Originally Posted by
Keystone
Originally Posted by
LarryS
I applied for and started getting payments recently. I am getting my 4th monthly check/deposite in a little over 2 weeks.
I did it all over the phone in a 5 minute conversation with somene at SS. I didnt have to present a birth certificate. I didnt have to present or fax or email anything.
this process was the antithesis of the steriotypical red tape that people cry about with govt agencies.
Not only did they do what they were supposed to do in a timely manner(I applied 2 months before by phone with a person at a local office that called me back ...i had to make an appointment for the phone enrolment)...but they sent me a summary of my four 401k plans so I could manage my finances. Of course I didnt need that info...I know exactly whats in my accounts....but it was a nice touch.
I took it early at 62.......I could have waited and got more money...but screw it.....I will take what I can when i can get it.
But no....they didnt need any documents. They had all they needed in their computer system.
Maybe they just like fucking with Alan.
Using modern sensibilities........it shouldnt shock a 30 or 40 something SS worker to see people with way different names than their mother or father.(ALTHOUGH back in my day..it was very rare, and often scandalous )
What is the $$$ difference between waiting until you are 65 or 67, if you don`t mind my asking?
If LarryS does not mind I will give some input as I am going through this issue myself.
Regarding Social Security, the minimum age is 62 (without waivers) and the maximum benefit age to collect is 70. You can start to collect after 70 but you will not gain any additional benefit (and actually lose money because you did not start at 70).
The Full Retirement Age (FRA) is roughly 66 1/2 years. The amount you can collect does increase every year between 62 and 70. Using the Social Security website; if you were to receive $1,300 /month at FRA, the minimum amount at age 62 is less 26.7% or roughly $953/month. If you wait until 70, the maximum is an additional above FRA by 29% which is roughly $1,681/month.
To answer your question, at 65 the amount is $1,184/month (less 9%) from FRA. At 67 the amount is $1,369/month (5.3% increase)
The amount a person can receive from Social Security is based on an individual's top 35 wage earning years (or so).
From a gambling perspective; for males the breakeven point of collecting at 66 1/2 versus 62 is roughly age 79. Between 70 and 62 it is just over 80 years old. For women it is slightly higher.
Final note (thought), some individuals will take the money at age 62 due to finance or health (based on the numbers above). Those who think that taking Social security money early saves them from withdrawing 401K money (for me that would be true) what is the new breakeven point on that non withdrawal at 5% (taking money at age 62)? It jumps up to age 91.
The rules are constantly changing. It is fun to play with the numbers. Obviously, there is no single correct answer on when to withdraw your money, as long as you start by age 70.