Turning 62 and aplying for SS. Any suggestions?

[formariz 11,987]

I'll be turning 62 in a few months and decided to apply for my SS pension. From my calculations its not worth it waiting for the full retirement age for me which would be 67, to get the full monthly amount. It only starts making a difference at 80 for me  by a Thousand dollars that year so why wait. May not live that long. Any advice on the process greatly appreciated. Where did time go?

[stevasaurus 22,710]

Cas...it is very easy to do on line.  Type in the web site...it will tell you what papers to have handy when you fill out the form.  They won't let you apply until you are 3 months before your 62nd birthday, but you can go into the web site and check things out.  You want to do it right after the 3 month thingy though.  

 

Things like SSN, DOB, Checking account routing numbers.

 

[squonk 41,030]

Turning 62 in Feb. MEE TOOO!! I hope to retire right before the big show so we can celebrate at the Tailgate of Knowledge! 

[Racinbob 11,045]

Like Steve said, very easy and painless. I've heard horror stories about it and was a bit apprehensive but once I did it I had to wonder what the scoop was to those stories. Maybe if it's disability 

[JAinVA 4,619]

I tried to apply for medicare on line when I turned 65.It asked if lived on a street I never heard of in the 70's.On what day did I started working for such and such a company and the month I stopped woking for them back in the late 70's.I got some answers wrong but they wouln't say which ones.Their computer locked me out and I had to wait days to try again.Some of the question I had no idea of theanswers.I finally gave up and called the local SS office.Two days later a lady at the local office called me and in 14 minutes on the phone had me set to go.Within a week I had my card.The next year I went to the local office to get SS benifits.The building had no outdoor signage.They only let 1 person in at a time and only let the next in after going through the metal detector.My wife was with me and once in the waiting we noticed the three armed security guards.I got trough it but not a pleasant experience.

Edited May 20, 2020 by JAinVA

[formariz 11,987]

Thank you guys. I’ll start another thread about disability which my wife is applying for. Big recent changes there not to our benefit.

[elcamino/wheelhorse 9,296]

1 hour ago, squonk said:

Turning 62 in Feb. MEE TOOO!! I hope to retire right before the big show so we can celebrate at the Tailgate of Knowledge! 

O no he will be on RS 24/7

[rmaynard 15,428]

Just my take. I retired and started taking my SSA at age 62. Hindsight...I should have waited until later. Here is a quote from someone wiser than me. I'm not sure who to credit this to, but I found it in an email that I received some time ago.

 

"You should hardly ever start taking Social Security at age 62, which is when you can first elect to receive your retirement benefit. That’s especially true if you’re single or the higher earner in your marriage. If you start taking it at 62, your monthly payout will be 25 to 30 percent less than what you would get by waiting until your full retirement age (66 or 67, depending on the year you were born). Plus, if you take Social Security early and you die before your spouse, his or her survivors benefit will be lower, too.

A better plan is if you wait until 70. Every year you wait between your normal retirement age and 70, Social Security will add a guaranteed 8 percent to your eventual monthly payout."

 

[857 horse 2,581]

46 minutes ago, JAinVA said:

I tried to apply for medicare on line when I turned 65.It asked if lived on a street I never heard of in the 70's.On what day did I started working for such and such a company and the month I stopped woking for them back in the late 70's.I got some answers wrong but they wouln't say which ones.Their computer locked me out and I had to wait days to try again.Some of the question I had know idea of answers.I finally gave up and called the local SS office.Two days later a lady at the local office called me and in 14 minutes on the phone had me set to go.Within a week I had my card.The next year I went to the local office to get SS benifits.The building had no outdoor signage.They only let 1 person in at a time and only let the next in after going through the metal detector.My wife was with me and once in the waiting we noticed the three armed security guards.I got trough it but not a pleasant experiance.

WOW,,,,SOUNDS LIKE THE DMV

[Racinbob 11,045]

I think you need to look at the big picture. It even states on their site that no matter when you start drawing it ultimately the total you will end up receiving will be close to the same. Of course there are exceptions. The key is other sources of income. Pensions, annuities, etc.  My wife and I discussed it very carefully before we did anything. Her income will be hit the worse if I croak first. But we are fortunate that she will still have a very livable income so our decision was to go for it. Cas, as you did we did factor in when the balance would go the other way but ultimately it was a no brainer.....for us. As I'm sure you have, you and the Mrs. need to decide what's best for your situation. 

[stevasaurus 22,710]

It does depend on if you are still working part time of what ever.  I took it at 62 and never looked back.  You should have a financial adviser...talk to him or her.  One other thing...if you take the SS at age 62, the system will automatically enroll you for Medicare at 65.

 

Carlotta...deep fried pork Cas...the etched skin was to die for.   

 

[squonk 41,030]

It's a crapshoot. You can take it at 62 and die at 65. Or plan on 67 and die at 65. I'd rather get a little as opposed to nothing. My line of work has beat the hell out of me. The last 7 years I've had a shoulder, back and 2 knees operated on as well as a heart attack. I'm ready.

[oliver2-44 9,691]

At a financial seminar I went to they were saying the partner with the lower benefit but better health should take it first.   As an example women typically live longer than men and have the lower benefit. So then the man waits a few years to get a higher benefit   When the husband dies his wife will switch to getting his higher benefit. 

[953 nut 55,083]

My wife and I both retired when we were 61 and started drawing SS at 62. We were blessed with good health, financial security (no bills) and continuing to work just didn't seem like a fun thing to do. The freedom to be with our parents during their final years and the ability to travel while we were able to enjoy it was well worth the reduction on monthly checks. Bob's @rmaynard point about putting off retirement is sound from an actuarial point of view, but for us it was more of a lifestyle and mental health decision. We both had demanding jobs that paid well but drained us emotionally.

The biggest drawback if you plan to continue working is that SS will reduce your payments until you reach full retirement age. Look into that before pulling the trigger.

 

https://www.ssa.gov/pubs/EN-05-10069.pdf

[Ed Kennell 38,023]

When I became 62, I requested several weeks of unpaid time off and was denied by my company.

  I really enjoyed the work I was doing and wanted to continue working in the Hydro Turbine Industry, but I needed more free time to enjoy my family and my passion for hunting and fishing.

My company monthly pension had previously been locked when the company switched to a 401K pension system.

So, I retired at 62, took my monthly pension, and continued to work for the same company as a consulting contractor and was able to set my own hours for the next 5 years.

I did NOT take my SS for several reasons.

As I planned to continue working, my SS would have been reduced when I exceeded the maximum income allowed every year.   This max. increases every year.

When I retired at 62, based on the national bureau of statistics, I was expected to die at age 77.

This was the basis for my monthly SS payments.    Knowing exactly the total amount of money I paid into the SS system and knowing the monthly payment I would receive if I took my SS at age 62 or 65, or 70,  If I did die at age 77 as expected, the total amount that I would receive would be within $100 of the total amount I paid in to the system.

So, if you die when expected, it does not matter when you start SS as you receive the same total amount.

If you live longer than expected, it is best to take SS later as the payment for those extra months will be greater.

If you die before expected, it is best to take SS earlier as the monthly payments you lose will be less.

 

The other item to factor in is health insurance. 

My company health insurance ended when I retired at 62.  Under the COBRA bill, I was able to purchase the same group plan that that my company had while I was working.

Of course the COBRA ended before I reached 65 and I had to purchase expensive insurance for another 18 months.  

There is a very inexpensive SHORT TERM INSURANCE that that is limited to 6 months.

 

Three months before my 65th birthday, I did apply for SS and medicare on line.

  It was a simple process and it was critical that medicare started the month after my 65thbirthday as that is when my expensive private  insurance policy ended.   

Someone dropped the ball in transferring my online application to the local SS office, and It became a bit of a nightmare to get it straightened out and get my medicare in place before my private insurance ended.     I did manage to make it happen on the last day.

 

Each persons situation is different, and you have to look at all the options and take your chances.

 

    If I live 7 more months , I will make money by taking SS later.         Good Luck!

 

 

[formariz 11,987]

Thank you everyone. Been thinking about this for a bit and have considered all the possibilities but the decision is not always as easy as it seems. Wife has now applied for disability and I just may wait to see how that goes. It will be another thread soon. Although any money in my pocket is a good thing, its not really the financial or insurance aspects of it that is driving this. We have been very fortunate in life and we have done extremely well for ourselves. We both collect hefty pensions, me from the Carpenters Union and my wife from the state of New Jersey from her Teachers job of 40 years. Even if we do not collect any SS we live without any financial worries not even considering touching our life savings. I work because I love to do so and probably will while I am able but do so at my will and do not have to. Insurance is not a concern also since we are both overly insured from our jobs , one picking up what the other one does not. When Medicare kicks in then both insurances will become the secondaries to it, so it should be OK then also. Taking everything into consideration for me it does not make any sense to wait any longer  and just collect what I am entitled to now before any changes are made to the system. You never know what they are going to do and it almost never is for our benefit. Case and point my wife's disability claim  since they have changed the rules within the last year or less.

 

PS. I will probably fall off the wagon due to @stevasaurus constant teasing and temptation and will probably then live less than I should so that just reinforces my decision to start collecting now.

Edited May 21, 2020 by formariz

[shallowwatersailor 3,213]

One thing with our Social security plan to be aware of is that the monthly payment for Medicare is deducted from your Social Security payment. The premium is $144.60 per month in 2020. An example would be that if you use the SS calculator and it says that you would get $2,000.00 per month, Medicare will take $144.60 leaving you with only $1,855.40.

[Daddy Don 905]

When I retired at 62 I took my  SS and have not looked back I am now 72.  The one thing that I did not know was my wife also get $800.00 a month because she never worked long enough to draw SS on her own. It did not change the amount that I received and when I die she will get my amount and lose the amount she is getting.

Check it out. But if she did work she would draw on herself. 

[953 nut 55,083]

10 hours ago, formariz said:

just collect what I am entitled to now before any changes are made to the system. You never know what they are going to do and it almost never is for our benefit

You got that right.   My plan at the time we began drawing SS was to go off SS at age 65 and repay the total dollar amount we had received to that point from our savings, then begin receiving full payments.  A few months before I turned 65 Congress changed the rules and eliminated this provision with no warning and it was effective that day. Not too much of a difference though, our investments have continued to grow faster than the gain we would have realized by doing that.

[JERSEYHAWG / Glenn 4,497]

Best of luck. Its simple.Re waiting till your an older age to get it. Why wait? If you calculate the lost income you will never get it back. Also, no one can guarantee what age you will live to. So get it now. Just my 2 cents. Best of luck.

 

Glenn

[rmaynard 15,428]

Caz, considering what you added about you and your wife having good pensions, continued insurance, and investments, there is no reason why you shouldn't take it now. For you it will just be bonus money. In my case, I was self-employed and have no pension. Living off investments would not last long. Social Security was and still is my primary income. I needed to start taking it at age 62. 

[dcrage 627]

Caz, one other thing to be aware of. My wife is a retired teacher in MO. She DOES NOT receive any additional $s from SS if I die before her. Any death benefit she would get from SS will reduce her state teacher retirement on a $ for $ basis. Her retirement program was very adamant about this from the start. So for us how long I could draw was the only thing that mattered. Just something else for you to consider, NJ may have the same system in place for your wife’s retirement. 

[formariz 11,987]

31 minutes ago, dcrage said:

Caz, one other thing to be aware of. My wife is a retired teacher in MO. She DOES NOT receive any additional $s from SS if I die before her. Any death benefit she would get from SS will reduce her state teacher retirement on a $ for $ basis. Her retirement program was very adamant about this from the start. So for us how long I could draw was the only thing that mattered. Just something else for you to consider, NJ may have the same system in place for your wife’s retirement. 

Good point. Need to inquire about hat. She has applied for disability wonder if it affects that the same way.

[Ed Kennell 38,023]

I am sure you are aware you will be required to begin taking RMW (required minimum withdraws) from any tax protected investments when you reach 70.5 yoa.

I would strongly recommend converting all to the ROTH IRA system.  You pay the tax up front on the principal , but all the earnings are tax free whenever you take your RMW.

[953 nut 55,083]

2 hours ago, Ed Kennell said:

you will be required to begin taking RMW (required minimum withdraws) from any tax protected investments when you reach 70.5 yoa

If you have a church or other charitable, educational or other 501-C3 that you wish to support financially you can do so without any tax liability by way of a QCD. You have a few years to go for that, but others may be able to use this now.

 https://www.fidelity.com/building-savings/learn-about-iras/required-minimum-distributions/qcds