Posted on 07/10/2018 2:39:24 PM PDT by GeorgiaDawg32
I'm at that age where I'm trying to determine whether or not to take social security a year early or wait until I turn 66. To that end, I called social security and asked them what my benefit will be at 65. They told me. I informed them I'm going to keep working and make far more than the $45k I'm allowed without penalty next year. The social security benefits will go directly to the savings account. I don't need it to live on.
My question was, since I'll get no check for the last 3 months of this year and no check for the first 6 months of next year, do I recover that money at some point?
Answer Number 1) You get it back incrementally on your retirement benefit when you turn 66.
Answer Number 2) It's gone as a penalty and you won't see a penny of it
Answer Number 3) You will get a lump sum check for the amount of the missed benefits when you turn 66
Are any of these answers correct or is there a 4th answer out there?
If you know social security and how it works, I need the help.
Thanks in advance.
Note:L I get a modest retirement from the California State. I looked at what I get per month at my age, then multiplied it by months until I die (I assume 85).
I added all that together. The I ran the numbers if I wait 10 years. The gross difference was a few thousand so Mrs. FD and I said “heck let’s get it now.” And we did and it covers my self-financed health care so it nets out wonderfully.
Remember to include Present Value of Capital/Money when doing your models.
The ssa.gov website is very good. That’s the source for the information I posted.
got three different answers to the same question
Are you implying our Government is inefficient and loaded with incompetents and paper shuffling salary grabbers who really don’t care? That thousands of them all over the various departments are costing our tax money huge amounts and busting the budget in Washington?
Guess you’re right.
You can start receiving benefits, without being penalized for making too much money, on Jan 1 of the year you turn 66. You will, however, get reduced benefits based on how many months you are away from your full retirement age.
https://www.fool.com/retirement/2017/03/25/should-you-take-social-security-at-62-66-or-70.aspx These guys are good with money info.
This chart says if you wait till your 70 to start SSI would would need to live till 80 to get more money than if you started at 62.5
Sorry,but you or any of us won’t live long enough to collect every dollar we paid in.
Since you will continue to work do not take SS.
Here’s a rough number to use. For every month you work past hour SS retirement date your benefit will increase by . 75 %. So if your Benicia is 1000, then working and contributing to SS, your benefit goes to $1007.50. 2 months to $ $1015.00 etc. one year $1,080. I say contribute and work. Ask what the minimum you have to work and contribute to get that .75 % .
If you don't need the money and are still working, as I am, you are best off waiting until the "official" retirement age, whatever that is now. (But you still should sign up for Medicare a month or two before you turn 65.)
But this is complicated if you have dependent children under 18 years old, when I believe it is best to collect as soon as you are able.
It is also complicated by having a spouse also at "official" retirement age. My wife isn't considered as having begun to collect but I get 50% of what she would be collecting added to my monthly check.
ML/NJ
You will, but they are only worth 1/4 as much.
Inflation calculator
Why do you get 50% of what your wife would collect, if you collect your own SS?
My impression is this is a choice you make based on things like ‘how long do you think you’ll live’...
You get more money per month if you put off your ‘start date’
... then at some point in the future the extra money ‘catches up’ with what you would have gotten if you had started earlier. After that point it’s pure gravy.
Do you need the money now? Do you have a different ‘bucket’ to take living expense out of? How old were your parents when they died? How’s your health? There are books that deal with this subject - and CPA’s who work with the elderly... who might have insights. I asked my CPA years ago about a similar situation and she said ‘how long to do you think you’ll live?’.
Wish I could help rather than just add new layers of questions... If you figure this out share the answer with the rest of us...
+1.
Good chart but, I think this is only factoring what you get from SSA and not how much you are making in the real world to offset the difference.
I don’t need medicare. I get health care through the VA.
Contact your congressman....that’ what they’re there for.....to help out on federal questions like yours.
Maybe I’ll contact Trump himself and let him see what a mess social security is when it comes to correct answers.
I started at 63 , did the math with inflation figured in , I’d have to live beyond 83 to break even on the same money .
The uncertainty is "holding off as long as you can". We don't always control when that will be.
People start dying in their 60s and 70s.
Better to take 80% of what you could get now, than to get 100% of what your entitled to after you're dead.
I'm just sayin'....
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