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One thing that many seem to forget that even if you apply for ss early (ie; before age 70), you can re-apply at age 70, and be taking full benefit amt.

The trick;
You have to repay all benefits gained in those 8 years.

But in my case thats $78000, but I could easily earn enough on investment to gain this.

The above idea works if you have it within you to repay $78k to SS to regain the increased ss.

In my case age 62 I get $1025
At age 70 I would get $1900.

Also, Irs will allow tax deduct or credit on taxes paid those 8 years.

I'm 61 and have been retired for four years ... during which time I did my calculations and decided 62 was the right age for me to begin drawing. Now, with a few months before I need to file to do that I need to go back to my Excel spreadsheet and look at the assumptions I made [specifically the rate-of-return I can expect reinvesting those payments]. Also, I beginning to think that the annual COLA could be a significant factor which I may have overlooked ... e.g. 3% compounding on a $ 18,000/yr payment versus a $36,000/yr isn't chump change.

But I do agree with most of the commentors ... it seems the government is paying these writers to distort the economics.

This is the second article I've read by this author in the last month or two and felt they didn't know the subject very well. I suggest the author start doing the necessary homework before writing more fluff just to meet a deadline.

Re: Working while receiving SS benefits...

Note that there are no limits on the amount you can earn once you reach your full retirement age. Reductions in SS benefits due to payroll earnings only apply between age 62 and your full retirement age.

How much is your Social Security annuity really worth?

Deciding when to start SS benefits is a little more complicated than just adding up the numbers or calculating payback periods. In order to get a true apples-to-apples comparison you must factor in the time value of money. To do this, you must calculate the present value of your expected annuity. If you know an accountant, that's the person to ask about this. You can also calculate net present value easily using Microsoft Excel - search the help function for an explanation of the concept and procedure. And don't forget that the IRS (Infernal Revenue Service) will hit you with those pesky income taxes on some, all, or none of your benefits just to further complicate your decision process!

Sobrien128 is 100% correct. I will will turn 62 in Dec. I calculated that if I waited until 66 to collect 'full benefits', it would take me 12 years or until age 74, before I reach the break even point, of lost benefits starting at 62.
Bottom line is if you want and need to continue working beyond 62, do so. If not, take them at 62 or at least calculate what the $$ difference would be by waiting, and how many years it wouls take.
Author did not do a good job in this article.....seems as though she copied it directly from the Social Security pamphlets.

What a horribly written and researched article. Taking benefits earlier rather than later is the preferred course of action for most. The extra monthly benefit from waiting takes 10-15 years to catch up the lost benefits from waiting. Factor in some investment growth and the breakeven point is even longer. Income taxes and potential changes to the program also argue in favor of starting early.

The article also talks about having a side job, even a full time job. Why doesn't it explain the loss of benefits if that job pays more than allowed (around $12-13k per year). Not too many fulltime jobs pay below that level.

The article also implies that children under age 19 who are full time studnets get benefits. Hopefully tens of millions of teens won't try to sign up unless their parent is dead or older than 62 and collecting!

The advice on tapping your spouse's benfits and letting yours grow makes no sense.

Obviously the author knows nothin about...(Read more of this comment) the topic and fashioned an article around a few sound bites from financial planners.(Show less of this comment)

TAKE SS EARLY, NOT LATER! I took it at age 62 and Although Didn't need it? I INVESTED IT! And in many Things Jim Stewart has Suggested over the past 5 yrs...

Guess what? THAT FIRST 5 YRS OF SS # ? It has TRIPLED! WORTH OVER $300K!

Jim? Why Not Talk about doing that instead?

Well, as I understand it? If SS is Privatized and turned into a Balanced Port of a just a 60/40 Index Port? We can Double Our Income.. Even into the Primary Equity Indexes ( 5) has ave. 9% apy the past 10 yrs is still 70% more than into Treasuries and We'd be using Our Money to INVEST IN AMERICAN CORPORATIONS..

and We'd also have $ to Leave to Our Kids..

I'm surprised Jim , being a Investing Capitalist that you don't mention this as the #1 option?

And Should be done with Medicare $ as well..PBS Show> Think Tank says 'With Just a 1.5% Medicare Payroll tax Increse and Invested into American markets, would make medicafre Self Funding after just 25 yrs'...

'With just a 1% Increase in SS Payroll tax and Invested In the American Markets, SS would be Self Funded in 40 yrs '

If Saving just $2,000 Yr into A IRA for 40 yrs will provide enough Income for the Avearage Person to retire On? Then why hasn't this been Done?

Sweeden and other Co...(Read more of this comment)untries Did this Decades ago....

?

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I thought the smart thing to do is for the spouse with lower benefits to take Social Security early, since the surviving spouse always gets the higher benefits. This article recommends the opposite tack.