A retired friend of mine decided to take social security when he hit 62. Now he’s 65, and the Biden Effect has forced him to take a part-time job.
Now here’s the thing. He has to pay social security taxes, but those payments will not increase his SS benefits in any way. In what world is that even close to being fair?
Yeah, I’ve paid the max contribution for about the last 25 years and by the time I am “eligible” to take any of it back it surely will be gone.
Someone should have killed this scheme and drove a stake through its heart at the beginning.
That's where the next lie kicks in, that the social security program is a "societal benefit," "corporately." You're paying for past social security contributors so that they can make a living. If you're working you can, in part, be considered a member of "the rich." They'll say it's "unfair" to "double dip" in both the system and a gainful job at the same time. They'll tell him to count his blessings, that he gets to keep getting his benefits without the FBI raiding his home.
The implication is that S.S. is actually intended to remove older workers from the workforce - to discourage them from re-entering the workforce.
Regards,
” but those payments will not increase his SS benefits in any way.”
They do.
If his new job will over his living expenses he can pay the SSA back the payments he has received, without interest, as a lump sum, and the draw his full social security at 67.
Have him form a LLC or or C-Corp and take no salary, just dividends or distributions.
His SS benefits may or may not increase. Benefits are based on your top 35 years of inflation-adjusted earnings. If his earnings now are higher than in past years it may trigger a recalculation, otherwise his benefits will not increase.
It’s true, your friend would receive 25% less retiring at 62 versus 65 (in some cases older depending on year born). But that’s a minimum of three years payments he wouldn’t have gotten at all - and three years of SS tax payments he wouldn’t have had to make. The minimum amount of time it takes to make that early retirement start bringing in less total dollars through full retirement is 12 years.
For me, I retired at 62 and took the 25% cut and never regretted it. I’m in year 10 of the 12 year breakpoint thing. I was paying the maximum SS taxes for about as long as I can remember and even with the cut, the monthly amount is still enough to live on and pay what bills I have.
“A retired friend of mine decided to take social security when he hit 62. Now he’s 65, and the Biden Effect has forced him to take a part-time job.”....
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Not defending Brandon in any way but anyone who plans on social security being a major portion of retirement income and starts collecting at age 62 is just not that smart.
I view beginning to collect SS same as jumping off a cliff. Once you leap there is little one can do to change the outcome.