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Monday, April 4, 2011

Want your Social Security early?

More people are refusing to wait until 65, opting for reduced benefits right away. Are they ahead of the curve or just hurting themselves?

The number of Americans opting to take Social Security at 62 -- currently the youngest age allowed -- is on the rise. In 2009, 42% of 62-year-olds claimed benefits, up from 38% in 2007, according to economists at the Brookings Institution in Washington, D.C.
(click on photo for more on this topic)

Afraid that lawmakers will soon raise the retirement age of Social Security or shrink benefits, many are ignoring the traditional advice of financial planners and retirement experts everywhere and taking their benefits as soon as possible.

Advisers say the average pre-retiree typically underestimates the impact of taking benefits early. For example, a top earner retiring at 62 would get $1,803 a month. By waiting until 66, he'd increase that amount to $2,442, and delaying until 70 would bump the monthly payment to $3,256, according to Rande Spiegelman, the vice president of financial planning at the Schwab Center for Financial Research. Another way to look at it: People who take Social Security at 66 rather than at 62 will collect more money over time, provided they live to at least age 77.

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  1. I just got my first SS check, and yes, I'm 62! My DH and I figured it out, and decided the 15 years it would take to make up for not getting anything at all for three-eight years would make waiting the wrong option for us. I don't get much though, and never would. It's lovely to have that extra money now, especially since the DH is 75; he wants me to retire so we can play, lol.

    Thanks for asking about my whereabouts! We've been dealing with the cancer thing, and it's been just a little intense. He'll be fine, but I'm kind of laying low, just conserving my own energies. I'll be back next week, I'm sure!

  2. Yah - I don't have to think about that for awhile :P Love the items you featured!

  3. Social Security...what's that??? All you baby boomers will use it up before I get there :)
    But you're right...I know several people who've started taking SS at 62.

  4. I hope SS is still there when I retire and I'll take it as soon as I can. I'd rather take it over more years than waiting to take more. It is frustrating doing tax returns for millionaires who still get their SS checks.

  5. Thank you for visiting, and leaving some bloggy lovin x0

    Yes, Sharla I totally agree that those over a certain bracket should not be eligible to recieve SS. However, should they continue to pay into the system and if not, would SS stand? It is my understanding that one of the cuts awaiting approval is a lower monthly amount for "them"... wonder from what to what ... would you like to wager that the millionaires (a majority) wait for the larger monthly than retiring earlier for the lesser???

    If things continue the way they are, I will be taking my SS at 62 myself.

  6. we were just talking about this at work yesterday. And someone was saying exactly what Ani is saying. I was always taught to wait... Don't know what to do now, but I have a little time left... {:-D


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