Retirement Talk - Deciding When to Claim Your Monthly Social Security Benefits

[ALRetiree]

I've had several friends say they delayed SS for a few years after retirement, living off their pensions/IRA, and when they actually started claiming SS, the difference was only a few dollars a month than it would have been if they started claiming at 62.

The SS website says this about their estimates: "You have earned enough credits to qualify for benefits. At your current earnings rate, if you continue working until..."

How do you calculate the effects of the SS decision if you plan on retiring and delaying SS when the estimates assume you'll continue working (?)

you can go on the ss site if you are registered and do a what if scenario by working to a given age and taking it at the later ages. It will factor in the difference and tell you what it is. When I did mine retiring at 56 and claiming at other ages it roughly takes off about $200.

 

[nasa1974]

Again you have to remember that if you collect Social Security before your FRA and you are still working there is a penalty that will reduce your SS payments according to how much you are earning.

 

[gibsonman]

SSA takes the highest 35 years and only 35 years, its a marginal amount you get if you continue to work, the question is how much do you value your time? A work year is 2087 hours, what could you do with that time if you weren't working? I will make 2K MORE monthly net income after all deductions including taxes then I make right now with my pension + SSA + VA + tsp ( this will last 43 years at 1% if I take 18K per year) ( I have 620K in ), not including the wife's pension, SSA and TSP( will save that for the kids)...I'm a topped out GS15 with 39 years will retire april 2022, al though right now I would make more then I bring home now.

 

[NatInPW]

Looks like you're very prepared for retirement gibsonman, congrats!