Social Security's place in retirement income stream

[iris lilies]

We are both still working, and make more than the 16920 I think you can earn without it affecting benefits. IL--that rule about how much you earn is still there. Not sure what rule you are talking about--hours?

"For the year 2017, this limit on earned income is $16,920 ($1,410 per month). The amount goes up each year. If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit."

If and when we stop working, or are making less than 17k, we will stop. DH plans to work til 70 if he can stand it, both to get more money and to build up 401k. His dad lived to be 93 and he looks just like him, so probably he is in for a long haul.
My dad is 89 and my mom is 91. But the grandparent whose body I seem to have inherited died at 78, so I have always thought I would not make it as long, so maybe I will take earlier.

It's a really good question. right now, it is our safety net if we get fired, I guess.

Here is the change (below) I THiNK my friend and I were discussing some weeks ago.It doesnt apply to us in the age range of 62-65 ish, the age prior to Full Retirement Age, so what Teacher Terry said for her own situation is true. Of course,this is a random website which could be bogus info, but it was the first place I saw an actual date for this change in Social Security rule.

Joseph Alfonso

CFP®, RICP, ChFC, EA

As others have said the earnings test that limits how much earned income you can have before Social Security benefits are withheld (temporarily) no longer applies upon reaching full retirement age. The law was changed in 2000 to eliminate the earnings test after FRA.


https://www.nerdwallet.com/ask/quest...r-seventy-9609

[jp1]

Among the older people I know there seems to be a very mixed thought process on this. One friend retired at 62, 6 years ago, and immediately started taking SS. He hated his job and the damage the stress of it was doing to his health. At the time he was nervous about not having any income other than investments. He had over $1M in financial assets plus a paid off house at the time, and now he has significantly more income than he spends so money will not likely be a problem for him ever. My sister, on the other hand, retired about a year ago at age 53. She has a bigger next egg than my friend, and an older wife who started collecting SS at 62. Sister intends to wait until her max retirement age before starting to collect since she is likely to outlive her wife and they don't need the money currently. Her thought process is that she'd rather have the max benefit just in case.

I'm still over a decade away from being able to collect SS early so I will probably wait, crunch the numbers based on my situation at the time, and then make a decision. If all goes as planned and I work another decade, dutifully putting away $24,000 per year plus employer match in my 401k and the max in my roth IRA, and my investments keep growing, the decision will be a non issue because there will be more than enough money either way. But a lot can happen in 10 years so I'll figure it out when the time is right. The likelihood, though, is that I've made it to 50 without significant health issues and most in my family, (including my dad, who smoked 2 packs a day for 67 years and still lived to be 86) have lived into their 80's or 90's, so a gambling man would tell me to make my decision assuming I'll live to be an old old man. But ask me again in 2030 when I'm approaching early SS age and I'll tell you what the plan is...

[Rogar]

One way to look at it is if the addition income could make a difference in your quality of life or ambitions. It might come at a time when you are a little younger and more active for travel or outdoor adventure. Or maybe improve your living conditions or move to a more expensive location. It's probably reasonable to ask what you will do with the money once you start taking it or what things would be unpleasant without it.

[KayLR]

I'm 63. Hate my job. I would love to retire, work my p/t job and collect SS. BUT everyone in my family lives 90+ years.

[Teacher Terry]

3 of my friends died between 59-67 yet their parents were still alive and healthy. I am not basing my plans on others longevity.

[goldensmom]

I started receiving SS at 62 after doing the math of amount of SS at 62 vs. 65 and estimated longevity. Other calculations revealed that for the first 15 years I will get back what I (and my employer) paid in over my working career before receiving any government monies. Additionally I pay $300 federal taxes on my SS (returning my own money again) so it is possible I will just keep receiving money that I paid in and am currently paying in depending on how long I live. Kind of like drawing out of my own savings account except that I don’t get the interest back.

[Bullie76]

3 of my friends died between 59-67 yet their parents were still alive and healthy. I am not basing my plans on others longevity.

My brother died at 56 but my mom lived until 95. Pretty much a mixed bag in my family. I usually base my decisions on the averages and based on that it really doesn't matter when you take SS. If one does live well beyond the average age of death then it certainly would be better to wait. I began SS at 62.5.

[herbgeek]

I dont know the acronyms you use anyway.

FRA = full retirement age. ie used to be 65, now its 66 and mine (at 57) will be 67.
WEP= windfall elimination program- indicates someone has a government pension and that reduces future social security benefit: https://www.ssa.gov/planners/retire/wep-chart.html