From the New York Times:
The morning after his 67th birthday, Marty McGowan filed for Social Security. That wasn’t his original plan. He had intended to wait until he was 70 to claim benefits, in exchange for a heftier payment that would have yielded an extra $800 a month.
But like other retirees in recent months, he was watching the Trump administration’s shake-up at the Social Security Administration during a time when the broader economic outlook appeared increasingly uncertain. Concerns about the economy and access to benefits nudged him to file earlier than he had anticipated, even if it might cost him over the long run.
He wasn’t the only one: An additional 276,000 retirees claimed benefits on their earnings record this fiscal year through April, according to the Urban Institute, a research group, a 13 percent jump from the same period a year ago. Officials inside the Social Security Administration called the rise “dramatic,” and though there were some other reasons for the surge, program experts say anxiety appeared to play a meaningful role. …
I am currently 60, I will be filing at 62 although my original plan was 65. I will take the hit, as it is not the primary source of my retirement plan and work part time. I at least want to get something out of the system I have paid into for the last 45 years.
ReplyDeleteMarty made the right choice. It’s seldom worth it to wait until 70 to file
ReplyDeletethat really depends how long you'll live. If you make it past 80, waiting to claim can pay off. Also depends if you have dependents and how long you can work.
DeleteYou might be alive past 80 but would you be healthy enough to enjoy all that extra money?
DeleteEnjoyment is not the only concern. An extra $800 a month is a few hours a week of home health care, a roof repair, over-the-counter meds or hearing aids...
DeleteIt's really a very personal choice to file earlier or not. Too many factors ( life expectancy, other income, spouse or children that would receive, etc). Filing based on fear isn't a good reason.
DeleteFiling early due to life expectancy is smart. Filing early due to fear of running out of benefits is not. Those at the agency are relieved Mister Frank Bisignano has been installed, and now we have certainty and direction again. Lee did what he could but there was too much work for an acting Commissioner, a properly appointed one was needed.
ReplyDeleteThe orange one has instilled fear in his voters?
ReplyDeleteI was going to wait until 70 but applied in March at 67.
ReplyDeleteIf Congress doesn't move to fix the situation by that date, the general expectation is that millions of retirees could see a 21% across-the-board benefit cut.
ReplyDeleteThis is propaganda. They’ll be fine.
DeleteIt is not “propaganda” - it is reality. We are seeing it weekly where people are making knee-jerk decisions because of the chaos.
ReplyDeleteI worked at SSA over 30 years. There were always people filing early that could afford to wait because they wanted to make sure they'd get some money. I don't doubt the numbers are higher now. For many people it's a dumb decision if that's the only reason they are filing early.
DeleteEveryone’s situation is different, but consider the lost capital gains if you’re spending investment income in lieu of claiming earlier. When these earnings are considered, the breakeven point for someone claiming at around age 65 is pushed out to about age 90.
ReplyDeleteThey will never cut 20% pay to 20% of the entire population, that would be a huge hit to the economy that would never recover plus everyone with a check reduction will vote.
ReplyDeleteAgreed. Congress will address the issue when it actually becomes a problem. Until then it is just a campaign issue, which is why they will do nothing until then. If they fix it then they can no longer campaign on it.
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