Help me make a decision on SS.

[napi21]

I am 63 (will be 64 in Sept.). I had to quit working in 1998 after having workedfor 40 years. My husband says I'm crazy for not signing up for SS NOWbecause I'm throwing away the $$ I would receive over the next 2 years, even though the monthly benefit would be lower than if I waited until I was fully eligible.

My dilema is that it feels like a guessing game to me. If I livea long time AFTER age 65 1/2, I may desperately NEED that extra several hundred $$ each month (about $350/mo), and if I decide to sign up now, it's a permanent decision and I can never change my mind. We have a little $$ in 401K plans, but not very much. I should also say that myMother & her Father livedto age 90+ andmy father died at age 67, so my guessing game involves just who's genes do I have the most of???

Do you have any suggestions that would halp me make a decision I won't regret?

[speedoo]

1. I'm in the same boat.

I'm two years older than you and I'm going to be starting mine very soon. I've never done any calculations, but the way I'm looking at it is, each month I delay, I'm throwing that payment away. I'd have to live a very long time to make it pay off for me to wait until I get the full amount.

If you expect to have any earnings from work while receiving SS benefits, watch out for the tax implications.

[Warpy]

2. Insurance at its heart is a gamble

and social security is no exception. The system bets you won't live far past 65, and you bet that you will.

That $4200/year that you'll lose if you sign up now could be a very significant amount over 10 years if you wait until you're 65 1/2, you'll be ahead. Statistics are on your side for that 10 years as a retiree.

Look closely at your financial situation. If you can manage to hang on for another 3 years, you will be ahead of the game. If your financial situation deteriorates in the future, you can always apply for your bennies at any time, taking the loss.

I'm afraid most of us who are older boomers and folks who were born about 5 years ahead of us are in the same boat, paid too little to live on and save for retirement, pensions long since robbed, and 401K plans introduced long after we could possibly contribute enough to them. If we can wait long enough for our benefits to mature, we might be able to live out our lives indoors instead of out in the street.

[napi21]

4. See, you look at it the same as I do. I'm scared that if I live 10,

20 or mopre years after 65,I will desperately NEED that additional money each month!

My husband looks at the opposite. He says if I apply NOW, I will receive around $1,000/mo. and I am throwing $30,000that I would receive between now and when I reach 65 1/5, and that I would have to live a LONG TIME to make that up!

[TexasProgresive]

9. Take it now and save back $350 a month.

That will give you $650 a month that you don't have now plus you can draw on the $350 later. Or better yet, if you can do without it save the whole $1,000 and you will be way a head by the time you would be eligible for full SS. Just a thought.

[Warpy]

10. Well, he's right, in a way, if your years ahead are a low number

but you may live a lot longer than you anticipate, too, and be living without him, meaning your social security will DROP.

Don't forget, also, that Medicare doesn't cover everything and that you'll quite possibly need that extra money every month to stay alive.

He's wrong about the dollar amount, and he may be very wrong about what the future will bring. You'll get about $30,000 over the next three years, but the difference over 10 years if you collect the full amount is $42,000, if the difference stays constant with COLA adjustments.

Even banking it now and investing it when both of you are retired is no guarantee of financial security because inflation will eat up so much of it.

[Lugnut]

3. My DH is in the same situation

He'll be 64 in May. He would like to retire but he has to wait until he's eligible for Medicare because he has no alternative. His family genes indicate that he'll probably live a long time following retirement. His mother will be 96 next month. It is a gamble betting on your longevity but what else can do you.

[napi21]

7. Boy, we could be married to the same guy! My hubby was 64

last Sept, but also has to wait until he is 65 1/2 to retire to be eligible for Medicare. He complaines all the time that he wants to retire NOW!!!!

[murray hill farm]

5. I am almost 66 now, but did make the decision

to begin collecting SS at 62 and I have never been sorry for that choice. Everyone I went to for advice said go for it now...and I did. My feeling now 4 yrs later is that it was a good choice and one I am sooooooooo happy I made. I did make some other choices at the same time...sold a home and bought another that has a very small mtg and very small monthly payments..used some of the money from the sale of the house to also buy a car..so no payments there either. But...for the most part, I am happy that I made the choice is that I figure that even if I do live to be 90+, it is now..this time in my life..where I am still healthy and active is the time that I want to claim in my life to really enjoy while I can...and to do the things that I may not be able to do later in life, such as travel, etc. I think this particular time in my life is the time where I claim it as mine....while I still have the physical capacity to really enjoy it. A choice I am very happy that I made at 62.

[DamnYank]

6. Agree with Warpy

I'm still young in comparison but have thought a lot about this. I have to wait until I'm 67 to get full benefits. Longevity runs in the family though my father died of cancer at 74. I'd suggest waiting if you can. Remember that expenses increase as you age, not only from inflation but also added medical expenses, etc. not all of which is covered by Medicare.

I'd look at it from the standpoint of how much you will need to live on in the long term rather than how much you're seemingly throwing away now, especially if you have few other sources of income. If you die young you won't care :evilgrin: but if you live to be 85 or 90 you might well come to regret not having waited.

[napi21]

8. Thank you all so much! it's a though decision, but you all helped

with your different points of view.

[fed-up]

11. My mom waited til 65, but it took a few months to get her medicare

straightened out.

Two months later she had a massive stroke (actually the day after her coverage kicked in) and it was very helpful to know that she was already enrolled with medicare even though she had Kaiser as her primary insurance.

She passed away three years later so really only got SS for 3 years...

It's a gamble and the choice is up to you.

[On the Road]

12. I Am Only 53,

but I've looked at the various retirement ages and I think the longer you can afford to wait, the better. I am going to try to wait until 70, when the benefit is about twice what it is if you retire at 62. It's not just a matter of life expectancy, it's a matter of security -- that early payment is just not enough to live on IMO.

[gratefultobelib]

13. I vote with those who say wait, especially since you're not that far

away from the day when you will begin to collect. That $350 per month, every month, may very well make a huge difference in your retirement years. My husband has done the math over and over and he's concluded we'll both be ahead by waiting, although it's only fair to reveal we're public school retirees and are already drawing from that pension fund.

Now here's some advice from Bossy Bessie here--do all you can to ensure you'll be as healthy as possible! And I'll bet NO ONE has EVER said those words to you before!! But proper diet, exercise, preventive health check-ups, they are are our friends as we enter this "special" time in our lives. Live as long as possible and be healthy doing it! End of lecture--see, you can tell I used to be a teacher!

[trof]

14. Go early.

I'm 65, born in August , 1941.
I started collecting at 62.
Based on calculations at the time, I'll be ahead until I'm 72.
I wouldn't have been able to collect full benefits until I was 65 1/2.
I'm close to that now, and about $59,500 ahead of the game.

You're a couple of years younger than I am.
Are you sure you get full benefit at 65 1/2?

OK, I just looked it up here:
http://www.ssa.gov/retirechartred.htm
If you were born in 1943 you can't collect full benefit until age 66.

Part of my decision to go early was based on the 'garbage truck' theory.
At any time from my 62nd birthday until I was 65 1/2 I could have been run over by the garbage truck and collected ZERO.

Also...check on what you will get based on your husband's earnings.
Miz t. gets more as my spouse than she would just collecting on the years she herself worked.
BTW, the folks at S/S were VERY helpful.
Good luck.

[wishlist]

15. You will be ahead for a very long time by drawing early and saving it

If you apply now you can save the money in a money market or savings account getting over 4% interest. You can quickly build up a nice nest egg until you need the money later on or have it for emergencies if needed earlier.

[Nimrod2005]

16. I have always understood that you take the money as soon as you become

eligible, but If you can wait it out for a couple of years, then why not, do the math:

$350.00 per month for 24 months = $8400.00..Not much if you ask me.

I say wait and get the higher amount later on...