Anonymous
07/08/2025 15:35
Subject: Re:Taking social security at 62?
How does the bill make it worse ? Seniors 65+ got an increase in their standard deduction for Federal income tax purposes, which was not going to fund SS benefits.Anonymous wrote:Anonymous wrote:It's generally a bad idea to take SS before age 70 unless you are quite confident you are not going to live a long time.
First, the value of your payments grows by 8% annually for every year you delay past your Full Retirement Age. That increase is guaranteed. It is very difficult to find investments which are guaranteed to grow by 8% annually.
Secondly, it is a form of longevity insurance. By maximizing your payments, you'll receive more money over your lifetime if you exceed your actuarially probable lifespan, which many educated, healthy middle and upper class people do. Claiming early guarantees lower payments for your lifetime. Yes, if your lifespan is shorter, you will have collected less money monthly but will have started sooner and so may come out ahead. On the other hand, if you live longer, your larger monthly payments will remain larger for as long as you do live, even if you become a centenarian, and you will end up with much more by the end of your life than you would have if you claimed before your FRA.
You are ignoring the fact that SS is going broke and the bill just passed makes it worse . There is no guarantee on the 8% will stay.
Try not to make political, I am genuinely interested in the “mechanics” of why people think BBB speeds up exhaustion of the SS trust fund, which currently holds 2.7 T in US treasuries, and was funded by excess FICA taxes only.
Anonymous
07/08/2025 14:22
Subject: Re:Taking social security at 62?
Anonymous wrote:It's generally a bad idea to take SS before age 70 unless you are quite confident you are not going to live a long time.
First, the value of your payments grows by 8% annually for every year you delay past your Full Retirement Age. That increase is guaranteed. It is very difficult to find investments which are guaranteed to grow by 8% annually.
Secondly, it is a form of longevity insurance. By maximizing your payments, you'll receive more money over your lifetime if you exceed your actuarially probable lifespan, which many educated, healthy middle and upper class people do. Claiming early guarantees lower payments for your lifetime. Yes, if your lifespan is shorter, you will have collected less money monthly but will have started sooner and so may come out ahead. On the other hand, if you live longer, your larger monthly payments will remain larger for as long as you do live, even if you become a centenarian, and you will end up with much more by the end of your life than you would have if you claimed before your FRA.
You are ignoring the fact that SS is going broke and the bill just passed makes it worse . There is no guarantee on the 8% will stay.
Anonymous
07/08/2025 14:18
Subject: Taking social security at 62?
Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Anonymous
07/08/2025 14:03
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:My dad did and ended up dying at 67.
But how long did wife live? My FIL waited till get max and died a year later. His wife is now 84 and is on his SS and because of that she has money.
DP. It made more sense for the previous generation than for ours. DH and I will have equivalent SS amounts. We’ll get each other’s 401ks in the event of death.
Anonymous
07/08/2025 12:50
Subject: Taking social security at 62?
Anonymous wrote:My dad did and ended up dying at 67.
But how long did wife live? My FIL waited till get max and died a year later. His wife is now 84 and is on his SS and because of that she has money.
Anonymous
07/08/2025 12:48
Subject: Taking social security at 62?
In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
So in Maryland at least taking SS early has an added penalty of state taxes
Anonymous
07/08/2025 12:40
Subject: Re:Taking social security at 62?
It's generally a bad idea to take SS before age 70 unless you are quite confident you are not going to live a long time.
First, the value of your payments grows by 8% annually for every year you delay past your Full Retirement Age. That increase is guaranteed. It is very difficult to find investments which are guaranteed to grow by 8% annually.
Secondly, it is a form of longevity insurance. By maximizing your payments, you'll receive more money over your lifetime if you exceed your actuarially probable lifespan, which many educated, healthy middle and upper class people do. Claiming early guarantees lower payments for your lifetime. Yes, if your lifespan is shorter, you will have collected less money monthly but will have started sooner and so may come out ahead. On the other hand, if you live longer, your larger monthly payments will remain larger for as long as you do live, even if you become a centenarian, and you will end up with much more by the end of your life than you would have if you claimed before your FRA.
First, the value of your payments grows by 8% annually for every year you delay past your Full Retirement Age. That increase is guaranteed. It is very difficult to find investments which are guaranteed to grow by 8% annually.
Secondly, it is a form of longevity insurance. By maximizing your payments, you'll receive more money over your lifetime if you exceed your actuarially probable lifespan, which many educated, healthy middle and upper class people do. Claiming early guarantees lower payments for your lifetime. Yes, if your lifespan is shorter, you will have collected less money monthly but will have started sooner and so may come out ahead. On the other hand, if you live longer, your larger monthly payments will remain larger for as long as you do live, even if you become a centenarian, and you will end up with much more by the end of your life than you would have if you claimed before your FRA.
Anonymous
07/08/2025 08:31
Subject: Taking social security at 62?
Anonymous wrote:There are only a couple of reasons to wait, namely that you’re still working or SS will be your only or primary retirement income.
If you have a lot of money, it makes sense to take SS as early as possible for several reasons: 1) you can invest it at a higher rate (and you can always buy a longevity annuity with the appreciated assets); 2) you don’t know how long you’ll live, so you might as well get it while you can; 3) differences in spousal amounts don’t matter much for wealthy couples because their other investments overwhelm the difference; 4) SS income might impact decisions about transfers from traditional IRA to Roth, but unless both spouses start SS at the same time, SS income is too small to matter much tax wise.
Basically, if you’re poor or still working, wait; if you’re rich take it ASAP.
Same poster.
Of course, if you’re poor, unemployed, or unable to work, you may have to take SS at 62, but it’s not ideal.
Also, if you’re rich and take SS early, you are automatically “investing” those funds because without SS you would have withdrawn your own investments. Taking SS allows you to forego those investment withdrawals and keep your money working for you.
Anonymous
07/08/2025 08:22
Subject: Taking social security at 62?
There are only a couple of reasons to wait, namely that you’re still working or SS will be your only or primary retirement income.
If you have a lot of money, it makes sense to take SS as early as possible for several reasons: 1) you can invest it at a higher rate (and you can always buy a longevity annuity with the appreciated assets); 2) you don’t know how long you’ll live, so you might as well get it while you can; 3) differences in spousal amounts don’t matter much for wealthy couples because their other investments overwhelm the difference; 4) SS income might impact decisions about transfers from traditional IRA to Roth, but unless both spouses start SS at the same time, SS income is too small to matter much tax wise.
Basically, if you’re poor or still working, wait; if you’re rich take it ASAP.
If you have a lot of money, it makes sense to take SS as early as possible for several reasons: 1) you can invest it at a higher rate (and you can always buy a longevity annuity with the appreciated assets); 2) you don’t know how long you’ll live, so you might as well get it while you can; 3) differences in spousal amounts don’t matter much for wealthy couples because their other investments overwhelm the difference; 4) SS income might impact decisions about transfers from traditional IRA to Roth, but unless both spouses start SS at the same time, SS income is too small to matter much tax wise.
Basically, if you’re poor or still working, wait; if you’re rich take it ASAP.
Anonymous
07/08/2025 07:31
Subject: Taking social security at 62?
My dad did and ended up dying at 67.
Anonymous
07/08/2025 03:31
Subject: Re:Taking social security at 62?
For many it doesn’t make sense to take SS early unless you plan to stop working because of the benefits reduction for earnings over $25,400. But if you’re not working it might be of value to consider.
Anonymous
07/08/2025 02:12
Subject: Taking social security at 62?
+1Anonymous wrote:i plan to take at 62 (no longevity gene on my side) and spouse will start at 70 (in-laws are almost 100 and still kicking
I'm taking it at 62 for the same reason. My Dad didn't have much of a retirement as he fell ill at about 60 years old and never enjoyed his final years, passing away at 70. My Mum died suddenly at 64.
People who want to wait until they're 70, either enjoy their work or have other income to support their lifestyles. I'm not as wealthy as many on here so I'll be needing my social.
Anonymous
07/07/2025 23:13
Subject: Taking social security at 62?
Anonymous wrote:Now with the passage of BBB does it make sense to start social security at 62? Not there yet but maybe better to get a few years of something if it’s going to go bankrupt sooner now.
Assuming y'all are not poor and SS at FRA is similar to both spouses, the older spouse should start taking as soon as the younger spouse stops working and the younger spouse should take it at 70.
Anonymous
07/07/2025 12:29
Subject: Taking social security at 62?
We’re taking it at 62. It’ll extend the life of our investments and give them more time to grow - hopefully. We’re not particularly worried about running out of money.
Anonymous
07/06/2025 22:07
Subject: Taking social security at 62?
Spouse retired at 65, but if will be waiting until 70 to collect - for an extra $1200/month. Longevity in the family, as in both parents well into their 90s