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markdoane · 10-30-2015, 10:46 AM

A few Social Security claiming strategies have just been eliminated by the new Budget Accord passed last night by the Senate.

If you were planning to "File and Suspend" you will not be able to do that 6 months after today.

If you are planning to file a "Restricted" claim, you will not be able to do that unless you are at least 62 years old on December 31 of this year.

Good Luck!

Lily&Me · 10-30-2015, 11:24 AM

Doug and I both started drawing ours at 62, based on advice from many people that this would give the best chance of drawing back out what you had paid in.

Doug died a month after his 65th birthday, having worked steadily since he was 15 years old.

Glad we did.

Maggie

BassCan · 10-30-2015, 10:19 PM

We are getting close to retirement also.
Thinking about collecting at age 62.
But would like to hold out a little longer. No one can predict how your health will be four or five years down the road, or if you will be here at all. Time will tell, so until then what to do....

ROBERTSUNRUS · 10-30-2015, 11:47 PM

Hi, I retired at 62; My math showed that if one person retires at 62, another at 65/66, and the last at 70, that they all collected the same amount of money at age 80. Actually it was more like 79 1/2 to 79 3/4, but 80 is close enough. So those who wait to get more money will actually be ahead after they turn 80.

Glenritas · 10-31-2015, 12:45 AM

Everyone has an expiration date . Unfortunately we don't know what it is .

So live every day like its your last .

I retired at 49 and my wife retired at 54, we both started to draw SSA at 62.

She died suddenly 2 weeks ago just a month short of 71.

Lily&Me · 10-31-2015, 04:22 AM

I'm sorry for your loss, Glenritas.

The question is......will one live to 80.?

Might, might not. You just don't know.

Maggie

paiceman · 10-31-2015, 06:49 AM

Glenritas sorry for your loss. Everyone posting is correct, Roberts math is spot on and no one knows what is coming are on point. We had to wait for Medicare so my wife retired at 65 and suspended until I retired at 65 and a half, we are almost exactly the same age. We wanted to retire much earlier, but the health side of the equation just did not work out, but enjoying it now. So, my recommendation for those who can afford it, do it as soon as possible.

Enjoy

Bud

remphoto · 10-31-2015, 06:55 AM

Yes, Glenritas, sorry for your loss. Our financial planner advised holding off until age 70 to start drawing because our pension and investment income will meet our financial goals and taking the SS before 70 will result in much of it being taxed. Also, there is a history of longetivity in our family, so the odds are in our favor.

J. Morgan · 10-31-2015, 06:59 AM

I offer my most sincere condolences.

Brevi tempore!

Wolfe · 10-31-2015, 07:55 AM

I went to 70, it is a nice bump up, as we live to 95-105.
In the end its a cxap shoot and i wont break even until my 128 birth day oh well.

Caffeinated · 10-31-2015, 07:59 AM

So sorry for your loss, Glenritas.

My Dad passed at 87, smoked all his life and ended up with heart disease and on oxygen. My Mom is 90 and in relatively good shape. I'm waiting unti 70 to collect, I figure it's a good bet that I'll be here at least until 85, although there are no guarantees.

dznf0g · 10-31-2015, 08:07 AM

I am ramping up the research toward retirement in 3 - 5 years. I have a CFM (very important certification in the OCEAN of experts). He recommends collecting as soon as you are eligible. Bob's analysis in post 4 is spot on with my CFM's advice.

McDave · 10-31-2015, 08:22 AM

I agree with starting SS as soon as you're eligible. For me, that was 66, since I was still working and would have had to pay most of it back in before I reached 66. You never know what the future might hold, whether for you personally or for the country financially, so it's good to git while the gittins' good! I've had a few good years now of being mostly retired, soon to be fully retired. Not that I really want to be fully retired, but a man's gotta know his limitations, as Dirty Harry said. I suppose it's unlikely that I'll ever draw out everything I paid in to SS, but I don't worry about that. I'm just happy to be blessed with a few years of mostly healthy retirement, while I can still travel with my Airstream and do a few other things I've always wanted to do.

Sent from my iPad using Airstream Forums

Wayne&Sam · 10-31-2015, 08:50 AM

Quote:

Originally Posted by McDave

For me, that was 66, since I was still working and would have had to pay most of it back in before I reached 66.

Actually, you'd give it back now, but it is added back in later.

Zil · 10-31-2015, 08:53 AM

I could not retire at 62, but joined Medicare A at 65. I retired at 67. I worked another year and sank the extra into a 401 to avoid taxes. Now at 70, I am very glad I get the 25% more from SS than if I retired at 62.

OTRA15 · 10-31-2015, 10:05 AM

Quote:

Originally Posted by ROBERTSUNRUS

Hi, I retired at 62; My math showed that if one person retires at 62, another at 65/66, and the last at 70, that they all collected the same amount of money at age 80. Actually it was more like 79 1/2 to 79 3/4, but 80 is close enough. So those who wait to get more money will actually be ahead after they turn 80. [red emphasis added]

If they live that long . . .

Great summary, and confirmations by later posts, about doing the math when younger, with the help of one's accountant as needed. In my personal opinion, many who waited to collect until 70, but left us early, may recommend starting sooner rather than later, if they could chime in on the issue . . .

Life is short.

PS -- I grabbed the brass ring at 63. Family longevity and personal health both mixed. Uncertain stability of Social Security for the long haul. Global risks on the rise, including domestic terrorism. Go for it.

Silverflames · 10-31-2015, 10:24 AM

Quote:

Originally Posted by markdoane

A few Social Security claiming strategies have just been eliminated by the new Budget Accord passed last night by the Senate.

If you were planning to "File and Suspend" you will not be able to do that 6 months after today.

If you are planning to file a "Restricted" claim, you will not be able to do that unless you are at least 62 years old on December 31 of this year.

Good Luck!

Sorry, I'm kind of ignorant. Can some one please explain File and Suspend and a restricted claim?

Easyrider06 · 10-31-2015, 10:38 AM

Our condolences to Glenrita and family. While some say to wait and collect later, we're of the opinion to collect as early as possible and have a plan in place for saving it if you can. We are starting to see some changes in SSI benefit distribution(no COLA for 2016) and with the political climate as it is, it will most likely get worse, that's not to mention an unforeseen health issue. It will be a gamble either way but cashing in early gets you something at least...
James and Rebecca

markdoane · 10-31-2015, 11:17 AM

Quote:

Originally Posted by Silverflames

Sorry, I'm kind of ignorant. Can some one please explain File and Suspend and a restricted claim?

In general terms here is the skinny on both. I am not a CFM and you should consult your financial advisor if you want more info.

1. Both strategies assume you are married or have dependent children.
2. Both assume you want to maximize your benefit by waiting to collect benefits at a later date to take advantage of the 8% yearly increase in benefits
3. Works best if you have financial resources or retirement benefits to fill the gap between your normal full retirement age and 70, when benefit maxes out.

File and Suspend - In this maneuver you file for benefits and suspend payments while you allow the 8% yearly increase to grow your benefit. So you don't collect anything your ownself, but your spouse can start yo collect spousal benefits, which would be 50% of your benefit. FREE MONEY!
As a couple, you are collecting half your benefit early, while you wait for your individual benefits to max out.

Restricted Application - When you reach full retirement age (currently 66), you file a Restricted Application which tells the SS that you only want to collect your spousal benefit. So you collect half of your spouses benefit while you wait for your own benefit to max out. FREE MONEY!

The reason these claiming strategies are being eliminated is that some consider them to be a form of "double dipping" that would only be used by wealthy people. I see it as $40k extra I can use to buy a nice car.

Whether to wait til 70 to collect maximum benefit, or collect as soon as possible is a personal decision based on your own estimate of your life expectancy. It seems like everyone either starts at the earliest possible moment, or waits to max out. Whats right for you may not be whats right for me.

**moosetags** · 10-31-2015, 11:29 AM

Quote:

Originally Posted by Glenritas

Everyone has an expiration date . Unfortunately we don't know what it is .

So live every day like its your last .

I retired at 49 and my wife retired at 54, we both started to draw SSA at 62.

She died suddenly 2 weeks ago just a month short of 71.

We are so sorry to hear of Rita's passing. Please accept our sincerest condolences.

We try to follow your advice and enjoy every moment that we have left. We, too, retired in our early 50's and are now in our late 60's. We hope to have a bunch more years but, as you found out, you just never know.

Take solace in the fact that you were able to retire early and had those years together.

SuEllyn and Brian