Turned 69 and waiting to fill taxes to included this year's taxes in "35 yrs of earnings" calculation. But, under the section "Monthly Benefit Amounts" on ssa.gov, last line in paragraph says, "No delayed retirement credit is given after age 69." Never knew about this. So...correct me if I'm incorrect, there's really no benefit waiting till 70 once you turn 69? (I'm waiting the extra few months in hoping this yrs. earnings will make my monthly benefit go just a little higher.) If this is true, I never once read about this ever on the internet. (Perhaps just never looked hard enough nor asked the right questions?) Your thoughts would be appreciated...
Interesting read on Government SS website.
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Three years ago, waiting to collect from 69 to 70 got me an extra ~8%. Not sure why they used that wording unless there was a law change very recently that I'm not aware of.
I suggest downloading the social security admin guide https://www.ssa.gov/pubs/EN-05-10035.pdf
"Also, your benefit will increase from the time you reach full retirement age, until you start to receive benefits, or until you reach age 70. We’ll add 8% to your benefit for each full year you delay receiving Social Security benefits beyond full retirement age."
Again, I have no expertise on this matter, I have simply read the manual - so seek better guidance. Probably worth a phone call because they even say the month you start can matter:
"contact us in advance to learn your options to make the best decisions. Sometimes, your choice of the month to begin receiving benefits could mean higher benefit payments for you and your family"
"Also, your benefit will increase from the time you reach full retirement age, until you start to receive benefits, or until you reach age 70. We’ll add 8% to your benefit for each full year you delay receiving Social Security benefits beyond full retirement age."
Again, I have no expertise on this matter, I have simply read the manual - so seek better guidance. Probably worth a phone call because they even say the month you start can matter:
"contact us in advance to learn your options to make the best decisions. Sometimes, your choice of the month to begin receiving benefits could mean higher benefit payments for you and your family"
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Thank-you. It does seem they will add to each yr. and month you decide to postpone beyond your full retire age. This is what I believed to be so. After filling taxes I'll make sure they have the earnings for the yr. acknowledged and then apply for benefits. Thanks again.
That's weird; I listen to a lot of investment advisor shows on the radio and the mantra is that 70 is full-retirement age.
They recently came out with an extra-catchup amount for people to add to their 401(k) that's only available from ages 60-63 and the wording says that it's the year the person turns 60, 61, 62, or 63. This may be working the same way - full retirement age is 70 so you get credit up through age 69? Definitely worth a call to the nice people at SS.
Note: I am not a financial advisor, nor do I play one on TV. I also did *not* stay at a Holiday Inn Express last night.
They recently came out with an extra-catchup amount for people to add to their 401(k) that's only available from ages 60-63 and the wording says that it's the year the person turns 60, 61, 62, or 63. This may be working the same way - full retirement age is 70 so you get credit up through age 69? Definitely worth a call to the nice people at SS.
Note: I am not a financial advisor, nor do I play one on TV. I also did *not* stay at a Holiday Inn Express last night.
It depends on your birth year. The gov't is always changing the rules.
Seems self explanatory to me. Since I retired early I never looked into it but here it is. I guess only common sense there is a limit.
You can actually check for yourself. The "calculator below" link in the paragraph I posted shows no increase in benefits as I increase the years when using myself as an example. You can confirm for your particular birth year and month. It's actually pretty neat.
Using the calculator the statement is correct. No additional retirement credit AFTER the age of 69. Which means you have to work until your 70th birthday to get full benefits. You are accruing additional benefits for age 69 but you have to complete the year until you hit age 70.
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| Delayed retirement increases benefits | Delayed retirement credit is generally given for retirement after the normal retirement age. To receive full credit, you must be insured at your normal retirement age. No credit is given after age 69. If you retire before age 70, some of your delayed retirement credits will not be applied until the January after you start benefits. The calculator below gives you the amount with all credits applied for comparison purposes. Delayed retirement credits increase a retiree's benefits. The table below shows the delayed retirement credit by year of birth. |
Source = https://www.ssa.gov/oact/quickcalc/early_late.html?source=syndication
Ps, I see @SC Maintenance posted much the same before me in a lot less words "until you each the age of 70"
But the above government site will allow you to confirm.
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I get the idea that waiting for that “extra” 8% seems pretty tantalizing up front, but about a year and a half ago, one of our plant managers who I was good work friends with was talking with me about this very subject (he had just turned 62 and was filing to start his SS while still working). I asked why he was doing it “early” since waiting was worth more monthly money. He said he had sat down with his financial planner, and that the difference gained by waiting until 70 would have taken him like 10-12 years (age 80-82 breakeven for total dollars collected) to match the dollar amount appeared to be “lost” by taking it at 62.
Since no males in his family in the past 200 years had lived to see even 70, he was huge amounts of money ahead in his “today” income, along with guaranteeing against the likely event he died before receiving a penny of it and “gifting” it all back to Congress’s whims.
Not financial advice; always determine what’s best for yourself, but I don’t know if anyone else here had similar experiences on taking it now vs waiting.
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One of the reasons I delayed taking SS is because my wife is 5 yrs younger and will most likely live a long life. (Hopefully) She would receive my SS amount (upon my passing) which would be much higher than her's. It would help her greatly in the long run. It is perplexing and I apologize for not looking at other ssa documents before posting.
I was going to mention this, but I don't want to advise anyone. However if you have a spouse, and especially if one spouse made a lot more money or paid into the system much longer, it might make perfect sense for one to take it as soon as possible, and the other to take it as late as possible, and which is which also depends on the situation. Its a complex question involving a personal decision so I will just leave it at that.
I believe we are mixing up different SS calculation factors in this discussion thread. The 35 years of highest earned wages are used to determine the Average Indexed Monthly Earning (AIME) amount which is then adjusted to define the "full" core benefit you will receive if you start collecting Social Security payments the month after you reach your respective "full retirement" age.
If you opt to collect SS early (i.e., between 62 and your respective "full retirement" age), the amount calculated above is reduced up to 30% as a penalty. If you defer collecting SS (i.e., past "full retirement" age) the above core payout amount is increased by 8% per year until it is capped at age 70.
If you opt to collect SS early (i.e., between 62 and your respective "full retirement" age), the amount calculated above is reduced up to 30% as a penalty. If you defer collecting SS (i.e., past "full retirement" age) the above core payout amount is increased by 8% per year until it is capped at age 70.
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