U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-12-2015, 09:23 AM
 
Location: Cape Elizabeth
424 posts, read 386,960 times
Reputation: 745

Advertisements

Quote:
Originally Posted by golfingduo View Post
Wait she is at FRA of that year. She files 3 months early and her first check will come in Jan. What difference does her income of the previous year mean. She is not restricted by any income amounts in FRA and her filing during the year for SS after FRA has no bearing. That is the way I read the SS handbook.
Ok, two things: SSA does care about your earnings in the year you reach FRA. They care about the earnings up to the month you reach FRA.

In the year you reach FRA, SSA will hold back checks if, in the months before your FRA month, you earn over $41880. Please go back and read my original post about Sherry. I wanted to explain how, by filing in January of your FRA year (and not waiting until 3 months before your FRA month) you could be due thousands of dollars.

Regarding the previous year, I was only stating that the application for benefits asks you how much you earned in the previous year.

They do that for a number of reasons- first, to see if they are posted and if not, ask you to supply those earnings to get credit for them. Also, to help you or to help us help people put down a good estimate for the current year and/or future year. A good estimate is critical to not getting yourself screwed up with SSA.

Sherry, in my original example is not filing 3 months before her FRA- that would be May. I had her filing 7 months before her FRA, in January (or prior to January to have benefits effective with January of her FRA year.

Now, once you reach FRA, although there are no earnings restrictions- the earnings you make could help give you a raise. I addressed that in the post right before yours.

In summary, earnings have 2 purposes: (1)to see if you are or not due checks (which only applies up to your FRA months)- called the work test, and (2) to see if your earnings, even post FRA, will give you a raise, called a recomputation of benefits.
Reply With Quote Quick reply to this message

 
Old 01-09-2016, 06:06 PM
 
10 posts, read 8,090 times
Reputation: 21
Ilovemycat I did it! My last day of work was Tuesday January 5th. I am so glad I ran onto your post about retiring in January the year you turn 66. My 10 year old son and I will get our first Social security check on February 17. My wife has to wait until April as she earns more than Social security allows. She is only 58. My entire family is excited about our new lifestyle. Thanks again
Reply With Quote Quick reply to this message
 
Old 01-09-2016, 09:42 PM
 
Location: Cape Elizabeth
424 posts, read 386,960 times
Reputation: 745
I am very happy too! April is not bad.That is March 's check so they are only holding back for January and February. Best of luck!
Reply With Quote Quick reply to this message
 
Old 01-09-2016, 11:30 PM
 
6,875 posts, read 7,270,643 times
Reputation: 9785
I'm only 55 now with retirement a ways away, but as of the way the rules are now my expected scenarios are:

1) I would turn 65 in June, and retire early in the next January, and file for SS benefits (reduced because my FRA is 67)
2) I would turn 65 in June, and retire the next January. Not work, live off pension, and not file for SS benefits until FRA at 67.

In plan #1, I only work 2-4 weeks into Jan (with minimal earnings say 5-10K for that new ear)
In plan #2, I retire at 65 and dont' file at all for a couple of years.

In EITHER ONE of those plans, Soc Sec. calculations about what I earned in my retirement year wouldn't affect my first's year's benefits.
Right?
Reply With Quote Quick reply to this message
 
Old 01-10-2016, 12:26 AM
 
Location: Cape Elizabeth
424 posts, read 386,960 times
Reputation: 745
Well, they use your high 35 years in the calculation. In an estimate they might have thought the year you turn 65 was going to be one of your high one's, but when they realize it wasn't, the estimate from then on will be fine.
Reply With Quote Quick reply to this message
 
Old 01-10-2016, 06:54 AM
 
224 posts, read 430,616 times
Reputation: 180
After reading this thread, as well has many others, I still have a question. For people waiting to apply for SS at age 70, to receive 32 extra credits (8% year for four years) should they wait till the following January to begin benefits, assuming they still are earning at the high end of their 35 yearly average of income?

Will they recoup unpaid benefits from age 70 till the end of year, as a lump sum in January or lose $ amount from age 70 birthdate till December 30th of that year?

Thanks,
Reply With Quote Quick reply to this message
 
Old 01-10-2016, 07:03 AM
 
Location: NC
6,548 posts, read 7,961,421 times
Reputation: 13445
I'm also waiting to collect until age 70, but I have already stopped working (retired) a few years back. Any special recommendations for my situation, anyone?
Reply With Quote Quick reply to this message
 
Old 01-10-2016, 11:37 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,168,437 times
Reputation: 6691
We took your advice and will be getting first deposits late February. Husbands birthday is late March. so we will be getting two sets of deposits or almost $7500. That we would not have gotten, benefits reduced slightly but would take at least ten years to make up the difference.

It is unlikely either of us will make it for ten years so works for us. Thank you so much for pointing this out!
Reply With Quote Quick reply to this message
 
Old 01-10-2016, 01:25 PM
 
6,875 posts, read 7,270,643 times
Reputation: 9785
Quote:
Well, they use your high 35 years in the calculation. In an estimate they might have thought the year you turn 65 was going to be one of your high one's, but when they realize it wasn't, the estimate from then on will be fine.
The year I turn 65 (in June) WILL be a high one…..I wouldn't retire until the next January.
So the year I RETIRE won't be a high earning year.
Reply With Quote Quick reply to this message
 
Old 01-12-2016, 12:48 PM
 
Location: Cape Elizabeth
424 posts, read 386,960 times
Reputation: 745
Quote:
Originally Posted by tbill View Post
After reading this thread, as well has many others, I still have a question. For people waiting to apply for SS at age 70, to receive 32 extra credits (8% year for four years) should they wait till the following January to begin benefits, assuming they still are earning at the high end of their 35 yearly average of income?

Will they recoup unpaid benefits from age 70 till the end of year, as a lump sum in January or lose $ amount from age 70 birthdate till December 30th of that year?

Thanks,
Let's say you turn 70 in October 2018. You should apply for your benefits before or in October 2018. There is no point in waiting until January, 2019. This is straight from www.ssa.gov:

Delayed retirement credit is generally given for retirement after the normal retirement age. To receive full credit, you must be insured at your normal retirement age. No credit is given after age 69.

If you retire before age 70, some of your delayed retirement credits will not be applied until the January after you start benefits. The calculator below gives you the amount with all credits applied for comparison purposes.

Delayed retirement credits increase a retiree's benefits. The table below shows the delayed retirement credit by year of birth.

Year of birth Credit per year
1917-24 3.0%
1925-26 3.5%
1927-28 4.0%
1929-30 4.5%
1931-32 5.0%
1933-34 5.5%
1935-36 6.0%
1937-38 6.5%
1939-40 7.0%
1941-42 7.5%
1943 and later 8.0%
Note: Persons born on January 1 of any year should refer to the credit percentage for the previous year.

Now, in your case, (and I can't remember for sure), but the calculation to get you the 132% extra might not be done until January, 2019. But, if that is the case, you would be paid back and get the 132% effective with October, 2018 (age 70).
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top