Posted on 11/14/2015 10:20:29 AM PST by Bernard
Do SS benefits increase based on age breaks? There seems to be a different level of benefit at age 62, age 66, and age 70. So as an example, the monthly benefit at age 62 is $2,000, age 66 is $2,500, and age 70 it becomes $3,000.
When I read the literature from SSA, it sounds to me like once you start collecting retirement benefits, the based amount you collect is "frozen" at that level, and subject only to COLA increases.
I understood that if you start collecting at age 62, your benefit will stay at the $2,000 subject to COLA changes. The person my wife spoke to indicated that if you start at age 62, in addition to the COLA increases, you could expect other increases based on getting to the age milestones.
Does anybody here know what actually happens? Thanks.
When I read the literature from SSA, it sounds to me like once you start collecting retirement benefits, the based amount you collect is "frozen" at that level, and subject only to COLA increases.
I understood that if you start collecting at age 62, your benefit will stay at the $2,000 subject to COLA changes. The person my wife spoke to indicated that if you start at age 62, in addition to the COLA increases, you could expect other increases based on getting to the age milestones.
Does anybody here know what actually happens? Thanks.
Yes, start collecting at 62 and that is your rate from there on.
I does not increase outside of COLA (which isn’t happening because there s no Inflation - LOL) unless you are still working and paying into SS.
You take it early, that’s your Payment. The longer you wait the more you get. Since I have been dealing with Leukemia for nearly ten years now, I started taking it at Age 62.
Taking benefits earlier than your full retirement age (as determined by SS) results in a percentage of the full amount. That remains your fixed monthly amount from then on, only allowing for COLA increases in the years that such are granted.
The earliest you can “normally” start drawing social security (SS) is 62. The amount that you can draw depends on how much you have put into the system during your work years. That amount will be different for most everyone because you’ve earned different amounts in your work life. Your full retirement age depends on when you were born. Some people can claim their amount at 65, some at 66 and some at 66yrs, so many months. If you choose to delay collecting until 70, the amount increases at approx 8% per year. Hope this helps.
If your retire at 62 you set that amount for the duration. It is currently at 75% of what you’d get at 66. I would note that it will take you 12 years to come out ahead waiting on 66. You can fare a lot better if you wait until 70, but then you have to be sure you’ll last that long.
For me it was a no brainer. I took the 62 because I’d never live that extra 12 years.
The only thing you have to consider is how much earned income you might make until 66 if you take the 62 option. The bastards take back $1 for every $2 you go over their magical amount. The last year before 66 I think that goes to $1 for every $3 over their limit. There after, the income cap is like everyone else’s.
But I repeat, if you take the early options that amount is set for the duration, except for COLA raises when they happen.
” The person my wife spoke to indicated that if you start at age 62, in addition to the COLA increases, you could expect other increases based on getting to the age milestones.”
The only thing that happens for certin is your medicare subtraction ( deducted from your SS benefit) goes up and the tax consequences on income change. Max benefit does not.
As an example in 2016 no COLA increase but there is an increase in how much they take out for Medicare (65 and older) so your net SS take home is less.
Gotta pay for those illegals and refugees somehow so Feds save it on the aged.
You get your full benefit if you start collecting at full retirement age, which varies depending on your year of birth but for some boomers is age 66.5
If you start collecting sooner the benefit is permanently reduced and if you wait beyond full retirement age, there is a slight increase every year up to age 70
Otherwise known as "Republican cuts to Social Security".
You get your full benefit if you start collecting at full retirement age, which varies depending on your year of birth but for some boomers is age 66.5
If you start collecting sooner the benefit is permanently reduced and if you wait beyond full retirement age, there is a slight increase every year up to age 70
What if you don’t start taking it even when you’re 70?
I started collecting at 62 and the only increase I got is because I had part-time work for a couple of years.
If I hadn’t worked it would have stayed the same.
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also, someone told me this....that whatever year you are when you retire, you get the same amt whether you retire on Jan 1st or Dec 31st....you get the same amt regardless...
so if you think you're going to retire late in the year, stay working and start collecting on Jan 1st because all your increase will be there...
I’m so sorry to have to ask, what planet have you been living on?
The natives call it "Earth". And I am sorry you felt compelled to ask anyway,
There are a lot of things to consider when deciding when to collect.
Obviously, if you are broke and have no job, the only thing to do at age 62 is to start collecting. But this limits the amount of money that you can make if you do manage to find employment.
On the other hand, if you are 62, retired, and have more income than you need, you should put off collecting. If you are well-off, 85% of Social Security is taxable, and collecting SS may set off income tax on other income that you would otherwise not have to pay.
Take a retired couple with $80K in stock dividends as their sole income. They pay no Federal tax. If they were both eligible for SS, and could collect $50K combined, they would have to pay income tax on $42.5K. They would also now owe tax on about $20K of their stock dividends.
“I’m so sorry to have to ask, what planet have you been living on?”
That’s really mean.
Don’t you remember your mother saying, “There’s no such thing as a stupid question.”
FR is a wonderful place to get answers.
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Because of the cost of health insurance, and the fact that my girlfriend is 10 years younger, I am working until 65. (I am 62 1/2 now).
My SS benefits will go up $500 per month by waiting until 65. They may even increase a little as I add more to the pot. If I wait until 70, it’s an extra $500, but I would have to live a very long life to experience the advantages.
Figure out your tax liabilities. Non-qualified investments (not income tax deferred) are taxed at the capital gains rate. Qualified investments (401k etc) will be taxed at the rate relative to your income. Try to live in a state that does not tax SS benefits.
That said, SS is a horrible investment/Ponzi scheme. If I had put the same money in the stock market I would get 7x the return.
My wife started taking SS at age 62 on the advice of our CPA.
She continued to work 3 days a week versus the 4-5 days/week before getting SS until she was 73, a couple of years ago.
In spite of her early start of receiving SS, apparently due to her continuing contributions, she got increases on her monthly SS checks, that I didn’t get as I retired totally after turning 62.
If you continue to work be sure that your yearly income doesn’t exceed SS’s max yearly income after retirement. If it does, you will pay penalties.
Or permanently disabled, really screwed me, having to settle for less because I can no longer work.
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