Reply to Social Security at 70 worth it?

Forum Index » Money and Finances

Reply to "Social Security at 70 worth it?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]You should take it in most cases. I know I will at 62.

But my parents had no savings and zero net worth so they waited until 70, which made sense given my dad was still working. The risk of a significantly lower cash flow after he inevitably was laid off was too high.[/quote]

Too bad your parents had no kids to help out. Just kidding.

You do know most married men with SAHM wife are still working at 62 full time. Or have kids in college and there is FASFA. And [b]you have to give back one dollar for every two dollars earned from 62 to 65 plus the lower benefit[/b].

[/quote]

The retirement earnings test goes to full retirement age (which has gradually risen to 67) though it's a 1-for-3 reduction in the year of FRA. 
However, it's only applied to earnings above the threshold: in 2025, that threshold is $23,400 for people below FRA and $62,160 in the year of FRA. 
Even more important to understand is that it's a temporary reduction: if you make it to FRA, your benefits are recalculated and you start getting a higher amount based on your reductions and the FICA you paid between claiming and FRA.

Resources to understand this include https://www.ssa.gov/oact/cola/rtea.html and https://www.ssa.gov/policy/docs/program-explainers/retirement-earnings-test.html

I plan to wait because a guaranteed 8% return is good, 3/4 of my grandparents have lived into their 80s (and the last died of lung cancer after lots of smoking, which I have never done), and I have other resources to live off of while I wait. If my health changes, I would reconsider.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics