A good explanation of the breakeven point in the decision of early versus later
Social benefits receipt can be found at:

http://www.fpanet.org/journal/articl...0601-art13.cfm


Here's an extract applicable to us old guys:

"Applying the same calculations for individuals born between January 1, 1943,
and December 31, 1954, where the scheduled percentage of full Social Security
benefit reduction at age 62 is 25 percent and the full retirement age is 66, the
results are very similar. Early retirement at age 62 would produce 75 percent of
the eligible full retirement benefits—or by today’s amounts, $1,071 a month at
age 62—compared with $1,428 at age 66. A person opting for early Social Security
retirement benefits at age 62 would receive $51,408 ($1,071 x 48 = $51,408) by
age 66, but then receive $357 a month less for the balance of his or her life
($1,428 – 1,071 = $357) or ($1,428 x .25 = $357). All Social Security retirement
benefits are subject to annual cost-of-living increases.

Without adjusting for the time value of money, it would take 144 months, or 12
years, to break even. A person would have to live past 78 (66 + 12 = 78) in
order to benefit from delaying retirement to age 66. When time-value-of-money
analysis is applied, again assuming a conservative four percent interest rate,
$1,071 a month for 48 months compounded monthly at an annual rate of four
percent is worth $55,649.25 at age 66. The $357-a-month extra a person gains for
waiting until age 66 would take 220.29 months, or 18.36 years, to equal the
value of the early benefits received between age 62 and 66. A person would have
to live past age 84 and 4 months to recover the value of the monthly benefits
not received between age 62 and 66 if early retirement is not taken."

If I live beyond 84 years and 4 months, I probably won't be too concerned about
the extra $357/month. So, my decision is made.
--
John H

"All decisions are the result of binary thinking."

"John H" wrote in message
...
snip....
If I live beyond 84 years and 4 months, I probably won't be too concerned
about
the extra $357/month. So, my decision is made.
--
John H



By that time they'll probably be all out of soldiers...so you could get a
part time job in some unit, somewhere.

On Wed, 23 Mar 2005 19:52:17 GMT, "Don White"
wrote:


"John H" wrote in message
.. .
snip....
If I live beyond 84 years and 4 months, I probably won't be too concerned
about
the extra $357/month. So, my decision is made.
--
John H



By that time they'll probably be all out of soldiers...so you could get a
part time job in some unit, somewhere.


Hell, if the libs have their way we'll have the draft. They won't have to worry
about me.

--
John H

"All decisions are the result of binary thinking."

Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67...)

I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.

62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)

On 23 Mar 2005 17:48:21 -0800, wrote:

Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67...)

I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.

62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)

Here's the real skinny:

# If you are under full retirement age (FRA): when you start getting your Social
Security payments, $1 in benefits will be deducted for each $2 you earn above
the annual limit. For 2005 that limit is $12,000 and for 2004, that limit is
$11,640. Remember, the earliest age that you can receive Social Security
retirement benefits remains 62 even though the FRA is rising.

# In the year you reach your FRA: $1 in benefits will be deducted for each $3
you earn above a different limit, but only counting earnings before the month
you reach FRA. For 2005, this limit is $31,800; for 2004, this limit is $31,080

# Starting with the month you reach FRA:, you will get your benefits with NO
limit on your earnings.
--
John H

"All decisions are the result of binary thinking."

wrote:

Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67...)

I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.

62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)


You are allowed some amount of earnings (something in the back of my
head says 10K) before the deduction starts. The amount you can earn
grows with age so at (I think) 70, you can earn all you want.

See www.socialsecurity.gov -- it's probably there

wrote in message
ps.com...
Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67.

I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.

I will be done working at 60 and so I am anticipating the increase in my
income when I reach 62.

62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)

When you start working at the age of 11 you feel that 49 years in the
workforce will be enough!

"Bert Robbins" wrote in message
...

wrote in message
ps.com...
Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67.

I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.

I will be done working at 60 and so I am anticipating the increase in my
income when I reach 62.

62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)

When you start working at the age of 11 you feel that 49 years in the
workforce will be enough!


I hear you Bert! I have been working since I was 11 also (paper route) and
have never been without a job since then, even during high school and
college. I have cut lawns, washed dishes, pumped gas, sold shoes, worked as
a garbage collector (2 full summers), made dock bumpers, worked in a
warehouse, managed a bar, and worked as a security guard....all before
graduating from college.

My Dad died when I was 20. We never took vacations. We never went to
restaurants. Money went towards paying off the house. Unfortunately the
savings eventually all went towards paying for nursing home care for my Mom
who just recently passed away.

My fathers early death taught me that there has to be a balance in life...a
balance between saving and spending...a balance between work and play.
Most importantly his early death taught me there is more to life than work.
;-)

I understand that some folks love to work. I also understand that some
folks are forced to work. We have saved and planned for an early retirement
for decades and I fully plan to take advantage of it.

Life is precious. Enjoy it when you can, especially your time with your
loved ones.

"JimH" wrote in message
...

"Bert Robbins" wrote in message
...

wrote in message
ps.com...
Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67.

I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.

I will be done working at 60 and so I am anticipating the increase in my
income when I reach 62.

62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)

When you start working at the age of 11 you feel that 49 years in the
workforce will be enough!


I hear you Bert! I have been working since I was 11 also (paper route)
and
have never been without a job since then, even during high school and
college. I have cut lawns, washed dishes, pumped gas, sold shoes, worked
as
a garbage collector (2 full summers), made dock bumpers, worked in a
warehouse, managed a bar, and worked as a security guard....all before
graduating from college.

My Dad died when I was 20. We never took vacations. We never went to
restaurants. Money went towards paying off the house. Unfortunately the
savings eventually all went towards paying for nursing home care for my
Mom
who just recently passed away.

My fathers early death taught me that there has to be a balance in
life...a
balance between saving and spending...a balance between work and play.
Most importantly his early death taught me there is more to life than
work.
;-)

I understand that some folks love to work. I also understand that some
folks are forced to work. We have saved and planned for an early
retirement
for decades and I fully plan to take advantage of it.

Life is precious. Enjoy it when you can, especially your time with your
loved ones.



Best statement I have ever heard on working was by the lady teaching a
diversity class for a corporation I was working for. Her statement: "No one
ever laid on their death bed and said I should have spent more time at the
office". Very good advice.

wrote:

Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67...)

I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.

62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)


You are allowed some amount of earnings (something in the back of my
head says 10K) before the deduction starts. The amount you can earn
grows with age so at (I think) 70, you can earn all you want.

See www.socialsecurity.gov -- it's probably there