Early SS retirement at 62 vs FRA - COLA questions and asset protection advice needed

Yes, you absolutely get COLAs if you start at 62! The annual cost-of-living adjustments apply to ALL Social Security recipients regardless of what age you began collecting. The only difference is that your starting benefit amount will be about 30% lower than if you waited until your Full Retirement Age (probably 67 for you). As for the Medicaid lookback period, that's a complicated topic that depends on your state. Some irrevocable trusts can help, but you need to set them up more than 5 years before applying for Medicaid. Talk to an elder law attorney, not financial advisors selling products. One thing to consider: if you're married and your benefit is significantly higher than your wife's, waiting until at least your FRA might help her if she outlives you, as her survivor benefit would be based on what you were receiving.

Retired at 62 myself last year and NO REGRETS!! Don't listen to all those "experts" saying wait wait wait. Tomorrow isn't promised to anyone. My buddy Rob waited til 70 to collect "maximum benefit" and had a stroke 3 months later. What good did that extra money do him? I'm getting my checks AND still working 15 hrs at Home Depot just to get out of the house. Just watch the earnings limit - think its around $22k this year before they start taking back benefits.

I've been trying to figure this out too! So confusing!! Does anyone know if they count investment income against that earnings limit thing? Like if I take money from my 401k or get dividends? Or is it just regular job income that counts? Also has anyone heard about the SS trust fund running out?? My son keeps telling me I should claim early before they cut benefits!!

For asset protection from Medicaid lookback, I went through this with my parents. Here's what worked for us: 1. We set up an irrevocable trust with my parents' home and some investments. MUST be done 5+ years before needing care. 2. We got long-term care insurance while they were still in their 60s (might be expensive for you now, but worth checking). 3. Some states allow spousal protection trusts that let the healthy spouse keep some assets while the other qualifies for Medicaid. Regarding taking SS at 62: Just be aware of that earnings limit if you plan to work. In 2025, you'll lose $1 in benefits for every $2 earned above approximately $23,880 until you reach your Full Retirement Age. For education, skip the annuity sales pitches. The SSA website actually has good resources, or check out books like "Social Security Made Simple" by Mike Piper.

Tried calling SSA about my early retirement questions.... complete waste of 3 HOURS!!!! Got disconnected twice after waiting over an hour each time. The third time I finally got through to someone who couldn't even tell me how my specific benefit would be calculated. Said I needed to talk to a "technical expert" but they were all busy. Unbelievable our tax dollars pay for this service!!!!

One important factor nobody's mentioned yet - how's your health? The breakeven point between claiming at 62 vs. FRA (67) is typically around age 78-80. If you have serious health concerns or family history of shorter lifespan, claiming earlier often makes financial sense. If you're in excellent health with long-lived relatives, waiting might be better. Regarding Medicaid planning - be extremely careful here. Improper transfers can result in LONGER penalty periods than the 5-year lookback. Each state has different rules. Some allow for "half-a-loaf" strategies where you can protect a portion of assets even shortly before needing care. For proper education, I recommend the "Maximize Your Social Security" calculator by Economic Security Planning ($40 but worth it), and the book "Get What's Yours" by Kotlikoff, Moeller and Solman.

my uncle works part time at wallyworld and takes ss at 63 he said they don't count the first 20k or somthing. enjoy life dont wait is my opinion life is short

Has anyone here used a elder law attorney for the Medicaid lookback stuff?? How much did it cost?? My MIL had to go to nursing home and they took EVERYTHING she owned even tho she worked her whole life! So unfair!! I'm terrified of the same thing happening to us and leaving nothing for our kids... :

I'm in a similar situation - turned 62 last month and dealing with reduced hours at work due to company cutbacks. One thing that helped me was creating a spreadsheet comparing different scenarios. For your situation with the knees and physical demands, have you looked into whether you might qualify for disability benefits? Sometimes that can be a bridge until you reach FRA, and disability converts to regular retirement at your full retirement age without the early retirement reduction. Also, regarding the golf course work idea - that sounds perfect for staying under the earnings limit while keeping active. Golf courses often need seasonal help and understand retirees' schedules. Quick tip: You can create a my.ssa.gov account to see your exact benefit estimates at different claiming ages. Much more accurate than the general calculators, and it's free directly from SSA. The asset protection piece is complex, but one simple step is making sure both you and your wife understand what assets are exempt in your state. Primary residence often has some protection, and retirement accounts have different rules than regular savings.