
Originally Posted by
nasa1974
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.
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