Social security questions

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grampi

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I will be retiring here in a few years and had some questions about SS. I plan on waiting until I reach my full benefit age (66 years 8 months) before I start collecting SS. I know my wife would collect my benefit, as mine is higher than hers, in the event I kick the bucket, but what happens if I die before I start collecting it? Would my wife get the benefit based on my age at the time of death? Also, I'm getting sick of people telling me to start collecting at the earliest possible age, before it goes away altogether. It seems a growing number of people think that SS isn't going to be around much longer. IMO, I don't see how it can just go away without the entire country revolting against the government. I would be one of them. I'm not about to let the gov take my money and run after a lifetime of paying into the system. It's my annuity, and I'm collecting!
 
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Your wife can start collecting the money you would be paid, when she turns 60. The amount depends on how long you've worked, and paid into your account.If she has made more money then you and her benefit comes out to more then yours, I believe she can collect the higher amount when she reaches her retirement age.,,,
 
Originally Posted By: grampi
Also, I'm getting sick of people telling me to start collecting at the earliest possible age, before it goes away altogether. It seems a growing number of people think that SS isn't going to be around much longer. IMO, I don't see how it can just go away without the entire country revolting against the government. I would be one of them. I'm not about to let the gov take my money and run after a lifetime of paying into the system. It's my annuity, and I'm collecting!


+1
 
Originally Posted By: BigCahuna
Your wife can start collecting the money you would be paid, when she turns 60. The amount depends on how long you've worked, and paid into your account.If she has made more money then you and her benefit comes out to more then yours, I believe she can collect the higher amount when she reaches her retirement age.,,,


I already know my benefit will be higher than hers, I just don't know what they base the amount of benefit on she will receive if she collects my benefit as opposed to collecting hers...
 
You may want to spend some time at ssa.gov, in the appropriate sections, to help answer your questions.

Here is how your spouse's benefit will be calculated, from ssa.gov. This is written to address the spouse's point of view.

If you qualify for benefits on your own record, we will pay that amount first. If the benefit on your spouse’s record is higher, you'll get an additional amount on your spouse’s record so that the combination of benefits equals that higher amount.

Note:Your benefits as a spouse do not include any delayed retirement credits your spouse may receive.
If you begin receiving benefits:

between age 62 and your full retirement age, the amount will be permanently reduced by a percentage based on the number of months up to your full retirement age.
If you are under full retirement age and you continue to work while receiving benefits, your benefits may be affected by the retirement earnings test.

At your full retirement age, your benefit as a spouse cannot exceed one-half of your spouse's full retirement amount.
Note: If you were born before January 2, 1954 and have already reached full retirement age, you can choose to receive only the spouse’s benefit and delay receiving your retirement benefit until a later date. If your birthday is January 2, 1954 or later, the option to take only one benefit at full retirement age no longer exists. If you file for one benefit, you will be effectively filing for all retirement or spousal benefits.
 
The one good thing I can tell you is once you both are registered in their system, on death it is very straight forward and easy. My dad passed a few months ago and they just needed the death certificate and the computers took care of everything for mom, including adjusting the direct deposit.
 
I thought the benefit you would get if you wait until age 70 to collect would be even higher than the age 66 "full benefit" amount

Am I correct?
 
I wouldn't be so dismissive about early activation. Do the math.

My payment at age 62 was about $2000/mon. Waiting until age 66 means I would forego $96,000. My increased payment at age 66 was about $800/ mon more. So, that means it would have taken 120 months or 10 years to catch up. That puts me at 76 before I net more by waiting.

Who knows if I will live that long? Who knows what changes will have to be made to return the system to solvency? In the meantime, I finish paying off my mortgage to reduce overhead, maintain my golf club dues and spend a month in Hawaii every winter if I so choose.

Life is good. Keep working hard y'all!
 
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You'd be wise to consult an accountant. You have to look at your entire picture. A CPA, BTW, not an "Investment Adviser" with a a whole lot of meaningless initials after his/her name. THEY just like to sell you stuff.
 
Originally Posted By: Indydriver
I wouldn't be so dismissive about early activation. Do the math.

My payment at age 62 was about $2000/mon. Waiting until age 66 means I would forego $96,000. My increased payment at age 66 was about $800/ mon more. So, that means it would have taken 120 months or 10 years to catch up. That puts me at 76 before I net more by waiting.

Who knows if I will live that long? Who knows what changes will have to be made to return the system to solvency? In the meantime, I finish paying off my mortgage to reduce overhead, maintain my golf club dues and spend a month in Hawaii every winter if I so choose.

Life is good. Keep working hard y'all!


This is my situation. If I start collecting at age 62, my benefit will be $800 less per month as opposed to me waiting until I'm 66 and 8 mo to collect. I would rather have the extra $800 per month, so waiting 4 years and 8 mo to collect would be better for me. I plan on working part time from age 62 until I reach my full benefit age to make up the difference in income. Nobody knows when they'll croak, so trying to figure that into the equation is a moot point, unless you know you have something that is terminal...
 
Originally Posted By: Schmoe
Long run, you're better off taking it now. You just never know.


Taking it at 62 would mean to little of a benefit for me.
 
Originally Posted By: grampi
Originally Posted By: Indydriver
I wouldn't be so dismissive about early activation. Do the math.

My payment at age 62 was about $2000/mon. Waiting until age 66 means I would forego $96,000. My increased payment at age 66 was about $800/ mon more. So, that means it would have taken 120 months or 10 years to catch up. That puts me at 76 before I net more by waiting.

Who knows if I will live that long? Who knows what changes will have to be made to return the system to solvency? In the meantime, I finish paying off my mortgage to reduce overhead, maintain my golf club dues and spend a month in Hawaii every winter if I so choose.

Life is good. Keep working hard y'all!


This is my situation. If I start collecting at age 62, my benefit will be $800 less per month as opposed to me waiting until I'm 66 and 8 mo to collect. I would rather have the extra $800 per month, so waiting 4 years and 8 mo to collect would be better for me. I plan on working part time from age 62 until I reach my full benefit age to make up the difference in income. Nobody knows when they'll croak, so trying to figure that into the equation is a moot point, unless you know you have something that is terminal...


Here's my calculation. If you take the $2,000 a month at age 62 you receive $112,000 over the next 56 months. By waiting until age 66 and 8 months to gain that extra $800 a month, it will take you more than 11.5 years to recoup that forfeited $112,000 and move into the black. That's too big a penalty for me because you also have to consider the opportunity cost of using the money now. Also consider that you can earn about $14,000 a year without adversely affecting your monthly SSA benefit, so you could continue working part-time.

I just got my SSA award letter at age 65 and 2 months. To wait 10 more months for my FULL retirement age, it would have taken me more than 14 years to recoup the forfeited benefits. It was clear to me what to do.
 
No problem, then. As long as you've considered all the pros and cons. In my case, I got RIF'd at age 60 as a reward for my 25 years of service and was fortunate to be able to bridge health care, severance, pension and ssa into my new life as a professional golfer (they pay me to play).

I will add this....I knew I was unhappy and stressed out the last couple of years I worked but I never really appreciated how deeply negative the impact was on me. To be free of all that pressure, deadlines, travel, personnel management (both up and down the chain of command) is incredibly liberating. I've regained my love for life and I'm still young enough to enjoy it.

Good luck to you as you navigate this important final phase of life.
 
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Originally Posted By: NormanBuntz
Originally Posted By: grampi
Originally Posted By: Indydriver
I wouldn't be so dismissive about early activation. Do the math.

My payment at age 62 was about $2000/mon. Waiting until age 66 means I would forego $96,000. My increased payment at age 66 was about $800/ mon more. So, that means it would have taken 120 months or 10 years to catch up. That puts me at 76 before I net more by waiting.

Who knows if I will live that long? Who knows what changes will have to be made to return the system to solvency? In the meantime, I finish paying off my mortgage to reduce overhead, maintain my golf club dues and spend a month in Hawaii every winter if I so choose.

Life is good. Keep working hard y'all!


This is my situation. If I start collecting at age 62, my benefit will be $800 less per month as opposed to me waiting until I'm 66 and 8 mo to collect. I would rather have the extra $800 per month, so waiting 4 years and 8 mo to collect would be better for me. I plan on working part time from age 62 until I reach my full benefit age to make up the difference in income. Nobody knows when they'll croak, so trying to figure that into the equation is a moot point, unless you know you have something that is terminal...


Here's my calculation. If you take the $2,000 a month at age 62 you receive $112,000 over the next 56 months. By waiting until age 66 and 8 months to gain that extra $800 a month, it will take you more than 11.5 years to recoup that forfeited $112,000 and move into the black. That's too big a penalty for me because you also have to consider the opportunity cost of using the money now.

I just got my SSA award letter at age 65 and 2 months. To wait 10 more months for my FULL retirement age, it would have taken me more than 14 years to recoup the forfeited benefits. It was clear to me what to do.


According to my SS statement, my monthly benefit, if taken at age 62 would be $1200. If I wait until age 66 and 8 mo it would be $2000 a month. It would take me until age 73 and 8 mo to reach the break-even point. To me it would be worth waiting the 4 years and 8 months to be able to collect the extra $800 per month. It would also mean my wife would receive a higher benefit if I wait in the event that she outlives me, if I'm correctly understanding the way the survivor benefit works...
 
I agree with the previous poster to post this on the Boglehead forum. It's a great forum for finance and investing.
 
Now I'm even more depressed.

I get a smaller percentage of my income in Social Security benefits because I'm considered a "high wage earner - max taxable"

So I get to subsidize even more people.....

Good grief.

https://www.nasi.org/learn/socialsecurity/benefits-compare-earnings

Quote:

For example, a 65-year-old who retired in 2015 with a lifetime of “medium” earnings (about $46,290 in 2014) would receive about $18,320 a year, which would replace about 40 percent of past earnings. A “low” earner who made about $20,830 in 2014 would receive about $11,120, which would replace about 53 percent of prior earnings. A worker who always earned the “maximum” taxable amount ($112,085 in 2014) would get benefits that replace about 26 percent of prior earnings.


Now I want more than ever to have the right to opt out, as I believe there are better options for me and my family. By virtue of earning more, my government has decided I should have a lower "return on my investment" (and I use that phrase loosely) than others who earn less.

I sure would like to contribute only the low earning dollars and have the higher earning dollars from both my wages and my employer's mandatory match to invest as I see fit, and not as Uncle Sam has decided is best.

Rant over...
 
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