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cruzbill · 06-09-2017, 11:06 AM

Burns, The 'windfall' provision in my case, similar to yours, amounted to $140 or some such as a one time deduction. Get a hold of your pension folks, they can explain it. I was upset too, until I found out the actual amt.

rvethereyet · 06-09-2017, 11:16 AM

Quote:

Originally Posted by wnytaxman

I get asked that question by clients at least several times a year. I tell them that I can answer that question if they will just answer one question for me. I ask them, When are you going to die? That dictates what's best for them.

The examples that are out there are that if you would draw $1,000 a month at full retirement age of 66, you will lose 25% of that by drawing at 62. Every month you wait past age 62 will generate about 1/2% a month. If you wait until age 70 that same $1,000 becomes $1,320 a month.

Remember that whatever decision you make is for life. In other words that 25% haircut you receive at age 62 will still be with you at age 82. I have had many clients regret taking their SS at 62 because they outlived their savings and now have to rely on just SS to survive.

We usually try to look at family history as well as other factors to see what makes the most sense in terms of when to draw. Longevity in a family would indicate that waiting may be the best option. Short life spans within a family would seem to make taking it early to be a better decision.

Thanks for sharing. Good info

rvethereyet · 06-09-2017, 11:17 AM

Quote:

Originally Posted by redcolorado

Both retired at 62 and no regrets.

Thanks red. Still in colorado?

rvethereyet · 06-09-2017, 11:18 AM

Quote:

Originally Posted by cruzbill

Actuaries, now that is a miserable job; and I thought the dismal science was econ.......Rather than all betting on when I may expire, how about more research on living?

Good thoughts

Winemaker2 · 06-09-2017, 11:19 AM

We split it and sort of hedged our bet.
DW started early w a small benefit and thetefore a small reduction... I was still working part time eventhough I retired at 55 (53 really but it's a long story).
I took full at 66... the benefit is not only my increase but also DW is now benefitting from my higher amount. The increased survivor benefit was also a factor for DW as we elected single payee for my pension and bought term life ins for less than the difference of adding DW on pension
Lots to consider but as others said we are betting and planning to live long enough for it to be beneficial and if not who will care??? Only our estate...not my worry

rvethereyet · 06-09-2017, 11:20 AM

Quote:

Originally Posted by Mr_D

My late wife had a job like that. She was in the shipping industry on the Great Lakes. When they iced over in the winter she used her yearly bonus to take cruises.

Good times

rvethereyet · 06-09-2017, 11:22 AM

Quote:

Originally Posted by GoneToTheDog

I just applied last month. I will be 62 in late August. The first check arrives in October.

My partner and I are both retired, and have an investment income that provides us us with a comfortable lifestyle. We have very little debt.

Our combined health insurance premiums currently run just over $1,800 a month, and we can be sure premiums will rise again next year. My SS will be used to offset some of that.

My oldest brother dropped dead at 60. The other brother is bedridden with COPD and may or may not make his 64th birthday in July.

I'm pretty healthy...but it still made me think...take SS at 62.

Yep, that hell insurance is a costly consideration.

rvethereyet · 06-09-2017, 11:28 AM

Quote:

Originally Posted by baraff

I'm 63 and retired two years ago. My wife is still working but may retire at the end of this year or next.
My situation is a bit different. I have a small public sector pension (~1300/mo) and I am also eligible for SS because I worked in the private sector for at least 24 years. However, SS has a thing called the "Windfall Elimination Provision", which bases how much SS you'll get if you also have a public pension. Meaning I won't get my full SS benefits when I take them. At first glance it doesn't seem right, although to be fair when I was working in my public sector education job (IT), I was not paying into SS.
That said, I am planning, on the advice of my financial planner, to wait until I'm 70 to take benefits. His recommendation a few years ago was to file at 66 and suspend payments until then. Hopefully that still remains true.
My wife will also have a small pension when she retires, from a previous employer. In fact, in order to reduce their pension payout they offered her a chance to claim it early. We declined and will wait til she turns 65. Beyond that we have 401Ks and IRAs to fail back on until it all kicks in.
Here's hoping they don't move the goalposts too far apart in the coming years...

Wow you are talking about some things I never heard of. Fireman? Police? Still going to wait til 70? What is this suspended payment?

rvethereyet · 06-09-2017, 11:33 AM

Quote:

Originally Posted by Winemaker2

We split it and sort of hedged our bet.
DW started early w a small benefit and thetefore a small reduction... I was still working part time eventhough I retired at 55 (53 really but it's a long story).
I took full at 66... the benefit is not only my increase but also DW is now benefitting from my higher amount. The increased survivor benefit was also a factor for DW as we elected single payee for my pension and bought term life ins for less than the difference of adding DW on pension
Lots to consider but as others said we are betting and planning to live long enough for it to be beneficial and if not who will care??? Only our estate...not my worry

So you waited while your wife took early. We cant take it with us. When we are gone who cares.

rmbmrm · 06-09-2017, 11:36 AM

We are struggling with this as well... DH wants to retire and suggested living on our savings until he is 66.5 - my point was that I can leave my savings account to a beneficiary, but I can't leave my SS to anyone.

I have a government pension plan, so windfall will limit what I get. Instead I have to play with the age and years of service thing.

It's a tough call..

UFO Pilot · 06-09-2017, 11:36 AM

On the advice of our CPA, we both took ours at 62. No regrets.

rvethereyet · 06-09-2017, 11:46 AM

Quote:

Originally Posted by rmbmrm

We are struggling with this as well... DH wants to retire and suggested living on our savings until he is 66.5 - my point was that I can leave my savings account to a beneficiary, but I can't leave my SS to anyone.

I have a government pension plan, so windfall will limit what I get. Instead I have to play with the age and years of service thing.

It's a tough call..

You are right about not leaving SS to someone else

rvethereyet · 06-09-2017, 11:48 AM

Quote:

Originally Posted by UFO Pilot

On the advice of our CPA, we both took ours at 62. No regrets.

Thanks. Wondering what cpa's thoughts were to take it early, Glad to hear you have no regrets.

Old-Biscuit · 06-09-2017, 11:54 AM

I retired 2 months shy of turning 50.....actually I quit one Friday AM and after meeting with my investment guru on Monday i declared myself RETIRED.
Took a monthly draw from my investments for the next 12 yrs and then took SS early at 62 and suspended the investment monthly draw.

I just turned 64.......no regrets/no ah shucks/no second guessing-----VERY happy with BOTH decisions

Retired early, traveled FT in an RV for 7 yrs., still have good investments and am now getting back some of those monies I sent to gov for safe keeping BEFORE they completely mess it up.
And STILL debt free.......which made it much more manageable to begin with.