<p>Collect at 62 if you think that you are going to die before the actuary calculations.
If you are in good health and have a family history of longetivity, wait till 67</p>
<p>My cardiologist - whom I visited last week - says I’m like a teenager. (Which is good 'cause I got a whole world to save, and it’s likely to take a little time. :))</p>
<p>When I get closer to being an old man, like Mini, I will do the calculations. :)</p>
<p>Right now my thinking is I am going to delay taking Social Security. I am more worried about age 95 than age 85. But who knows? Maybe my health will change.</p>
<p>Father91, Why not wait until 70?</p>
<p>So you’ll have 8% more a year. But you won’t have collected or have been able to use those funds for those 8 years. (I figure if my mind manages to go before my body, I won’t care about the money in the least, but that’s another story!) Will your taxes be lower or higher eight years from now? (got a crystal ball?)</p>
<p>I don’t have a crystal ball.
I don’t know what part taxes are going to play.
I have no idea what interest rates are going to be in 6 years.</p>
<p>I do know that I make zero on some of my money right now. (it sucks). So, right now, my imputed return is zero. I don’t need the money in my 60’s.</p>
<p>I am going to have to see what I get at 62, what interest rates are, how much social security is increasing each year for those who take SS at 62.</p>
<p>But if my breakeven is 85 or under, I am going to postpone taking ss. My grandparents died in their 90’s. My dad was a heavy smoker and drinker until the age of 63 and he is alive at age 85.</p>
<p>What kind of ss increase do you foresee for next year, mini?</p>
<p>
We coulda told you that, mini. Could have saved you a trip to your cardiologist. Ohhhh you mean your <em>heart</em> is like that of a teenager. Ohhh. Never mind.
;)</p>
<p>“What kind of ss increase do you foresee for next year, mini?”</p>
<p>I don’t foresee nuthin’ - I’m a kept man!</p>
<p>:)…</p>
<p>If you draw ss before your “full retirement age”, the annual amount is lower because of actuarial facts. And, it will, additionally,be reduced by $1 for every $2 you earn in excess of $14,640. [Not sure if there is a limit to this reduction, or if you could lose all of the social security by earning “too much”.] One website indicates that this reduction is actually a deferral, and that later benefits will be increased to reflect the earlier reductions. Not sure where to verify this or how to find the amounts.</p>
<p>Additionally, whatever benefits are paid to you are potentially subject to income tax. It depends on your total income (wages or investments–doesn’t matter), and the proportion of your benefits subject to tax can rise to 85%.</p>
<p>You can go to the social security site, look under the second tab called “RETIREMENT”, and look to the right side to get into the benefits estimator. IIRC, you can enter your own information and they will calculate your benefit for you. You can get the exact numbers and can change the starting date for benefits to see what your payments would be at certain ages (not counting any reductions for other earnings).</p>
<p>I went to the social security site. I see that right now I would collect starting at age 66 and 4 months. If I wait until 70, I get 33 percent more a month.</p>
<p>Starting at age 62, I would receive a little less than 60 percent of the amount of age 70.</p>
<p>Deciding when to start collecting based on expected longevity leaves me with a quandary. Dad died at 63; Mom is still alive at 90, altho not in good health. DH has an easier choice since his mom died at 84 and dad died at 90.</p>
<p>My mother passed away about a month ago and I have been going through her paperwork. Mom had the $99.90/no taken out of her pension checks AND paid $224/mo for an Advantage plan. She also paid for separate RX and Dental insurance</p>
<p>Was she double paying for her Medicare (carrying 2 plans instead of “dropping” the $99.90 plan when she began carrying the Advantage plan)? Her situation has made me question my already limited understanding of Medicare.</p>
<p>
dadx, thanks for the explanation ^^^^^^.<br>
Yes, depending on your job and potential future earning power - could be the major factor in whether to retire before or after age 67.</p>
<p>H is self-employed so we pay our own health insurance (individual family plan w/ high deductible). I am more interested in getting Medicare at age 65 than I am about SS. Another factor to consider is if you are at the top of your life-time annual earnings. I believe SS is determined by your top 40 quarters (10 years) of earned income.</p>
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<p>This is a good question. I have parents who may be doing the same thing, but I haven’t figured out whether this is overpaying or not.</p>
<p>Social security benefits are determined differently than medicare. SS is based on your top 35 years.</p>
<p>[Social</a> Security Publications](<a href=“http://www.ssa.gov/pubs/10070.html]Social”>http://www.ssa.gov/pubs/10070.html)</p>
<p>^^^^ thanks for the link. I read somewhere it was your top 40 quarters - obviously that was wrong. If you are at your top earnings in your sixties waiting until you are between 67 - 70 to retire might be wise.</p>
<p>[Medicare</a> Eligibility Requirements - How to Qualify for Medicare - AARP](<a href=“Medicare Eligibility: Who's Eligible for Medicare?”>Medicare Eligibility: Who's Eligible for Medicare?)</p>
<p>dstark, Thank You for that link. I have bookmarked it. :)</p>