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Thread: Retirement Talk - Deciding When to Claim Your Monthly Social Security Benefits

  1. #13

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    Default Re: Retirement Talk - Deciding When to Claim Your Monthly Social Security Benefits

    Thanks TommyIV for your ‘like’. You moved me up to 4,000 reputation points!!
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  3. #14

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    Default Re: Retirement Talk - Deciding When to Claim Your Monthly Social Security Benefits

    I just started getting the FERS supplement...it was more than I expected. It is more than 5 years away until I have think about it but I still believe I will wait until FRA or 70 to draw SS...I'm optimistic that waiting will pay off over the long term and if I kick the bucket sooner, there will be more left for the rest of you.

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  5. #15

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    Default Re: Retirement Talk - Deciding When to Claim Your Monthly Social Security Benefits

    Quote Originally Posted by evilanne View Post
    I just started getting the FERS supplement...it was more than I expected. It is more than 5 years away until I have think about it but I still believe I will wait until FRA or 70 to draw SS...I'm optimistic that waiting will pay off over the long term and if I kick the bucket sooner, there will be more left for the rest of you.
    Evilanne,

    For social security you want to do the math. The difference between FRA and 70 to collect or even when you become eligible say at 62/63. Here is an example, but it doesn't include Medicare Part B payments;
    Monthly check at FRA = $1200
    Monthly check at 70 = $1600
    If you start collecting SS at FRA (I'm using 65) that's $14,400/year or $72,000 for 5 years. The difference between FRA and 70.
    If you started collecting SS at 70 that would be $19,200/year. That is a nice difference compared to FRA.
    Now the question is by not collecting SS at FRA how long would it take you to see that lost income you could have had previous to age 70? About 15 years, $72,000 divided by $4,800/year. Of course at age 85 you would be making more money.
    Think of collecting SS at FRA as an investment opportunity and how much more you might have at age 70 to offset that $400 difference per month.

    Something else to think about. If you decide to collect SS before FRA and you are still working your monthly SS check will be smaller because there is a penalty involved.

    For those that are CSRS (and are eligible to collect SS) don't forget you will get a smaller SS check because of WEP, unless Congress changes the law.
    For me that was about a 42% reduction.

    Good luck.
    May the force be with us.

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  7. #16

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    Default Re: Retirement Talk - Deciding When to Claim Your Monthly Social Security Benefits

    Quote Originally Posted by nasa1974 View Post
    Evilanne,

    For social security you want to do the math. The difference between FRA and 70 to collect or even when you become eligible say at 62/63. Here is an example, but it doesn't include Medicare Part B payments;
    Monthly check at FRA = $1200
    Monthly check at 70 = $1600
    If you start collecting SS at FRA (I'm using 65) that's $14,400/year or $72,000 for 5 years. The difference between FRA and 70.
    If you started collecting SS at 70 that would be $19,200/year. That is a nice difference compared to FRA.
    Now the question is by not collecting SS at FRA how long would it take you to see that lost income you could have had previous to age 70? About 15 years, $72,000 divided by $4,800/year. Of course at age 85 you would be making more money.
    Think of collecting SS at FRA as an investment opportunity and how much more you might have at age 70 to offset that $400 difference per month.

    Something else to think about. If you decide to collect SS before FRA and you are still working your monthly SS check will be smaller because there is a penalty involved.

    For those that are CSRS (and are eligible to collect SS) don't forget you will get a smaller SS check because of WEP, unless Congress changes the law.
    For me that was about a 42% reduction.

    Good luck.
    Yeah, what he said!
    Plus, that math does not take into account that the SS $$ in hand will grow, if you don’t need it right away and can invest it!
    Nor does it take into account that SS is in a death spiral. Unless something is done soon, payments will HAVE to reduce, not increase.
    I am still in the corner of taking SS as soon as you retire.

    This is the way!
    There are 10 types of people in the world. Those who know binary, and those that don't!!
    Retired on December 31, 2018!!

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  9. #17

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    Default Re: Retirement Talk - Deciding When to Claim Your Monthly Social Security Benefits

    Quote Originally Posted by uscfanhawaii View Post
    Yeah, what he said!
    Plus, that math does not take into account that the SS $$ in hand will grow, if you don’t need it right away and can invest it!
    Nor does it take into account that SS is in a death spiral. Unless something is done soon, payments will HAVE to reduce, not increase.
    I am still in the corner of taking SS as soon as you retire.

    This is the way!
    You do get a yearly cost of living increase with SS, but if you invest some of the money you can definitely do better than the COL.

    Like your tag line. Love the Mandalorian.
    May the force be with us.

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