• Question
  • Retiring early

    Asked on 6/24/2012

    Hi Bud, I have retired at age 60 and have $150,000. I do not plan on returning to work. If I delay taking ss until age 70. (Using my $150,000 and my wifes income). Will my monthly benifits still increase even though I am not putting into the SS pool? Thanks, Carl

  • Categories: Early Retirement, Work and Retirement


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  • Hi Carl,

    The answer below was provided by Bud Hebeler who runs http://analyzenow.com/

    Thank you for asking. If you stop contributing to Social Security from a working wage, your amount from Social Security will be whatever quote you get from the SSA for age 70 increased by inflation. You can find out what the value will be without the inflation adjustments using the calculator on http://www.ssa.gov by entering your forecasted working wage prospects. $150,000 will be a big help with paying your health care costs, but I'd be miserly about using if for normal living expenses. If you have no pension and want to delay taking Social Security for ten years, you will have to get sufficient income from your wife's job. When you reach your full retirement age, you can elect to get a spousal benefit which will be 50% of her full retirement age benefit it she has started Social Security by then. When you and your wife each reach 65, you will have to pay about $100 a month each for Medicare Part B and perhaps $12 more for Part D for drugs, both increased by something likely more than inflation. This is my understanding, but you should verify your strategy by talking with someone from your local SSA office. If your wife's health insurance doesn't cover you or you don't have a group policy from your employer, look carefully into this because you can't go ten years without health insurance.

    Hope this is helpful.


  • Login to rate this answer:   Answered on 6/27/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.