Take Social Security Now or Later???

[rendismom123]

I'm new to this site.

I'm in a real pickle. I finally got the nerve to leave my abusive husband, but walked out with only the clothes on my back, and $500.00 to my name.

I am 61 years old.

I am currently living with my mother.

Here is my situation:

I'm eligible once my divorce is final to get Social Security from a dead former husband of $1,203.00 per month.

If I wait until I'm 62, then that amount would rise to $1,363.00.

If I take the $1,203.00 now, that amount will never change.

If I chose to draw on my own Social Security at age 62, that amount would be less that the $1,203.00, so that is not an option, and I wasn't married to my current husband for at least 10 years, so drawing on him is not an option.

At 66 I will get another $150.00 per month from a pension.

So, what do I do? Try and find a full time job, work it until I reach 62, then take the $1,363.00 per month, and if I have to, get a part time job then to supplement the $1,363.00, OR do I plan on working full time as long as I can, then when I can't work any longer, take the Social Security??

I don't know what to do. I'm living in a state where the unemployment is at 9.??%, and with my age, it could be difficult finding a job here.

I can stay with my mom for a few months, but I don't want to live with her for very long.

[marvholly]

I am almost in the same pickle, unemployed at 64 (now 65) BUT I have sufficient $$ savings to carry me until my FULL retirement age. Unlikely to be re-employed due to age.

I did NOT want to take a 25% hit for the rest of my life. I am living as frugally as possible (cheap internet, no going out, $25/week for ALL food, cat & house supplies, NO new clothes). I am Just making (except for real estate taxes) it on the little income I do get every month (half what I was net earning). That is my decision.

Can you continue to live w/family?
What will your expenses be over the next several years (auto stuff, health insurance, .....)?
Will you get anything in assets/cash after the divorce?
Can you do anything to generate some cash income (babysit, cook/shop for a busy family, do focus groups)?
Do you have any skills to get temp office work (accounting, IT, wordprocessing) from an agency?

[disneysteve]

Welcome. Congratulations on getting out of the bad relationship. That takes a lot of strength.

I'd say if you are able to work, get a job. You may need to make your own job - child care, dog walking, craft work, tutoring, party planning, whatever you are capable of doing. As you know, the longer you wait to collect SS, the higher the benefits are each month.

What are your anticipated living expenses after you leave your mother's place? Can you live on $1,300/month? Are you eligible for any type of subsidized senior housing? Have you applied for any government benefits? What about health care? You don't get Medicare until 65. What are you doing until then?

[rendismom123]

I do not have any medical insurance, etc.

I have office skills I can use as far as a job, it is just finding the job in this market.

I cannot live with my mother much past 2-3 months or we will kill each other.

I don't have a car as yet, so that may be an expense in the future, or I may need to invest in a bike.

I could probably live on the $1363.00 per month with just a part time job.

I cannot live on the $1203.00 without a full time job.

I can get help as far as HUD housing goes. I can get food stamps, and I can get help with utiltiy bills.

Hope this helps all in advising me.

I am an only child and I do stand to inherit a large sum of money within the next 10 years, so that too will help me.

[BuckyBadger]

Originally Posted by rendismom123

I am an only child and I do stand to inherit a large sum of money within the next 10 years, so that too will help me.

Is there a way that you could get gifted the $13,000 gift max this year from whomever will be leaving you the inheritance? It would seem that if you'd be getting it within 10 years, that it's from an elderly relative? They may be able to part with some ahead of time for an unusual situation such as this one. That would go a long way. (Although I may be making untrue assumptions about the nature of the inheritance...)

[bjl584]

Originally Posted by rendismom123

I do not have any medical insurance, etc.

I have office skills I can use as far as a job, it is just finding the job in this market.

I cannot live with my mother much past 2-3 months or we will kill each other.

I don't have a car as yet, so that may be an expense in the future, or I may need to invest in a bike.

I could probably live on the $1363.00 per month with just a part time job.

I cannot live on the $1203.00 without a full time job.

I can get help as far as HUD housing goes. I can get food stamps, and I can get help with utiltiy bills.

Hope this helps all in advising me.

I am an only child and I do stand to inherit a large sum of money within the next 10 years, so that too will help me.

I agree with Steve. If you can work do it. Have you looked for employment? Even in a bad economy there are always jobs. Most of them are low paying, but it is work. Places like McDonalds and Walmart are always hiring. If you go the HUD housing and foodstamp route, then you are looking at about a 6 month wait. Can you exist with your Mom for this long, find some kind of work in the meantime, then get out on your own? Hopefully hold off on the SS until the benefits increase.

[MonkeyMama]

Personally, I'd take the social security now.

You need the money.

You are not losing money. You are getting it sooner, is all. It's all the same in the end.

You can ALSO look for work, which is precisely what I would do. Benefits recalculate when you reach full retirement age. I'd guess that you probably will not make enough to increase your benefits (relying on ex social security, so you'd have to work a lot to pass that level of benefit yourself? I presume?). That said, you can make about $14k per year in addition to early benefits without losing any of it.

Social security is extremely complex, so be careful taking free advice on the subject. Heck, good paid advice is probably hard to come by. The inheritance situation seals the deal for me - take the money now. You likely won't have to live on the lower amount forever.

You can work and get Social Security at the same time

[Hector]

Originally Posted by rendismom123

I could probably live on the $1363.00 per month with just a part time job.

I cannot live on the $1203.00 without a full time job.

then finding a job is your only option unless a relative is going to help you financially. I would delay taking out SS as much as I can do in your situation.

[disneysteve]

Originally Posted by rendismom123

I could probably live on the $1363.00 per month with just a part time job.

I cannot live on the $1203.00 without a full time job.

I wonder how true this is. Is a difference of $160/month really enough to make the difference of needing full time or part time work? That's only $1,920/year, much less than the income gap between FT and PT work I would think.

I think you need to sit down and review your budget item by item and see how much you truly need to earn to cover costs.

[marvholly]

If you have office skills you should be able to get work from a temp agency. There are usually NO benefits w/this type placement but sometimes a temp job does resultin a PT/FT hire that has benefits(medical, paid holidays, paid vacation).

[97guns]

i say congradulations on making it to the social security drawing age and take it NOW!!!! because there may not be a "later"

[Scanner]

I am going to disagree with 97guns and agree with DisneySteve.

I only can offer this perspective as a chiropractor (and DisneySteve has a wider perspective as a family doctor):

I see people fall into the "abyss" of Medicare and SSI and they never seem to "get out." They get trapped into these circular, boxed-in dilemmas of "Well, I can't work because if I work, then I would lose my SSI. . .and if I lose my SSI, then I can't work because I don't have money, blah, blah, blah. . .everything revolves around SSI and MediScare. . .my health, my finances, everything."

So, here I am telling people to get out and do some work because it is good for their back to get moving, good for their mind most of all, and I am getting these frustrating responses. They are in the Medicare/SSI abyss and they'll never return. Death is their only escape.

You should be making all financial and career decisions INDEPENDENT of what you get from SSI and/or MediScare.

You want to end up looking across the room at your mother 24/7? Go ahead down to your local SSI office and apply for benefits right now. In fact, go tommorrow.

Because that's where you'll be.

(DisneySteve has a better bedside manner than me )

[Little House]

I agree with DS, find a part-time job, stay with your mom as long as you can and draw SS when you turn 62 (or later if you can wait it out). Are you a full 12-months from turning 62? I'd also say stick with the part-time job even once you turn 62, that's still quite young. MarvHolly mentioned going to look for work at a Temp agency, that's a good idea. Sometimes those gigs turn into permanent work. Good luck and congratulations on getting out of an abusive relationship.

[disneysteve]

Originally Posted by Scanner

I am going to ... agree with DisneySteve.

You seem to be doing that a lot lately.

[Scanner]

Well, I can't always be a contrarian.

[nick__45]

First of all, I do hope you are thankful to your dead former husband who leaves you with a nice SS check monthly.

Not knowing how SS works, is it possible to draw yours and his at the same time? I see people drawing it without having a real job their entire life while there are people continuality paying into it even though they have paid more than the maximum they can get back up, assuming they don't die right after retirement. Base on that, I think it is best to draw it the first chance you can because it may be be around.

If you and your mom can't stand each other then I would definitely stay and ensure that inheritance will come sooner. You are striking rich or about to do so.

Hopefully SS will still be around when I retire. Either that or I get an option to opt out next year and just kiss the first 12 years of payment goodbye. Sometime it is easier to cut the loss.

[zakity]

Temp work is a good suggestion. Also, look at your local Goodwill for a job, they hire older people.

If you are in good health and can still cook and clean, what about a job where you take care of someone who can't? I know I have elderly relatives that have someone come in and clean once a week. I know of other people who do that as a job and they cook simple meals, clean, and socialize with the person a bit while they are there. Others are "live-ins" and stay with the older person 24/7. They cook and clean for the person and socialize with them. Sometimes, the older person needs a little care (help to the bathroom/bathing, etc). Some get just free room and board and others get paid a little extra (think it depends on what the person needs what you get as "payment"). One lady I know of goes through an agency to get matched up with older people.

[landon.bruno]

Take it as early as possible. It will be pretty helpful for you if you take it. Especially since you are pretty old.

[MiikeB]

Will you be getting ANYTHING from the divorce? Alimony? Some lump sum?

[nick__45]

Originally Posted by MiikeB

Will you be getting ANYTHING from the divorce? Alimony? Some lump sum?

One thing I hate about divorce in this society is that one party always expect and usually get paid. A fail marriage is being treated like a fail business but only for one person. Whatever happened to being responsible for your own well being and don't be a leech.

lump sum? Are you kidding me? You make it sounds like a lottery.