Taking SS Wait longer or Do It.

B

brucer

New Member
I am 65 and 4 months. Retired but not drawing SS yet and living off my savings. Full retirement age is 66 and 6 months, next September. I keep pushing off trying to get my SS payment monthly income higher, but it is only increasing by a measly $13 a month. (Anticipated income is $2338 a month currently.) Am I wasting my time trying to increase my monthly income a little higher and burning thru saving but missing out on $2300+ by claiming now?
 

If a Person knew how long they will live, the decision of when to take SS would be a lot easier. After some thought, we took our benefits as soon as we became eligible. We've already received several times what I paid in during my working career, and if we live another few years, that "ratio" will be even better. We have other sources of income, so the SS just adds to our "cushion".
 
So many individual variables it's impossible to say. SSis meant to be time neutral. In other words, if you live to your respective average age (I think it's like 78 for men) it doesn't matter when you take it. You will.get the same total amount. Of course where it gets tricky is how long are you going to live

Personally I'd take it early if that allowed me to retire early and enjoy life more. I don't care to get a few more dollars when I'm 90 and stuck at home, or worse yet you're in a home and all those extra dollars are going to the home.
I know this doesn't apply to you as it sounds like you're already retired but if possible I'd highly recommend people take SS early if it's the difference between retiring at 62 or say 67. Those 5 years between 62 and 67 are the best years you have left.
 
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There are so many variables with making the decision about when to enroll. I remember reading the break even point was 78/80 years old.

Most of my friends take it as soon as eligible at 62. I will also say I don't ever recall having a conversation where someone older has said they wished they had waited longer before starting to draw SS.
 
As others have posted how long you live is key. Your health, the cost of living, how long your savings will last as your source of income, debt owed all important factors in your decision making.

Looking at your Soc. Sec. amount (Anticipated income is $2338 a month currently.) could you live on that? I'm not saying you should just pointing out the potential of being prepared financially if an emergency happened and it drained your savings.

We, my wife & I took our Soc. Sec. early at age 62. Like Don M we both have surpassed what we put in. The best part is being debt free & in excellent health. Instead of draining our sources of income our sources increase monthly.
 
I'll readily admit: I don't know anything. Since there's nobody locally I can ask, maybe members here have input:

I'm not unique with this on this forum, but basically am in this area: I spent most of my adult life raising my family, so I don't have enough work credits to actually retire. I was advised to apply for SSI, but am totally clueless. All I do know is a local guy spent SIX YEARS living in homeless shelters while trying to get his SSDI approved, and I can't handle something like that. Between health issues and lack of available work, I'm scraping by on almost nothing- it's all I can do to keep rent/utilities paid, and even that takes a lot of juggling.

I don't know who to contact, what to do, plus the added complications of a phone that tends to konk out and lack of transportation.
Any input would be greatly appreciated.
 
Janice, if I am not mistaken, you must apply for SSDI. This is also an application for SSI, they are not separate forms. You can apply online. SSI will be considered with SSDI.
 
Janice Google "help filing for Social Security". In my area I have seen open seminars put on by local organizations where they will help you and walk you thru the application process, free of charge. Maybe call your towns office for older adults and see what they have to say. Or contact the local Social Security office and set up an appointment, I found them very helpful with my application, tho a bit challenging to get a hold of.

You could also get on your local Nextdoor neighbor site and ask for some guidance. Just be careful with a public site, don't post any personal info and don't agree to meet up with and random people.
 
C50 said:
Janice Google "help filing for Social Security". In my area I have seen open seminars put on by local organizations where they will help you and walk you thru the application process, free of charge. Maybe call your towns office for older adults and see what they have to say. Or contact the local Social Security office and set up an appointment, I found them very helpful with my application, tho a bit challenging to get a hold of.

You could also get on your local Nextdoor neighbor site and ask for some guidance. Just be careful with a public site, don't post any personal info and don't agree to meet up with and random people.
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These are some good ideas. Thank you. I'll try, and see what I come up with.
 
JaniceM said:
Thank you.. but unless I've read everything wrong, I'm not eligible for SSDI due to not enough work credits.
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Does not matter about SSDI credits, SSI does not require 40. As I said, it is a combined application if I am correct. The SS website will have it.
 
ohioboy said:
Does not matter about SSDI credits, SSI does not require 40. As I said, it is a combined application if I am correct. The SS website will have it.
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I may be wrong about the combined application after reading some. Back when I applied I think it was that way?? Nathan has a good link.
 
I have just applied for SS to begin when I turn 70. My theory was to wait as long as I could to maximize payments. If I live a long time I will appreciate that decision. If I don't, well I won't be around to care.

However, as folks have said, it is a personal decision, what makes sense to and for me doesn't necessarily for others.

As you figured out waiting a few months won't make a lot of difference, you would need to wait a longer time for that.
 
How about a completely different approach.

Waiting To get a $13.00 a month increase.

12months X$13.00 = $156.00 yeild for waiting.

NEWS: The initial interest rate on new Series I savings bonds is 9.62 percent. You can buy I bonds at that rate through October 2022.

Takes the monthly Soc. Sec. payment of $2338.00

$2338 X 4 months = $9352.00

uses $9,000.00 of that Soc. Sec. payment to buy an I bond.

$9,000.00 X 9.62% = a return of $862.00. With another 8 months of Soc. Sec. payments to continue to build wealth.
Health being primary with financial secruity being a real concern seems more logical to build wealth than deplete savings.

Of course the Ibond percent changes but remains high relative to other investments especially in the last years when living on a fixed income & risk isn't easy to stomach. I wish the limit of $10,000.00 was lifted.
 
I never considered collecting Social Security early. I have always considered it foolish. I waited for my full retirement age of 65. I'm glad I did. Now I will always get 100% of the monthly benefit that I'm entitled to.
 
The right answer to this question is: it depends.
For me, it will be $2110, $3228, or $4094, if I take my SS at 62, 67 (FRA) or 70. My plan is to take it at 70.
 

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