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Joined: Jun 2004
Posts: 34,268 Likes: 4
Campfire 'Bwana
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Campfire 'Bwana
Joined: Jun 2004
Posts: 34,268 Likes: 4 |
I turn 62 in a few weeks. Applied, approved and will have the 1st deposit on April 8. I'd have to wait until 66 years and 8 months to get full benefits. As it is I'd have to live to 78 in order to break even. Between my wife and I we'd have earned more than $200K before we even started at age 66 and 8 months. If I lived into my 90's is the only way I'd see a significant increase in overall income over starting now. I'll take my chances and can have a lot of money invested before waiting for the full amount. If I die before age 78 I come out ahead by taking it now. It is almost 30% less money starting at age 62, but in my case I get a 5year head start. For those who can start at age 65 it might be a better deal to wait.
If you continue working and earn over a certain amount your benefits are reduced further. I'm think it is around $20K/year. That only applies to those under full benefit age. If I wait until I'm 67 I can earn all I want and still get SS without reduction of benefits.
Very few people will have to pay tax on SS. If you ever worked in a place where they did not take SS out of your pay then you will. This only applies to a handful of government jobs, or for income earned overseas. There are a few school systems that do not deduct SS from wages. Those teachers will have to pay some tax on their SS depending on how many years they worked.
My parents both retired at age 62 and lived well into their 80's and never paid any tax on their SS benefits. I think you better research those 2 statements a bit closer. The limit is 18,240. And yes your SS can and will be taxed if you don’t watch it. https://www.ssa.gov/planners/taxes.htmlfile a federal tax return as an "individual" and your combined income* is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. more than $34,000, up to 85 percent of your benefits may be taxable. file a joint return, and you and your spouse have a combined income* that is between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits. more than $44,000, up to 85 percent of your benefits may be taxable. This My wife is 10 years younger than I. I am collecting SS, she is still working. It sucks, all of my SS benefits are considered untaxed income and heavily taxed at the end of the year. Filing individually saves nothing and even costs us a little more.
Give a man a fish and he eats for a day. Give a man a welfare check, a forty ounce malt liquor, a crack pipe, an Obama phone, free health insurance. and some Air Jordan's and he votes Democrat for a lifetime.
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Joined: Apr 2011
Posts: 151,746 Likes: 15
Campfire Savant
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OP
Campfire Savant
Joined: Apr 2011
Posts: 151,746 Likes: 15 |
We pay a hell of a lot of tax. The dindu nuffins get all kinds of free Cshit. Seems fair, don’t it???
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Joined: Dec 2007
Posts: 6,755
Campfire Tracker
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Campfire Tracker
Joined: Dec 2007
Posts: 6,755 |
I find it interesting that they talk about running out of money in the Social Security system, that we paid into our entire working lives. However, they don't expect to run out of money in the welfare system that the recipients never paid a dime into.
He who joyfully marches in rank and file has already earned my contempt. He has been given a large brain by mistake, since for him the spinal cord would suffice.
- Albert Einstein
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Joined: Apr 2004
Posts: 42,827 Likes: 4
Campfire 'Bwana
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Campfire 'Bwana
Joined: Apr 2004
Posts: 42,827 Likes: 4 |
My wife and I both started drawing our SS at full retirement age (66). We debated holding off, but you never know how long you will live and it takes many years to recover what you gave up, even at the higher rate.
I'd rather have the extra money while I'm young enough to use it to enjoy life.
My wife is a retired Certified Financial Planner, knows the ins and outs, and took hers at age 66. took mine at 67...like 6 months ago.. mine is all going into a Trust account for my wife, for when I'm no longer here.. i could have gotten another 1,000 a month if I waited until I was 70.. but then I also figured in that time period, I would be passing on 100K I could put in the bank between now and then for her.... so It feels odd, getting something from the government... but i don't really see it, so don't even really know its there... wife gets $2500 a month put in a trust fund for her, so she's happy.. now she just hopes I will last a long time, being around and being healthy....i don't have to deal with Medicare and Medicaid.. because I am covered under her health plan at the hospital.. wife is 8 years younger than me... so she's got a way to go to retire, and with her job, its not that hard, so she'll probably stay working there another 10 to 15 years... my retirement plan is diabetes.. and keeping me afloat as long as I can while dealing with that... so far so good...pretty healthy considering... and going on 10 years as a cancer survivor... Good knows when my time will come, so I don't really worry about it much, if at all... ain't afraid of dying.. I just don't want it to be in some nursing home bed, or hospital bed, full of tubes in my nose and in my arms.. and life revolving around having to use the bed pan.. and possibly being fed thru a tube... my prayer is to just go to bed one night and not wake up the next morning... heart attack or stoke..and boom, gone like Yoda went.. if I wasn't married, the government could just keep their damn money....
"Minus the killings, Washington has one of the lowest crime rates in the Country" Marion Barry, Mayor of Wash DC
“Owning guns is not a right. If it were a right, it would be in the Constitution.” ~Alexandria Ocasio Cortez
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Joined: Apr 2011
Posts: 151,746 Likes: 15
Campfire Savant
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OP
Campfire Savant
Joined: Apr 2011
Posts: 151,746 Likes: 15 |
I don’t really like taking that government money either. I’ve never taken a nickel before, but it’s mine. Mine is only 1700.00 a month. I’ve been putting money in another plan for the last 31 years.
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Joined: Aug 2003
Posts: 13,945
Campfire Outfitter
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Campfire Outfitter
Joined: Aug 2003
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Joined: May 2003
Posts: 31,273 Likes: 7
Campfire 'Bwana
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Campfire 'Bwana
Joined: May 2003
Posts: 31,273 Likes: 7 |
Just to keep the numbers simple and anonymous, let's say you'd get $1000/month at age 62, and $1500 at 66. You are about to turn 62.
If you wait, you get nothing for those four years.
If you start taking SS now, you'll receive $48,000 before turning 66.
It will take you 96 months (eight years) after turning 66 to make up the $48,000 you did not receive. So you really don't get any "more" until you pass age 74. The real difference then is 12 years to "break even" not four.
In my case, I started taking SS the moment I was eligible. I used that money to pay all my bills and become debt free within the first couple years. My SS is now my pocket money for the month because I also get my Air Force pension. I would have "broken even" in 2021 but I already am drawing more than I can spend, so for me, taking SS as soon as eligible was the smart choice.
Your situation will certainly be different, so consider carefully.
Cleverly disguised as a responsible adult.
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Joined: Sep 2009
Posts: 46,253 Likes: 2
Campfire 'Bwana
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Campfire 'Bwana
Joined: Sep 2009
Posts: 46,253 Likes: 2 |
Yes, they tax the SS if you make too much money. So they tax us all our lives, get to use the SS money we've paid in for decades interest free, then re-tax us on the money they owe us that they got to use interest free?
Trump Won!
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Joined: Nov 2013
Posts: 28,819 Likes: 6
Campfire Ranger
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Campfire Ranger
Joined: Nov 2013
Posts: 28,819 Likes: 6 |
I don’t really like taking that government money either. I’ve never taken a nickel before, but it’s mine. Mine is only 1700.00 a month. I’ve been putting money in another plan for the last 31 years. Don't sweat it. You paid into it, they used your money all those years, now it's time to start getting it back. Even the money your employers paid in was part of your compensation, hence money you earned. Next time you get one of those summaries from SSA, look at how much all those taxes you paid over the years amounts to, and the interest it would have earned, and your conscience will be clear.
What fresh Hell is this?
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Joined: Apr 2004
Posts: 42,827 Likes: 4
Campfire 'Bwana
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Campfire 'Bwana
Joined: Apr 2004
Posts: 42,827 Likes: 4 |
Yes, they tax the SS if you make too much money. So they tax us all our lives, get to use the SS money we've paid in for decades interest free, then re-tax us on the money they owe us that they got to use interest free? Jerry, ever met a politician that didn't love every tax they could dream up... I maintain that you find a nickle laying on the side walk, in front of you, if you pick it up.. the government still wants their share of it.. you look at Oregon State Tax laws, they "require" every citizen in every state to file an Oregon Income Tax form each year... That's stupid and they don't or can't enforce it...so why have it on the books? its to blanket their laws, "just in case" they can figure out a way to tax someone or prosecute them "just in case" they need to, like using Uncle Bill's address in Washington state as your residence, to avoid Oregon Tax, since Washington State doesn't have an income tax... or at least didn't use to... all of these politicians burn the midnight oil figuring out ways to get more money out of the working folks of the world... so they can save the nonworking burden to society bums, and entice them to vote democRAT... told my representatives many a time, there are still only 100 pennies in a dollar.. and they still think they deserve more of those pennies than you do...
"Minus the killings, Washington has one of the lowest crime rates in the Country" Marion Barry, Mayor of Wash DC
“Owning guns is not a right. If it were a right, it would be in the Constitution.” ~Alexandria Ocasio Cortez
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Joined: Jan 2006
Posts: 69,403 Likes: 5
Campfire Kahuna
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Campfire Kahuna
Joined: Jan 2006
Posts: 69,403 Likes: 5 |
Did y'all pull SS as soon as you were eligible for full amount? My finance guy is encouraging me to wait as long as possible to get as much as I can. He considers it a sure investment. Yes, your monthy payments are larger if you wait. However... Assume you're 62. Total up how much SS you'll get between now and age 66. Divide that by the difference in monthly payments at 62 and 66. That will give you the number of months it will take at the higher rate to make up for what you don't get between 62 and 66. If you live to more than the average life expectancy, you'll get more by waiting. If you don't, you make more by starting earlier. A bigger issue is health insurance between 62 and 65 when you can go on Medicare. That can add up really fast if you don't have a company paid plan.
“In a time of deceit telling the truth is a revolutionary act.”
― George Orwell
It's not over when you lose. It's over when you quit.
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Joined: Nov 2013
Posts: 28,819 Likes: 6
Campfire Ranger
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Campfire Ranger
Joined: Nov 2013
Posts: 28,819 Likes: 6 |
They taxed less than half of mine last year, so you could say that they're taxing most, not all of the employer-paid money, if that makes you feel any better!
One warning for anyone getting a separation payment or early retirement incentive: that money is counted as earned-income, and so applies to the limit that SS uses. Happened to a lady I worked with. She retired at 58 with a separation payment, began collecting her late husband's SS at 60 and the incentive money put he over the limit. She was pissed at the government, but she was paying a financial planner to handle everything, and he let her down on this big-time. I told her that, and then she was mad at me too!
What fresh Hell is this?
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Joined: Sep 2014
Posts: 3,464
Campfire Tracker
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Campfire Tracker
Joined: Sep 2014
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I took my SS at 62. I had a friend that said I was nuts for taking it early. He waited, he didn't live to 65. The government counts on that.
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Joined: Apr 2011
Posts: 151,746 Likes: 15
Campfire Savant
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OP
Campfire Savant
Joined: Apr 2011
Posts: 151,746 Likes: 15 |
Medicare make most people wait until 65 to retire.
Wifey is younger. I’m hoping she can retire at 62. She has a good bit in her 401, so maybe she can pay insurance with that until Medicare time. I’m still working to get my retirement up, so maybe she can retire at 62. I’ll be needing someone to take me to doc appointments!!!😎😎😎
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Joined: Sep 2011
Posts: 1,965
Campfire Regular
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Campfire Regular
Joined: Sep 2011
Posts: 1,965 |
You can thank Algore for the federal tax on social security - he was the deciding vote since the Senate was tied on that particular vote. As head of the Senate , he was responsible for casting the vote.
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Joined: Nov 2013
Posts: 28,819 Likes: 6
Campfire Ranger
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Campfire Ranger
Joined: Nov 2013
Posts: 28,819 Likes: 6 |
I don’t really like taking that government money either. I’ve never taken a nickel before, but it’s mine. Mine is only 1700.00 a month. I’ve been putting money in another plan for the last 31 years. When you turn 65, they're going to start deducting for Medicare Part B, currently $144 a month here. You can opt out of that, but I don't recommend it, as that's the part that pays for your doctor, not hospital bills. There's also Part D for prescriptions, but I have employer coverage, so don't know how much that is.
What fresh Hell is this?
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Joined: Mar 2009
Posts: 4,413 Likes: 1
Campfire Tracker
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Campfire Tracker
Joined: Mar 2009
Posts: 4,413 Likes: 1 |
I'm with you on retiring at 62.I took mine at 62 last year.They want you to keep working until you die so they don't have to pay you a dime back.Good thing I had a job that is paying me retirement too.SS is BS.Such a small amount they expect a person to live off of in their later years.And they tax you on what they give you.Then at 65 you have to pay again for Medicare.
~Molɔ̀ːn Labé Skýla~
As Bob Hagel would say"You should not use a rifle that will kill an animal when everything goes right; you should use one that will do the job when everything goes wrong."Good words of wisdom...............
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Joined: Aug 2012
Posts: 2,435
Campfire Regular
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Campfire Regular
Joined: Aug 2012
Posts: 2,435 |
[quote=Sakoluvr]Retirement income is a mosaic at best. I'm gonna jot that down for sure!
"Keep your mouth shut, work hard. Life is tough. Work through it.” -- Stetson Bennett, Quarterback, Georgia Bulldogs
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Joined: Sep 2009
Posts: 46,253 Likes: 2
Campfire 'Bwana
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Campfire 'Bwana
Joined: Sep 2009
Posts: 46,253 Likes: 2 |
Yes, they tax the SS if you make too much money. So they tax us all our lives, get to use the SS money we've paid in for decades interest free, then re-tax us on the money they owe us that they got to use interest free? Jerry, ever met a politician that didn't love every tax they could dream up... I maintain that you find a nickle laying on the side walk, in front of you, if you pick it up.. the government still wants their share of it.. you look at Oregon State Tax laws, they "require" every citizen in every state to file an Oregon Income Tax form each year... That's stupid and they don't or can't enforce it...so why have it on the books? its to blanket their laws, "just in case" they can figure out a way to tax someone or prosecute them "just in case" they need to, like using Uncle Bill's address in Washington state as your residence, to avoid Oregon Tax, since Washington State doesn't have an income tax... or at least didn't use to... all of these politicians burn the midnight oil figuring out ways to get more money out of the working folks of the world... so they can save the nonworking burden to society bums, and entice them to vote democRAT... told my representatives many a time, there are still only 100 pennies in a dollar.. and they still think they deserve more of those pennies than you do... Yessir, dirty rotten pieces of dogshlt, tax/STEAL from us poor working bassturds to give to the lazy inbreds, project 'boons and countries that want us dead!  i'll continue to remain ignorant by choice on finance, that's why I hire accounting firms to handle my paper work, plus, I DO NOT want to learn the truth about .gov's citizenry theft numbers!
Trump Won!
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Joined: Apr 2011
Posts: 151,746 Likes: 15
Campfire Savant
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OP
Campfire Savant
Joined: Apr 2011
Posts: 151,746 Likes: 15 |
I don’t really like taking that government money either. I’ve never taken a nickel before, but it’s mine. Mine is only 1700.00 a month. I’ve been putting money in another plan for the last 31 years. When you turn 65, they're going to start deducting for Medicare Part B, currently $144 a month here. You can opt out of that, but I don't recommend it, as that's the part that pays for your doctor, not hospital bills. There's also Part D for prescriptions, but I have employer coverage, so don't know how much that is. Yep. I have ABD&G. They take it out of my SS now, plus the penalty for Wifey and I making too much, about double if weren’t making too much money. That penalty will go away when I retire.
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