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View Diary: Stop it, stop saying Social Security needs reform, you are a Democrat, right? (333 comments)

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  •  No, you can still retire at 65 (4+ / 0-)
    Recommended by:
    Aquarius40, elwior, wader, Robobagpiper

    you just won't get full benefits if you do.
    Here's a good explanation:

    “We are not a nation that says ‘don’t ask, don’t tell.’ We are a nation that says ‘out of many, we are one.’” -Barack Obama

    by skohayes on Mon Mar 04, 2013 at 02:32:38 PM PST

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    •  I "retired" at 62, took the low amount (17+ / 0-)

      but will collect 5 more years of dough than those who retire at 67, my philosophy being you could drop dead any minute. Gimme my dough now.

      "He went to Harvard, not Hogwarts." ~Wanda Sykes

      Blessinz of teh Ceiling Cat be apwn yu, srsly.

      by OleHippieChick on Mon Mar 04, 2013 at 03:05:21 PM PST

      [ Parent ]

      •  The math on this is interesting, IMHO (3+ / 0-)
        Recommended by:
        indie17, i dont get it, Truedelphi

        According to the linked site, if you have a full benefits retirement age of 67 and retire at age 62 your monthly benefit is reduced by 30%.

        Meanwhile, their actuaries claim that the life expectancy for people who retired in 2000 was 81 for males and 84 for females. So, lets assume that I live to 81 (since I'm a male, but I assume that OleHippieChick is either a female or a poultry farmer) and compare the outcomes.

        81-62 is 19 years of benefits at 70% of the rate, or the equivalent of 13.3 years at the 100% level. 81-67 is 14 years, you can see that you end up slightly worse off if you live to the expected age, but only by about 5%.

        The break-even point is 16.67 years of early retirement vs. 11.67 years of full retirement, or about 2.33 years shorter than average life expectancy. Clearly if you have an inkling about your particular chances based on health, family history, etc. you might well be advised to take one or the other based on that information.

        If you were to live to 90, in the early retirement scenario you collect 19.6 years worth of full benefits, but would have gotten 23 years of benefits if you had waited to 67. This turns out to be about a 15% reduction overall.

        Clearly, the goal is to retire early and die young :-)

    •  Thank you for making that clear. (0+ / 0-)

      People do need to know they can still get some of their benefit monies if they retire early.

      I was just too mad to point this out. I have so little faith left in the system. A few good people still out there - Jackie Spiers, John Garamendi, and Pete DeFazio. Most of the other "elected" people have sold the middle class out again and again.

      The ones at the top are shameless.

      Offer your heart some Joy every day of your life, and spread it along to others.

      by Truedelphi on Tue Mar 05, 2013 at 05:13:06 PM PST

      [ Parent ]

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