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Thread: Social Security at 62?

  1. #37

    Default Re: Social Security at 62?

    This data gives a better idea of actual life expectancy:
    Actuarial Life Table

    The thing to do would be to copy the table into excel, and find the number of deaths for each year but subtracting the "Number of lives" of the previous year, from the "Number of lives" in the current year. If you graph that, you'll get a nice left-skewed distribution that shows how the "average" life expectancy FROM BIRTH isn't a great way to estimate how long you'll live.

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  3. #38

    Default Re: Social Security at 62? File and Suspend

    Last edited by Maricar19; 06-13-2015 at 08:38 PM.
    Emotions should never play a role in one's investing strategy!
    No to Greed...No to Fear!
    http://share.robinhood.com/mariloc1

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  5. #39

    Default Re: Social Security at 62? File and Suspend

    We are taking a look at the question of SO drawing SS at age 62 w/ 25% reduction. Based solely on math it will take 12.4 years from FRA (66 for her) to break even. This would be at age 78. I.E. She would be 78 before she would reach break even point. Even longer if the money is invested well as it is collected (even if only after tax amount is invested). I like the point raised about money set aside for heirs or for long-term care. Leaning towards drawing early and investing amounts collected as received! Thanks for the input! One of the best things about TSPTalk!

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  7. #40

    Default Re: Social Security at 62? File and Suspend

    I realize everyone is different (longevity issues, spousal benefits, etc.), but the one thing most of these posts have in common is treating SS as an investment. As for me, I tend to think of it more as insurance. I figure my retirement based off of FERS, TSP, and outside investments. SS is there in case I mess those up. Given my track record, that is a distinct possibility. I therefore choose to increase my insurance because I have a spouse dependent on me for retirement as well. Just another take on it.
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2025
    Past Returns:
    2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%

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  9. #41

    Default Re: Social Security at 62? File and Suspend

    Quote Originally Posted by Scout333 View Post
    We are taking a look at the question of SO drawing SS at age 62 w/ 25% reduction. Based solely on math it will take 12.4 years from FRA (66 for her) to break even. This would be at age 78. I.E. She would be 78 before she would reach break even point.
    And she would be expected to live to 84-85.

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  11. #42

    Default Re: Social Security at 62?

    Here is an article addressing different scenarios for withdrawing SS at age 62 that may apply to some folks. I personally plan to withdraw mine at age 62 for investing and traveling.

    When It Makes Sense To Take Social Security Income At 62

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  13. #43

    Join Date
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    Default Re: Social Security at 62?

    Quote Originally Posted by ripper View Post
    I've always planned to take my SS when I reached 62. But after looking at it from a different viewpoint, I'm not so sure.

    Delaying SS payments after 62 increases the eventual payment by about 5-7%/year until age 66 (8%/year after 66). This seems to me to be similar to receiving 5-7%/year (tax-free) on an investment. Not sure if I'm viewing this accurately.

    If I delayed my payments, I would withdraw a similar amount from my retirement accounts until I began receiving SS. It would be about 2% of my total retirement funds and I'm OK with that. The downside to this is that those retirement withdrawals would be mostly taxable, while SS would not be. So maybe it would be kind of a wash...
    I think I might wait until 63 and then reevaluate which way would be better for me.

    I realize everyone's retirement situation is unique. Lots of important factors like health, family, retirement account balance, etc...just trying to figure out which would be best for me.

    Thoughts, anyone?
    A lot depends on how much you have in your TSP. When you reach 70.5 Required Minimum Distributions apply, which are out of your control for traditional TSP and IRAs

    Using TSP calculator https://www.tsp.gov/PlanningTools/Ca...alculator.html, age 62 for both, Expectancy=115(max), Earnings Rate=5% & no dependents for different balances. Below is a summary of annual withdrawal from tables and resulting balances at different ages:
    Age / Starting Balances:
    Age
    $100K
    $500K
    $1M
    Balances- Annual 5% ROI
    62
    $4,255
    $21,277
    $42,553
    $100K
    $500K
    $1M
    66
    $5,025
    $25,127
    $50,254
    $101,429
    $507,146
    $1,014,291
    70
    $5,872
    $29,362
    $58,724
    $98,793
    $493,963
    $987,926
    71
    $3,728
    $18,640
    $37,280
    $99,904
    $499,520
    $999,040
    93
    $7,738
    $38,689
    $77,379
    $70,052
    $350,260
    $700,520
    100
    $6,650
    $33,249
    $66,499
    $37,160
    $185,802
    $371,604
    115
    $7,634
    $38,168
    $76,337
    $353
    $1,765
    $3,530
    No matter what rate of return you achieve, traditional TSP & IRAs are designed to be spent during your lifetime. The calculator assumes 2 different IRS life expectancy tables, which is why the monthly/annual amounts generally drop (36.5%) from age 70 to 71 when RMDs kick in. Payments then increase until peaking at age 93 and decreases beyond that. If you expect to live to a ripe old age, delaying social security until 70 may be beneficial since it will offset the TSP drop from 70 to 71 due to RMDs kicking in & it is adjusted for inflation over time while your retirement nest egg will eventually decline.

    Between 62 and 70 you can specify what your monthly withdrawal amount to manage your current taxable income/tax bracket and to a certain extent your future RMDs. A lot depends on your actual rate of return, interest rates and the market.

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  15. #44

    Default Re: Social Security at 62?

    WEP and GPO's Effect on CSRS Retiree's Social Security benefits

    How CSRS Employees Are Impacted by Social Security’s WEP and GPO Provisions

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