Comments on: Reasons to Delay Taking Social Security until Age 70

By: MJP

MJP — Fri, 09 Dec 2011 02:44:24 +0000

Your argument has been made many times by many different people but it assumes that by taking SS before age 70, you will come out ahead by saving/investing the SS income you take earlier. Studies have shown however that the vast majority end up spending that money, not investing it. Also, your calculation may be way off depending on future inflation rates because the difference in benefit levels will be adjusted upward by COLA.

By: Alexander Rosental

Alexander Rosental — Thu, 01 Dec 2011 21:50:15 +0000

NOT waiting until 70 to take etirement:

Another way I looked at it very simply is in terms of when will I be able to withdraw the same cumulative amount that I have if starting at 66. My calculations are you have to wait until 79 1/2 to 80 1/2 to recover your delaying and the NPV at 90 yrs old is almst the same(~$40K). Evaluate your risks-life expectancy however you want, but I just dont see why to wait EXCEPT for the 85% tax liability if you are still working.Anybody?(I’m 66 next week-12/2011)

By: Deb Kelson

Deb Kelson — Thu, 14 Apr 2011 20:24:28 +0000

How about making Social Security means tested? In other words, those making over $100,000 (like Senators and Presidents) ayear won’t need social security. That way, blue collar workers, those who’ve work for rich people all their lives like me, (I’m a career nanny)don’t have to wait until 70 to get SS since we’ve worked our fingers to the bone and dont’ have a 401K to fall back on. Blue collar workers won’t have the stamina to work to 70. Our old bodies will be worn out by then. I’m sick of rich politicians deciding on what they do with my retirement and they’re the ones who hired people such as myself all their lives. Their attitude is “Let’s just sh*t all over them and have them live in poverty until 70. We don’t care!” ‘ll fight this to the end!!! I’m mad as hell that they are even thinking of it!!!!

By: Robert

Robert — Fri, 09 Oct 2009 14:05:43 +0000

Consider this scenario: husband and wife both 66 and both retired, husband entitled to $1200/month and wife entitled to $500/month.
The wife files at 66 for her $500/month. The husband files for spousal benefit of 1/2 ($500) = $250/month. The husbands waits until age 70 and files for his benefit increased by 32% = of $1200 * 1.32 = $1584/mon.
Can the file then file for spousal benefit of 1/2 ($1584) = $792/month?

By: Funny about Money

Funny about Money — Wed, 24 Dec 2008 16:21:29 +0000

I’d already come to that conclusion. Actually, the conclusion I arrived at is that working to age 70 is not an option, what with my life savings decimated by outcome of Our Beloved Leaders’ interesting economic theories.

However, this is easier said than done. If you’re laid off, you could find it extremely difficult to get another job. Younger people having a hard time getting work. For an elderly person it could prove impossible.

Don’t forget, BTW, that if you have some savings you can use SS as a kind of interest-free loan. You can start taking payments before you hit full retirement age and then when you’re 66 (if you’re in my age bracket) you can turn back the amount you’ve drawn down and reset your payments at the “full retirement” rate; the gummint also returns the tax you’ve paid on the returned money. The increase is likely to be significantly more than 4% or 5% of the amount you’d take out of savings. In my case, the increase would be over $1,000 a month. If I’m canned, this is exactly what I intend to do, using SS as a kind of unemployment insurance and trying to get by until age 66 on that and the $14,000 one is allowed to earn before the government starts taking its money back.

I think this strategy MAY apply to the difference between age 66 and age 70 draws. It would be worth checking into.

At age 66, they don’t take your money away from you if you continue to work. If you can in fact do a turn-back maneuver to get the age 70 payments, then it might be worth starting SS payments at 66 and investing the money. If you die young, your wife is still entitled to your SS (if hers would be less than half of yours, I think), and she would get the cash you had already collected.

By: Carol Stanley

Carol Stanley — Wed, 17 Dec 2008 13:15:50 +0000

I think it is great to wait if you can…However today people seem to need money more than ever. ALso…honestly who knows what condition the social security fund will be in in the next ten years or so…My opinion..take it when you can!!!!