to delay collecting benefits. If you do not expect expect to live beyond the average age, then you should start collecting earlier.

This, of course, does not take into account any other factors that may be important for you, such as the spousal benefits mentioned in previous posts, as well as whether the Social Security benefit is needed to cover monthly expenses.

[Average Guy]

You have an interesting concept of math.
Life Expectancy at age 62 for a man is age 81.4 (19.4 years), for a woman age 84.3 (22.3 years). Half will make it that far, half won't. For the AVERAGE person, the choice to start receiving retirement benefits early will ultimately mean receiving a smaller total lifetime benefit.

If the life expectancy is 81.4 for a 62 year old man that does not mean that half of the 62 year old men will live longer than 81.4 and half less. What you are referring to is the median age, not average age.

[BarryRX]

Here is another very different opinion.

I decided long ago that I would start taking my SSI as early as I could. I am a Bell System retiree and once heard that the average Bell System retiree collected only 17 monthly pension checks before they died.

Made my decision easy.

Calcultions that I did and studies I found,that depending on taxes, inflation, and investment returns, the range of break-even ages goes from 81 to 86 1/2.

It was a bet I hope I lose!!!!


What's Your Social Security Break-Even Age? - The Best Life (usnews.com) (http://money.usnews.com/money/blogs/the-best-life/2013/02/13/whats-your-social-security-break-even-age)

I agree completely! I started taking my benefits at 62. When I did the calculations, my breakeven point was 81 years old! I would much rather have the extra money now while I am still vital enough to enjoy it than to a) die before the age of 80 or b) not be able to enjoy it at that age. I also figure that if a few hundred dollars a month will make a big difference to me at age 80, then my retirement plan hasn't worked very well. I just figured that if I am fortunate enough to live to age 80 (neither of my parents did) then I probably wont be going out as often or traveling as often.

[JourneyOfLife]

I agree completely! I started taking my benefits at 62. When I did the calculations, my breakeven point was 81 years old! I would much rather have the extra money now while I am still vital enough to enjoy it than to a) die before the age of 80 or b) not be able to enjoy it at that age. I also figure that if a few hundred dollars a month will make a big difference to me at age 80, then my retirement plan hasn't worked very well. I just figured that if I am fortunate enough to live to age 80 (neither of my parents did) then I probably wont be going out as often or traveling as often.

I highlighted an important phrase in your statement above.

Assuming it is actually extra money! Meaning it is in excess of what is needed to pay regular bills and expenses... today and tomorrow!

The other side of the issue is: One lives to be old and runs out of money and does not have enough income to make ends meet.... IOW pay the bills!

It seems that only a few people realize they can reassess their situation each year, from 62 to 70 to determine if "now" is the time to take it, based on how their financial situation in retirement is turning out.

[KayakerNC]

If the life expectancy is 81.4 for a 62 year old man that does not mean that half of the 62 year old men will live longer than 81.4 and half less. What you are referring to is the median age, not average age.
Definitions
Median Age: The age that divides a population into two numerically equal groups; that is, half the people are younger than this age and half are older. It is a single index that summarizes the age distribution of a population.

According to data compiled by the Social Security Administration:
A man reaching age 65 today can expect to live, on average, until age 84.
A woman turning age 65 today can expect to live, on average, until age 86.
And those are just averages.

https://www.socialsecurity.gov/planners/lifeexpectancy.htm

[Average Guy]

Definitions
Median Age: The age that divides a population into two numerically equal groups; that is, half the people are younger than this age and half are older. It is a single index that summarizes the age distribution of a population.

According to data compiled by the Social Security Administration:
A man reaching age 65 today can expect to live, on average, until age 84.
A woman turning age 65 today can expect to live, on average, until age 86.
And those are just averages.

https://www.socialsecurity.gov/planners/lifeexpectancy.htm

Typically, unless stated otherwise, the word "average" refer to the mean, not the median. There can be a big difference between the median and the mean.

For example, consider the following 5 numbers;

65, 65, 66, 90, and 90.

The median, which is the number that has half below it and half above it is 66.

The mean is the average of the 5 numbers i.e., (65+65+66+90+90)/5 = 76.

[quirky3]

Hmmmm.....does that mean we need to change your User name to "Median Guy"?:laugh:

[KayakerNC]

Typically, unless stated otherwise, the word "average" refer to the mean, not the median. There can be a big difference between the median and the mean.

For example, consider the following 5 numbers;

65, 65, 66, 90, and 90.

The median, which is the number that has half below it and half above it is 66.

The mean is the average of the 5 numbers i.e., (65+65+66+90+90)/5 = 76.

A period life table is based on the mortality experience of a population during a relatively short period of time. Here we present the 2009 period life table for the Social Security area population. For this table, the period life expectancy at a given age is the average remaining number of years expected prior to death for a person at that exact age, born on January 1, using the mortality rates for 2009 over the course of his or her remaining life.
https://www.socialsecurity.gov/oact/STATS/table4c6.html

[In awe of TV]

I don't care what the calculations are - I'm taking the $$ at 62 and running with it!! I'll worry about it while I'm lounging by the pool in TV.

:spoken:

[yabbadu]

Yeah cause they're doing a bang up job with it :oops:

Yes they do and know way more than you or I!

[dewilson58]

I don't care what the calculations are - I'm taking the $$ at 62 and running with it!! I'll worry about it while I'm lounging by the pool in TV.

:spoken:


Lounging and having a cocktail.

:bigbow:

[Average Guy]

Hmmmm.....does that mean we need to change your User name to "Median Guy"?:laugh:

Well, that's better than calling me "Mean Guy." :undecided:

[JourneyOfLife]

Well, that's better than calling me "Mean Guy." :undecided:

I was thinking more like; Why be just Average? Dare to be different and break out of the norm. Be BOLD! Don't be content limiting yourself to the constraints of 3 standard deviations!

Dub thyself: "Outlier Dude!"

[Polar Bear]

I don't care what the calculations are - I'm taking the $$ at 62 and running with it!! I'll worry about it while I'm lounging by the pool in TV.

Bingo! ;^)

[TNLAKEPANDA]

Last year it was $14,600 it may have been increased slightly for 2014. You can check online.

[Villageshooter]

We have an appointment this week with our financial planner my thoughts alright now I think we're probably just going to buy a Villa and rented out here the villages and use that is income later on in life I'm with everyone else Social Security is such a mess take the money and run! if I die my wife won't need the money with the life insurance policies I've got she'll be able to buy half of the villages. or at least get a fancy golf cart thanks again for all your help and some insight into this welfare state that we have put ourselves into anticipating.

[Bavarian]

OK, speaking as one who won't get my own SS, just part of my wife's, I willtell you I retired early from the Government and started taking my annuity almost ten years ago. Turn on your computer, bring up a spreadsheet and compute te amounts for 62, 67, and 70. I think you will see it makes no sense to wait. take the money while you can get it and enjoy it. My father turned 76 in the Hospital, my mother made it into her 80's. What good is the extra money when you can't enjoy it. Just make sure you have enough stashed away in other places.

[jimmy D]

I don't see anything in the original ? that would need that answer