Why should I wait past age 62 to start collecting?

Message 990 of 1194

Why should you wait until after age 62 to start collecting your SSI? Because the longer you wait to start getting payments, the bigger the payments will be.

This gets complicated - hang in there. The government makes you wait until "full retirement age" in order to start collecting the full retirement payout that you've earned. So what's full retirement age? Good question. It used to be 65, but Congress voted in 1983 to raise it to 67 for everyone born in 1960 or later. For those workers born between 1938 and 1960, the full retirement age varies depending on your birth year. To find out yours, refer to the Social Security online retirement planner.

And if you collect at 62? It depends on when you were born. For example, if you were born between 1943 and 1954, your payouts will be reduced 25% if you start receiving benefits at age 62. That reduction is permanent - that is, the 25% reduction applies not only to the money you collect between age 62 and 67, but all the money you'll collect for the rest of your life.

posted by MartiInMexico

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Oldbuddy is absolutely right on the money. The reason to collect at 62 is because that most people won't live long enough to break even with the payments that they would lose if they wait. If your payment at age 62 is $1500 per month, you will collect $54K (age 62-65). At 65 your benefit would be about $1800. It would take 180 months (15 years) to collect the $54K that you would have lost by not collecting at age 62. So essentially, you would be 80 years old before you break even. S/S also has a one time program where you can pay back the benefits that you collected if you collect before age 65 that would allow you to collect the higher amount if you feel that you've made a mistake.

posted by Laraine
over 2 years ago

In AARP magazine a couple months ago there was a great article on Social Security and uncollected dollars. If you are married and your spouse is collecting, you may want to look into collecting spousal benefits from age 62 until your full retirement age. Then at your full retirement age, you would get full benefit. You can also collect spousal benefit if you are divorced as long as you were married to your ex at least 15 years...Lots o info, too much to post here. If you think this might be good for you, I recommend you investigate through Social Security. You can either read up on it on the SS website, or call or go into an office. Not sure if you can access info through AARP website. This option, I believe, could be beneficial for many folks.

posted by LindaCUS1NJ
over 2 years ago

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When I turned 62, I started collecting right away. The math just didn't make sense to me, and figured with my luck I'd get hit by a bus the day before my 65th birthday. Now I've made it to 65, and don't regret it at all... the math still works in my favor.

posted by ked1
over 2 years ago

Saw this on Yahoo. Interesting and informative.

view link

posted by JeanYoung2
over 2 years ago

The math worked for me as well. I started at age 62.

posted by cls6926
over 2 years ago

Here's the way I feel about collecting at 62. For one thing.....I may not be alive at 67. I want my money now. Know what I mean? Besides....if I wait....it's not that much more money added. Also.....if I wait.....who's to say there will be any money left in social security??? All I do know is...I want my money as soon as it is available to me. I want what i have coming now. Ain't waitin' for nothing.