In general do a man retire early to get more Total social security benefits even monthly payment is less?
Guo Chun M asked:
A lot of people privately calculate that men retire early can get more money from their social security benefits through out years, depite the monthly paymont is less, it is true to acturally retire early for men, even this idea is discouraged by someone?
William
A lot of people privately calculate that men retire early can get more money from their social security benefits through out years, depite the monthly paymont is less, it is true to acturally retire early for men, even this idea is discouraged by someone?
William
Judy
It’s a gamble
If a man lives a long time after retirement, he can get more total money by waiting until 70.
If he dies early, he can get more by getting Social Sec. at 62
Aaron
IF one retires early they get less money each month to start with. The the retirement age is increasing. What would you do if you retired? Sit around and do nothing? You can’t do much or afford much gas to go places. Think about it.
Julio
YOU WILL LIVE LONGER! All you need is a calculator to show this. If you want the extra money try this. Draw the money at 62 and just put it in an interest bearing account. If say you get $1,000 a month at 62 and $1,400 at 65. At the age of 65 you will have at least $40,000 in the bank. Divide that 40k by the $400 difference. That would last 8.3 years but it is earning interest as you draw from it so it will last so much longer. But the big thing is you have a $40,000 nest egg that you can buy a new car go on a cruise feel good because you have money for an emergency. Then the big one is you have paid in hundreds of thousands of dollars into this scam and if you die at 65 you get NOTHING! This way you have something to give you wife/husband or children/grand children.
Sorry this is long, bottom line – retire as soon as you can (you will live longer) draw SS as soon as you can. I retired at 55 and will only get 40% because of some crazy rule I fall under. Get NOW!
Tom
Dear Guo,
Good question. But the issue needs to be broken down into parts:
1. ‘How do you make more money over the years, sum total,’ and 2. ‘How do you get more money out of the SS system?’ 3. Also, how LONG do you plan to live?
Clearly if you don’t retire early, you’ll both be getting higher wages while working those extra years plus you’ll make more income after you retire. Given inflation it is important to think about this because you’ll never have ‘deflation’ of currency (unless the US economy crashes, which is a problem in its own rite)..
You’ll be on a fixed income after you retire, so your dollars will drop in value. If you intend to die young, then maybe you will net more from SS by retiring early, but that doesn’t mean you’ll have more money–it just means you’ll have gotten more from SS.
However, if you don’t intend to die young (and how can you plan that anyway?)
Here’s the story of my aunt, a nurse who was cautious and frugal and saved hard for retirement. Aunt N. retired in her 60s but lived to age 96 when inflation exceeded everyone’s expectations. Aunt N. went broke and my father and uncle had to support her during her last years of life (about $40,000/year in her situation. Dad and Uncle B. never told her they were paying for her needs. Aunt N. would have been broken-hearted if she had she known).
So if you plan to die young (say at age 70) then maybe you’ll gain more benefits from SS if you retire early, although you’ll still have less money in the end. But if you plan to live a long time?
ANOTHER IMPORTANT POINT: DON”T RELY ON SS AT ALL if you’re currently under the age of 40 or so. Save hard on your OWN for retirement. Because the SS system is going to go broke. All that younger workers will get back is pennies on all the dollars you’ve put into the system. Pyramid schemes only work for those on the top, and the SS system is the worst kind of pyramid scheme that cheats the younger folk, who are paying for the older people at the top.
PS: News experts seem to all say the same thing regarding the US’s economic situation today. They all say, “Work as long as you can and save your money.”