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Post by Larry Madsen on Nov 20, 2023 11:49:32 GMT -5
I'm running it through my mind and just not quite sure, but I'm leaning toward it. What factors nudged you one way or the other? The question begs the assumption that we are pretty much all a bunch of "Old Farts" around here.
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Post by Pinetree on Nov 20, 2023 12:15:36 GMT -5
You didn't include your age.
I retired at 63.
You're not going to live forever, and working until you max out the benefits is just silly in my opinion.
.02
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Post by Auf Kiltre on Nov 20, 2023 12:30:24 GMT -5
Choosing to opt in early because in the end it's possible you'll have collected more of your entitlements is one way to look at it. But if it falls short of supporting your life then that's math you can't change. So many variables I'm pretty addled by the process. I turned 64 last month, still not collecting. My wife turned 65 today, also not collecting. But we have a big decision to make, and soon. It's not likely we'll wait until full retirement age (66 and 8/10 months) and we certainly won't ride it out into our 70s.
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Post by Larry Madsen on Nov 20, 2023 12:43:14 GMT -5
You didn't include your age. I didn't. I wanted to start a discussion from a clear slate. I am 66 and 8 months. Qualifies as "Full Retirement" age. That was an important threshold since both Queenie and I still hold down a job. We intend to continue working to possibly 70. Queenie is very happy with her work situation, not to mention she likes money. I'm good with what I am doing and also carry our health care insurance with my employer. You're not going to live forever, and working until you max out the benefits is just silly in my opinion. This one is not lost on me either. Three of the closest people to me growing up were gone before they could ever collect a cent. A best friend gone at 48. Nephew gone at 48. Cousin gone at 60. I did a calculation on starting now. Between now and 70 I would collect enough dollars that I would have to live to 88 years of age before it becomes a net dollar loss. Another "concern" I have is Medicare Part B. I signed up for Part A about a month ago. Part B would be an aspect of my choice to collect Retirement Benefits now. I like Part B being paid from those benefits ... as opposed to me paying out of pocket. I mentioned George at work in another thread. He has had some tissue removed from a leg, two knee replacements and open-heart surgery. He submits our employer provided insurance as primary and Medicare as secondary ... says he never sees a bill for his medical care. Considering my recent scare, I am leaning toward protecting our other assets by following George's lead. After that we get into taxable income. Collecting SS now would boost us from a 12% bracket to a 22% bracket. We would need to adjust our 401K withholding to bring taxable income below the 22% threshold and back to the 12%. The income from SS would make that a very possible thing to do.
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Post by jazzguy on Nov 20, 2023 12:47:57 GMT -5
I'll be watching this thread as I've been on the fence myself
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Post by LVF on Nov 20, 2023 12:49:21 GMT -5
I started my SS as soon as I was eligible but, I was also getting a supplement before that because of reaching my retirement age max of 60 years at my job. It was also part of the retirement structure. It wasn't mandatory and could have been taken when it was fully matured but, I took it as soon as I was able for the biggest reason everyone should consider. Life expectancy. You pay into it your entire working career so, get it when you can is what I say. Even if you don't need it and can wait, your [government] representatives keep messing with it changing age requirements and such. Anyway, get it because you earned it and because more money in your hand is better than your money in 'their' hands.
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Post by Seldom Seen on Nov 20, 2023 13:35:07 GMT -5
I’m 66 and will wait until full retirement age at 67-1/2 but see no reason to delay past that. I worked up a spreadsheet a few years ago comparing my options at age 62 if benefits remained stable versus if benefits were cut by 25% in 2034 based on the scuttlebut at the time. The balance point turned out to be 67-1/2 for me. However, without the benefit of a five-year buyout from my former partners, I would have started SS payments at age 64-65.
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Post by Larry Madsen on Nov 20, 2023 14:01:07 GMT -5
full retirement age at 67-1/2 You are into something I don't think I understand with that.
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Post by Leftee on Nov 20, 2023 14:04:25 GMT -5
It’s really a very personal decision. I doubt I’ll go past 65 before I punch out. I’m 62 now. My retirement age for SS is 67. I was born on this side of the line.
I say this because I probably won’t want to deal with any more of the foolishness at work in 3 years. And when I leave work, I don’t want another job. I want to see this one out and be done.
The best laid plans…
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Post by slacker 🐨 on Nov 20, 2023 15:47:17 GMT -5
I have no definite plan. I plan to draw the vast majority of my retirement income from investment income, so SS is just a small piece of the puzzle. The last thing I want to do is delay retirement chasing a few more $$ only to have health issues that prevent me from enjoying my retirement.
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Post by Seldom Seen on Nov 20, 2023 16:18:59 GMT -5
full retirement age at 67-1/2 You are into something I don't think I understand with that. Oops meant to type 66-1/2. Waiting to 67-1/2 will increase my monthly SS by 10%. Waiting any longer than that to draw SS doesn’t make much sense to me.
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Post by Ricketi on Nov 20, 2023 17:02:49 GMT -5
I started collecting SS at 62. My break even point from drawing at 62 to waiting to 66 and 10 months is just under 80 yrs old. Living past 80 is where I start to lose out. I’ll take my money now thanks!
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Post by Pinetree on Nov 20, 2023 17:13:02 GMT -5
Be mindful of the lifetime penalty for not getting Part B at the appropriate time.
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Post by rickyguitar on Nov 20, 2023 17:20:04 GMT -5
I took it when I reached full retirement age. Delaying would have brought +8% per year and most investments were not hitting that bar but by taking it and continuing working I was able to make some payoff action happen. Wife will likely draw at her full retirement age also.
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Post by rok-a-bill-e on Nov 20, 2023 17:23:11 GMT -5
My thinking at 62 when first qualified was "I don't need the money right now" so I waited until I retired at 67 and today I've very glad that I did. And I've drawing about double what those who took early benefit are drawing, and some of them today are not so happy with their decision. If you've got plenty stashed away and can think in terms of getting yours while you can, that is fine. But if a few hundred dollars a month might impact your retirement lifestyle then think twice before you cut that in half just to draw four or five years earlier, especially if you really don't need it just yet.
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Post by Ragtop on Nov 20, 2023 17:45:17 GMT -5
62 for me (I'm 68 now). But I have some health problems. Hope to make it to 75, and my doctor doesn't tell me I'm wrong about that. So I'm getting what I can while I can.
My wife, on the other hand, could easily live to be 100. She's 63 now, and hasn't decided yet when to take it.
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Post by Larry Madsen on Nov 20, 2023 17:51:37 GMT -5
Be mindful of the lifetime penalty for not getting Part B at the appropriate time. We are covered by our Company plan, so we are avoiding the penalty on Part B for the time being. Speaking of Medicare, the card for my Part A sign-up arrived in the mail today.
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Post by Larry Madsen on Nov 20, 2023 21:06:20 GMT -5
The Social Security web site has a nifty graph here you an easily see where your starting benefit lands as you wait.
For me it looks like between now (66 & 8 months) and waiting until 66 & 10 months, I gain a $168.00 per month advantage.
Then it doesn't change for several months after that.
$168.00 comes pretty close to covering Medicare Part B.
Knowing this I certainly won't apply until January at the earliest.
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Post by dadzmad on Nov 20, 2023 22:36:03 GMT -5
I am still working and waited till my full retirement age to begin collecting my ss benefit. At the "full retirement age" (a moving target) the amount of your earned income does not affect your benefit, but darnit you have to pay taxes on both. I enjoy my work and only have to commute to our office one day a week to stay in touch with the team. The rest of the time the management lets me work from home (4 monitors on my desk). In the last few months I have been freed from having to bill 40 hrs a week and am being paid by the hour. So long as I work and bill at least 20 hrs/week I still get family insurance coverage and paid holidays. At 70 the pressure is off and the situation is perfect for me.
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Post by RufusTeleStrat on Nov 20, 2023 23:10:50 GMT -5
Be mindful of the lifetime penalty for not getting Part B at the appropriate time. We are covered by our Company plan, so we are avoiding the penalty on Part B for the time being. Speaking of Medicare, the card for my Part A sign-up arrived in the mail today. So this is what I do all day. I counsel folks on Med Supplemental and Medicare advantage plans, the timing of B and costs associated with delayed or not delayed assumption of Medicare A, B and D. I will not get into it here, but employer coverage will delay penalty as long as both the medical and prescription coverage meet what is called credible coverage. If you have not triggered B yet, you will not be billed the 174.70 that medicare will charge at a minimum next year for B.
If anyone needs specifics DM me and I can send my work # so I do not get into insurance jail.
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Post by Auf Kiltre on Nov 20, 2023 23:34:16 GMT -5
We are covered by our Company plan, so we are avoiding the penalty on Part B for the time being. Speaking of Medicare, the card for my Part A sign-up arrived in the mail today. So this is what I do all day. I counsel folks on Med Supplemental and Medicare advantage plans, the timing of B and costs associated with delayed or not delayed assumption of Medicare A, B and D. I will not get into it here, but employer coverage will delay penalty as long as both the medical and prescription coverage meet what is called credible coverage. If you have not triggered B yet, you will not be billed the 174.70 that medicare will charge at a minimum next year for B.
If anyone needs specifics DM me and I can send my work # so I do not get into insurance jail.
Not to derail or hijack, and I understand if you don't want to answer because of employment requirements, but... My wife turned 65 today. She has medical and prescription coverage through her employer which starts a new year December 1st. She has already applied for for Medicare Part A. If she elects to retire or go to part time next year and not qualify for medical coverage through her employer before December 2024 she won't be penalized for applying for part B, right?
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Post by LTB on Nov 20, 2023 23:54:23 GMT -5
I started drawing Social Security and started Medicare Part A (hospitalization) at age 65 but worked until age 67 as Mrs. LTB needed my Health Insurance as she is a Breast Cancer Survivor. She got on Medicare at Age 65 and allowed me to retire at 67 and Got on Medicare Part B, Advantage G and drug Part D. All weird and Greek at first but after few months it began to sink in
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chucksmi
Wholenote
Posts: 174
Formerly Known As: Offshore Angler elsewhere
Age: I saw Jerry Live
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Post by chucksmi on Nov 21, 2023 6:33:23 GMT -5
So this is what I do all day. I counsel folks on Med Supplemental and Medicare advantage plans, the timing of B and costs associated with delayed or not delayed assumption of Medicare A, B and D. I will not get into it here, but employer coverage will delay penalty as long as both the medical and prescription coverage meet what is called credible coverage. If you have not triggered B yet, you will not be billed the 174.70 that medicare will charge at a minimum next year for B.
If anyone needs specifics DM me and I can send my work # so I do not get into insurance jail.
Not to derail or hijack, and I understand if you don't want to answer because of employment requirements, but... My wife turned 65 today. She has medical and prescription coverage through her employer which starts a new year December 1st. She has already applied for for Medicare Part A. If she elects to retire or go to part time next year and not qualify for medical coverage through her employer before December 2024 she won't be penalized for applying for part B, right? ----------------------------------------- So, just go to the website and there's a series of questions to guide you. As long as she is employed and has health care through her employer no need to apply.
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Post by oldnjplayer on Nov 21, 2023 6:36:19 GMT -5
I'm 74 started to collect at 63. calculated my break even point and decided to collect money for the years until that time. I also have a pension so there is that. I looked at the process as gambling my life span. Taking SS early did reduce the amount substantially, so if you are dependent on it for the majority of your retirement income it makes a difference. Good luck with whatever choice you make.
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Post by Laker on Nov 21, 2023 7:09:56 GMT -5
I’m 77 and my full retirement age was 66. I enjoyed my job (that paid quite well) and the people I worked with so I started drawing my SS benefits at 66 and worked another six months, banking the SS money. It made a nice downpayment on the new Corvette I purchased.
I’ve never really considered the “break even point” as my wife and I both have healthy IRA accounts and we live a debt-free life.
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Post by Larry Madsen on Nov 21, 2023 7:17:50 GMT -5
If she elects to retire or go to part time next year and not qualify for medical coverage through her employer before December 2024 she won't be penalized for applying for part B, right? My understanding of it based on talking to my benefits department is this. While employed with insurance coverage I stall the penalty aspect of Medicare. Once I do lose that coverage my employer will provide a "memo" to Medicare verifying that I had coverage for the time period of my employer provided medical benefits. Benefits explained to me that this is a common practice for them. At that point I sign up for Medicare benefits with no penalty. I could be wrong on what I am about to type next, but memory tells me there is a "grace period" of something like 60 days to sign up for Medicare after losing employer provided. Again, don't bank on that, check into it for yourself.
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Post by LTB on Nov 21, 2023 7:19:40 GMT -5
Larry, that is correct. Thank you, I had forgotten all that. That is exactly what occurred in my case of working until age 67.
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Post by Larry Madsen on Nov 21, 2023 7:25:47 GMT -5
Another aspect Queenie and I are planning is:
I apply early, sometime over the next few months, taking the reduced benefit available now. Queenie holds off until later (70 if she does indeed work that long) to collect the maximum benefit. Currently that maximum is about $700.00 per month more then I will collect now.
By doing this we can know that whichever of us lives longest can collect that maximum benefit going forward from there.
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Post by Rick Knight on Nov 21, 2023 7:47:20 GMT -5
I started collecting SS at 62. My break even point from drawing at 62 to waiting to 66 and 10 months is just under 80 yrs old. Living past 80 is where I start to lose out IDK if this is common knowledge but don't remember seeing it anywhere when I was considering this stuff. I came to the realization that 80 was the break even number via an Excel sheet comparing the amounts and years. I waited until January of the year I was old enough that the penalty threshold for continuing to earn went up, but ended up not continuing to work.
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Post by Leftee on Nov 21, 2023 8:18:55 GMT -5
I seem to be of the mindset that I will retire and collect at that time forward. I’ve not thought about other options. 🤔
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