Font Size
    • Share to Facebook
    • Twitter
    • Email
    • Print

I'm avoiding a 20% penalty by not starting my SS payments early at age 62. Am I doing the right thing??

Q. I'm 61 years old, retired and in fairly good health. My wife is still working and combined with our income from my savings -- we're really not in need of Social Security money. Given this, I am planning to apply for my benefits only when I turn 65 and 10 months. In other words, I'm opting to NOT take 20% penalty and start the payments at age 62. Am I doing the right thing?? Is there a magical number before I turn 65 & 10 months (e.g., age 64?) when the penalty converges to minimal and I shoul
A. The Social Security reduction for early retirement is roughly actuarially fair. That is, if beneficiaries live to normal retirement age they receive the same dollar value whether benefits begin at age 62, at full retirement age or any month in between. The age-62 reduction for a worker born in 1942 is about 2 percent. (It rose to 25 percent for persons for whom age 66 is full retirement age and will rise to 30 percent when full retirement increases to age 67.) There is no "magical number" where the reduction becomes minimal. The annual cost-of-living adjustment is added to benefits beginning at age 62 whether or not the wage earner has begun benefits.


   

Subscribe e-Alerts

Sign up to receive National Committee updates on Social Security and Medicare.

Read Our Blog

Paul Ryan's Medicare Privatization Scheme Edging Closer to Reality

Paul Ryan’s dystopian dream of privatizing Medicare may soon come true. At least he seems to think so. In an interview with right-wing Wisconsin radio host Vicki McKenna, the House Speaker said that Medicare “reform” is coming to the Capitol this Spring. “I’m pretty sure the budget committee in the House will pass that on in the House Republican budget,” Ryan said. In fact, House Budget Committee Chair Marsha Blackburn (R-TN) has already promised to include Medicare privatization in the budget process later this month. This is scary news for millions of current and future retirees.

Read More




 

            

 

Copyright © 2017 by NCPSSM
Login  |