When should I take Social Security???

I'd appreciate your opinion as to when I should start drawing Social
Security. I'm almost 62 (in good health) and have not worked enough to
get it on my work record. My husband is 15 years older than me and I
will be getting it as his spouse. He is in fair health (had a minor
stroke but still cannot walk far and gets no exercise...and he has a
few other medical problems). If I start getting SS at age 62, I think
I'll get around $300/month. I'm not sure what happens when my husband
dies...but I believe that I would then get widow's SS but I think it
would be reduced if I started drawing SS early. I'm guessing you guys
know much more about this than I do.

So....should I start drawing it at age 62 or wait until full retirement
age of I think 66??? Hubby wants me to go ahead and get it now but I'm
trying to do the numbers (so far unsuccessfully) to figure out which
would be more advantageous. We have enough savings that we won't be
hurting if we wait. Appreciate some opinions.

Thanks!

Sandy

Re: When should I take Social Security???

<<If he were to pass away in 5 years, what would I be entitled to?
(his full amount??? )>>

In 5 years you will be almost 67, so you would already be at your full
retirement age. From

"How much will I receive? The benefit amount is based on the earnings
of the person who died. The more the worker paid into Social Security,
the greater your benefits will be."

"Social Security uses the deceased worker's basic benefit amount and
calculates what percentage survivors are entitled to. The percentage
depends on the survivors' ages and relationship to the worker. Here
are the most typical situations:"

"A widow or widower, at full retirement age or older, receives 100
percent of the worker's basic benefit amount
A widow or widower, age 60 or older, but under full retirement age,
receives about 71-99 percent of the worker's basic benefit amount; or

A widow or widower, any age, with a child under age 16, receives 75
percent of the worker's benefit amount.
Children receive 75 percent of the worker's benefit amount."

John Cowart

Re: When should I take Social Security???

For some careful economic analysis of the timing of Social
Security benefits, go to the Boston College Center for Retirement
Research and read the paper by Alice Munnell (a leading expert)
and Mauricio Soto at


The overall conclusion is that married women should take SS benefits
early, whereas married men and single women should take SS benefits
late.

David

Re: When should I take Social Security???

David Moore wrote:
> For some careful economic analysis of the timing of Social
> Security benefits, go to the Boston College Center for Retirement
> Research and read the paper by Alice Munnell (a leading expert)
> and Mauricio Soto at
>
>
> The overall conclusion is that married women should take SS benefits
> early, whereas married men and single women should take SS benefits
> late.
>
> David
>

what about single (widowed) man ????
I'm thinking later, especially if still employed at about $33K/yr, age
62, needing group health insurance pre-Medicare.

--reed

Re: When should I take Social Security???

<<I'm thinking later, especially if still employed at about $33K/yr>>

Do a calculation of (current monthly net income - your projected age 62
SS benefit - work-related expenses) and you might find that you are
only a few hundred $ a month ahead to continue working. Repeat based on
estimated age 63 benefit, etc.

<<age 62, needing group health insurance pre-Medicare.>>

Remember that if you work to 63.5, you can COBRA your health insurance
for 1.5 years, which gets you to age 65 & Medicare.

John Cowart

Re: When should I take Social Security???

"bo peep" <> wrote in message
news:
>
> Remember that if you work to 63.5, you can COBRA your health insurance
> for 1.5 years, which gets you to age 65 & Medicare.

Good idea but, depending on where you work and how much they currently
contribute, that could be REAL expensive.
--
Chris Cowles
Gainesville, FL

Re: When should I take Social Security???

bo peep wrote:
> <<I'm thinking later, especially if still employed at about $33K/yr>>
>
> Do a calculation of (current monthly net income - your projected age 62
> SS benefit - work-related expenses) and you might find that you are
> only a few hundred $ a month ahead to continue working. Repeat based on
> estimated age 63 benefit, etc.

OK, $2000/mo net inc - $1350/mo - $50/mo exp = $600/mo ahead to
keep working

Even at age 66, $2000 - $1800 = $200 ahead (now being Medicare eligible
would add some to take-home pay as could cancel $140/mo pre-tax health
ins deduc)

And then there is the issue of SS payments being taxed once wages are
above certain amount.


>
> <<age 62, needing group health insurance pre-Medicare.>>
>
> Remember that if you work to 63.5, you can COBRA your health insurance
> for 1.5 years, which gets you to age 65 & Medicare.
>
> John Cowart

Yes, except current employer's plan is self-funded, allowing them to set
COBRA payment almost anywhere they want. Last employee who asked was
told $1200 per month for single coverage (Ouch, and plan has $750
deductible and 20% co-insurance already). I would probably need to
change jobs & find employer with "real" insurance co. coverage just long
enough (1 day) to qualify for COBRA on their plan. Six years ago I was
on regular insurance co COBRA for me and wife, was only $400 per month
with good plan !!

All of which means my brain starts to hurt when trying to comprehend and
analyze the tradeoffs !

--reed

Re: When should I take Social Security???

On Fri, 24 Feb 2006 04:02:26 -0600, Reed <> wrote:

>All of which means my brain starts to hurt when trying to comprehend and
>analyze the tradeoffs !

I realize you are being humorous, but there's enough truth here to
provoke a serious response.

When clients express something like this to me, I tell them that
personal finance is very simple. And I say that because it's based on
common sense. (This explains why some folks without formal education
or experience do quite well from the start.)

Things only become complicated when we are trying to justify the wrong
decision. The right choice for each of us - and it varies - is as
clear as spring water.




-HW "Skip" Weldon
Columbia, SC

Re: When should I take Social Security???

<<$50/mo exp>>

That's a little hard to believe. If you figure 20 work days in a month,
that is $2.50 per day. It costs around $.40/mile to commute, which
comes out to a round trip of about 6 miles per day. And do you have to
buy extra clothing for work? Do you buy your lunch when working? etc.

<< = $600/mo ahead to keep working>>

After taxes, that works out to about $2/hour

<<Even at age 66, $2000 - $1800 = $200 ahead>>

No, if you are still working at 66, you still have to pay your
work-related expenses. Even if they are only $120, you would be working
for $0.00/hr ($200 - $80 withholding)

Even if you could achieve your unrealistic quote of $50/mo for
expenses, you would only be ahead $150, which would be around $90 after
withholding, or $.56/hr. Do you really want to be working for $.56/hr
at age 66?

John Cowart

Re: When should I take Social Security???

bo peep wrote:
> <<$50/mo exp>>
>
> That's a little hard to believe. If you figure 20 work days in a month,
> that is $2.50 per day. It costs around $.40/mile to commute, which
> comes out to a round trip of about 6 miles per day. And do you have to
> buy extra clothing for work? Do you buy your lunch when working? etc.

Acually may be even less ! Work is 1.5 miles from home (3 x .40 = 1.20 x
20 = $24), take my own lunch (which I would eat anyway of course),
uniform provided by employer

>
> << = $600/mo ahead to keep working>>
>
> After taxes, that works out to about $2/hour
>
> <<Even at age 66, $2000 - $1800 = $200 ahead>>
>
> No, if you are still working at 66, you still have to pay your
> work-related expenses. Even if they are only $120, you would be working
> for $0.00/hr ($200 - $80 withholding)
>
> Even if you could achieve your unrealistic quote of $50/mo for
> expenses, you would only be ahead $150, which would be around $90 after
> withholding, or $.56/hr. Do you really want to be working for $.56/hr
> at age 66?
>
> John Cowart
>
Well, I always assumed there was a crossover point somewhere. Again, the
issue of health insurance may be the real reason to stay employed
until 65, then a question of working to "keep busy" for awhile. Also,
since my wife passed away unexpectedly 18 months ago, any plans we had
for retirement are gone, and I'm not sure when I'll get a new grip on
the future.

As "Skip" said, the right choice varies.

Thanks to all for the comments,
Reed