@jpb9171
Start collecting at 62 and invest via dollar cost averaging until 72…or until whenever you need it.
@stom3998
If Social Security is available and I make it to 62, I'll take it as soon as possible. Social Security is a bonus to my plan, but I'll happily take some of the money I paid in without further delay.
@kava8902
So if I live to 87 it STARTS to be a good idea. At that point I'm in a nursing home and they take it all anyway. Take it as early as you can. You're also assuming COLA will be around forever.
@sneakyquick
My dad died one week after his 65th birthday of cancer. I will collect the first second I am eligible. He collected 1 social security check.
@SP81dt225
Social security maximization is a complicated subject. If you are married you really should maximize your social security as a couple not as a single as she did here. If the higher earner waits till 70, this would maximize their benefit, however, it would not maximize their spouse. The spouse cannot collect any more than half of the higher earner's benefit at their full retirement age, in this example, 66 not 70. Waiting only will increase the higher earner's benefit after 70 and will increase the death benefit for the spouse. While the spouse can start drawing at 62, they cannot draw the spousal benefit to make up to half of the higher earner's benefit until they start collecting. In fact if the spouse starts before their full retirement age it will reduce their spousal benefit as well be the same percentage. Everything you said is correct but it goes deeper than what you touched on. Also, the break even analysis shows we will break even somewhere between 78 and 83. The actuarial tables show us dying somewhere in that ball park. So while waiting may seem like a good idea, remember you CAN pass on your IRA to your heirs but you CAN'T your social security benefits. The government would want us to wait till 70 and that is reason enough to take it as soon as possible. If you live till 80, the difference in waiting is peanuts considering the average person will probably check out around 83 or so. Hopefully longer but ya never know.
@cw4072
If you take at 62 and you are retired but can invest the SS payments you win every time.
@chesterzelda
I'm taking at 62. I can either invest it in s&p for that whole 16 years until the breakeven point. Or I live off of it & let my roth etc continue to grow that whole 16 years
@TheStscs
Debt is the #1 factor to me. I am 56 now but my house will be paid off in 2 yrs and my car in 3. After that, Im done :)
@hessbrotherssports7564
Good information but Ill take the money early. No guarantees in life. This includes social security payments from the government and if I would live long enough to break even. If you are retiring early you should have enough banked that social security is just your slush fund.
@thundersnow93
The worst consequence is that you die early, before ever retiring or collecting social security.
@kahrhoshe
I literally walked out of my job and "retired" at 55 in march with far less than a million in liquidity. BEST. DECISION. EVER. You remind me of my CFP
@Veganisbadhunter-wx5nt
The problem is 90% of Americans do not make it out of their 80's
@Jfhelwig
I retired at 56.5. My net worth has slowly grown (62.5 now), but my situation is unique. I got debt free first, then lived on savings until social security at 62. Have 4 grown kids, the last one is autistic and lives with us. He gets DAC based on my work record, and my wife is just now starting her spousal benefit also off my work record Those 3 checks cover our daily needs. In addition, he receives around 32k in Medicaid home based services. Since we are his care givers, that money is earned by us, tax free. That is all above my needed budget.... So we're not touching my IRAs in Fidelity at all. So those get a chance to grow over time.
@jojoba619
Another thing to consider when retiring early is health insurance. You may be able to claim Social Security at 62, but you cannot apply for Medicare until you’re 65.
@Ghost_Rydah76
Great info, glad I found your channel, subscribed! Thanks Rachael!
@JosephFlammer
I’m taking social security as EARLY as I can, gimme my money
@DisabilityAttorney
This is a very good video. But I feel like the title doesn't do it justice. Not sure what it had to do with "Retire at 55?" I feel like you would have significantly more traction if it were retitled to something like- "Debating Whether to Take Early Retirement? Let's Discuss a MAJOR Reason Why You May Consider Delaying Social Security"
@CombatEngineer1987
I’m 55 years old and retired at age 53 with a really good state pension with a cola. I took an upfront 10% reduction so when I die, my wife will continue collecting the same amount. Im also a 100% p&t disabled veteran. My wife and I will be collecting Social Security at age 62. Best of luck!
@fcoon3
Thank you, Rachael. This is the best explanation I have ever heard about the costs and benefits of taking Social Security later. I have parents and in-laws who chose to take SS at 62 thinking they discovered the best option for their retirement planning. They were all in good health then (20+ years ago, all 80+) and all are in decent health now. They all were working or had side gigs. Each of them overly focused on on the SS money. Each believed, despite family histories of longevity, that they would not out live their breakeven points. All of them have. This, as you point out, misses the point. Delaying SS is probably the best hedge against the three biggest financial risks in retirement. If you do not need the SS money, do not take it! If you don't take SS at 62 and something changes between 62 and 70, you always have the option to start taking it.
@ryanreeves70