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Old 09-06-2014, 07:41 AM
 
71,463 posts, read 71,652,652 times
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a little known fact is that delayed ss credits earned the current year do not get payed as soon as you file in that year .

accumulated credits for waiting past fra seem to get calculated every january for payment .

so hypothetically if i file in oct when i am 68 my first check will not include any delayed credits earned that year. they will pay me a lower amount right out of the box and increase me in january based on those credits for the past year . while i get that amount going forward i lose that extra money from the delayed credits i earned that year forever .

it would always be better to file in january of the following year you planned on if mid year since your first checks will include all the previous credits as well as waiting a bit longer earns you more credits you will be payed on in your first checks.

bet no one ever got this advice from the workers at social security.

Last edited by mathjak107; 09-06-2014 at 08:21 AM..
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Old 09-06-2014, 11:30 AM
 
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Thanks mathjack.....as always....
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Old 09-06-2014, 01:42 PM
 
Location: OH>IL>CO>CT
5,226 posts, read 8,388,588 times
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Mathjak,

Are you saying that payments from Oct to Dec will be at your FRA/PIA amount, then in Jan will jump to your age 68 "delayed" amount ? Is the difference then paid retroactive ?

This may explain what I see happening with my "turned age 70 last month (Aug)" delayed application. The initial "Letter of Award" shows my FRA $$, not my age 70 $$. When I called SS about this, all they said was "Yeah it does look wrong, you need to file a written appeal", which I have done.

And there was no mention of this in my phone interview part of application in May. All she talked about was the possibility of the 6 month "lookback" for a lump sum payment, with then a reduced monthly rate.

Is nothing ever simple ?
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Old 09-06-2014, 01:51 PM
 
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yep.. this is why i highly stess all the time , do not count on those low end workers at ss to know anything not scripted and wanted to be known. it pays to see real pro's on this stuff. it can easily pay for itself.
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Old 09-06-2014, 02:52 PM
 
Location: land of ahhhs
277 posts, read 298,129 times
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I'm confused (so what else is new?). If you turn 68 in Oct 2014 and file to start benefits in that month, do you get (for Oct, Nov, Dec) the amount you would have received had you filed in Jan when you were still 67? And then get the amount for waiting two years past FRA starting in Jan 2015? But if you file in Jan 2015, still age 68, they will pay you the three months since turning 68 at the full rate for waiting two years past FRA, and continue that going forward? So, say, for simplicity, the difference between claiming at 67 vs 68 is $100/month, you'd then get, in January when you file, the 3 months of benefits you didn't get because you didn't file in Oct, with a total of an extra $300?
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Old 09-06-2014, 02:58 PM
 
71,463 posts, read 71,652,652 times
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Okay let me try to explain.


If you turn 68 and wanted checks starting in october ,any delayed credits from the past january until october that you got credited with will not be included in the checks you get for october , nov and december. They will be at the same level as last january.

They will increase you after the coming january to those levels but you lose the credits in your , october november and december checks and never get that back.

if you waited until january instead of october you would have gotten paid for all of the previous years credits plus an extra 3 months in credits accumulated which would all be in the checks starting in january instead of october.

slick move by ss ....
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Old 09-06-2014, 03:11 PM
 
Location: land of ahhhs
277 posts, read 298,129 times
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Thanks, guess I did get it! Is there a month that makes a difference? My birthday is in July, so when I turn 70 and want to file would the same apply? What about someone whose birthday is in April?
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Old 09-06-2014, 03:18 PM
 
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hard to say as you will lose 6 months of credit up to 70 in your checks for aug sept oct nov and dec.

but you don't earn anymore delayed credits either after 70 so its a toss up. i think i would wait until january

unless they do things differently at age 70. i am not sure .
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Old 09-06-2014, 03:37 PM
 
Location: land of ahhhs
277 posts, read 298,129 times
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Many thanks, mathjak. Extremely valuable contribution. You are a national treasure (or would that be an historic landmark )
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Old 09-06-2014, 03:52 PM
 
71,463 posts, read 71,652,652 times
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At my age i will go with historic landmark lol
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