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Old 08-17-2014, 12:22 AM
 
10,824 posts, read 8,088,333 times
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Quote:
Originally Posted by Ultrarunner View Post
So continuing to contribute each year after age 65 for 23 additional years and NOT drawing has no impact?

Just an honest question because most of Grandmother's peers were getting a third of what she got after her husband passed away.
Surely you jest. If not, where on earth did you get the idea that SS benefits continue to grow past age 70?

Delayed Retirement
Quote:
When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits.
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Old 08-17-2014, 01:58 AM
 
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also, multiply by 1.5 if you're married. (Technically, the extra 0.5 isn't your Social Security, it's your spouse's, but it's based on your income if your spouse's benefit calculated on her own would be lower.) The SS calculator says my wife and I are going to get $62,000 a year in SS benefits if I wait until I'm 70 to begin collecting (which is what I plan to do).

Of course, that could be cut between now and then.
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Old 08-17-2014, 02:54 AM
 
Location: Albuquerque NM
1,665 posts, read 1,533,977 times
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Quote:
Originally Posted by Cnynrat View Post
Well, all I can tell you is that the SSA is projecting that my benefit will be $3,500 per month if I wait until 70 to draw my benefit (which I plan to do). I've earned more than the maximum taxable amount for a number of years now, but certainly not for my entire career.


Dave
My projected SS at age 70 is also $3500 a month. I've paid the max for about 20 years but not for 35 years. Some of those first 15 years were part-time jobs during college, low level lab tech job for four years, and entry level wages for current position. So not sure why one could not have a higher benefit than $3500.

Last edited by ABQ2015; 08-17-2014 at 03:12 AM..
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Old 08-17-2014, 08:49 AM
 
26,592 posts, read 52,413,354 times
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Quote:
Originally Posted by biscuitmom View Post
Surely you jest. If not, where on earth did you get the idea that SS benefits continue to grow past age 70?

Delayed Retirement
The link states:

When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits.

The link does not say what happens when you continue to pay in at the maximum for another 18 years after reaching age 70.

If nothing else it would seem continuing to pay in at the maximum would replace lower earning years from 35 years ago with current high earning years.
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Old 08-17-2014, 08:52 AM
 
29,847 posts, read 34,929,245 times
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Quote:
Originally Posted by Ultrarunner View Post
The link states:

When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits.

The link does not say what happens when you continue to pay in at the maximum for another 18 years after reaching age 70.
It increases by the value of the COLA compounded which you would have gotten anyway by taking benefits. Not sure what happens if you factor in the change in your 35 highest years if you were not already maxed out. The more I think about it a great question. If at age 70 you only have a 30 year work history will it go up if you work five more years and delay taking until 70?
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Old 08-17-2014, 09:03 AM
 
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It's one I've wondered about because it affected my Grandmother...

She was married to my Step Grandfather 21 years after my Grandfather had passed away.

My Step Grandfather founded a Tool and Die business in the 1930's and worked there until he died at age 88... the first one at the shop and the last one to lock up.

He never drew a penny of Social Security and was an employee of the corporation

When he passed away, my Grandmother filed for his social security and was surprised it was over $3000 a month and this was in the 90's...
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Old 08-17-2014, 09:24 AM
 
29,847 posts, read 34,929,245 times
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Quote:
Originally Posted by Ultrarunner View Post
The link states:

When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits.

The link does not say what happens when you continue to pay in at the maximum for another 18 years after reaching age 70.

If nothing else it would seem continuing to pay in at the maximum would replace lower earning years from 35 years ago with current high earning years.
I just did some Googling and have a hunch the following might be correct. Hopefully someone knows for sure.

The table:
Benefit as a percentage of Primary Insurance Amount (PIA) payable at ages 62,66 (FRA) and 70 would remain the same after age 70.http://www.ssa.gov/OACT/ProgData/ar_drc.html

Your individual data pool of years worked, highest 35 etc could change with the same table being applied with a resulting higher personal monthly benefit. Adding five years to an incomplete work history (thirty years or less) would be a good example.

Simply delaying the claiming of benefits past 70 would have no impact but working and changing your personal data pool might? Does that seem probable?
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Old 08-17-2014, 10:00 AM
 
Location: North Idaho
2,177 posts, read 2,093,977 times
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Quote:
Originally Posted by ABQ2015 View Post
My projected SS at age 70 is also $3500 a month. I've paid the max for about 20 years but not for 35 years. Some of those first 15 years were part-time jobs during college, low level lab tech job for four years, and entry level wages for current position. So not sure why one could not have a higher benefit than $3500.
I agree, I didn't say that was the max, only that one can earn a benefit at least that high. I've had a similar earnings history to yours, and my benefit will be $3,500 if I wait until age 70. I'll be at my FRA in 2021.

As I said earlier, the max will be a function of your age, because the max subject to tax has changed over time. In addition, the compounding affect of COLA's increase the potential max benefit over time as well. So, someone who had a 35 year career from 1960 to 1995 will have a lower potential maximum benefit than someone who has a 35 year career from 1990 to 2025.

The more I think about it, I'm not sure why anyone cares what the max is anyway. You earn what you earn, and that sets your benefit. You can do things like work longer, or delay benefits to increase your SSA benefit if you want to. But while the max may be an interesting theoretical construct, I don't think knowing it is actionable in any meaningful way. Perhaps that's what TubrogP was trying to suggest to me earlier.

Dave

Last edited by Cnynrat; 08-17-2014 at 10:08 AM..
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Old 08-17-2014, 10:01 AM
 
Location: North Idaho
2,177 posts, read 2,093,977 times
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Quote:
Originally Posted by TuborgP View Post
I just did some Googling and have a hunch the following might be correct. Hopefully someone knows for sure.

The table:
Benefit as a percentage of Primary Insurance Amount (PIA) payable at ages 62,66 (FRA) and 70 would remain the same after age 70.Early or delayed retirement

Your individual data pool of years worked, highest 35 etc could change with the same table being applied with a resulting higher personal monthly benefit. Adding five years to an incomplete work history (thirty years or less) would be a good example.

Simply delaying the claiming of benefits past 70 would have no impact but working and changing your personal data pool might? Does that seem probable?
This is correct, delaying the start of benefits past age 70 does not increase your benefits.

Dave
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Old 08-17-2014, 10:35 AM
 
1,098 posts, read 720,075 times
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Quote:
Originally Posted by reed303 View Post
someone, retiring in 2014, at age 70
That's the million-dollar question. Is it better for you to retire early with a lower benefit, or work a few more years and get a higher benefit?

Nobody knows how long they will live. However, you know your health now, how much assets you have now, whether or not you have a spouse who also has savings, and whether or not working a few more years will just whittle away your health more than it's worth.

If you're 63, already have health problems, and everyone on your family has died at 65 of breast or prostate cancer... well then, maybe working until age 70 isn't a good idea.

If you're 68, and everyone in your family has lived to 102, and you have zero retirement assets... maybe you should work a little bit more...
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