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05-30-2014, 04:31 PM
 Location: Los Angeles area 14,018 posts, read 17,723,738 times Reputation: 32304

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Quote:
 Originally Posted by DaveinMtAiry Again the 8% increase is only after FRA. From 62 to that point the increase is more like 5-6%
Quote:
 Originally Posted by arwenmark glad you pointed that out, is it even that much pre FRA? anyone know the exact amount?
I believe DaveinMtAiry made a basic mistake in arithmetic. The SS benefit at age 62 is 75% of the benefit at the full retirement age of 66. Therefore, one can look at the situation from both directions. For simplicity, let's assume a full retirement age benefit of \$1000, in which case the age 62 benefit is \$750.

1. We can figure the reduction from full retirement age (looking backwards, so to speak), which is 25%, divided by four years equals a bit over 6%. This is probably what Dave has in mind.

2. Or we can figure the increase from age 62 (looking forwards), i.e., from \$750 to \$1000. Adding that \$250 increase to the \$750 results in a 33% increase, being that \$250 is one-third of \$750. 33% divided by four years equals 8.25% per year.

I believe looking at things from the perspective of #2 above is more accurate because that is what the retiree is facing at age 62 as he or she decides whether to file for benefits or not. The benefit will increase 8.25 percent each year filing is delayed, up to age 66. And of course it will continued to increase until age 70 as well, but I have not looked at the percentage increase per year between 66 and 70.

05-30-2014, 05:40 PM
 Location: SoCal desert 8,093 posts, read 13,223,984 times Reputation: 14870
Quote:
 Originally Posted by DaveinMtAiry Again the 8% increase is only after FRA. From 62 to that point the increase is more like 5-6%
Quote:
 Originally Posted by arwenmark glad you pointed that out, is it even that much pre FRA? anyone know the exact amount?
I *think* I got this from "How my Social Security Benefit is Reduced" on the SS webpage. Not sure. But I have a month to month % spreadsheet ...

Age 62 - 75% of FRA amount
Age 63 - 80% of FRA amount
Age 64 - 86.7% of FRA amount
Age 65 - 93.3% of FRA amount
Age 66 - 100%
Onward and upward from there ...

Edited to add - - Found the page
Full Retirement Age: If You Were Born Between 1943 And 1954 - How Your Social Security Benefit Is Reduced

Last edited by Gandalara; 05-30-2014 at 05:56 PM..

05-30-2014, 05:54 PM
 Location: Baltimore, MD 3,745 posts, read 4,213,572 times Reputation: 6866
Full Retirement Age: If You Were Born Between 1943 And 1954

05-31-2014, 06:37 AM
 Location: Loudon, TN 5,767 posts, read 4,825,615 times Reputation: 19387
Signs, Don't be worried about DH being denied the first time you apply for SSD. MOST people are denied the first time around. I really don't know how they can justify it, other than maybe they think an initial denial will discourage malingerers (it doesn't). Appeals are not difficult. I did my mother's appeal. It's basically just a form. A lot of lawyers are making a lot of money off people to "handle" their appeal. Since your DH has a real disability, it shouldn't be a problem to get approved. My mom was almost immediately approved on her appeal.

05-31-2014, 07:03 AM
 672 posts, read 837,147 times Reputation: 1173
Escort Rider, Thank you for spelling it out. Sure makes a lot of sense to wait as long as we can, although when you are out of work it is rather appealing to take what you can to help alleviate the burden.

BTW, tried to give you a rep but it wouldn't let me...says I have to spread it around to others first! Guess I like your posts a lot

05-31-2014, 07:41 AM
 Location: in the miseries 3,302 posts, read 3,577,100 times Reputation: 3810
Quote:
 Originally Posted by Gandalara I *think* I got this from "How my Social Security Benefit is Reduced" on the SS webpage. Not sure. But I have a month to month % spreadsheet ... Age 62 - 75% of FRA amount Age 63 - 80% of FRA amount Age 64 - 86.7% of FRA amount Age 65 - 93.3% of FRA amount Age 66 - 100% Onward and upward from there ... Edited to add - - Found the page Full Retirement Age: If You Were Born Between 1943 And 1954 - How Your Social Security Benefit Is Reduced
Plus ss adds per month too. Ie 65 and one month etc.

07-17-2014, 04:10 PM
 71,463 posts, read 71,652,652 times Reputation: 49027
some of the best products going may turn out to be the new exempt from rmd's fixed deferred annuities in 401k's.

07-20-2014, 08:28 AM
 Location: Mount Airy, Maryland 10,457 posts, read 5,917,794 times Reputation: 16141
Quote:
 Originally Posted by Escort Rider I believe DaveinMtAiry made a basic mistake in arithmetic. The SS benefit at age 62 is 75% of the benefit at the full retirement age of 66. Therefore, one can look at the situation from both directions. For simplicity, let's assume a full retirement age benefit of \$1000, in which case the age 62 benefit is \$750. 1. We can figure the reduction from full retirement age (looking backwards, so to speak), which is 25%, divided by four years equals a bit over 6%. This is probably what Dave has in mind. 2. Or we can figure the increase from age 62 (looking forwards), i.e., from \$750 to \$1000. Adding that \$250 increase to the \$750 results in a 33% increase, being that \$250 is one-third of \$750. 33% divided by four years equals 8.25% per year. I believe looking at things from the perspective of #2 above is more accurate because that is what the retiree is facing at age 62 as he or she decides whether to file for benefits or not. The benefit will increase 8.25 percent each year filing is delayed, up to age 66. And of course it will continued to increase until age 70 as well, but I have not looked at the percentage increase per year between 66 and 70.
I'm not trying to be argumentative, I really want to understand so please help me. The claim is at age 62 for every year you wait your benefit increases by 8.3%. However according to your figures, and confirmed by the SS web site. the benefit at 62 is \$750/month for a person with a \$1,000 benefit at FRA. The benefit at age 63 is \$800. That is not an 8.3% increase, that is a 6.66% increase. At 64 the figure goes up to \$866, which is an increase of 8.25%. At 65 the benefit is \$933 which is an increase of 7.74% over the \$866 figure at 64. At 65 the number increases to \$933 which represents an increase of 7.7% over the age 64 figure. At 66, FRA for this example, the benefit as you said is \$1,000. However this is not an 8.3% increase from age 65, it is an increase of 6.7%

http://www.ssa.gov/pubs/EN-05-10147.pdf

07-20-2014, 08:31 AM
 71,463 posts, read 71,652,652 times Reputation: 49027
it is less from 62 to fra and more from fra to 70

07-20-2014, 11:13 AM
 Location: SoCal desert 8,093 posts, read 13,223,984 times Reputation: 14870
Quote:
 Originally Posted by DaveinMtAiry I'm not trying to be argumentative, I really want to understand so please help me. The claim is at age 62 for every year you wait your benefit increases by 8.3%. However according to your figures, and confirmed by the SS web site. the benefit at 62 is \$750/month for a person with a \$1,000 benefit at FRA. The benefit at age 63 is \$800. That is not an 8.3% increase, that is a 6.66% increase. At 64 the figure goes up to \$866, which is an increase of 8.25%. At 65 the benefit is \$933 which is an increase of 7.74% over the \$866 figure at 64. At 65 the number increases to \$933 which represents an increase of 7.7% over the age 64 figure. At 66, FRA for this example, the benefit as you said is \$1,000. However this is not an 8.3% increase from age 65, it is an increase of 6.7% http://www.ssa.gov/pubs/EN-05-10147.pdf
It also depends on your year of birth, which affects your FRA.
Example
If born in 1952 and you retire at 63, your benefit is 80% of the 100% at age 66
If born in 1959 and you retire at 63, your benefit is 75.8% of the 100% at age 66 and 10 months

Go to this SS page and click on your year of birth to see a month to month percentage chart
(The years are about half way down the page)
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