Taking SS at 67 rather than 62 would have left me without the $150K I will collect in those 5 years. The numbers are pretty easy to run to see when I would get the $150K back post 67. I am not employed.
Ed explain to me the penalty for drawing early and still working
I’m guessing if I’m full time at say $150000 i wouldn’t get anything from ss and it would hurt me later when i do quit full time. But if I went to part time at say $60k a year would i get anything?
If you're younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits. If you're younger than full retirement age during all of 2024, we must deduct $1 from your benefits for each $2 you earn above $22,320.
$60,000 minus $22,320 equals $37,680. divided by 2 equals $18,840.
Your annual SS benefit will be reduced by $18,840 until you reach full retirement age. 67 years or a little less depending on year of birth.
Considering that my annual SS benefit would be reduced by taking it early, coupled with what SS would actually pay me while I was still working, I opted to file for SS at full retirement age. Add to that that my wife's SS benefit is calculated as 1/2 of my benefit until I die. Any increase in my monthly benefit which came from waiting for full retirement age was multiplied by 1.5 as it was reflected in her benefit.
The bottom line is, my pension, plus her SS, plus my SS is now larger than my salary ever was. We are very comfortable. It would not be so had I filed at age 62.
Now, if a person needs SS income to survive from age 62 through age 67, that is another story.
