Social Security Timing: Age 62 vs 70 to Maximize Retirement Income

In this episode we dive deep into one of the most important decisions you'll have to make as you approach retirement: When to start taking your Social Security benefits.Navigating Social Security can be overwhelming and understanding how your claiming age can dramatically affect your lifetime benefits is crucial. We'll break down the options - claiming at 62, full retirement age, or delaying until 70 - and explore the advantages and disadvantages of each.Remember, there's no one-size-fits-all answer to this complex question, but being well-informed can make all the difference in your retirement planning.

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*ABOUT ME*

I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission — pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy.Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money — so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!

📅 *THE BASICS OF RETIREMENT PLANNING*

Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.

Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.

Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.

Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund — especially if you have an employer retirement plan that matches any portion of your contributions.

Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.

Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.

❣ *SPONSORED* No, this video was not sponsored.

⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only.#retirementplanning #retirement #passiveincome

[foundryfinancial]

When are you going to take social security?

[curthenry]

I was lucky to have had a government job that allowed me to retire at 60 years old. With a small military disability my health care was covered by the VA. After 10 years of retirement, I am glad I chose to retire at 60 drawing SS at 62. I had ten great years of travel. Now at 70 it's not as easy physically traveling as when I was 60 years old. You do not need as much money as you think.

[wickedbird]

😊😊I calculated my best retirement income based on MY situation. I retired at 64 years+3 months. I calculated my lifetime pension, my employer provided 401k, my salary increases, the retirement insurance costs, etc. The break even point for me is calculated as 84. After 4 years, I still think it was the best decision. ❤❤

[mcarlo]

My original plan was to work until 70 (my current age) because I enjoyed what I was doing and the people I worked with. That changed when it became harder to keep up with current technology. Also, some of my co-workers became a little too vocal about politics. So I stopped working shortly after my 68th birthday and lived on savings until I started Social Security at 70. Due to my income, it was never a great time to convert my IRAs to Roth accounts so I'll have to live with the tax hit once RMDs start, but all things considered I'm very pleased with my current situation and optimistic about the future.

[buyerclub]

I find this video, fair and informative. I am going to link it to another YTbr who just advocates that people retire at 62. As you said, it is far to complex for YTbrs to give precise advice to people. You did however cover many of the points to consider. Good Job.

[DougASAP]

70, which is about 1.5 years away. I retired at 50. Both my parents are in their late 90s and doing pretty well for that age. I have used every year of retirement to either sell appreciated stock or do Roth conversions. I was lucky to have decent tax diversification when I retired and it's even better now. Everybody's situation is different but I am glad to have waited.

[papasmurf]

I think you're only looking at part of the puzzle with regards to social security. The real question is not "what maximizes the amount that I pull out of SSI?" but rather "what protects my nest egg the best?"

If you retire at 62 and delay starting SSI until 70, you have 8 years that you're pulling money out of your retirement savings. If instead, you protected your retirement savings (allowing it to continue to grow) by starting SSI at 62, how much longer will your retirement savings last? Obviously there are a lot of variables -- including what is the average rate of return on your retirement savings that you're protecting by taking SSI at 62.

[skeller]

Great video, thanks. One factor to also consider is the SS penalty you pay if you retire before your full retirement age (67, for me). If you make over $21, 240, for every $2 you make, $1 is deducted from your SS benefit. Add to this, that in the US, health insurance is tied to your job, which means that if you don’t continue to work until age 65, you won’t have Medicare and will have to spend a lot for basic healthcare.

For me, then, I will work until at least age 65, and then will wait until 67 to take SS.

You laid out, very clearly, the differences of retiring at different ages. However, you have to make sure that you are covered for health emergencies, as they are more likely the older you get, and are capable of disrupting most of your retirement savings if you don’t have continuing health coverage after you stop working.

[alanrosenberg]

Great content. You might advise your viewers that you can beginning taking ss at any time between ages 62 and 70. For example age 64 or age 65.5 so people don’t feel if you skip past 62 the next stop on the train is not until age 67 😊

[mb]

Took it at 62 exactly. I dunno if i live thru 67. I am very happy. I pay $87 premiim health care insurance. I recommend take it while still healthy as long as you get med insure till 65.

[MonicaFlorida]

I wanted until age 70 and I’m glad I did. Thanks for the video.

[JCW-ne]

Retirement is as much about personal philosophy as it is the numbers. Dollar wise it pays to work as long as possible, but a lot of people dont want to do that.
This video laid that out pretty well.

[azteca]

My M.I.L retired at 68. She passed away at 70. My husband originally wanted to retire at 67. Since his mom passing. He wants us to retire at 62

[Sharebear-yl]

Great video - very useful analysis. Roth conversions are worth looking into for sure.

[sharongreaves]

I have already taken SSI early and I still work but because of the new status of SSI I lost 200.00 dollars of my money so now I'm inside down in regular house hold expense 😮😮😮😮😮😮

[cshiningc]

I love reading the comments your info is right on the mark, I'm collecting at 62 because I'm mentally worn out, was a truck driver and just want to be home now. I have a small pention from the school district so I should be okay. Life's too short wife is quitting her job after I start collecting and we will finish building our house which we started 2 years ago and we have zero debt. That's why we sold everything to pay off debt and build instead. After that we plan to travel mostly the u.s. and cheap cruises. I'm really too old at 62 to care if I bearly get by just want to take it easy with my wood working hobbies quad fishing motorcycle and I love the casinos. Wish me luck ha ha thank God our health is great thus far. Hope to get original medicare red white and blue card and possibly supplemental g? And hopefully that will cover it all plus the drug part d. Keep up the good work we need you all to keep paying fica as we retire. The best day was 9 months ago when I said good by to my employer and I will never regret that decision after 42 Years in the work force continually I am finally free oh what a feeling of pure joy. 🎉🎉😅😊

[rogojo]

I’m a new subscriber. I think what needs to be a factor is health. As we get older our health changes. I’m glad you’re addressing it. I’m pre-diabetic and I’ve been fighting this for the last six years, I’m managing it without meds, I’ve changed my lifestyle. I’m determined to stay healthy to take my SS at 67 and not 62. I’ll be 60 next year so I’ve got a long ways to go but I’m not sure I would wait until 70. This was a good video ⭐️

[ronlarson]

I applied this morning, 62 this September!
I want to maintain most of my IRA money so when the market turns around, I can actually make decent returns

[stephiesketohearthealthjourney]

The biggest thing that has my husband and I concerned is the 2034 possibility of Social Security being cut around 20 percent So we don’t want to pull it till 70 to get what we would get at around 67. So we’re going to try even if he retires early to fund our retirement through pension and side hustles so we don’t have to pull Social Security till 70 because nobody’s coming up with any Information to show that we won’t lose that 20% Nobody really knows. It’s kind of scary. I know people that retired at 62 that don’t think their retirement will get cut because they’re already pulling it. They don’t realize that everybody will be cut if this comes to pass. What are your opinions on this? I just found your channel I don’t know if you’ve done a video on this before but I’m going to go check out your other videos now that I found you and subscribed! I really enjoyed this video, thank you very much, I found it very interesting!!

[rays]

Great video, really well done. I’ve seen a number of similar videos, but this one seems the easiest to understand, which can empower the viewer.