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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 12481
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I will be 62 next month. I want to understand Social

Customer Question

I will be 62 next month. I want to understand Social Security. I was just invited to a deinner to hear about it, things like waiting for full, pitfalls of taking it early, anything and everything I need to know.
Submitted: 1 year ago.
Category: Social Security
Expert:  Lane replied 1 year ago.

Hi Yvonne. My name's Lane. I can help here.

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I'll try to get to the "bottom line," here and then you can ask anything you'd like.

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Full retirement age, as you likely know, is age 66.

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Taking the benefit as early as possible, will cause a 25% reduction of that Full Retirement Age benefit (1000 per month becomes 750 per month if you take your benefit at age 62).

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Now, waiting PAST age 66 adds 8% per year to your benefit for every year you wait. That $1000 benefit becomes $1320 per year. (... up to age 70 ... not taking after age 70 is just leaving money on the table - It won't go up any more) ... This is called getting delayed retirement credits.

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Now, after laying that basic foundation it's a guessing game... If a person takes at age 62, then dies at age 66, they win.

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If they live to age 90 then it likely makes sense to wait as long as possible.

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If you think you'll only live to age 80 (because you be collecting that extra money for so much less time) full retirement age (maybe a year of so longer, maximizes your lifetime benefits.

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Then we get to the even less measurable parts of the decision. Will that extra money coming in from 62 to age 66 make your life much better (the other side of that question is, do you NEED that money at all?)

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Will waiting UNTIL 66 end up giving you enough that after paying the bills, you can make that new car payment, take a NICE vacation every year after that.

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The math is easy ... how long we are going to live, and HOW we want to live are the parts of the decision that are art more than science.

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Let me know what questions you have from here

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Lane

Expert:  Lane replied 1 year ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

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But again, let me know if you need more here.

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Lane

Expert:  Lane replied 1 year ago.

Hi,

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Did my answer help?

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

...

But again, let me know if you need more here.

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Lane