Letter from Social Security? (states, welfare, 20 year old, grandfather)
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I found out that John hasn't contributed enough quarters to collect SS. He has been in law enforcement for nearly 30 years. I don't understand how they can take away one spouses SS if both have paid into it their entire working career. I've had this scenario presented to me by more than one person now. They both claimed that they had to draw on their spouses SS because it was the higher of the two. I asked them if they had met their quarterly requirement and they claim that they have their quarters in but still can't collect. Anybody know why?
If a person has paid the OASDI payroll taxes for 40 or more quarters and has reached age 62, that person can absolutely collect, period! I think what may be going on is that many people get easily confused, and Social Security is complex and confusing when it comes to spousal benefits. So the two people reporting to you may simply be mistaken. Even your post above seems contradictory to me. First you say the spouse's SS is "the higher of the two". To me, that implies it is advantageous to draw the spousal benefit rather than one's own (on one's own earnings record). Big difference from there to not being able to collect.
Don't forget..SS is supposed to be a supplement to your retirement, not your primary retirement income.
Hmm! Knowing of many whose only retirement income is Social Security I tend to think of it as a stand-alone with some of us simply having other funds coming in from other sources.
Hmm! Knowing of many whose only retirement income is Social Security I tend to think of it as a stand-alone with some of us simply having other funds coming in from other sources.
Indeed, there are plenty of people who are retired on Social Security alone, either with or without a paid-off house, and either with or without some money in the bank. In other words, SS is their sole source of monthly income.
However, if my memory is accurate, Social Security itself holds the official position that it is not designed to be the sole source of retirement income. I looked on the SS website just now in order to quote that statement, but did not succeed in finding it (ran out of patience after a couple of minutes of looking).
The traditional wisdom was that SS is one leg of a three-legged stool: SS, pension, and other savings. We are all aware that private sector pensions are fast disappearing, and many public sector workers do not pay into SS, so increasingly folks are left with a two-legged stool.
Those who didn't put anything aside are then left with one leg - Social Security. One can live on it by practicing extreme frugality, but while I am a frugal person myself, I'm sure as hell glad I don't have to carry it to those extremes!
If a person has paid the OASDI payroll taxes for 40 or more quarters and has reached age 62, that person can absolutely collect, period! I think what may be going on is that many people get easily confused, and Social Security is complex and confusing when it comes to spousal benefits. So the two people reporting to you may simply be mistaken. Even your post above seems contradictory to me. First you say the spouse's SS is "the higher of the two". To me, that implies it is advantageous to draw the spousal benefit rather than one's own (on one's own earnings record). Big difference from there to not being able to collect.
I was confused when someone told me that she couldn't draw her SS after she and her husband retired. She told me that they could only draw on one SS with the higher benefit which was her husbands. She told me that the only way to draw on her SS was to divorce her husband. It didn't make sense to me and I wondered if any one else was in the same boat. I have about 7 years before I can collect my early retirement benefit. I guess a lot can change in 7 years. I'm wondering if I'll even be able to collect. I saw the handwriting on the wall in my 20's and planned for SS not being there. We will be just fine without it but I would find it quite unfair to have contributed for some 40 years and get zero in return. I guess I'll just have to cross that bridge when I get there and continue to be a workaholic with good investment skills.
I guess I feel we are fortunate in that we both get separate SS checks and hubby has pension and we also have 401K from which we now are required to take a minimum amount from each year. If seems that now that our house and cars are paid off, the amount we live on is more than what we lived on when working. It just worked out that way.. I had no idea that it would. House was paid off several years before he retired.
I was confused when someone told me that she couldn't draw her SS after she and her husband retired. She told me that they could only draw on one SS with the higher benefit which was her husbands. She told me that the only way to draw on her SS was to divorce her husband. It didn't make sense to me and I wondered if any one else was in the same boat. I have about 7 years before I can collect my early retirement benefit. I guess a lot can change in 7 years. I'm wondering if I'll even be able to collect. I saw the handwriting on the wall in my 20's and planned for SS not being there. We will be just fine without it but I would find it quite unfair to have contributed for some 40 years and get zero in return. I guess I'll just have to cross that bridge when I get there and continue to be a workaholic with good investment skills.
You raise two good, valid issues in your post. The first - confusion about what the current rules are - I have already answered to the best of my ability. The second - whether Social Security will still be there for folks who have not yet retired - is a current politcal and economic issue in our society.
Of course it would be unfair to contribute for 40 years and get zero in return. That is one of the reasons why I think you will draw yours. Can you imagine the tremendous anger politicians would have to face if they even tried to close down Social Security, even partially? From what you said, you appear to be 55. You will get yours. What about those who are now 25? Heaven only knows.
I think a lot of the confusion is because there are two things, Windfall Elimination Provision (WEP), and Government Pension Offset (GPO), that affects one's ability to collect SS.
WEP affects a person who has worked enough quarters to collect SS, reducing SS payments to 40% of the first $767 in income versus the normal 90%. After 20 years of substantial earnings, the 40% is adjusted up by 5% per year until 30 years, when WEP is no longer in effect.
GPO affects a person who has worked and not paid into SS from collecting on their spouse's SS record. What happens is that GPO will reduce spousal SS by 2/3's of the pension paid. For many, that means they will get nothing from SS.
That's not true, Annie. If they have 40 quarters of Social Security coverage from private sector work, they will, in fact, still receive a Social Security benefit. It will just be a reduced benefit using a different formula (in accordance with the Windfall Elimination Provision) unless they have 30 years of substantial service.
This is true. I started collecting my SS this year. I also have a Federal Pension. I retired from the VA and I worked part time jobs, in the private sector thru the years. Including a number of years for Delta Airlines. I came under the rules for the Windfall Elimination Provision and my SS benefit was reduced. Its a permanent reduction. Also a rather sizeable reduction and thats how it is.
Letter arrived Saturday, and I hope we get 1.7% the next two years. (versus none at all)
I wonder if the numbers to calculate the COLA will hold up?
Neighbor's a disabled veteran and gets a check far greater than the average s.s. check. Then he retired at 62 and got a small s.s. check. His veteran's benefit arrives the first of each month. His s.s. check arrives the first Wednesday in the month, so two different benefits. Add the two together and the household is doing very well.
They were "means tested" before his first s.s. check arrived.
I got my letter the other day. I will be $21.00 to the good every month or $252.00 per year.
No comments. Just numbers.
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