topic Re: Social Security Payout Question. in Community Chat

Social Security Payout Question.

BornToShop — Thu, 07 Feb 2019 22:33:46 GMT

I just turned 65 & want to retire now before my retirement age of 66. I have researched that my monthly payment would be $170 per month less if I retire now. My first question is, does that amount minimize the closer you get to 66? For example, I am 8 months to 66. Does the $180 gap become less if I retire 4 months or so before 66? My second question is, should I take IRA/401k withdrawals until 66 to ensure maximum Social Security payments? TIA!

Re: Social Security Payout Question.

itsmetoo — Thu, 07 Feb 2019 22:37:56 GMT

@BornToShop

You need to consult with your financial planner to determine what is best for you. But the longer you wait to start collecting SS the larger the amount will be.

Re: Social Security Payout Question.

software — Thu, 07 Feb 2019 22:39:56 GMT

Whenever you tell Social Security when you want to retire, based on your age and how much you've contributed, you are locked in to a monthly amount forever. Unless you get yearly increases like everyone else across the board. Cost of Living, for example.

I don't know what correlation there is between your IRA/401k and Social Security. They are 2 different "pots of money" . One is Federal the other is personal.

Any questions you have about your IRA/401k should be directed to the company holding the money, such as your bank or in my case it was Fidelity.

Re: Social Security Payout Question.

NicksmomESQ — Thu, 07 Feb 2019 22:46:36 GMT

@BornToShop The closer you get to 66 the more S.S. You will collect. That’s of course if you haven’t started collecting yet.Once you begin you’re benefit won’t increase.

I don’t know your financial situation but it is always best to wait until your full retirement age, to maximize your benefits.If you need the $ then yes, I would fill in the difference with $ from your 401k.There would be no penalties because you’re over 59 1/2.

Re: Social Security Payout Question.

itsmetoo — Thu, 07 Feb 2019 22:44:21 GMT

@software

I think she is asking should she start taking IRA withdrawals instead of SS so she can put off taking SS for awhile longer.

Re: Social Security Payout Question.

software — Thu, 07 Feb 2019 22:46:05 GMT

@itsmetoo wrote:
@software

I think she is asking should she start taking IRA withdrawals instead of SS so she can put off taking SS for awhile longer.

She can certainly do that but she'll have to pay tax on the amount she withdraws.

It's considered income.

Re: Social Security Payout Question.

Kachina624 — Thu, 07 Feb 2019 22:46:54 GMT

@BornToShop If I were you I'd call Social Security and ask them. Such questions posted on bulletin boards get some really bizarre replies.

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phoenixbrd — Thu, 07 Feb 2019 22:52:16 GMT

Please get expert advice. Taking annual distributions from 403 B/Ira accounts when collecting SS can majorly impact your income as to tax bracket and what you pay for medicare. It is critical to protect yourself before you collect SS. Research and get expert advice.

Re: Social Security Payout Question.

itsmetoo — Thu, 07 Feb 2019 22:47:26 GMT

@software wrote:
@itsmetoo wrote:
@software

I think she is asking should she start taking IRA withdrawals instead of SS so she can put off taking SS for awhile longer.

She can certainly do that but she'll have to pay tax on the amount she withdraws.
It's considered income.

Exactly.

Re: Social Security Payout Question.

nomless — Thu, 07 Feb 2019 22:49:34 GMT

@BornToShop wrote:
I just turned 65 & want to retire now before my retirement age of 66. I have researched that my monthly payment would be $170 per month less if I retire now. My first question is, does that amount minimize the closer you get to 66? For example, I am 8 months to 66. Does the $180 gap become less if I retire 4 months or so before 66? My second question is, should I take IRA/401k withdrawals until 66 to ensure maximum Social Security payments? TIA!

Talk to a financial planner, not TV shopping forum posters. It's an important decision, so consult an expert, not shoppers.

Re: Social Security Payout Question.

drizzellla — Thu, 07 Feb 2019 23:00:39 GMT

When I retired last year, I was impressed with the people I talked to at the Social Security

office.

I applied on line and they called several times to make sure that all the information they had was correct. And they made sure that they answered any questions I had. I did not have to go into the Social Security office everything was handled on the phone.

They were so helpful.

Re: Social Security Payout Question.

ALRATIBA — Thu, 07 Feb 2019 23:03:05 GMT

You should reconsider your decision to retire early!

My SS retirement age was 65 and a few month. I worked until 68 and 5 months. I was able to collect SS (w/o penalty) in those intervening months ... and when I did finally retire my monnthy SS check was considerably higher than it would have been at the SS age.

My brother did the same - he worked until just past 69 ... made a big difference.

Re: Social Security Payout Question.

meem120 — Thu, 07 Feb 2019 23:06:56 GMT

I think if you can manage on your 401k until yu can collect full SS benefits, I would do that. $170.00 doesnt seem like much now, but as your 401k dwindles it will be alot of money.

Re: Social Security Payout Question.

GingerPeach — Thu, 07 Feb 2019 23:07:02 GMT

I don't think anyone can answer that for you, @BornToShop.

We don't know what your other sources of income would provide for you.

Max payment of SS isn't at 66; it's at 70 - if you can wait that long.

Re: Social Security Payout Question.

Still Raining — Thu, 07 Feb 2019 23:10:47 GMT

SS should be able to tell you how much you will get based on age. If you can wait until 70 it will max out.

Re: Social Security Payout Question.

Tshirtgal — Thu, 07 Feb 2019 23:26:07 GMT

Oh my. Before you do anything, please get advise from a cpa or social security rep. My husband waited to take social security until 70. It increased the benefit about 8% a year which gives you a larger monthly check over your lifetime. Weigh that against using ira money until then. Yes, you will pay tax, but an analysis is what you need to see what is best for you. I will turn 65 shortly and will go Medicare but I will wait for social security until my full retirement age. And also, make sure you take a drug plan at sign up time or you may incur a lifetime monthly penalty for lifetime if you delay. I know all this because we have just gone through obtaining good advise.

And, congrats on retirement, You will be more busy than ever! Enjoy!!

Re: Social Security Payout Question.

CelticCrafter — Thu, 07 Feb 2019 23:26:47 GMT

@BornToShop - yes your SS benefit would increase a little for each month you waited.

Re: Social Security Payout Question.

topcat10 — Thu, 07 Feb 2019 23:39:08 GMT

@BornToShop wrote:
I just turned 65 & want to retire now before my retirement age of 66. I have researched that my monthly payment would be $170 per month less if I retire now. My first question is, does that amount minimize the closer you get to 66? For example, I am 8 months to 66. Does the $180 gap become less if I retire 4 months or so before 66? My second question is, should I take IRA/401k withdrawals until 66 to ensure maximum Social Security payments? TIA!

I would advise you to visit the SSA.GOV website and of course, you can call your local SSA office to get assistance there too....I would say to you, it's wherever you are financially....

(1) Under your full retirement age, each mth you wait, your amt will be higher....at 66 it's at your full benefit amt (which you said +$170) and from 66 thru 70 it's even higher with delayed retirement credits each January....so if you take it now, you are locked in at that reduced rate (of course you'll benefit from the small COLA increase when there is one).

(2) SSA will look at if you are receiving a current/future pension from your employer and if you do not have 30 years of coverage for that pension, it will also reduce your mthly benefit amount.

(3) If you have a spouse and he is receiving, you could receive spousal benefits (but you can only restrict for spousal benefits at age 66), that way you can still let yours grow until age 70 for that maximum amt. But a sidenote if you apply now, once SSA run the comps on you and your spouse and if your primary insured amt is less than half of his, you will be deemed to file and they will have to take a spousal claim and you will receive on both records at a reduced rate.

So if you can take the $170 less per mth, then go for it.

Re: Social Security Payout Question.

BornToShop — Thu, 07 Feb 2019 23:40:31 GMT

@CelticCrafter wrote:
@BornToShop - yes your SS benefit would increase a little for each month you waited.

@CelticCrafter and @NicksMom, you both answered my first question, thank you so much! Everyone who responded to this thread I am truly greatful for! I have a financial advisor with Fidelity. I might consider a couple months before I turn 66 knowing the deficit minimizes the closer you get to 66. This is such a complicated issue. I posted this thread because there are a plethora of smart people whom I value their feedback on the forums!

Re: Social Security Payout Question.

topcat10 — Fri, 08 Feb 2019 00:02:46 GMT

@BornToShop wrote:
@CelticCrafter wrote:
@BornToShop - yes your SS benefit would increase a little for each month you waited.
@CelticCrafter and @NicksMom, you both answered my first question, thank you so much! Everyone who responded to this thread I am truly greatful for! I have a financial advisor with Fidelity. I might consider a couple months before I turn 66 knowing the deficit minimizes the closer you get to 66. This is such a complicated issue. I posted this thread because there are a plethora of smart people whom I value their feedback on the forums!

Yep, SSA only provide you with your benefit options and estimates and definitely encourage you consult a financial advior, which is why I said it's wherever you are financially....but remember your advisor only knows what you tell them and the outcome could be different once SSA takes the claim.....Also I'm not sure what mth you are considering before 66, but be mindful of the 2019 earnings limit....good luck to you and happy retirement!