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Old 03-28-2015, 11:13 AM
 
Location: Grove City, Ohio
10,128 posts, read 12,376,133 times
Reputation: 13936

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If your social security estimate is $2,000 at full retirement age you can expect 75% of that, or $1,500, at age 62.



At age 63 you can expect $1,600 and so on.

But in your case you might want to think about putting off collecting to age 70 because you said you will receive a state pension.

When you worked for a government pension did you also put into social security? I sort of doubt that you did and if you didn't here is where it gets painful.

Retirement Planner: Windfall Elimination Provision (WEP)

Quote:
If you work for a federal, state or local government agency, a nonprofit organization or in another country, you may be eligible for a pension based on earnings not covered by Social Security.

A pension based on earnings not covered by Social Security can affect the amount of your Social Security benefit. We do not know whether you are eligible for such a pension, so the benefit estimates you have received may not have been adjusted for such a possibility.

Our Windfall Elimination Provision factsheet explains whether you might be affected.
Looks like 2 to 1.

The way I see it, and I could easily be wrong because my wife is in the same boat as you with a state pension, if you receive $2,100 in state retirement, and your social security is showing $2,000 at full retirement age, if you collect ss at your fra you will receive $950 ($2,000-(.5*$2,100)) in social security for a combined state pension and ss benefit amount of $3,050.

Punch in the gut, isn't it?

If put off collecting to age 70 you will receive a combined benefit of (($2,000*1.32)-(.5*$2,100)=$3,690.
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Old 03-28-2015, 11:20 AM
 
2,292 posts, read 1,558,977 times
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Quote:
Originally Posted by mathjak107 View Post
you are welcome. i am still learning myself. the more i learn the more my own plan is changing . i went from delaying to 70 to delaying to fra and now that i took a look at some workups figuring the lost checks in the equation along with lost gains on what i am spending down from my portfolio waiting i am looking at 63. i am retiring at 62 in july so i will likely take the first check in january..

waiting is a big benefit if you need ss to eat though. not such a big deal if you were going to spend down a portfolio and give up checks while waiting .
Exactly the same sorts of things I have been considering. For example, most of these calculators don't take into consideration the fact that you could return investment income on the amount you take early. Also, if it will increase your lifestyle by allowing you to retire earlier than you could have if you would've waited, then it might make sense to take it at 62 even though it's a lesser amount. These are the sorts of things I am considering also.
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Old 03-28-2015, 11:24 AM
 
2,292 posts, read 1,558,977 times
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Quote:
Originally Posted by nicet4 View Post
If your social security estimate is $2,000 at full retirement age you can expect 75% of that, or $1,500, at age 62.



At age 63 you can expect $1,600 and so on.

But in your case you might want to think about putting off collecting to age 70 because you said you will receive a state pension.

When you worked for a government pension did you also put into social security? I sort of doubt that you did and if you didn't here is where it gets painful.

Retirement Planner: Windfall Elimination Provision (WEP)



Looks like 2 to 1.

The way I see it, and I could easily be wrong because my wife is in the same boat as you with a state pension, if you receive $2,100 in state retirement, and your social security is showing $2,000 at full retirement age, if you collect ss at your fra you will receive $950 ($2,000-(.5*$2,100)) in social security for a combined state pension and ss benefit amount of $3,050.

Punch in the gut, isn't it?

If put off collecting to age 70 you will receive a combined benefit of (($2,000*1.32)-(.5*$2,100)=$3,690.
I will experience no offset since I've always paid into it! No punch in the gut for me! It's a win-win for me. I'm just trying to decide when to take it.
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Old 03-28-2015, 11:27 AM
 
2,429 posts, read 3,221,383 times
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Come on, mathjack...You're changing on me...your great information ...is what's convinced (or is it persuaded) me to try to wait until 70...now you're tapping SS at 62?? You're arguments or reasons for age 70, had pushed my firmly in that camp. Now you're going to another camp down the road

Quote:
But I don't see that the Social Security online site has a way to compute that.
Can't you just put in zero dollars for after the years you won't be working?
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Old 03-28-2015, 11:29 AM
 
71,467 posts, read 71,652,652 times
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once you figure in the lost checks you didn't take the numbers are very different.

this does not include the fact you would be spending down your portfolio while delaying during bull markets like we just had.

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Old 03-28-2015, 11:34 AM
 
71,467 posts, read 71,652,652 times
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Quote:
Originally Posted by rdflk View Post
Come on, mathjack...You're changing on me...your great information ...is what's convinced (or is it persuaded) me to try to wait until 70...now you're tapping SS at 62?? You're arguments or reasons for age 70, had pushed my firmly in that camp. Now you're going to another camp down the road
my situation is different because we do have more resources than we need and a 7 digit ira to deal with and the rmd's are brutal.

if we needed more money i would have delayed but the more i run the numbers and look at those rmd's grow the more i think the lower the ss and longer i get it instead of bigger payments over less time the better.

you may be very different. you may not have the level of rmd's we do.
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Old 03-28-2015, 12:46 PM
 
Location: UpstateNY
8,612 posts, read 8,294,298 times
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Cool, MJ, I knew you'd come up with that last chart. Take the money early and run IMO!
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Old 03-28-2015, 12:53 PM
 
2,429 posts, read 3,221,383 times
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You say the chart doesn't NOT include lost earnings from drawing down a person's own money... BUT...does it include any "for example only" growth on the early SS benefit being invested?...it doesn't include that either?

So the chart is just a dollar for dollar comparison of the benefit itself?
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Old 03-28-2015, 01:01 PM
 
10,812 posts, read 8,056,502 times
Reputation: 17010
Quote:
Originally Posted by Burkmere View Post
Thanks in advance for assistance. So I'm going to take my public sector pension in Oct. I'll he 61 then. I've been going online periodically to get my soc sec statement and did so a few days ago as it has reported by 2014 earnings. Lets assume I won't have any earned income after I retire.

Of course there is quite a difference between the amount I will receive at 62, 66(FRA) and 70 as indicated on the statement. The figures given on the statement assume you will work up until those ages earning about what you are now with increases for inflation etc. and I have a chart that shows the effect of early or delayed retirement on retirement benefits from age 62 to 70 ( although I'm not sure if it applies if one isn't earning income up until those ages. I thnk it does).

However, I'm not sure what the effect would be if I take it at 62 or delay based on my having no earned income during the time I retire with public sector pension at 61 (other than pension income and possibly some equity distribution-which will be taxable but passive etc).

Will there be a significant difference from the numbers the soc security statement shows and assumes I will work until 62,66, and 70 or is there only a minor difference? Is there a calculator on-line that will help me? I understand the effect if I'm working and earning income up until those ages , but not sure the chart I have reflects the difference if I've stopped working, etc.

Thanks for the assistance.
Use the SS calculator and enter 0 (zero) for current year earnings.
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Old 03-28-2015, 01:03 PM
 
71,467 posts, read 71,652,652 times
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correct , there are no investment assumptions made on the chart. it is just figuring in the offsetting checks you are getting if you file early.

if your investments do well and you are taking ss early instead of spending them down for 8 years that can be a big plus for taking it early.

each situation is going to be different. of course ss is almost risk free if you live and markets are more volatile.
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