Why I Would Never Start Social Security at Age 62

[@eosjoe565]

I didn't originally plan on starting SS at 62 but when I got laid off from work at age 61 I decided to bite the bullet and go for it. I'm now over 65 and have absolutely no regrets.

[@MedicareonVideo]

Glad it's working for you!

[@davidrodriguezjr.226]

@@MedicareonVideo did you mention any money withheld is recalculated at full retirement age… if you did it must’ve been ina 1 second sentence

[@StevenI-v2s]

@@davidrodriguezjr.226 That is true that if you make over a certain limit between 62 and your FRA, they reduce you SS payment by $1 for every $2 you exceed the limit. For 2024, the limit was $23,320. So if you make $30,000, you are $6680 over the limit and your SS is reduced by $3340. I am not sure if they do it the following year or if they can do it monthly. When you reach FRA, they will increase your monthly payment to give back everything they withheld, but I believe it is the same break even period as waiting to take SS. So it may take 12 to 15 years to get back what they withheld. There is a different rule if you work part of the year that you retire and you start collecting SS that same year.

[@BluecollarBackcountry]

I retired at 62. I'm 68 now. I golf, bicycle (sometimes long distance tours) metal detect, enjoy sketching, hiking, camping, fishing, and visiting family. At this time SS is my only income. I don't live above my head financially like so many others. I learned to live a good but semi minimal lifestyle and am healthy enough to still enjoy my life. The average American male life expectancy as of the end of 2024 is 74.79 years old. Y'all go ahead and keep working and paying in and I'll appreciate my next check. Happy New Year you over achievers 🤓

[@bill648]

These podcasts all say the same thing. Delay for larger payouts later. There may not be a “later”. All I read about is Social Security is going broke and expect big cuts in 10 years. It’s ridiculous. Take it when you feel it’s right for you. I took it at 63 after leaving a Very stressful job. Been working since I was 17- if not in school I was always working. So burnt out. Retirement is absolutely awesome.

[@Angie-AFB]

Just wanted to let you know your videos are of great quality. The audio is clear, and your delivery comes across as very genuine. You do a fantastic job of explaining things in layman's terms. Very helpful, thank you!

[@MedicareonVideo]

Thanks Angie!

[@heymoe1179]

SS is an insurance policy for old age. I don't treat it as a windfall at age 62 and plan on waiting until at least FRA at 66/10 months. I'm not going to sacrifice 30% by taking early.

[@danmckayinthewind]

That's how I look at it, and I'm gonna wait to 70 so if my spouse needs it it's there for her if I die.

[@bruceeigsti5274]

Hope u live till 70

[@StevenI-v2s]

It is pretty simple to me. The IRS is using the current life expectancy of around 77-78 to calculate what you get at 62 and what you get at 70. They increase the payment by 8% per year assuming that you are going to die around 78. If you wait until 67, it takes you until about 78 years old to break even without including any investing of your SS income. If you invest it, the break even point moves into your late 80's or early 90's. My SS is $30,000/yr. If I waited to 67, I would have left $150,000 in the govts pocket. If I get hit by a bus, my family would only get a $255 death benefit! If I wait to 67, my benefit would be about $10,000/yr more. So without any investment gains on the SS, it would take 15 yrs to just break even at about 77-78 years old. So the IRS is betting you will die and you are betting you will live past 77-78. My personal choice was despite enjoying good health, I would rather take the money now when I can definitely enjoy it. I could be wrong, but if your SS is 85% taxable due to other income, it may be better to take the lower payments. I haven't done the math on that. If I had waited until 67, I would have got $3588/month. By age 70, that would be about $129,000 total. The payment at 70 would be about $4280 which is $8300 more per year. Therefore it would take 15 years ($129,000/$8300) to break even at 85 years old. The IRS is betting you will die before then. If you find any mistakes in my calculations, please let me know and I will correct them. I used this calculator for the estimates: www.ssa.gov/OACT/quickcalc/

[@stevesilver7437]

Looks about right for your amounts. I will also take mine as early as I can. Due to other investments I need to stay in a lower tax braket.

[@stevesilver7437]

Funny thing is if you retire at 58 and waite to collect at 62. the amount is not much more if you keep working until 62 and collect at that time.

[@StevenI-v2s]

@@stevesilver7437 Correct, depending on how long you were working and how much you made it those years, the difference could be very small. I retired at 55 from 33 years as an engineer and mine would not have gone up that much. And definitely not enough to make me stay is a stressful job for 5 more years!

[@timsul3092]

I took mine at 62 and I didn't look back. I'm 66 now but still couldn't have taken it because my FRA was 66 and 8 months. Plus my wife is a little older than me and she was a stay at home mom. She didn't have enough credits to draw her own SS. So I had to be drawing mine for her to be able to draw a benefit from mine. It was like I was leaving money on the table. Also hers was calculated off my FRA for the spousal benefit, but since she was a bit older than me her check was almost the full 50% anyway. Besides my gene pool is kinda cloudy at best. My parents died in their 70's and early 80's and I had a small heart stint before I was 60. I know ultimately your life is in God's hands and I hope I'm here and in good health in my 90's but who knows. You have to make a decision that YOU arrive at and then don't fret over it. Heck the way things are going SS could dry up too. Thanks for the video and you're correct, there's many things to consider when you decide to take SS or not. I watched you often when deciding which way to go for me and the wife's Medicare route.👍

[@audiophileman7047]

I'm in the same boat. I have a wife who was a stay at home mom and doesn't have enough credits to receive her own benefit. I want her to receive benefits from my decades of work, so I must receive a SS benefit before I pass away for this to happen. My father died in his 60's and my mother in her 70's, so I see a potential limit to my life expectancy even though I live a much healthier lifestyle than they ever did. I'm planning to start collecting SS at 62. The additional income will be useful and you actually collect it longer if you collect it earlier. Does your wife receive a SS benefit check now or will she receive it if you pass away?

[@timsul3092]

@@audiophileman7047 She receives it now, it's called the spousal benefit. They can draw up to 50% of your FRA amount. Of course if your spouse is not at her full retirement age, that percentage is reduced. But with my wife being older than me she didn't loose much. See that's the thing, she couldn't draw that check as long as I waited, other words, I had to be getting my SS before she could draw off mine. With that, I took mine as soon as I turned 62, if I had waited until my FRA that would have been 4 years and 8 months that not only I wasn't getting anything, but she wasn't getting anything either. That's the reason I said it would be like leaving money on the table. Plus, with her drawing off my SS (which doesn't affect mine) she's now eligible for Medicare when she turned 65, which she definitely needed. Didn't want to wait around for that.

[@timsul3092]

Also, she can draw a check up to 50% of your FRA as long as you are drawing yours. She has to be at least 62, of course that will cause that percentage to be reduced too. My wife was older than me so she didn't loose much. If you're wife is at her FRA, she can draw the full 50%. Now if you pass away, she can draw the reduced amount you were getting, since you started taking SS before your FRA.

[@timsul3092]

And as always, consult with the SS administration or a professional to see how all the rules apply to your particular situation.

[@audiophileman7047]

@@timsul3092 Thanks for the tips. It's much appreciated. I need to speak to an elder law attorney to get all of my estate matters in order and develop a succession plan. If you're not familiar with elder law attorneys, I highly recommend consulting with one. I used a certified elder law attorney to deal with my mom's estate and living care matters. He saved us a ton of money and helped with excellent advice on funding health care.

[@davidshort9439]

I will be 65 in March, retiring at the end of May. Been a Boilermaker and Ironworker welder since I was 21 years old. I have had enough

[@howardfriedman7077]

david: That does not mean you have to start Social security.

[@godsuno777]

I quit working at 60, and started SS at 62, I dont regret it in the least....................

[@jimclark5037]

The reduced number of workers per retiree and the huge budget deficit (and complete lack of confidence in our politicians) makes me worried about benefit cuts in the future, that's the biggest reason I'll consider taking soc sec earlier at 62 or 63.

[@derkong7114]

A paid for modest house in a low property tax area along with no debt is the key to living on less and should be the goal for all of us.... And then take SS as late as possible....

[@anniesshenanigans3815]

"They" say you need 70 to 80 percent of your working income in order to retire but what 'they' don't say is that is IF you plan on spending like most people do. Car payments, Mortgages, credit cards, etc.. THAT isn't necessary. If you have no debt you can live on far far less. My pay is about the same as it was 5 years ago due to stagnant wages. I was living paycheck to paycheck. No way I would be able to retire on SS. Back then, I paid off the mortgage, car, and got rid of all the other consumer debts. Sold things I didn't need and started living on far less and saving my leftover cash. Today I save half my income. My bills are all paid. I hoped to do this as long as possible, and push my 'retirement' back as far as possible, but health issues will probably dictate that I retire next year when I am 62. I work in healthcare and the physical toll it takes is real. People have become much much bigger today and all the lifting and pulling of the obese has damaged my arms beyond any kind of fixing it. I will be cutting back at my job, maybe to 1 day a week.

[@audiophileman7047]

Debt free living within your means is definitely the way to go. I have done the same throughout my life and retired young. I highly recommend consulting with an elder law attorney to help you develop a succession plan for you and your family. It is critical to get an elder law attorney who is certified. I used to a certified elder law attorney to deal with my mom's estate and living care, since she had a catastrophic illness that required a lot of health care. He was pure gold by helping us with living issues like how to fund long term care and not just transfer of her estate after death. It was the very best money that we've ever spent on an attorney.👍👍👍

[@gailjohnson6670]

My late husband had a DOT physical July of 2011and passed. Always healthy and wouldn't even take an aspirin for a headache. Became ill November 2011. He started collecting social security July 2012. He died August 2012. He received two social security checks. I had to send the second Social Security check back because he died in the within the month. Social Security doesn't prorate check. I started collecting Social Security on his earnings after receiving only two social security of mine. My Social Security check went bye bye. He worked his whole life for one Social Security. Where is the justice in this? It's not a fair system. If married remaining spouse should be able to collect both Social Security checks if one spouse dies. Plus everyone's Social Security benefits was dipped into and spent by the government for other expenditures. They are telling us our benefits will soon expire. Pathetic disgusting government management.

[@saxarra43]

Taking SS at 62, ill never get all my money back i put in.

[@tbone3079]

62.5 no regrets haven't spent any of my 401k retirement funds at all !! growing growing and growing. plus travel while I can still healthy

[@MikeD_]

My father passed at 68, my mother at 72 -- blended age of 70. My older brother recently passed at...70. I'm 65 and on Medicare, so I'm wrestling with the very question of when to start SS. People reading this are probably thinking, good heavens man, start it NOW!, but I have reasonable confidence I'll make it past 70 since smoking plays a big part in my family's propensity to exit early, but I never smoked. I will probably wait until FRA, and once there, I can assess if I want to wait until 70, but that's unlikely. I'll assess that decision one year at a time. It's a balance between financial needs, health and frankly opting not to draw down on cash, 401K and IRA reserves as quickly. I really don't believe there's a wrong answer as long as proper planning goes into the decision. It can be as simple as: "I need the money now."

[@zonacrs]

Thanks for all you do, I appreciate your videos. In my case, I'll be 63 next summer, I think starting early makes sense. My current SS benefit is right around $2,500, another $1,800 in pension and approximately 700K in 401K savings. Even if I take 2K per month from the 401K it "should last" 29 years for an approximate gross income of $6,300 per month which is much less than I make now but the net income of that is most probably darn close based on a couple of factors. I own a property almost outright. Less than 20K debt, and another to sell for whatever the market will bear in liquid assets which will more than cover paying off the 20K place. No more paying social security taxes, Medicare, Medicaid, fica etc., just straight up federal and state income property taxes HOA fees etc. No more paying for commuting 40 miles a day to work in gas, food purchased at work or my time. The elephant in the room for me, and millions like me, is health insurance. Seeing my older professional peers and mentors dropping like flies now is really pushing me to eat those 2 years of health insurance until I am eligible for Medicare. My primary, and most influential mentor, retired at 69 and very recently passed at 74. None of us get out of here alive.

[@anniesshenanigans3815]

with all the money you got coming in Health insurance shouldn't be a worry. You got it made if you compare it to most of us..

[@commonsense6967]

Remember, though: Retiring and taking SS are 2different things!

[@Saddlegait45]

I think if you are married, the higher income person should wait until full retirement age before you start taking it in most cases.

[@imagesbyjk]

I’m 60 and my wife is 59. We’re retiring when she hits 59-1/2. I’ll take my SS at 62. After running the numbers we’ve found that reducing our draws on our investments we will earn much more than if we waited for higher SS.

[@anniesshenanigans3815]

Sorry but regardless of what people claim, this is an individual decision. Based on what is going on in your life, health and life expectancy.

[@July.4.1776]

The ABSOLUTE worst mistake is to take it early while working and start living off of the extra!! …. By way of income creep you will set yourself up for failure.

[@anniesshenanigans3815]

they say you need 70 to 80 percent of your current income, but if you live on less than half of your income you'll be fine. I have set up my budget to live on what my SS is projected to be.. and it's doable. gotta make it work!! I have a friend that has SS, Retirement, alimony, etc.. and STILL cannot afford her extravagant lifestyle. Sold her house, spent every penny on BS.. now rents. AND has a full time job as of the last time we spoke.. at 69 years old!!

[@bilo6832]

Take it early if you need the money, are in poor health, or don’t have longevity in your family. Delay if you have the money to bridge until SS. Potentially use low tax years to do Roth conversions. Also look at the highest earner delay as long as possible to maximize the survivor benefit.

[@G_Machine_Joe]

Take it as soon as you can. No reason to wait. Bottom line. I'm done with the rat race right now at 62. Time for ME. I'll get some mindless part-time job to fill the hours I'm not enjoying my hobbies and life. I can also use the VA for healthcare till I'm 65.

[@commonsense6967]

Most of us who make it to age 62 in relatively good health would be wise to wait to age 67 or 70 to take SS. I'm age 73 now, waited to age 70 to collect mine, and am glad I did. BUT, I was able to draw on ex-husband's beginning at age 66 to age 70.

[@chriswedgworth]

Thanks so much for all your help

[@MedicareonVideo]

@@chriswedgworth your welcome!

[@TeresaPatterson-l5o]

I waited to take mine but I was fortunate enough to be able to work until I was 67 and 6 months so a year of free money

[@vannebago]

If I start taking Social Security at full retirement age (67 for me), if I continue to earn a large amount per year after age 67 can they reduce my SS ? Or can I earn as much as I want after full retirement with no impact on my benefits ?

[@July.4.1776]

After FRA you’re in the clear under current rules today.

[@TeresaPatterson-l5o]

@@July.4.1776if you make a lot more after retirement could your ss increase?

[@foxslayer321]

Really depends on a person's health!

[@MedicareonVideo]

Agreed!

[@booboolips6053]

I’m 59 and will be taking SS AT 62. I’m probably not making it to 70 due to health issues right now. Also, 90% of my relatives don’t live to 65.

[@danmckayinthewind]

Wouldn't it be better to wait to 70 so your spouse could get the extra survivors benefit's? Why does noone cover that issue.

[@MedicareonVideo]

It can - some say but what if you die before 70 :(

[@danmckayinthewind]

​Then I didn't need it I guess, the least a surviving spouse would get is your full retirement benefit if they wait to their full retirement age, I've always considered it social security insurance, SSI, you dont think of yourself first on a insurance policy, ​but that's just my opinion. @@MedicareonVideo

[@jamesallen8107]

​@@MedicareonVideoBut what if you or your spouse die at 95, or 50.😮. You don't know. Best to plan for longest life scenario when you will benefit from most lifetime income unless there is evidence to the contrary, wouldn't it?

[@jamesallen8107]

I think there could be benefit to listeners if more of these articles would remind people that they don't have to start taking SS benefits as soon as they stop working if they have investments to bridge to a later age to start collecting SS benefits and they will still benefit by collecting significantly higher monthly benefits when they ultimately retire. Also while in a lower tax bracket from ending work, till taking SS, they may benefit by doing some limited annual Roth conversions. I retired at 59, and I'm waiting till 70 to collect and doing Roth conversions inbetween to reduce future RMDs. There aren't many guaranteed return options that can provide as high returns and methods to reduce lifetime tax expenses. Unless people are betting on dieing earlier than later. I prefer to bet on living longer, ... Or at least preparing better for that possibly. If someone has the bridge funding, doesn't that seem like a positive outlook plan? And the SS will increase if I delay taking it till 70, even if the stock market tanks / investments loose value. And in the future, even if politicians don't fix SS, worse case is reduced SS for everyone to about 80% ... Still better for people who delayed taking SS because it would be 80% of their higher starting SS amount... Although I think it will be political suicide for politicians not to address and fix SS in some way before that problem occurs... so I don't expect that problem will be realized.

[@billb.950]

When you die, your life is over. Nuff said. At 62 you are closer to the end than ever before. Its just a no brainer to me.

[@timsilva1944]

6:33 Thanks for stating the obvious that many fail to mention. No matter what age you take SS, it doesn't mean that you have to spend it. I'm taking it early and will only use maybe half of it, depending on inflation. Currently doing fine on my pension alone. Saving/investing the balance. It'll be there if I need it and I don't need to raid my portfolio.

[@BillSimpkins]

Much depends on your other sources of income and what you plan to do with your Social Security. If you retired early, are living off savings, and invest your entire Social Security check (minus any tax owed) in an S&P 500 or Russell fund (should earn at least 10% on average), studies have shown you're considerably better off taking the money at 62. That's just going off pure calculation of what gains you the most money. If making an emotional decision, most people feel better waiting as long as they can.

[@jerryKB2GCG]

waited to agen70 , earlier this year, best thing I ever did as I was still working

[@MedicareonVideo]

Sounds good!

[@MikeD_]

The "still working" part if key. Makes the decision easy. Many don't have that option.

[@jerryKB2GCG]

@ agree, some people not working are in a position where they need whatever they can get whenever they can get it

[@Buzz-ep6iu]

I turn 62 this next year, my wife is 3 years older with family that does not have long genes (we are in excellent health, eat phenomenal and exercise daily). We retired 7 years ago and have COLA adjusted pensions of $18,000/mo and retirement funds (Roth), if we withdrew, that would provide another $10,000/mo at 4% withdrawal rate. We have no expenses (paid for everything, solar on house, medical covered). Never made much, saved like crazy. So given our situation we decided to take it over risking never getting it!

[@audiophileman7047]

You're making $18K per month in pensions and have the potential for another $10K per month from a Roth. Congratulations, that's terrific! You really don't need to worry about SS at all with that kind of income.

[@darkroast66]

I was using 75 as an example to run the numbers. I’m personally not relying on ss as my only source of income, but if I take benefits at 62 and die at say 80 I’m receiving $56440800. If I take benefits at 70 and die at 80 I’ve received $552,120.00. I know you are the expert and I really appreciate the information you provide, but those numbers don’t work for me. Am I missing something?

[@commonsense6967]

Yes, the fact that at age 73, IRS tables predict you'll live 23 more years! The older you are, the longer your life expectancy is, relatively speaking.

[@samuelpringer3204]

Take it at 62 if you have at least one minor child who can collect SS for several years.

[@MedicareonVideo]

That can play into it

[@melvano4014]

Have a minor at age 62?

[@christopherhurley8694]

Another point is all future cola increase's are based off your age when you draw. Let's say a 2% annual increase each year. $2416 x 2% = $72, if at 65, $3562 x 2% = $71. It's simple math. If your working after 62, wait to draw, if your retired at 62 or less, draw. I'm 59 and working. I'm drawing at 67.

[@MedicareonVideo]

Thant makes sense!

[@moneymoments8307]

Lol. That math is not that simple. Your math is wrong

[@MedicareonVideo]

@@moneymoments8307 Where is it wrong? I think the point is 2% of a higher # is more going forward.

[@MikeD_]

@@MedicareonVideo I think he was joking that the OP had $2416 x 2% = $72, when it's actually a tick over $48. His point, however, is correct. The COLA will compound yearly on an increasingly higher number.

[@christopherhurley8694]

@@moneymoments8307 When I stated 65 I meant to say 67, so you are correct.

[@jamesreed1969]

I don't think "bus" is the main issue. SS itself is in question. Is it going to be around?😅

[@g8way2k1]

Keith: Using your figures, in rough numbers, waiting until full retirement age, you would be walking over $144, 950. Of course you get nothing between 62 and 67 by waiting. If by chance you wait until age 70 that number balloons to $432,000 and would take you 7.8 years to break even, bringing you to age 78. Yes, health has much to do with this decision. And while calculating family life history and ages into the mix is fair to do, like they say: "Past performance is no guarantee of future results :-) . In addition, what might you NOT be able to do and enjoy at 78 (break even point) that you can do, or plan to do now? Life can turn on a dime for anyone, so even waiting to full retirement age can pose a risk. And as you hinted, should a worse case scenario rear its ugly head, family gets nothing aside from the wife getting a SS widows pension. I took Social Security at 62, at a time when I was already collecting two government pensions. I'm 68 today without a single regret. So Good luck with your decision Keith. Whatever you decide, I'm certain it would make sense for you and yours. Thanks!

[@July.4.1776]

I would never wait the average return on the S&P has been just over 7% …….. I am betting the 8 years from age 62 thru age 70 will likely be average. 😉 No reason to break into that nest egg. …. Retired prior to age 62.

[@bruceeigsti5274]

We just retired at 62 abd takung ss benefits is what is best fir us.. or we would deplete our Roth funds if we waited till 70

[@QuallsJohn]

Enjoyed your video still working so going to wait to FRA or until I get fired at least.

[@georgeallen7667]

I ain't you. Neither is anybody else. Your boat, pilot it.

[@twobeerjohn]

Break even is around 83. Life expectancy is 78. What r u waiting for?

[@recoveredconservative]

If you die before 82, obviously, you are money ahead taking it at 62. The only benefit to waiting is if you live beyond the average life expectancy. By that point, most retirees aren't spending much and won't need the extra they get for living longer--although they can pass it on to heirs if they choose, but again, it's a big gamble.

[@windwater7777]

I won’t care at my breakeven age at 79 if I could be getting a few hundred more a month

[@DavidRFarrell]

Don’t be foolish take it at 62

[@darkroast66]

If it’s possible for you to take it at 62 you should do it. Life expectancy for men is under 75. If you run the return numbers from 62,67, and 70, with a life expectancy of 75, it’s an easy decision.

[@MedicareonVideo]

Easy untill all of a sudden you're 80 and can't cover your bills. I don't think many take it at 62 and put it away until later.

[@allrightonthetrail8873]

Life expectancy for men at birth is under 75. If you make it to age 62 then it becomes 81. If you make it until 70, then the average life expectancy for men is 83.

[@RS-oy7uh]

Retire to the Philippines. Affordable, English speaking. $1000 month will do it.

[@greygrey4479]

Really? at 70 good luck with spending your money in the old folks home oyyy

[@Scott63-d4x]

I'm 62 in 2025. I'm taking it then. I just retired and also have a pension. No need for me to wait. Who knows what Republicans will do to ss soon.

[@g8way2k1]

What did Republicans do to Social Security from 2016 to 2020, when liberals were projecting Trump would be detrimental to SS?

[@samuelpringer3204]

The Democratic party has you brainwashed.

[@SprintTri57]

Neither party will EVER mess with SS. Think about it just for one little second

[@michaelt2974]

Back in 2005 I think President Bush suggested allowing people to invest at least part of money the money withheld for social security into the stock market. The Dow was at 10000. It got shot down as politicians didn’t want to give up control of our money and they thought the American people were stupid.

[@HelloThere-nz9ld]

If you are not working, then best to take it early. The real inflation is 15%. So in the future your increased sum will be worth a lot less, if you get it, at all.

[@howardfriedman7077]

Hello: lease seek financial help, for your own good.

[@audiophileman7047]

Something I'd like to hear you discuss are the benefits a spouse who doesn't qualify for SS would lose if her spouse who can collect SS passes away before starting to collect it. As I understand it, the spouse will lose the benefits if the spouse dies before collecting SS. The additional income would be helpful at 62 and would ensure that my wife receives benefits if I were to pass away in my 60's and 70's like my parents did.

[@commonsense6967]

You're misinformed! As long as your spouse is at least age 60 at time of your death (as well as certain other situations, such as having dependent kids) your spouse can collect at your death. No need to be collecting at your time of death.

[@audiophileman7047]

@@commonsense6967 Thanks for this comment. 👍👍👍

[@audiophileman7047]

@@commonsense6967 Would you happen to know if my wife would be eligible for Medicare as well?

[@Mack-bc4qo]

Wait till full retirement age and you'll get more money... if you live into your late 70's. Just in time for the sh*tty years. 😷🤮🤕🤧🤤🤣

[@commonsense6967]

But nice to be able to CHOOSE your final assisted living home instead of ending your life in a crappy Medicaid NH bed.