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Question regarding File and Suspend. If the primary earner files and suspends (68 and still employed) which then allows the spousal benefits to start, (spouse is 62) does that forever reduce the spousal benefits because of starting early? Clear as mud to me. Thanks!
Interesting. I hadn't ever imagined a situation where it wouldn't be foolish to delay taking Soc. Sec. beyond age 70, as I had never thought about it in terms of spousal benefits. However, if you have no spouse, delaying beyond 70 is crazy, as your amount will never be larger; you are just declining to draw money that is sitting there waiting for you. Also, if your grandmother had died shortly after your step-grandfather, then it would have also been a gift to the Social Security Trust Fund.
Grandmother was 12 years younger and the man she married was self-made.
He came from Germany in the 1920's and started a manufacturing business... it was his life. He told me he never planned to retire because he loved what he was doing... he also said America gave him the chance to make something of himself and that is why he wouldn't take a dime of Social Security... it's for widows and those that need it...
It did provide 10 years of income to Grandmother and she was grateful... the business all went to his family as it should. Something about people in their 60's taking the leap of marriage and making a good life... both had lost their spouse to cancer and they knew each other since the 1930's...
Anyone remember the "Last Civil War Bride"? They did a movie years ago... she was the last person still collecting civil war benefits in the county.
One of my co-workers is age 68 and has been getting SS for about a year. He worked at IBM 30+ yrs and gets a generous pension, plus about 2500 per month SS, plus a nearly six figure annual income from the current engineering job. If a person takes SS beyond their "full retirement age" there is no cut in SS payments if the person continues to work and earn a large income. However, all of the SS that my co-worker gets is taxed at a very high rate, due to his high current income plus all the retirement income he gets. I ask my co-worker why he keeps working, and he says his job keeps him entertained and he doesn't like spending time at home every day. We do have a pretty relaxed and friendly work situation and I'm not in a hurry to retire at too young of an age - it doesn't hurt that we get a nice paycheck and generous vacation time.
I can only imagine what it must be like to have a nice pension... the only ones I know well are 12 from High School that went into law enforcement...
All but two retired shortly after age 50 and the pensions runt 100 to 180k plus lifetime medical.
I also know a few business owners... they sold the business and collect rent and payments from the sale... they do all right.
No one in my family ever retired with a pension... we all just work until we can't... guess that is because we all come from farming stock.
Some that retired with good pensions lost most of it when United Airlines went under... a retired pilot is still flying charter because his great pension from United all but disappeared.
Dad always encouraged us to work in the public sector... no one took his advice.
Now, a REAL question (and I hope I don't have to make another Thread for this one)......
If you are working and also getting SS, how did you find the job you are doing? Is the job related to the career you use to do? From what I understand, many part-time jobs, while getting SS, are not related at all to the semi-retiree's past career. Since I know I won't be able to work a full-time job and get my Early Retirement/SS due to the salary "cap" by SS, it looks like I will continue to have a problem in finding that part-time job due to the same problems I'm currently having finding a job period. I may end up going to work at Wal Mart!
I receive a pension from the Fed'l Gov't. Its not the biggest pension around but its a pension. I earned it and Im thankful I have it. I will apply for SS this August 3 months before I am 62. I work a part time job now and plan to after the SS begins. In other words I am supplementing income and I like working 2 days a week. The part time jobs many retirees take including myself are not related to their prior careers. The jobs many of us take end up being minimum wage type work and thats fine. Reason being that minimum wage jobs are all that is avail for our age group, and many retirees can only earn so much each year. Besides I would not want the stress of working a higher paying job at this point in my life. An really how many employers are going to hire us to begin with.
Side note. I think there are people that try to make people feel guilty for collecting pensions, SS and working part time jobs. I have met them. They can stick it.
This only holds true for an amount earned over the amount of SS received.
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Originally Posted by Escort Rider
The above is not expressed quite right. The Social Security earnings cap holds true for an amount earned over the amount of the cap itself, which has nothing to do with the amount of SS received. The cap in 2010 was $14,160. If you have not yet reached full retirement age, $1 is deducted from your benefit for every $2 earned above $14,160.
Was just wondering how many people are getting SS and still working? When I apply for my early retirement next month, I'm going to continue looking for a job, part-time that is. I know a some people who are fully retired from a company or government institution, getting full retirement benefits plus getting SS as well. Neither of them are working. SS does have a "cap" on earnings if a person gets SS before 65. Go over that "cap" and SS will stop monthly payments until status changes. I'd be happy just to retire.....period, but our finances wouldn't handle that.
I hard times many people work the "underground economy" or "barter" to make ends meet.
Know there is a risk when you engage the "underground economy" if you get to big or get greedy while you engage the UE so keep your efforts to what you need and no more.
"File and Suspend" option has been mostly suspended.
Quote:
Originally Posted by Heidi60
Question regarding File and Suspend. If the primary earner files and suspends (68 and still employed) which then allows the spousal benefits to start, (spouse is 62) does that forever reduce the spousal benefits because of starting early? Clear as mud to me. Thanks!
I looked this up for you online - had a little trouble as it's actually termed "Withdrawal of Application" rather than "file and suspend", although the latter is perhaps more descriptive. Ironically, I cannot answer your specific question; the part I wanted to be sure of (and the part I looked up) is the following (quotes are from the Soc. Sec. website): "Recent change in the withdrawal rules: Effective December 8, 2010, you can only withdraw your application for retirement benefits within 12 months of your first month of entitlement and you are limited to one withdrawal per lifetime."
The news release announcing this includes this explanation (and I am paraphrasing now rather than quoting): They wanted to do away with the practice of providing people with interest-free loans and they wanted to stop using their resources to process these withdrawal applications because the resources can be put to better use elsewhere in the system.
If you want to see the rule you can visit the Federal eRulemaking portal at www.regulations.gov and use the Search function to find docket number SSA-2009-0073.
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"File and Suspend" option has been mostly suspended.
