How old were you when you started taking Social Security?

[Ingomike]

If you know it all please share your credentials…. Some here are trying to answer the posters questions.

 

[Creedmoor]

If you start early, aren’t you income limited from then on?

Yes, like income of $18,000 a year before you start to give up $2.00 of SS money for each $1.00 you earn over the threshold.

 

[GodFearinGunTotin]

Yes, like income of $18,000 a year before you start to give up $2.00 of SS money for each $1.00 you earn over the threshold.

I was thinking it was something like that. (Basically forfeiting part/all of your SS if you earned too much).

 

[Creedmoor]

Glad it works for you but that does not for everyone like you seem to imply. There are other folks with different needs.

Lots of folks with those horrible union penisons and regular pensions tend to double dip until 66 1/2 and then add SS to a pension, annuity and a 401.

 

[Creedmoor]

Curious about the pros and cons of starting Social Security earlier than Full Retirement Age (In my case - age 67). I plan on retiring from my job at age 62. Most of my older friends all started drawing as soon as they could. What are your thoughts?

First question are you going to work ( earned taxable income) after you take SS.
Because if you are and you make over 18 or 19 thousand a year you get penalized hard.

If your not going to work take the SS and enjoy yourself.

 

[Ingomike]

I was thinking it was something like that. (Basically forfeiting part/all of your SS if you earned too much).

Here is the chart.

https://www.ssa.gov/pubs/EN-05-10003.pdf

 

[WebSnyper]

During the first few years, don’t remember exactly how many, it is not limited, you just have to pay taxes on the SS if you earn over a set amount…

How Are Social Security Benefits Affected by Your Income?

The income you earn during your working years is a major factor in calculating your Social Security benefits. See how much of a monthly benefit you could receive.

www.investopedia.com

It impacts taxes but also your benefits until you reach full retirement age:

Some of your benefits may be temporarily withheld based on your income. This is based on which stage you're at when it comes to your FRA. For instance:

Your benefits are reduced by $1 for every $2 you earn in excess of $19,560 for 2022 (and $18,960 for 2021) until you reach your FRA.
Your benefits are reduced by $1 for every $3 that you earn above $51,960 for 2022 (or $50,520 for 2021).
Your benefits are longer be reduced beginning with the month when you attain FRA.


Note that these dollars are not lost forever. Your Social Security benefit increases to account for them after you reach your FRA.

 

[El Conquistador]

I am 60 now and planning on drawing at 62. My thought is enjoy it now no guarantees in longevity of life. I lost a good friend July 5th at the age of 53.

 

[Creedmoor]

I am 60 now and planning on drawing at 62. My thought is enjoy it now no guarantees in longevity of life. I lost a good friend July 5th at the age of 53.

I haven't taken my SS yet and i'll be 64 next month. My sailing partner ( one of my sons) will not be ready to go sailing for 2 + - years.
I'm gonna wait, the job pays pretty well right now.

 

[Hawkeye7br]

I started Social security at 62, working past my December birthday and into the new year until I reached my max allowed earning before getting penalized. Paying for insurance for 3 years until Medicare kicked in was expensive but worth it. Glad we did it before health issues kicked in.

 

[flatlander]

Started last year at 62. Between my military retirement, SS and a part time job I'm making more than I would have if I kept working. At 65 I get another pension which will add a nice buffer.

 

[Brad69]

My uncle retired at 68 dies at 68 never got a penny.

 

[xwing]

The "right" answer depends on how old you live. The reductions in taking it early (or additions for taking it late) are based on life expectancy. If you think you will die before the average life expectancy, take it early; if you think you'll outlive the odds, take it late.

I haven't decided about SS (got some time for that), but will likely use SEPP to take my 401k early. It's all just math and figuring out which timeline is more likely best for you individually.

 

[Ingomike]

The "right" answer depends on how old you live. The reductions in taking it early (or additions for taking it late) are based on life expectancy. If you think you will die before the average life expectancy, take it early; if you think you'll outlive the odds, take it late.

I haven't decided about SS (got some time for that), but will likely use SEPP to take my 401k early. It's all just math and figuring out which timeline is more likely best for you individually.

Great answer. But do not forget the spouse thing, particularly if your spouse did not work much for whatever reason.

An example wife is younger than husband and was home raising kids etc. Wife gets half of husbands benefit when she retires and his when he dies. If she is a good bit younger she may need that higher money payout. Lots of factors to calculate here.

 

[SnoopLoggyDog]

Thanks for all the replies. I do not plan on working after I retire. I am already drawing a military retirement check and will retire from my silly service job in January at age 62. Combined, I have worked for 43 years.

My wife just started drawing her teacher pention and is two years younger than me. She worked for twenty years.

I do plan on doing volunteer work three days a week at a Christian camp and riding my bike two-three days a week.

Dad died of cancer at 76 and my thought is to take it early and enjoy it while I can.

There is also the factor of a possible future means test where I make too much money in retirement to qualify for social security. It may seem far fetched, but in todays world, it could happen.

 

[KittySlayer]

How old is your wife and how will her life expectancy play into this question? Does she qualify for her own or will she be getting spousal benefits?

This was a big factor in my planning. My wife is younger than me (and prettier) and has a lower benefit on her own so want her to “step into my shoes” at my higher amount for more years of retirement.

Plan is to retire at 62 and start Soc. Sec. at 67.

Have enough cash flow to enjoy my early retirement years without Soc. Sec. My fear is outliving our money so the higher benefit amount in later years (particularly for my wife) will be important.

A lot of math, a bit of gambling, a little luck all go into the decision. Be sure to plan for any related income taxes.

 

[xwing]

Great answer. But do not forget the spouse thing, particularly if your spouse did not work much for whatever reason.

An example wife is younger than husband and was home raising kids etc. Wife gets half of husbands benefit when she retires and his when he dies. If she is a good bit younger she may need that higher money payout. Lots of factors to calculate here.

That is a good plan, and one that many married couples use. Based on the age difference and the earnings difference, the best strategy varies. But many couples will have one spouse take it early and one take it late.

 

[KittySlayer]

Based on the age difference and the earnings difference…

Don’t forget the “pretty” difference.

Even at Senior Citizen hour prices getting someone to buy you Free Drinks can be a money saving strategy.

 

[churchmouse]

If you start early, aren’t you income limited from then on?

Only until you hit the age where you can draw full benefits. After that you can make as much as you want to.
I pulled mine at 62. Glad I did.

 

[churchmouse]

Ok kids. Both of you need to stop.