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Do not think we shall see a major overhaul of SS out of Washington; but rather more of this sort of thing, little nibbles here and there until before you know it *reform* has happened.
Are you going to be affected by the new SS regs? I'm not sure if I'll be affected or not. Probably will be though. I'm a widow who is collecting on my late husband's benefits. I'm eligible to take my benefits in two years, as at that time my benefits will exceed his. I will be 66 then. I had hoped to wait until 70 to take my benefits in order to get the max payout. I don't think I'll be able to do this now. The article didn't discuss those in my situation.
My understanding is, at this time, the widow benefit rules have not been changed. There is no deemed filing for widow's benefits and a widow/widower is free to switch between benefits
The government has been 'borrowing' (stealing) the funds from Social Security for years ... and will still be unable to pay the full benefits in the near future. Given the track record of our leaders, there is little doubt that painful cuts are coming ... as soon as the politicians think they can get away with it. It's all about votes and has absolutely nothing to do with SS recipients.
Do not think we shall see a major overhaul of SS out of Washington; but rather more of this sort of thing, little nibbles here and there until before you know it *reform* has happened.
This little nibble will cost us $50000. 4 years of spousal benefit.
We are retired now, ages 60 and 71, and knowing we will not get the spousal benefit in 5 1/2 years will affect our spending immediately. This is not something that only affects future retirees.
The spousal benefit was earned with my SS deductions. The money my wife paid into SS earns her nothing until she has contributed enough that her benefit exceeds half mine. Claiming spousal SS only untill claiming her own at age 70 was just a way of getting a some benefit for her own earlier contributions.
Why is this not all over the evening news.
Because in reality it affects very few people, not many couples with that age gap, and wealthier ones to boot, and this was only enacted in 2000, so to Joe average its just like a "take back" from the "rich". My wife will never be able to get a spousal benefit from me, because she worked too much, and was a single mother and housekeeper for many years before we married. Because she is 5 years older than me, she couldn't claim any of mine because half of mine would always be less than hers. Or I could defer mine at 67 when she is 73! To let mine increase. Makes little sense at that age, the payback is well in to our 90s by then. So I'm one of the many that would say....good choice of cuts, sorry. Goes both ways.
Are you going to be affected by the new SS regs? I'm not sure if I'll be affected or not. Probably will be though. I'm a widow who is collecting on my late husband's benefits. I'm eligible to take my benefits in two years, as at that time my benefits will exceed his. I will be 66 then. I had hoped to wait until 70 to take my benefits in order to get the max payout. I don't think I'll be able to do this now. The article didn't discuss those in my situation.
No, you are not affected by the regs in this legislation. You receive survivor benefits, not spousal benefits. Spousal benefits are paid only when the primary worker is alive. Widow/widowers are paid when the worker dies. You will be able to either stay on your widows either to 66 or anytime thereafter, and then at 70 file for your own retirement, with your delayed retirement credits. That probably is an excellent option.
What you have to do is compare the difference from your own at 66 from the widows you are receiving. Multiply that by 48 months (months between 66 and 70) and that is your "loss". That is what you are giving up between 66 and 70.
Then you determine how much higher your own will be at 70. That 32% is your gain. Divide the gain into the loss and see how long it takes you to make up the money you could have had, if you did switch at 66 to your own.
Here is an example:
Your current widows benefit is $1200.00 a month.
At 66 you could receive $1500.00 a month on your own retirement.
$1500 - $1200.00 = $300.00 a month.
$300.00 x 48 = $14400.00 (the additional you could receive between 66 and 70.
At 70, your own, if you did not take it, is 32% higher than the age 66 rate or an additional $480.00 per month. It becomes $1980 instead of $1500.00.
Divide the $14400 by the $480.00 and it takes you 30 months of getting the $1980.00 (instead of the $1500.00) or 2.5 years to make back your initial loss of $14400.00.
At age 72.5, you break even, and every month you live past that, you are ahead by $480.00.
Were doing ok for a couple of wage earners, but we are not "the rich".
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New Social Security Regs
