Several nights ago I got an email from the Social Security Administration. “Your annual Social Security statement is now available on our website.” They added that several changes had been made since last year to better assist future recipients.
I liked what I saw: remember those annual statements the SSA used to mail out showing your benefit amount at age 62, 67 or 70? If you wanted to see what your benefit amount would be for other ages, you had to gather your income history for all of your working years and load it into one of the SSA’s online calculators.
Now you don’t have to. They show what your monthly check amount could be (well, before deductions for Medicare) for every start-age between 62-70. Here’s mine:
Now of course, someone out there is bound to say “Doug, you don’t want to start taking it at age 62! You’ll be stuck with $1,546 per month (besides small COLA adjustments) for the rest of your life!”
So, what if I wait until age 70? $2,783.00 a month sounds like a pretty sweet monthly payout. But how long will it take me to recoup the 96 checks at $1,546 each I forfeited to delay benefits until age 70? Um… a real long time!
(1546 x 96 = 148,416 / 2783 – 1546 = 119.6 months or living past age 80 to make the wait pay off.) Crikey!
So if I want to go with the flow… here’s what other Americans have done, according to the government:
Frankly I find it a bit surreal that I’ll be eligible for these monthly checks in a little over a year-and-a-half. Age is both a fact and a state of mind. When I’m online, I feel younger than my years. I’m friends with bloggers who are 5-20 years older than myself, who have referred to me as “young man” or even “young whippersnapper”!
In the physical world, it’s a different story. Everytime I see my neighbor Opal’s daughter Jesse, she treats me like an old man. (Opal is 69 years old, her daughter Jesse is in her thirties.) Jesse is always friendly and polite, but likes to ask if I have apps like DoorDash or Spotify installed on my phone yet (no) and do I know what they’re for (nope).
The other day, Jesse asked why I don’t go to the Senior Center with her mom. When I replied the Senior Center is for more older folk, she said “It’s for people 60 and older. How old are you Doug?” Sigh!
So when did you decide to take social security (if you’re American and on it) or CPP (if you’re Canadian)? I’ve got awhile yet to decide about my own social security. I’m sure I don’t want to delay taking it a long time, though. My dad passed (from cancer) at age 63. My mom passed at 64.
I’m already starting to feel like I’m living on borrowed time.
I agree with you that it takes a long time to make up for the missed checks and that you have to weigh several factors. I am taking my late husband's SS right now and waiting until 70 to take mine. So, my experience doesn't help you much. But if I didn't have his, I would have taken mine at 62. There is no guarantee how long I'll live and I need/want the money now.
ReplyDeleteHmm, thanks for sharing Margaret. It is a lot different for married couples, after my dad died in 2001 my mom was able to collect his until her own passing. Well, for now at least I don't really need mine right away so I just don't know..
DeleteThose are fun charts to play with. Since my SS is all of my post-retirement income, I'm working until 70, then quitting. That monthly difference for the rest of my life will cover all of my expenses with a bit toward savings. In spite of my comorbidities, my folks lasted til 84 and 79. I look forward to not working! Linda in Kansas
ReplyDeleteWow Linda, that would be great, I hope that works out for you! It seems that very few people wait till 70, I think most just don't have the nerve. By the way, my mom's name is Linda which is not a common name so it's always nice to meet another one. 🙂
DeleteTook it at 62. Was dx with MS in 2015, so that changned my mind re: waiting. My dad lived til 83, mom still living and wishing she were dead at 95 (suspected recent stroke and fall induced rapid changes and now she lingers, waiting and wanting to die but not showing signs of doing so.) My much more sedentary lifesstyle than theirs doesn't bode well for me. 62 was a no-brainer. Kim in PA
ReplyDeleteKim thanks for sharing.. I sure am sorry about the MS, I know how fast our health can turn, esp after 50-60. Your poor mom... 😟
DeleteAll those things you mentioned, Dug, need consideration... and yes, it's different for married couples. I took mine at 62, DH took his at 66. My brother-in-law who is still working will take his at 70. I would think that since you don't need it at the moment, the decision on whether to take it and bank it or wait is a personal one depending on your health, needs, etc. But that sentence you highlighted about 'recouping' what you didn't take - played a part in our decisions.
ReplyDeleteThanks for sharing Rian... and that sentence I highlighted about recouping, I heard someone else mention that recently and it was a real eye-opener to be honest. Anyway if your brother-in-law is still working up to 70... Now that's impressive.
DeleteThe longer you live the more it pays to wait. So I waited, because I'd rather bet that I'm gonna live rather than bet that I'm gonna die soon.
ReplyDeleteTom I know that's what they say.. but I don't know if I'm as confident as you about how long I'm going to live! The closer I get to 62, the more I hope I have a better idea of where I stand with my maker. 🙂
DeleteSorry that your Mom and Dad died so young. I started collecting my Canada Pension at sixty, Doug. There was no sliding scale. The CPP, added to my work annuity, made the difference between having to be careful and being comfortable. I'm sure you'll make the right decision for you. Nice job on your Social Security card mock-up!
ReplyDeleteThanks very much for sharing Florence, I was hoping one of my Canadian friends would comment. I just saw this past weekend about the CPP and 60, that's awesome. And I'm glad you're comfortable, you know how much some of us enjoy those glimpses into your own life in nature! 😊👍♥️
DeleteThis is an interesting question to ask others Doug as I have often wondered when other people took theirs. I retired at 62 1/2 and started taking SS at 63 when my husband had to retire early for health reasons. I wish I could have waited until full retirement age at 66 but we needed the money when he quit working. You seem to have very wisely handled your investments to be doing well so far without it. That gives you the opportunity to consider all options as you are doing before you do start taking it.
ReplyDeleteA warning about the COLA adjustments: when they do give you a small raise they also tend to raise the cost of Medicare which is deducted from your check. This year we had a larger than usual (still small) COLA but we also had a larger than usual raise in Medicare so that took a big bite out of any actual increase. Of course you don't need to worry about that until you are 65 and then you will have a whole new set of decisions about insurance and Medicare! (I do appreciate the Medicare though!)
I hope you are doing well Doug!
Bonnie, I always appreciate your informative comments. Thank you for sharing! I'm sorry you had to take yours earlier than planned, but the important thing is you guys had it. And thank you for the investment comment, it has allowed me the luxury of waiting longer than 62 if I have to. Also, I have noticed that about COLA adjustments and Medicare coinciding thanks to some of you commenting on other blogs! There is a lot to consider... Thanks again Bonnie. 🙂👍
DeleteI agree with Florence on the SS Card mock up. Impressive.
ReplyDeleteI took mine at 62 and don't regret it one minute. I have made it to 82 so whoop-ti-do. I would have been in the clear for 2 years if I had waited. Wouldn't trade those 8 years being work free and play able for any extra bucks now.
Patti I forgot to thank Florence for that mock-up compliment, thank you! And a big thank you for sharing when you took yours, I love your no regrets line! I'm also a little shocked you're 82, I thought you were nearing 80 to be honest. Well to me, you'll always be the "New Sixty". Anyway I am laughing at your whoop-ti-doo, congrats on 20 years of SS! 😄👍♥️
DeleteBoth my husband and I retired a little early and took our social security at 62. Never regretted it. Like winning the lottery every month. (kind of)
ReplyDeleteThanks for sharing AFCG, I really like these "we did it no regrets" cooments! 🙂👍
DeleteI'm young enough I'm not even counting on social security even being solvent enough to send out checks even if I reach minimum withdrawal age. I guess if it is still a thing, I'll reevaluate when I get closer.
ReplyDeleteEd, I was wondering if anyone was considering it's solvency.. I guess I was just assuming this would be fixed before it affected anyone, which probably is being naive. 🤐
DeleteWe are waiting until we are 67. It is not 100% of our income. That is the plan at this point anyhow.
ReplyDeleteDebby if I was smart I'd do the same. Don't know if I'm as patient though. 🤨
DeleteIf you take it at age 62 for $1546, doesn't the amount automatically go up with each birthday? I think it is very unfair if it doesn't! This is money you paid in throughout your working life and you are entitled to the amount equivalent to your age. In my opinion at least.
ReplyDeleteRiver from my understanding it will only go up when the government makes a cost of living increase for ALL payees. I like the birthday idea a lot better! 👍🙂
DeleteHad to check an old piece I wrote on my blog, saw your comment in response to it and realized I hadn't seen you around Comfort TV in a while. That led to checking in here and seeing you've had some challenges over the past few months. So sorry to hear, and glad that things are starting to get better. I promise to check in more often -
ReplyDeleteHi David, it's good to hear from you, thanks for checking in. I'm sorry I haven't been to Comfort TV for awhile, I need to do some catching up! Hope all is well with you.🙂
DeleteYou should take it at 65 when you qualify for Medicare.
ReplyDeleteGigi, that's exactly what I was thinking of doing, thanks. 🙂👍
DeleteI do not get social security or Art's. It had something to do with our Illinois educators thing when I was hired. It got changed a few years later but too late for me. I don't know the ins and outs of it, but I wasn't allowed to pay into the Social Security program. Instead, we had our Illinois Teacher Retirement Program which is sort of the same thing. I do now pay into Medicare though. I'm just hoping Illinois doesn't go bankrupt. Art also had me contribute to the 403b regularly. I'm really not good with finances, but it's a good thing Art and my daughter (it's her field) and son-in-law are knowledgeable.
ReplyDeleteI've read that when you start collecting your social security payments depends on your financial needs, health, long term considerations, etc. It sounds like you've thought all those out so I know you've made the right decision.
Kay,thanks for chiming in here--because I knew that it worked differently for teachers in some states. That never seemed right to me, and yes let's pray Illinois never goes broke! Also, good for you for the 403b. I'm glad you had Art in your corner, but I'm sure he would say the same about you. 🙂👍💕
DeleteHi Doug, such an interesting post, I enjoyed reading everyone’s comments. I actually don’t qualify for CPP. I worked for a number of years when I was in my 20’s as a nanny but was paid under the table. Since then I have been a stay at home wife. Chuck is the same age as you and elected to wait until he is 65 to collect his CPP. But he is still working full time and has two pensions ( military pension and a disability pension) from his previous job. I guess it boils down to how comfortable you feel you are now.
ReplyDeleteTake care!❤️❤️
Robin, thanks for sharing as I was interested in hearing more of the Canadian's perspective on this. By the way you'd be surprised how many people I know don't seem to qualify for social security because they too did not pay into it with their jobs. Anyway that is great about Chuck, you too sound like you're all set! More and more, I'm thinking I might hold out till 65, like Chuck. 🙂👍👍💕
DeleteMost of our Family wasn't known for longevity and since I was forced into early Retirement from my Career to become my Spouse's full time unpaid Caregiver, I took my Social Security at Age 62. Besides, I'm still raising a Grandchild that I adopted and so at Age 62 I still had a Dependent and thus Social Security told me I qualified for a Social Security Check for her too until she's 18. So, the Math for me was far better at 62. And, you're right, the Age at which you break even and then begin to gain is well after Age 80 and that's not even a typical Lifespan for most Americans... only the privileged few. Besides, most people past Mid-70's end up often requiring Assisted Living or Nursing Home Long Term Care at some point so it would eat up ALL of whatever income they have, and then some!
ReplyDeleteBohemian, thank you for taking the time to share all that. This is a good example that the SSA claims, that no one is penalized for taking it early or rewarded for waiting, its supposed to balance out for amount paid for most claimants in the end. 🙂👍
DeleteHubby took his at 62 and I continued to work until I retired at 66. We've got annuities that turned out to be great to help us make ends meet. We are comfortable but not rich by any means. :-)
ReplyDeleteThanks for sharing DJan, that's impressive you worked until FRA, I'm sure that paid off for you. I remember you talking about your annuities on another blog, you & SG sound comfortable. That's what matters, rich is overrated! 🙂👍
DeleteDoug, can we mark you safe from your shoes today?
ReplyDeleteHaha--Debby, I'm still in control of those shoes. For now.😉
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