It doesn’t work that way. From what I understand, because I was going to take it in a few months is
The SS is subject to the 2 for 1 rule meaning you lose $1 of SS for every $2 you earn. If you make enough, you don’t collect a penny of SS.
Instead, once you reach full retirement age, the gov’t adds up all the benefits you didn’t get because of the penalty, and add them to your regular payments until life expectancy which is 83. In other words, if you were supposed to get $1600 a month at 62, you would miss 4 years worth of payments assuming your retirement age is 66. so, $1600 x 48 = $76,800. Then you take that amount, and divide by 17 (number of life expectancy years left), then divide by 12. That is the amount you would have added to your $1600 per month which is $376.47 so your benefit would be $1976.47 until you turn 84 at which time is drops to $1600.
In other words, it works if you think you’ll live, the gov’t is betting you die.
Helluva system.
Yep. Now, don't let that make you nervous about the government taking over your health care...
“The SS is subject to the 2 for 1 rule meaning you lose $1 of SS for every $2 you earn. If you make enough, you don’t collect a penny of SS.”
not quite. you’re “allowed” to earn a certain amount before the penalty kicks in and that penalty-free amount increases every month as you approach full retirement age, at which point there’s no penalty no matter how much you earn. for example, if one’s full retirement age of 66 is reached in 2018, you can earn $3,780 per month without penalty ...