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Really? So, you're getting the max? What tricks are they using to cheat you out of your SS payments. Hey, what is OASDI?

I only put in 34 years, including my low paying college years. About the last 10 years were in the maximum income bracket. I was planning on waiting until 70 to collect SS. That may not be a smart move.

OASDI is Old Age and Survivor Disability Insurance taken out of your paycheck under FICA, the Federal Insurance Contributions Act. OASDI is taken out at a rate of 6.2% of your paycheck up to a maximum amount based on your income. I paid that maximum for as long as I can remember. Each month, they also take out 1.45% for Medicare which is not subject to income maximum. Added to that, your employer matches the total 7.65% of your paycheck.

IF you retire early at 62, they cap your earned income and any amount over that gets hit with a 1 for 2 over that limit. They take away $1 over that limit. The last year before 66 it’s 1 for 3. I’ve been caught with this twice for about $7K.

They also have MAGI (modified adjusted gross income) against which they figure Medicare Part B penalties AND there is a similar trick for Part D (prescription penalties)-something called IRMA (Income Related Maximum Amount?) . That’s what got me the 100% penalty of $104.90 and another $32 on the Part D crap.

Here’s what I determined when I took the retirement at 62. It will pay 75% of the full amount you’d get 4 years later. That works out to 12 years of payments after age 66 to compensate for the 48 months of 75% payment you got. In my case, I won’t live that extra 12 years, so even with the tricks they use to cut your payments (they’d do it anyway), I come out ahead.

I was planning on waiting until 70 to collect SS.

My thoughts (I turned 66 last year):

- Let's say I get $1000/month at age 66. Assuming that I don't invest any of that money, I will have received $48,000 by age 70.

- If I wait until age 70, the SS benefit will go up about 7% per year, so I will get about $1310/per month, such that it will take about 3 years (total of 7 years from when I turned 66) to get the $48,000.

I figured I'd rather have the money now, especially since I can invest it at 7%, such that there is absolutely no advantage in waiting.