4 quirky Social Security rules you need to know to avoid retirement planning mistakes

[MULTIZ321]

4 quirky Social Security rules you need to know to avoid retirement planning mistakes.

4 quirky Social Security rules you need to know to avoid retirement planning mistakes

There’s a lot about Social Security you probably don’t know. Here are some of the quirkiest rules you should know to avoid retirement mistakes.

www.usatoday.com

Richard

 

[Talent312]

Re: Waiting until age 70...
Many FA's advise peep to do this becuz of the bump-up in benefits.
What they miss is the benefits that would've received by starting early.
You may be surprised at how long it'll take for the increase to cover it.
.

 

[VacationForever]

Re: Waiting until age 70...
Many FA's advise peep to do this becuz of the bump-up in benefits.
What they miss is the benefits that would've received by starting early.
You may be surprised at how long it'll take for the increase to cover it.
.

Yep, the breakeven is at about 80 years old before the missing benefits of 62 to 70 would be recovered if one starts at 70 years old. The benefits that are not withdrawn until 70 are rolled into the benefits at 70, hence the 8% bump. Most FA don't even realize this when they give a blanket advice to delay SS benefits until 70. SMH.

 

[geekette]

For me it's very simple: take SS when I need it, let it roll until then. I have no pension, am not married, and come from long lived people. I would like the one and only fixed payment coming my way to be as large as possible. I don't care about break-even, I care about not outliving my money. I was married for more than 10 years, I could start a claim on his when I am of age, mine will be much larger, so a nice bump when I go for mine. We'll see if that rule sticks around (I think it should, but I'm not in charge).

I generally believe that money today is more valuable than money tomorrow, but on a "till death do you part" situation, that voice in my head is told to shut up. It doesn't know about the roughly 8% per year increase that waiting brings. Maybe I could or maybe I couldn't overcome the 8% on my own, but I'm really more interested in locking in the highest monthly pay possible.

In the real world, all these carefully crafted plans are still a crapshoot. Nobody knows what happens tomorrow, let alone if we get another 5 years or 30. For that reason, I reserve the right to change my mind whenever it seems sensible to do so.