[RichieB]

Looks like you will hae a good base to work from, with pensions and Soc Sec for each of you, in addition to any IRA/401k.

Now you need to finalize on a state that is tax-friendly toward retirement income. There are 7 states with no personal income tax, (Florida is one of them) and others which do not tax retirement income. You have to evaluate, and pick what's right for you.

[Finallyfree]

Our financial planner (Edward Jones) was very helpful in making our decision. If you can afford it, take it at 62; wait until 65+ if you NEED the additional monthly income.

[thistrucksforyou]

Originally Posted by thekeithfan

Twenty years? Not sure about that, I think it is much less than that. You should see a financial analyst I think you are wrong ... sorry. If it was 20 years no one would wait.

I was looking at the difference on my SS account statement ...I have a 437.00 difference between age 62 and age 66....That could make a huge difference later in life...

[RichieB]

Originally Posted by thistrucksforyou

I was looking at the difference on my SS account statement ...I have a 437.00 difference between age 62 and age 66....That could make a huge difference later in life...

very true, but "later in life" is not guaranteed to us.

We all view things differently, so "to each, his own" really applies here.

[REDCART]

Originally Posted by thistrucksforyou

I was looking at the difference on my SS account statement ...I have a 437.00 difference between age 62 and age 66....That could make a huge difference later in life...

Add the total benefits that would be paid to you over 48 months (or whatever the period until your full retirement age) and divide that total by the difference (i.e. $437). You will see that it will take 12-15 years (144-180 months) at the unreduced rate to break even.

If you were to invest that money every month (dollar-cost averaging) or annually, (or for some using it to pay off credit card\mortgage balances)--you'll see that a reduced SS benefit may for many make more sense than you originally thought. And assuming your investment pays off, you will be ahead indefinitely.

[CaptJohn]

Originally Posted by thistrucksforyou

I was looking at the difference on my SS account statement ...I have a 437.00 difference between age 62 and age 66....That could make a huge difference later in life...

And that's only if you live past age 78! What's the family history on aging?

[allus70]

Another take on this subject.... consider SS as the cheapest annunity available on the market. Social Security: The Cheapest Annuity in Town - Yahoo! Finance

[rjm1cc]

Originally Posted by CaptJohn

And that's only if you live past age 78! What's the family history on aging?

I think the statics for the country say if you live to age 65 you stand a good chance of living to age 78. In general I think most individuals that qualify for SS will have a projected life span that will take them past the break even point. Espicaly couples who can benefit from survivors benefits. But yes, your family history and actual helath are much more important than country wide stats.

[hdh1470]

No one looks at Inflation rate,ss does not keep up with that.And at 62 half of us will be gone by 82.Also if you are spending your own money that will be gone and if you have a spouse they will have less savings that you have spent.As far as ss for us it will be the same for each of us as we both worked and made about the same.so either will not get more after passing of one of us.So for me take it in sept at 62 and not touch savings

[aljetmet]

Originally Posted by allus70

Another take on this subject.... consider SS as the cheapest annunity available on the market. Social Security: The Cheapest Annuity in Town - Yahoo! Finance

I posted this article about a week or so ago.

Wonder how many people are reading it? It's very good.

[CaptJohn]

Originally Posted by aljetmet

I posted this article about a week or so ago.

Wonder how many people are reading it? It's very good.

Yes, certainly worth reading.

[Cantwaittoarrive]

Originally Posted by thistrucksforyou

I was looking at the difference on my SS account statement ...I have a 437.00 difference between age 62 and age 66....That could make a huge difference later in life...

What I think you might not be considering is the annual increase you receive (except for 2010 and 2011). For example in my case I received an increase of $90 COLA a month this year, if for the each of the next 3 years I receive an additional $90 a month COLA the difference between age 62 and 66 would be $77 not $437. This of course is based on my numbers not yours, but I think most calculators and the SSA don't take in to account COLA when figuring breakeven. If you do take this into account most people would be dead for years before they ever reached breakeven. In my case in those 4 years I collect $100,000 from SSA in my case it would take about 80 additional years of life to hit breakeven. i doubt I will live to 142 so I'm not waiting. Also I will have my hands on the 100K to invest the way I see fit

[REDCART]

Originally Posted by Cantwaittoarrive

What I think you might not be considering is the annual increase you receive (except for 2010 and 2011). For example in my case I received an increase of $90 COLA a month this year, if for the each of the next 3 years I receive an additional $90 a month COLA the difference between age 62 and 66 would be $77 not $437. This of course is based on my numbers not yours, but I think most calculators and the SSA don't take in to account COLA when figuring breakeven. If you do take this into account most people would be dead for years before they ever reached breakeven. In my case in those 4 years I collect $100,000 from SSA in my case it would take about 80 additional years of life to hit breakeven. i doubt I will live to 142 so I'm not waiting. Also I will have my hands on the 100K to invest the way I see fit

When SSA provides you with an annual benefit estimate statement, the first three amounts listed are: (1) the amount at your full retirement age (i.e. 66 and 2 months) i.e. $1396 a month, (2) your age 70 amount (i.e. $1872) a month, and (3) your age 62 amount (i.e. $997) a month. The difference between your full retirement amount and your age 62 amount is $399 (30 percent). SSA does not include estimated COLA increases in their benefit estimate statement amounts. Keep in mind that annual COLA increases would increase all three amounts at the same percentage rate. You do not derive or accrue any special COLA advantage by taking a reduced benefit.

Returning to the example amounts above, this person (w/o COLAs) could receive a total of $49,850 for 50 months. If they had waited till their full retirement age, they would begin receiving $399 more. but it will take this person 124.94 months (10.42 years) to break even (at age 76 and 7 months). The break-even point varies but it will never be more than 15 years. If you're coming up with 80 years, you've made a mathematical mistake.

George

[gg]

I am not going to do the math since people have already done it. I believe it is better to take it early. If you don't need it...invest it and it will grow more at a low rate then waiting till you are older.

And the NUMBER 1 REASON to take it is sad. My husband only collected for 1 year after he started to get it at aged 62. He would have really been mad if he had not collected anything after putting in all those years. You never know how long you will live...so get it now. I am not eligible to collect since I taught in Ohio. So now others who live longer Will get our share.

[REDCART]

GG,

I agree with you that taking early SS and investing the money makes good sense. I am unfamiliar with the Government Pension Offset provisions of SS. Are you saying that your pension from teaching in Ohio completely offsets your SS widows benefit?

I misspoke earlier. It's not Government Pension Offset but Windfall Elimination Provisions (WEP) that offsets your widow's benefit. Similar concept but different rules.