Retirement and Social Security...

[makescents]

I know at 36 I have a ways to go...
But I was talking with my aunt about this the other day.. and it got me to thinking?

AT WHAT AGE DO YOU PLAN TO RETIRE AND WHY?

 

[makescents]

I ask because My aunt told me that she was told... If you retire now at 62 you will draw $900 per month... but if you wait until you're 66 that amount will go up by $48 A YEAR..

Okay - seems like simple math to me... Even if you live another 20 years.. that is only $192.00

If you take the $900 per month at 4 years.. (the difference between 62 and 66) You make $43,200...

HHMMMM????

 

[jbarb]

I thnk that should be $48 a month, not a year. For me, I have several years before I am eligible but I am over 50 so I get the SS reports every year telling me what my estimated SS income would be. The difference between 62 and 66 is actually about $400 a month. That is of course if I continue to earn what I earn right now.
My wife on the other hand is eligible right now. She can take her SS right now at age 62. If she waits 4 years it will go up almost $75 a month. She has not worked for many years so her SS is based on her last quarter of income.

Jim

 

[vghstaffer]

Retire? Hahahahahahahahaha

 

[hollyflr]

In my circumstance, that is not correct, when I calculated mine, I would have received approximately 1/3 more if I had waited the four years until I was 66. I did not wait because of an article I read that stated the surviving spouse receives the social security of the deceased spouse, if the deceased's social security is greater. There are also cost of living annual increases.

 

[makescents]

Okay - Even if it were $48 per month that is only $11,520 if she lives to 82 In comparison to the $43,200 she would get for those four years between 62 and 66..

For you - I think SS maxes at like $2900.. so we will just run with that.. If you take the $2500 now - over the next for years.. that is $120,000 - compared to the $96,000 extra you get with the $400 per month (for 20 years) It is STILL $25,000 less than you could get..

I don't understand this - The people that wait to retire are actually getting LESS of their SS money... Unless of course they live to be 110...

 

[makescents]

In my circumstance, that is not correct, when I calculated mine, I would have received approximately 1/3 more if I had waited the four years until I was 66. I did not wait because of an article I read that stated the surviving spouse receives the social security of the deceased spouse, if the deceased's social security is greater. There are also cost of living annual increases.

Did you actually calculate the total dollar amounts? Not the monthly payout.. but the difference between the greater amount for waiting and the amount you would get over those 4 extra years? In comparison to how long you thought you may live.. another 20 - 25 years.. (to 85 or 90)

 

[hollyflr]

Okay try this.

At Age 62, die at age 85 Early Retirement
$1450 *12 months*23 years = $400,200

At age 66, die at age 85, Full Retirement
$2200*12 months*19 years= $501,600

This is a down and dirty quick calculation, no actuarial tables, or cost of living or state of the economy involved.

But, it appears that if you wait until full retirement and live to 85 you will received more benefits. Taking your benefits at any age requires careful thought and consideration of your circumstances.

Susan

 

[makescents]

Is there normally a $550 a month increase if you wait the four years?? that is a lot?

Above is was $75 / month and $400 per month... and that of course would not make up the difference.. over the course of the years.. For my Aunt it was $48 difference.

I guess that it is different for everyone...

 

[hollyflr]

It's not a set amount, it's more like a percentage, I believe mine was about 66% of The full retirement amount. Everyone's exact benefit is different because of different work and salary histories.

The social security administration's website is excellent in explaining all of this.

Susan