Retiring but delaying social security.

[Dana7360]

Seems to be the new thing.

The latest twist in the 'Great Resignation': Retiring but delaying Social Security

For better-off Americans, the pandemic economy created some of the strongest incentives to retire in modern history, with generous federal stimulus, incredible market gains, skyrocketing home values and health concerns drawing many Americans into early retirement. The surprising twist? Many of...

www.yahoo.com

For better-off Americans, the pandemic economy created some of the strongest incentives to retire in modern history, with generous federal stimulus, incredible market gains, skyrocketing home values and health concerns drawing many Americans into early retirement.

The surprising twist? Many of these retirees also opted to put off claiming Social Security benefits, an exclusive Washington Post analysis shows. By delaying their benefits, these retirees can expect to collect higher monthly checks in the future.

So, this just seems a not a great idea. I am not there yet, but have started serious retirement planning in the last year.

Using the numbers from the article...

Someone who turned 65 this year and last earned $60,000 could see their monthly payment jump from $1,418 to $1,550, a 9% increase, by delaying their retirement by a year, according to Social Security's calculations.

So, people are saying no to $85,080 over those 5 years so they can make an extra $132 a month after they turn 70? Seems you would have to live to at least 79 to really see the benefit of this move. Would it not make more sense to take it and invest if it you do not need it to live on?

If you do not need it to live, why not take it and invest it then when those 5 years are up you could easily have an extra 100 grand.

What do you all think? What am I missing here?

I'm one of those people though I decided to retire when I was 55 years old in the Obama years.

What you posted closely describes what I did.

I won't start collecting social security until 2027.

I don't need the money now and delaying taking it will only benefit me later.

 

[Admiral Rockwell Tory]

I have been paying social security since I was 14. Between that and my 401K, im looking at bringing in more a month than i do now.
That being said, I will be drawing SSI as soon as i can. I dont trust the fucking govt to hold up their end of the bargain.
I wish there was a way to cop out of it, honestly. Being forced is bullshit.
I would have much rather done with MY money how I see fit.

No you won't because you are not likely eligible for SSI.

 

[Lesh]

I love hearing Republicans talking about how to use a program that REPUBLICANS are trying to end.

 

[progressive hunter]

I love hearing Republicans talking about how to use a program that REPUBLICANS are trying to end.

kinda like dems and tax loop holes,,

 

[TNHarley]

No you won't because you are not likely eligible for SSI.

naw, im only 35 now. I was just saying I will start withdrawing as soon as i am able.

 

[Admiral Rockwell Tory]

naw, im only 35 now. I was just saying I will start withdrawing as soon as i am able.

SSI is for the poor who do not draw enough in their SS to survive.

 

[TNHarley]

SSI is for the poor who do not draw enough in their SS to survive.

Gotcha. thanks.

 

[sealybobo]

Seems to be the new thing.

The latest twist in the 'Great Resignation': Retiring but delaying Social Security

For better-off Americans, the pandemic economy created some of the strongest incentives to retire in modern history, with generous federal stimulus, incredible market gains, skyrocketing home values and health concerns drawing many Americans into early retirement. The surprising twist? Many of...

www.yahoo.com

For better-off Americans, the pandemic economy created some of the strongest incentives to retire in modern history, with generous federal stimulus, incredible market gains, skyrocketing home values and health concerns drawing many Americans into early retirement.

The surprising twist? Many of these retirees also opted to put off claiming Social Security benefits, an exclusive Washington Post analysis shows. By delaying their benefits, these retirees can expect to collect higher monthly checks in the future.

So, this just seems a not a great idea. I am not there yet, but have started serious retirement planning in the last year.

Using the numbers from the article...

Someone who turned 65 this year and last earned $60,000 could see their monthly payment jump from $1,418 to $1,550, a 9% increase, by delaying their retirement by a year, according to Social Security's calculations.

So, people are saying no to $85,080 over those 5 years so they can make an extra $132 a month after they turn 70? Seems you would have to live to at least 79 to really see the benefit of this move. Would it not make more sense to take it and invest if it you do not need it to live on?

If you do not need it to live, why not take it and invest it then when those 5 years are up you could easily have an extra 100 grand.

What do you all think? What am I missing here?

Full retirement for me will be 70 years old. Lets say I would get $1400 if I retire at 62 or $3400 if I wait till 70. My brother said, use your money to live from 62 to 70 then have an extra $2000 a month coming in when you’re 70

If you want to retire early but will have to us up savings to do it, maybe you forego social security for 8 years because you don’t need it, then get an extra $2000 a month, potentially for the next 30 years if you live to be 100.

I don’t think I’ll live that long. I’ll take the $1400 at age 62.

 

[MarathonMike]

If you do not need it to live, why not take it and invest it then when those 5 years are up you could easily have an extra 100 grand.

That's what I did but for different reasons. I saw no reason to continue giving the government my 40 year interest free loan any longer. Also no one at the SSI seminar could guarantee me exactly how long I would live.

 

[JustAGuy1]

Investing hasn't always wrung out to be a good dice roll...remember what happened with Wall St. .... the IRA scandals? Hell, if gov't (Dem and Repub) would stop using SocSec as a piggy bank for other federal programs, it would be solvent.

But,but.but, but the lock box........

 

[Admiral Rockwell Tory]

That's what I did but for different reasons. I saw no reason to continue giving the government my 40 year interest free loan any longer. Also no one at the SSI seminar could guarantee me exactly how long I would live.

Why were you at an SSI seminar? Are you extremely poor, blind or disabled?

 

[MarathonMike]

Why were you at an SSI seminar? Are you extremely poor, blind or disabled?

What is the purpose of posting a stupid statement like that? I really don't get you, you must be a very frustrated person.

 

[Admiral Rockwell Tory]

What is the purpose of posting a stupid statement like that? I really don't get you, you must be a very frustrated person.

Couldn't answer the question?

SSI is for the extremely poor, blind or disabled. It is not your SS retirement benefits!