Oddbean new post about login | logout @134318c2 And so, if you are wondering when to start collecting Social Security benefits in the USA… do a little math. What will you collect over the remainder of your life time? (Benefit at 62yo) * 12 * (76 - 62), vs. (Benefit @ 65yo) * 12 * (76 - 65). Don’t forget to deduct age for chronic illnesses, including COVID. Just be real: it’s your money. Is it better to start receiving benefits at 62yo, or 65yo?
@70356141 We should lower the age to 60 for people who don't have a degree or own their home. I know it sounds like a strange policy but it would be EQUITY ... they never get their money back!
@134318c2 I’m 62 and fully retired. I’m not gonna lie: it sucks to finally get to this stage of life, and realize how truly fraudulent the dream of “retirement” is in America. I have two saving graces right now: my military retirement pay, and two mortgages that will be completely paid off by age 65. Will I live beyond age 65? 🤷🏻♂️ And I’m genuinely fortunate! I shudder to imagine what American Citizens with less benefits face for their daily futures? 😮
@70356141 @134318c2 And "full retirement" age is ratcheting up. Mine was a number between 66 and 67. DH is younger and looking at a bit older age. I don't recall the formula, but I think the benefit goes up 8% maybe for each year after full retirement up to age 70. And the benefit is based on highest earning years. There's lots of math. For me, I'm hanging in until 70, as my salary is going up which will increase the payments, assuming the program isn't gutted in the next few years.
@754d2f63 @70356141 @134318c2 Yep, my date was 66yrs and 6mos, which I just reached. My job folded when covid hit and never came back (fortunately my husband still works,) leaving me to find contract work when I could. I decided to embrace my retirement and claim my benefits. Not like there are a lot of companies lining up to hire a woman in her 60s. I have my little book biz which may make me a bit of supplemental income.
@70356141 @134318c2 All of the points on this thread are important. Your formula is also an important consideration, with one issue: 76 is more or less life expectancy when you’re born. It changes as you get past the risks of infancy, childhood, and young adulthood. A male 62 years old right now has an additional life expectancy of 19 years (so 81). A critical distinction when doing this kind of planning. https://www.ssa.gov/oact/STATS/table4c6.html
@05679593 @134318c2 Good points! But I feel folks should also pay close attention to their genetics, eating habits, and the quality of their health insurance plans. Mom’s side of the family live past 95 (male & female). Dad died at 76 in a car accident (not at fault). His Dad died at 54 (?) from a stroke/heart condition. Mom lived to 96. In my soul I think I’m going to live past 90 — more of a curse than a blessing in my mind? But I’ll prepare for the worst.
@70356141 @134318c2 Yup exactly. It's all of this uncertainty that makes "you're on your own, save for retirement" so pernicious. An individual has no choice but to plan for (or fail to plan for and deal with the consequences) the worst. Collective entities like the government can balance Sally living to 97 with Todd being struck by lightning at age 65.5