When to start getting Social Security benefits? I say, ASAP

It's hard to believe, but my gray hair (and driver's license) testifies to the fact: in a bit over a year I'll be 62 and eligible to start getting Social Security benefits.

So a New York Times article caught my eye this morning. Reading "Collect Now or Later? Timing Your Social Security Benefits" I realized that no matter what the experts say, I'm strongly inclined to stick with my current inclination:

Give me my freaking benefits As Soon As Possible -- ASAP!

Now, I realize that others will decide differently. And that's understandable. I just wanted to share my philosophical take on this subject, for what it's worth.

That's what it comes down for me: philosophy...of life.

The article focuses on how much total money someone will get from Social Security if they start taking benefits at 62, versus waiting until 65 or 70. If you live long enough, waiting brings in more bucks.

For people who choose to defer benefits until age 66, it generally takes about 12 more years to collect as much as if you started getting checks at 62. So you break even, so to speak, about age 78, according to Avram Sacks, a Social Security law analyst for CCH, a tax and accounting information service. “If you are in good health, and you expect to live to 78 or longer, then the advantage goes to the person who waits,” he says. “But that’s assuming we’re all prophets and we know what’s going to happen tomorrow, and we don’t all know.”

I don't understand this way of looking at "advantage." Life is about a lot more than dollars and cents, or the quantity of living we do.

Mr. Sacks points to the financial advantage of waiting to start getting checks from Social Security, if you end up living longer than 78. However, what about the quality of life disadvantage of foregoing what you could have done with the money from age 62 to 78?

Traveling. Buying stuff you've always wanted. Gifts for grandchildren. Fixing up your home. Charity. Whatever you want. Including, naturally, simply living: paying for groceries, gasoline, and such.

I'm not saying that my life at 78, if I get that far, isn't going to be worth living. However, I know what life at 60 is like, and it's pretty damn enjoyable.

I'm healthy, energetic, and enthusiastic, of sound body and mind (aside from my usual psychological quirks and minor ailments). So I want my Social Security benefits ASAP, because I don't like the idea of having extra money when I can't enjoy it as much as I can now.

Makes sense to me. And to other people I've talked with who are leaning in a similar now, now, now direction when they turn 62. We don't see any reason to wait.

But like I said earlier, I can understand why someone else would choose to. The decision as to when to start getting benefits isn't entirely philosophical -- this is just how I look at the question:

What will bring me the most satisfaction? Using the Social Security money from now until I'm 78, or after that age?

Comments

[Rain]

My husband and I put off taking them until 66 (full benefits) which comes this year for both of us. The decision was based on the taxes that would have been due on them and then the reduction of future benefits when we might need it more. He had intended to keep working as a consultant until 70 (he enjoys his work most of the time) when we would have taken them except the income ran out in his business due to the economic downturn. (Well he still has it for the employees he has but not for himself at the moment). He is likely to live to be in his 90s; so 78 will be early in that period. His parents were still taking tours and trips past their mid-80s,

It seems to me that it definitely is a consideration individually that must be decided on other factors for each person.

[Randy]

I took it at 62 on the theory of "a bird in the hand." There is a presumption here that SS will continue to be paid. But you are ignoring what I guess should be called "alternative economic news." Our economy is being held together at the moment with smoke and mirrors. Daily reading should be the web site Automatic Earth. Whether one takes SS now or later may be the least of our worries.

[tucson]

If you reach age 60 in good health, then statiscally you should live to be at least 84 according to my actuary brother-in-law. So, it would be a good statistical bet to wait until 66 before claiming benefits. BUT as Randy stated, will there be any benefits to get in 5 or more years? If the benefits would improve the quality of your life now I would consider gittin' while the gittin's good. If the benefits won't make that big a difference in your lifestyle then I would wait.

Better yet, use the money to buy gold which you can hide under your militia's machine gun nest at your survival retreat in the Sisters.

[Joel]

I am 62 and got laid off recently. I can collect unemployment, which requires job searching and periodic reports to the State on my job search activities and income taxes. I compare my unemployment benefits versus my social security benefits and social security is the definitely the best payout. So, why wait? I am filing for my social security today.

[VeeGee]

Wait wait wait Joel... unless you live in one of the 3 (or 4) states still run by idiots... you are entitled to collect both unemployment AND Social Security simultaneously, so DO NOT somehow give up or screw up your unemployment benefits, which is very easy to do. If you have waited past some deadline - call your State's unemployment office and explain your confusion. I was similarly confused, and waited a month longer than I had to, to sign up for Social Security.

The problem being, there is a lot of OUTDATED information still on the internet, causing many to think they cannot collect both. I think the powers that be were getting embarrassed by their own publicly funded riches, with many of them double or triple dipping at the public trough. So a few years ago, most states that had not already done so, eliminated the "offsets". In Ohio, for example, there was a 100% offset, meaning if you collected Social Security, your unemployment benefits would be cancelled (100% offset). I have one further opinion. It is interesting to me that so many states changed these laws in just the past few years. Almost as if they KNEW (?) we were going to have our current Depression, and did this to mollify us.

In any case - make sure you get your unemployment. Now if you live in one of the 3 states that still do offsets - and you will have to research this, I don't have those state names - then, you will not be able to collect unemployment at the same time.

[VeeGee]

I had to go into my archives to get this article, but it is by some answer-guy who is well versed on the topic of collecting both SS and unemployment. It lists the 3 "problem" states...

http://www.aarp.org/money/work/articles/skladany_unemployment_ss.html