• Question
  • Collecting Social Security at 65 vs 66

    Asked by someone from Glen Mills, PA on 2/22/2013

    I am unemployed and will be turning 65 soon. I have no intention of working again. If I take SS at 65 I get 29000 a year, and if I take it at 66 I get 31000/year. If I live to 90 and if I take the money at 65, I have 24 years at 29000/year and the initial year of 29000 invested for 24 years at say 3% interest or a total of 696000 plus 59000 or 755000 total. If I take the money at 66, I have 24 years at 31000/year or 744000. Is this correct, and it seems that taking the money early if you are unemployed and can make at least 3% interest is almost always the way to go?

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  • Categories: When to Start?, Maximizing Returns, Social Security

Answers

  • Editorial 


    NewRetirement

    San Francisco, CA

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  • You are probably right about the math (I haven't done your calculations myself, but I think you are probably correct).

    But here are five questions to consider when making your Social Security decision:
    --> Are you sure you have the discipline to invest your first year of Social Security income?
    --> Are you sure you can not touch that money so that you do see the compounding interest and gains as time goes on?
    --> What if you experience a health crisis and require long term care? Will you tap your savings?
    --> What if you live significantly longer than 90 years of age? It happens!
    --> What happens if your investments do not perform as anticipated? (Recent stock market losses have caused many retirees to lose all profits and even principal.)

    The thing about Social Security is that it is guaranteed for life -- no matter how long you live. Social Security is not really meant to be invested and gamed -- though it can certainly be done. Social Security is meant to be a backstop to keep seniors out of poverty.

    For more analysis of your retirement plans, you might want to use the NewRetirement Calculator to get a detailed assessment of your retirement finances:
    http://www.NewRetirement.com

    We wish you all the best!
    http://www.NewRetirement.com

  • Login to rate this answer:   Answered on 2/25/2013
  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • We have a calculator on our site to help address this question - if you put in your situation it will forecast your break even age:

    https://www.newretirement.com/Services/Social_Security_Start_Age_Calculator.aspx

    Please let us know if you find it helpful.

  • Login to rate this answer:   Answered on 2/26/2013
  • NewRetirement User

    68 year old from Okeechobee, FL

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  • I am looking to find what age is best for me to retire 65 or 66 can you help me

  • Login to rate this answer:   Answered on 12/29/2014
  • NewRetirement User

    67 year old from Fremont, CA

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  • I am turning 65 come this January 2017.

  • Login to rate this answer:   Answered on 12/9/2016
  • NewRetirement User

    67 year old from Fremont, CA

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  • I will be turning 65 this coming January 2017.

  • Login to rate this answer:   Answered on 12/9/2016
  • NewRetirement User

    67 year old from Fremont, CA

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    with an advisor. Learn more...
  • I am turning 65 in January 2017,would like to start collecting S.S,.

  • Login to rate this answer:   Answered on 12/13/2016
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.