Social Security HUGE MISTAKE!!
Terry, in advance of retirement next year and desiring to pay off a HELOC used for home improvement, I began taking social security last year, while still working full time. I was able to get the 5.9% COLA.
The HELOC is almost paid off and I am thinking about postponing the SS payment until I turn age 70 – 2 years from now. It’s been a little more than 1 year and in the timeframe where I wouldn’t have to pay back what I’ve received.
However, with another anticipated significant COLA in 2023, continuing the SS would allow me to build significant savings and take advantage of the potentially higher COLA, though I will also pay more in taxes next year. So I am torn between postponing SS and continuing to receive it.
Is it better to wait until age 70 and build my base amount, or am I better off going with the COLA and subsequent higher SS amount because I am still working (relatively high-earner). Thanks so much for your sage advice. I read your columns and questions every day and have learned so much from you.
Terry Says
Oh, what a TERRIBLE MISTAKE you made! You took SS early and permanently reduced your benefits. You would have received the COLA in a higher base pay if you waited. And you lost benefits because of current earnings!! I can’t think of a worse mistake to have made for your future.
AND, you can’t go back and change that decision by paying back benefits since more than one year has passed. So forget age 70. You’re stuck with a low base pay from SS — reduced significantly, at least 25% — from what you would have received by waiting. Nothing to do now.
