Social Security at 62 + 1 month.

[Every Road Leads Home]

They pay you a month behind for a specific reason.  No matter when you die, you have to pay back that last month's payment to SS.  If you die on June 31st, you still have to pay it back for all of June.  But since they pay you a month behind, all they have to do is cancel the last payment.

It's easier than trying to squeeze blood from a turnip.

TIP:  At some point, you will receive a letter that says at the very top:
"Social Security Administration
Retirement, Survivors and Disability Insurance" and they list what you're getting, how much you're getting, and when you're getting it, all on one page.


SAVE THIS DOCUMENT AND PUT IT IN A SAFE PLACE WHERE YOU CAN FIND IT.  Someone, some time, will ask for it.  Sometimes they call it by some really internal stupid name.  But this is what they want.

You can get this online at any point as well

 

[ccbreder]

I get one of those letters every year. And can get it online if needed. SS never asked for a copy of a form they sent me.

 

[BobBski]

I turned 62 in March of 2015... here's how it was explained to me.

No check for the partial month in which you turned 62. In my case March.

I "earned" a check for April, the first full month at age 62.

SS is paid on Wednesdays depending on birth date. In my case, the 2d Wednesday in May I got Aprils check.

I also found the SS office super compassionate this last May when my wife passed. No moneys were collected and the "burial" supplement was paid.

 

[rvpopeye]

I was 62 3/15 same experience as Bob Ski .

 

[ArtW]

I just got the first 'estimated retirement benefits based on income history' letter I've recieved in 8 years this year, and never could get one online
it says if I retire at 62 I'll get something like $860 or some such (it's out in the ranger) and 1120 something at 66 (ot is it 67?)
That's a hard call, $300 or so a month diference, vs 4 or 5 more years of work in a physical job
Of course, you can collect SS and still work, so yeah

 

[DannyB1954]

My Bday is at the very end of Oct. S.S says I will get nothing for November. They will start to pay in Dec. I will get a check at the end of Dec, (just for DEC).
On working while collecting S.S, there are penalties for working before 65 I believe.
On early VS. make more later, for easy numbers let's say at 62 you get $1,000, at 66 you get $1,400. The person taking it early has received $1,000 times 12 months times 4 years or $48,000 by their 66th birthday. The person that waited has received Zero.

So how long does it take that extra $400 to add up to $48,000? 48,000 / 400 = 120 months, or10 years. So the person that waited will break even with the guy who didn't wait on their 76th birthday, (66 + 10).

Each person has to consider their own situation. In mine I have a pension that I can survive on, so the additional income can be used to pay off all my debts in a short period of time. If you are working a job that earns a pension, it probably is best to wait, that way you can also add contributions to your retirement. Lots of variables to consider.

 

[ArtW]

IIRC you can only work part time and take SS
I have a friend who took SS early and works part time, I might ask him

 

[DannyB1954]

I just got the first 'estimated retirement benefits based on income history' letter I've received in 8 years this year, and never could get one online
it says if I retire at 62 I'll get something like $860 or some such (it's out in the ranger) and 1120 something at 66 (ot is it 67?)
That's a hard call, $300 or so a month diference, vs 4 or 5 more years of work in a physical job
Of course, you can collect SS and still work, so yeah

$860 x 12 months x 4 years = $41,280 If you take it early. The amount you will have gotten by the time you reach 66.
1120 - 860 = 260.   Amount of difference between later and now. 
$41,280 / $260 is 158.8 months. Divided by 12 = 13 1/4 years. If your numbers are correct.  Amount of time needed for you to break even with the guy who took it early.  

Taking early S.S, you are allowed to make $15,720 a year. For every $2 over that, they cut your benefit by $1. After you are 66, there is no penalty for earning money.
https://faq.ssa.gov/link/portal/340...k-and-get-social-security-retirement-benefits

 

[TrainChaser]

Before you hit the dividing line (65 or 66, depending, I think), you can make something like $25,000. Above that, you have to pay back half of what you made. But your birth year may make a difference. Call them and ask.

 

[rvpopeye]

In my case , as I understand what I have read in SS publications,,,I can earn up to 15000 before they reduce my SS $1 for every $2 i earn over the 15K. After I turn 65 I can earn as much as I want with no penalty.

There are many publications on different subjects available on the SS website that anyone can download.
And you can always call or visit any SS office for answers to your questions.
They are always very helpful whenever I do.

 

[jonthebru]

The sad people are those who were paid under the table and don't have any SS benefits.
Those of us who labored away for all those years may now reap the benefits!

 

[jonthebru]

I am the youngest of 5, I got differing advice from my brothers and sister, but only one said wait until you are 66 to collect. Oh, and a cousin who is a financial advisor said to wait. But that meant keeping a job, a good job, but a job none the less that I wanted to stop going to. I kind of panicked, thinking I wouldn't have enough to live on and got a job at Home Depot which lasted for a month or so. Figured out that if I rented a room in my house it would cover any job I would get. I turned 62 in September and retired on the last day of the year so I avoided the lag.
I turn 65 soon and will be on medicare which is another good thing because it is when you get old that you really need medical coverage.

There is a concept out there stating that everyone should have a guaranteed income, not a wealthy income but a monthly stipend  to keep a roof over ones head and food in ones stomach. With automation and robots taking over the workforce there will be many people who won't have any type of job available, no career, imagine that. As an example those gigantic Amazon fulfillment centers may employee as many as 10,000 during the holiday season, with automation the whole place can run with under 1,000 humans running the robots.

 

[VanGrrl57]

Well,

I have a while before I turn 62----I'll be 60 in April. 

I have heard quite a bit about waiting for full retirement age (in my case, 66 1/2), versus taking early retirement at 62. I guess it's more beneficial money-wise if one waits until full retirement age but I'm ready to take it easy so I will be taking early retirement. 


VanGrrl57

 

[DannyB1954]

The way the formulas are calculated on average the person taking it early and the person who waits will receive the same total amount. You don't get more money by waiting, ( total amount ). You just start getting it later so they raise the monthly amount.

If you feel you will outlive the national average, you might be better to wait. If you have medical issues that preclude you from a long life, you might want to consider taking it while you still have a chance of cashing the checks, (still alive).

 

[VJG1977]

Social Security payments are based on the highest 35 years of earnings.  In my case, I had years of low earnings.  Each year I keep working now, replaces a bad year with a good year.  I turned 62 in April.  If I continue to work until I turn 66 I will get over $600 a month more than if I retired now.   That is projected payments based on current earnings.
It is an odds game; will I live long enough to recoup the amount I would have been paid during the years for 62 to 66?  My father lived to 84. I’m calculating based on living to 82.
I also had to look at Medical insurance.  I have great insurance thru work, covering both me and my wife.

 

[wagoneer]

I took it at 65 and think i got 85%-90% 1300 and change

 

[ccbreder]

The argument should not be about the total collected over your lifetime, but, will you have enough for each year that you do live.

 

[Almost There]

The argument should not be about the total collected over your lifetime, but, will you have enough for each year that you do live.

Yes and no!

The calculation of how much more you would receive if you waited to collect is a very valid one for a lot of people. They COULD retire and live on the lower amount but would they want to or would they prefer to work an extra amount of time for a larger monthly income.

I had to do a very similar calculation at age 65. As a self employed commissioned person I was having to pay both my contributions and the employers contributions. Canada has enacted a system by which for every year you delay starting to receive CPP (Cdn equiv to SSI) you get an increase in your payout each month. The question was: would I receive more over a projected lifetime than what I would have to contribute given me having to pay both amounts.

Good thing I was good in math - the answer turned out that I would have to live to be well in to my 90's to benefit from continuing to contribute. Anything less than that and I was just throwing money in to the government coffers.

Needless to say I started drawing it asap.  I was still earning a good income so I tossed all that money into savings/investment and even used part of it to reduce my tax burden by putting it into the equivalent of a 401K.

The trick is to be able to figure out how to make things work for YOU!

 

[DannyB1954]

I think total amount received is a valid aspect to consider. If you wait until 70, and die at 69, the total received is zero. I can see why Social Security would encourage people to wait. My medical history does not normally lead to a long life. A bird in the hand is worth a lot more than two in the bush.

 

[VanGrrl57]

My late husband got terminally ill and tried to collect his SS but they denied him 4 TIMES!! He finally got it when his doctor said enough is enough and finally got the SS worker my late hubby was dealing with to realize he only had, at most, a matter of 2-3 months of life left. 

Unfortunately, when Sonny was approved, he died 3 weeks later. Since our daughter was under the age of 16 when he died, she collected survivor's benefits and I got was called the Mother's Benefit for caring for a child under the age of 16. I was told I could collect the Widow's benefit when I turn 60 which will be this coming April. 

I know how tricky dealing with Social Security can be and, of course, they want you to delay as long as possible because that means they have to pay out less. I am leaning more towards collecting SS when I turn 62 versus my full retirement age of 66 1/2 but I'm not entirely sure about that yet.

VanGrrl57