US Social Security @ 62 or?

[kynikoi]

I realize this is a personal decision and the math generally favors waiting for the highest payout but I am looking for opinions about early withdrawal at 62 vs say, 65?

 

The reason I'm asking here is because most web sites do not discuss unreported inflation nor calculate the debasement of the dollar.

 

Personally, I see whatever benefit of holding on done in by inflation and the current debasement of the dollar.

 

Going forward I think the government will be providing welfare and hand outs to a huge number of individuals. Borrowing and printing.

[flexomike]

unless you have financial or health issues I would try and wait until 65

 

[kynikoi]

21 minutes ago, flexomike said:

unless you have financial or health issues I would try and wait until 65

 

Thanks. That would be five years for me. I'm really expecting inflation to kick in perhaps in two years. I believe it's already running above 4% in usd.

[EVENKEEL]

I did at 62, birthday in Oct, started first of the year. I am healthy, was making good money but away from home here in Thailand 80% of the year.  This my second year of retirement and have no regrets. I have other money to pull from so that helps. If you're single the SS $$ is enough here, it's when you have an old lady and a kid that takes the money. Oh and if you have a kid you get another $1200/mo till they reach age 18.

[kynikoi]

10 minutes ago, EVENKEEL said:

I did at 62, birthday in Oct, started first of the year. I am healthy, was making good money but away from home here in Thailand 80% of the year.  This my second year of retirement and have no regrets. I have other money to pull from so that helps. If you're single the SS $$ is enough here, it's when you have an old lady and a kid that takes the money. Oh and if you have a kid you get another $1200/mo till they reach age 18.

Thanks for that.

 

I am married but I keep my wife out of the US tax system for her sake at least as long as possible (no TIN).

 

I stopped working quite early in US and will therefore receive reduced benefits. Uncertain really but it might be as little as 850-950$ pm.

 

I'm unaware of any bump due to a foreign spouse.

 

I can definitely wait until 65. I've never trusted Social Security system to deliver but never expected the hidden inflation, trillions in borrowing and spending, massive unemployment.

 

Especially not on the radar was zero interest and a stock market with absolutely surreal PE.

Edited April 7, 2021 by kynikoi

[LomSak27]

You're concerned about possible inflation & monetary issues that are personally important to you but others consider not realistically relevant. 

 

BTW I'm filing for SS next week. Yep. That is why I looked in. However as I worked os for a long time,  I will qualify with over 40 credits but little more. its going to be nothing except beer & pizza money for me. As such I will get the beer & pizzas started at 62. No reason not to. 

 

I would not think debasement of the dollar that relevant or realistic as such if you are trying to maximize, yes wait until later to take your payments at sixty five.  

Edited April 7, 2021 by LomSak27

[kynikoi]

Just now, LomSak27 said:

You're concerned about possible inflation & monetary issues that are personally important to you but others consider not realistically relevant. 

 

BTW I'm filing for SS next week. Yep. That is why I looked in. However as I worked os for a long time,  I will qualify with over 40 credits but little more. its going to be nothing except beer & pizza money for me. As such I will get the beer & pizzas started at 62. No reason not to. 

Fair enough.

 

I agree it's essentially mad money. Nevertheless, I was able to retire very simply in my mid forties because I watched my money and stayed within a rigid budget. I don't believe in leaving money on the table.

 

If and when serious inflation is announced it will be a concern for all. We are all perhaps old enough to remember the inflation of the 70-80s

 

Regardless, your vote is asap. Thanks.

[EVENKEEL]

19 minutes ago, kynikoi said:

Thanks for that.

 

I am married but I keep my wife out of the US tax system for her sake at least as long as possible (no TIN).

 

I stopped working quite early in US and will therefore receive reduced benefits. Uncertain really but it might be as little as 850-950$ pm.

 

I'm unaware of any bump due to a foreign spouse.

 

I can definitely wait until 65. I've never trusted Social Security system to deliver but never expected the hidden inflation, trillions in borrowing and spending, massive unemployment.

 

Especially not on the radar was zero interest and a stock market with absolutely surreal PE.

Go on the SSA website and they can tell you what your payout will be at 62. 

[kynikoi]

2 minutes ago, EVENKEEL said:

Go on the SSA website and they can tell you what your payout will be at 62. 

I can't access it. When I return home I'll go to the office and try again. They used to send statements.

 

In the end it's just supplemental. It is what it is.

 

Thank you

[LomSak27]

You can set up a "My SS account" online at any time. I believe that will give you estimates of payouts as evenkeel stated above. My last W2's were filed when I was working OS so It clusterpucks their system. Never been able to set up an account. Still I can apply, and I will shortly. 

My main retirement are investments and a non US companies pension. SS was never a big part in all this. Yes I could wait and get more at 65 but as the amounts are not that great, going for those pizzas NOW.

 

-------------------------------------------------------------

 

Kitchen Sink - Pepperoni, Canadian Bacon, Italian Sausage, Chicken, Bacon, Mushroom, Black Olive, Green Pepper, Tomato, Fresh Garlic

 

Now if I could only get Zeeks to deliver to Chang Klan 

[ubonjoe]

37 minutes ago, kynikoi said:

I can't access it. When I return home I'll go to the office and try again. They used to send statements.

You can do the estimation of your benefits on this page. https://www.ssa.gov/benefits/retirement/estimator.html

You do not have to register for "My Social Security" to do the estimate.

[Rdrokit]

I'm now 73 and started collecting at 62 and my full payout would have started at 66 so I don't think your full payout will start at 65. I figured if I had money coming to me I want it now as I don't know what will happen to me tomorrow. I started collecting my company pension at 58. Got me early retirement in Thailand and I haven't worked a day since I was 58. Good luck on whatever you decide.

[kynikoi]

45 minutes ago, ubonjoe said:

You can do the estimation of your benefits on this page. https://www.ssa.gov/benefits/retirement/estimator.html

You do not have to register for "My Social Security" to do the estimate.

 

I'm locked out. I think I found the issue some months back. I've emailed them. Thanks Joe +2

 

Edited April 7, 2021 by kynikoi

[ubonjoe]

29 minutes ago, kynikoi said:

I'm locked out. I think I found the issue some months back.

You must of made repeated errors when entering the info to be locked out.

[kynikoi]

5 minutes ago, ubonjoe said:

You must of made repeated errors when entering the info to be locked out.

I did. I know what's wrong finally. Discrepancy between site and personal information.

[flexomike]

2 hours ago, kynikoi said:

Thanks for that.

 

I am married but I keep my wife out of the US tax system for her sake at least as long as possible (no TIN).

 

I stopped working quite early in US and will therefore receive reduced benefits. Uncertain really but it might be as little as 850-950$ pm.

 

I'm unaware of any bump due to a foreign spouse.

 

I can definitely wait until 65. I've never trusted Social Security system to deliver but never expected the hidden inflation, trillions in borrowing and spending, massive unemployment.

 

Especially not on the radar was zero interest and a stock market with absolutely surreal PE.

There is no bump up for a spouse

[Berkshire]

3 hours ago, EVENKEEL said:

I did at 62, birthday in Oct, started first of the year. I am healthy, was making good money but away from home here in Thailand 80% of the year.  This my second year of retirement and have no regrets. I have other money to pull from so that helps. If you're single the SS $$ is enough here, it's when you have an old lady and a kid that takes the money. Oh and if you have a kid you get another $1200/mo till they reach age 18.

I have heard that, regarding the extra money for a young child/children.  If the OP has a kid(s), then it would be a no-brainer to take the money at 62.  But I agree that even without kids, taking the money at 62 has its merits, i.e., enjoy the money while you still can!

[Berkshire]

58 minutes ago, flexomike said:

There is no bump up for a spouse

....unless she is caring for your child.  But I'm not sure if there's a bump if she's living with the SS recipient. 

[EVENKEEL]

12 minutes ago, Berkshire said:

I have heard that, regarding the extra money for a young child/children.  If the OP has a kid(s), then it would be a no-brainer to take the money at 62.  But I agree that even without kids, taking the money at 62 has its merits, i.e., enjoy the money while you still can!

I figured out roughly that it would take 9 yrs before you started making more. So at age 71 you would enjoy the extra money. No thanks.

[Jingthing]

I took it at 62. No regrets. The regrets start hitting people if they live longer than average like starting 78 and up.

So in a way you're betting against yourself claiming early. But we didn't design this system forcing this kind of decision. 

 

As the O.P. said its a very personal decision. For those that really need the money at 62 the decision makes itself

 

While I wouldn't bank on this, one of President Biden's policy goals during the campaign was to raise the minimum benefit for people with very low checks. Also to provide increases for the very old. The biggest risk of claiming early is usually living longer than expected so if that latter change ever passes that would somewhat mitigate that risk.

.

Edited April 7, 2021 by Jingthing

[kynikoi]

Appreciate all of your input. I think most of you have taken the money at 62 and seem to be few regrets. I think living out here has also weighed into most decisions.

 

I do hope to live past 71!

[Gecko123]

Risks that need to be considered:

• future payouts will be cut due to US government's growing fiscal problems. (Were this to happen, would probably be an across the board percentage cut, so better to delay benefits so base subject to cut will be as high as possible)
• lower cost overseas destinations become untenable due to either climate change, geopolitical tensions, or socio-economic pressures
• you may be forced to repatriate to your home country for personal reasons (medical, family, divorce, etc.)
• medical and long-term care costs (whether overseas or in US)

 

Most posters on threads like this surprising advocate taking benefits early, but unless you have a strong reason to either believe your life expectancy will shorter than average or you are in immediate need of the money, I would strongly advise waiting as long as possible just to be on the safe side.

 

Edited April 7, 2021 by Gecko123

[EVENKEEL]

6 minutes ago, Gecko123 said:

Risks that need to be considered:

• future payouts will be cut due to US government growing fiscal problems
• lower cost overseas destinations become untenable due to either climate change, geopolitical tensions, or socio-economic pressures
• you may be forced to repatriate to your home country for personal reasons (medical, family, divorce, etc.)
• medical and long-term care costs (whether overseas or in US)

 

Most posters on threads like this surprising advocate taking benefits early, but unless you have a strong reason to either believe your life expectancy will shorter than average or you are in immediate need of the money, I would strongly advise waiting as long as possible just to be on the safe side.

There's a third reason - We have enough surplus money and homes paid for in our home country to make collecting at 62 sensible and doable.

Edited April 7, 2021 by EVENKEEL

[kynikoi]

1 minute ago, Gecko123 said:

Risks that need to be considered:

• future payouts will be cut due to US government growing fiscal problems
• lower cost overseas destinations become untenable due to either climate change, geopolitical tensions, or socio-economic pressures
• you may be forced to repatriate to your home country for personal reasons (medical, family, divorce, etc.)
• medical and long-term care costs (whether overseas or in US)

 

Most posters on threads like this surprising advocate taking benefits early, but unless you have a strong reason to either believe your life expectancy will shorter than average or you are in immediate need of the money, I would strongly advise waiting as long as possible just to be on the safe side.

 

My scheme behind not paying into the system was predicated upon it actually going belly up. I'm far less a stakeholder. Moreover, those least likely to see cuts are those receiving minimal benefits. Besides, they've solved this JUST PRINT MORE MONEY.

 

I'm married and been in South and East Asia for 30 years. I guess politics could force me out but I'm stuck. I think about going back as I weigh health care issues here. Difference in 150$ won't matter to me. I'm more concerned about inflation that's barreling down on us.

 

If 20% inflation returns it will render the money practically worthless. We have the debasement all we need is the velocity.

 

Horses for courses as the British say.

 

 

 

[Gecko123]

22 minutes ago, EVENKEEL said:

There's a third reason - We have enough surplus money and homes paid for in our home country to make collecting at 62 sensible.

If you're reasoning that someone who is already financially secure ought to start collecting SS as early as possible because it's just icing on the financial security cake, I would question how many financial advisors would agree with that. Maybe if you've got millions in liquid assets, but I think there are too many unknown variables for most people to cavalierly take that approach.

 

I would also doubt how many Americans truly have the financial security required to adopt that approach. I base this assessment on the constant dire reports on the American public's dismal lack of financial preparedness for retirement.

 

Edited April 7, 2021 by Gecko123

[BritManToo]

Just now, Gecko123 said:

I would question how many financial advisors would agree with that.

All the financial advisers I've encountered are crooks lining their pockets at my expense.

Most of them don't even seem to have savings or a pension, and live hand to mouth.

As far as I'm concerned they have no credibility at all.

[Gecko123]

35 minutes ago, kynikoi said:

My scheme behind not paying into the system was predicated upon it actually going belly up. I'm far less a stakeholder. Moreover, those least likely to see cuts are those receiving minimal benefits.

Your point about people below the poverty line, etc., being the least likely to see a benefit cut is well taken, but I'm not so sure that would happen. Depends on who is in power if and when the program gets cut, right? Keep in mind that there is going to be a huge constituency of people who delayed collecting benefits who are going to be pretty upset if their benefits get slashed more simply because they delayed collecting benefits, which is why I think it will have to be an across the board cut rather than a progressive one. Also, most financial advisors advise that starting collecting benefits early because you think the system is going to go belly-up is unwise.

 

Edited April 7, 2021 by Gecko123

[BritManToo]

Just now, Gecko123 said:

Also, most financial advisors advise that starting collecting benefits early because you think the system is going to go belly-up is unwise.

Which  is odd, because they also advise you to take the biggest tax free lump sum possible, and a smaller monthly pension.

[Jingthing]

50 minutes ago, Gecko123 said:

Risks that need to be considered:

• future payouts will be cut due to US government's growing fiscal problems. (Were this to happen, would probably be an across the board percentage cut, so better to delay benefits so base subject to cut will be as high as possible)
• lower cost overseas destinations become untenable due to either climate change, geopolitical tensions, or socio-economic pressures
• you may be forced to repatriate to your home country for personal reasons (medical, family, divorce, etc.)
• medical and long-term care costs (whether overseas or in US)

 

Most posters on threads like this surprising advocate taking benefits early, but unless you have a strong reason to either believe your life expectancy will shorter than average or you are in immediate need of the money, I would strongly advise waiting as long as possible just to be on the safe side.

 

I don’t disagree but I would change it a bit to if you think your life expectancy will likely be either below average OR average. Obviously not foolproof but there are ways to predict this. Numerous online health history surveys and also noting your parents longevity, etc.

[Jingthing]

Here's a contrarian thought. 

 

Mainstream advisors usually give out moralizing lectures pointing out that many people claiming it at 62 shouldn't have.

 

Sure thats true but they fail to mention that many that wait until 65 or 70 shouldn't have either. Many will be waiting and die before claiming. 

 

As far as the social security administrators are concerned that's rather ideal.