The REAL Impact of Early Retirement on Social Security

This video discusses Social Security payment issues you need to think about if you retire early.

Social Security is one of the most important "safety nets" that modern society has created. Part forced savings, part employer matching, part government responsibility, this benefit has successfully served hundred of millions over time.

But what happens to the Social Security payment when the "rules" are changed and someone doesn't work until retirement age? You'll find out when you watch this video!

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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[clicks]

Retired at 60 with a good pension. Started taking SSI benefits at 62… No regrets. I haven’t had to touch my 401 or 457 accounts. I have been retired now for four years. I found that being debt free and owning my home outright was the best thing that I did before retiring.

[TheJackCain-]

The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.

[pensacola]

Don't make yourself crazy. Make a plan, live your life and enjoy your retirement.

[Qrail]

Thanks for the video, Geoff. Everyone can plan, some can execute, but no one knows when you will die.
I worked for 48 years, and that was enough. I had a target dollar amount. Based on statistics, I will not outlive my money.
A guy I know retired in 1989. He has already been retired longer than he worked. He is an inspiration.

[cuz]

You come across as kind, honest and full of integrity. Always a pleasure to watch!

[EECO]

I'm lucky enough to have a military pension, so I retired at 44. I also bought an immediate annuity to add to my monthly check, and I've been good so far. I plan to take SS at 62 simply because my family tends not to live very long. The key is not to have any debt at all.

[donm]

I retired at 50 , My company offered employees with 30 years service, a great package to go, We recieved a incredable buyout plus they paid our health insurance till age 65 which made it easy to leave, I was able to do what I enjoyed, we traveled with family every year, , I worked on restoring 1960, s cars for several years, as well as Tractors and other equipment, This was the best thing I ever did because i was able to watch family grow up, attend events and help them thru their journey, I say anyone who can retire early, go and dont look back, I am 75 now and in great health and on no medications which I attribute to a active lifestyle . Definately retire as soon as you can .

[nightdipper]

Consider *'total money received', * not *'amount of monthly payment'.* I would not break even until age 78 if I wait until 65, verse 62. If I pass before 78 and waited until 65 to collect I lose money. So the real question is, did your relatives pass before 80 or live well past 80, and how lucky do you feel?

[univibe]

I think most people in the FIRE movement don't really aspire to 'retire' so much as to retire from working a traditional 9-5 'job' and follow a different path--but still doing something, and still earning.

[teams]

Retired at 57. Started getting my SS at 62. No regrets.

[JBM]

The difference in waiting from age 65 to age 66.5 to draw my Social Security essentially covers my Medicare Part A & B payment. I’ve had to write checks every three months to the SSA to cover my Medicare since turning 65, but I just made my final payment out of my checking account; starting soon, that will come out of my Social Security monthly benefit. I am going to continue my part-time job until this fall.

[gregj]

Retired at 62 and lived off cash savings for 2 years. Took SS at 64 and haven’t touched IRA or 401k. Life is good and I’m enjoying retirement

[rick_vv]

Retired at 63 and I am using deferred comp plan to bridge to SS at 70.

[phonecoladycris]

Postponing for highest SS pmt. 100 weeks till I’m 70 & start my permanent vacation. Hubby retired due 2 health. My job is flexible & good & remote 4 of 5 days. Long life in my family & excllnt health. We decided to finish house projects now while I’m still earning. Completed new roof, kitchen redo, & 1 more to go. Hopefully will put a big dent in mortgage.

[ryanwilliams]

40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.

[LEVELGAZANOW]

No plans to retire until forced to by the government. At present, the government will force me to retire at 65. Considering my profession allows me to see the world and I have seniority that allows me to work when I prefer, I have no intention on retiring until I’m forced to leave. I do appreciate the insights that you provide on your channel. Thank you.

[triciabrown]

I’m 48, and I’ve been told for years not to expect SS, to only expect 75 cents on the dollar, and lately 80 cents on the dollar. I’ve been saving as though I’ll get nothing so anything I get will be gravy. I’m leaving the workforce as soon as I can.

[joethecomputerguy]

Right! Why I retired at 52. Retirement is good! Haven't touched my retirement accounts. Living off my after taxed savings.

[Tart]

Another angle to this is Social Security can’t be left to heirs. Whereas a Roth or IRA can. retiring at 62 and taking Social Security benefits To meet expenses while leaving the retirement accounts to the kids works better for some.

This relates to a calculation more qualitative That the financials don’t account for. Most people are still relatively strong, healthy and active in their 50s and early 60s. Towards the late 60s and beyond we start to slow down. Unless working is the most preferable thing to do with one’s life, then by all means continue to work. But if we rather travel, Spend more time with the kids or grandkids Or Play tennis in the morning better to do it while we still can.🎉

What y’all think?

[CoreyFerguson]

At 0:40 into this video Geoffrey talks about the fact that one of the factors used to calculate your Social Security payment is the number of years you work and that “Social Security will take your best 35 years of earnings and index those earnings to today’s dollars.” This is not a completely accurate statement.

A more accurate statement would be that the Social Security Administration will take your highest 35 years of earnings PRIOR TO WHEN YOU FIRST BECOME ELIGIBLE for social security and use those to determine your highest indexed earnings. This point at which you first become eligible for retirement benefits is what they call your “Benchmark” year. For the majority of American workers this is at age 62. Social Security will not count income AFTER your Benchmark year in determining your benefit. So, if you are planning on continuing to work after age 62 and let’s say waiting until age 70 to begin taking social security benefits, those potential “high paying years” after age 62 will not be used to offset some of the low paying years in your twenties. I found this out the hard way, as no one is highlighting this fact.

Standing by for incoming, as I’m sure that some folks will simply want to shoot the messenger.