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Old 02-15-2016, 06:33 PM
 
763 posts, read 1,641,625 times
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My husband will be 62 this yr. We have 14 yr old twins. From everything I'm reading, it sounds like to get the max benefit, my husband should go ahead and file at 62 and file for the kids too, which should give us the max family benefit. But he wants to keep working to maximize his work pension and keep free health insurance, at least for a few more years. So...he'd have about $18k over the max earnings...from what I'm reading they will reduce his benefits by $9k. But we'd still get about $30k after the penalty. Am I missing anything here? We plan to sock it away for college so that we won't have to once he retires for good.
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Old 02-15-2016, 07:51 PM
 
Location: Los Angeles area
14,018 posts, read 17,763,041 times
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Quote:
Originally Posted by twoisbetter View Post
My husband will be 62 this yr. We have 14 yr old twins. From everything I'm reading, it sounds like to get the max benefit, my husband should go ahead and file at 62 and file for the kids too, which should give us the max family benefit. But he wants to keep working to maximize his work pension and keep free health insurance, at least for a few more years. So...he'd have about $18k over the max earnings...from what I'm reading they will reduce his benefits by $9k. But we'd still get about $30k after the penalty. Am I missing anything here? We plan to sock it away for college so that we won't have to once he retires for good.
It seems to me you are missing the fact that the "free health insurance" is HUGE. Also, short-term anxiousness to maximize cash flow may not be wise in the long run, and I am referring to your husband's maximizing his work pension by continuing to work. You don't state any numbers for that, but even in the absences of those numbers it does seem to me that your husband is right.
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Old 02-15-2016, 08:26 PM
 
Location: Miraflores
787 posts, read 896,847 times
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I do not think it is worth it to get the family benefit for 3-4 years, versus getting your FRA for life, but you have to run the #'s . I chose to collect at 62 because I had a 10 year old and 10 month old. Also plan to suspend mine at FRA so my Wife (34) will get the higher survivor benefit. Also be aware that you have to account for the funds allocated to your children or return them.

PS. You may not receive the full family benefit. Because my Wife has no SS#, she chose not to claim and the resulting payment is 500/mth less.
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Old 02-16-2016, 08:16 AM
 
Location: Forests of Maine
30,704 posts, read 49,503,410 times
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The last time I checked if I were to buy health insurance on my own for my family it would cost me far more than how much I get with my pension. A good health insurance policy is worth a lot.
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Old 02-16-2016, 04:20 PM
 
763 posts, read 1,641,625 times
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Quote:
Originally Posted by Escort Rider View Post
It seems to me you are missing the fact that the "free health insurance" is HUGE. Also, short-term anxiousness to maximize cash flow may not be wise in the long run, and I am referring to your husband's maximizing his work pension by continuing to work. You don't state any numbers for that, but even in the absences of those numbers it does seem to me that your husband is right.
I don't think I explained it right...he wants to continue working and file for SS for him and the kids. He will get free healthcare if he works, and build his work pension. He doesn't make a real high salary, so he will have about $23k over the allowed amount, so an $11,500 penalty. But the max family benefit is $40k a year, so do the math....that's a lot of money to leave on the table.
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Old 02-18-2016, 09:30 AM
 
Location: Central Massachusetts
4,800 posts, read 4,857,647 times
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Quote:
Originally Posted by twoisbetter View Post
I don't think I explained it right...he wants to continue working and file for SS for him and the kids. He will get free healthcare if he works, and build his work pension. He doesn't make a real high salary, so he will have about $23k over the allowed amount, so an $11,500 penalty. But the max family benefit is $40k a year, so do the math....that's a lot of money to leave on the table.


You are also missing ER's point. that free healthcare is important too. But let me see if I can put one more item into your mind on this. You are not leaving that on the table. All earnings are going back into the kitty and it will increase the overall amount when you do begin to take full. It isn't like you are losing. That money is going back to your account to increase in later payments. Does that sound a bit better?


Quote:
[SIZE=4]Will you receive higher monthly benefits later if benefits are withheld because of work?
[/SIZE]


[SIZE=3]Yes. If some of your retirement benefits are withheld because of your earnings, your monthly benefit will increase starting at your full retirement age to take into account those months in which benefits were withheld.


As an example, let’s say you claim retirement benefits upon turning 62 in 2016, and your payment is $750 per month. Then, you return to work and have 12 months of benefits withheld.

https://www.ssa.gov/pubs/EN-05-10069.pdf
[/SIZE]

Last edited by oldsoldier1976; 02-18-2016 at 09:35 AM.. Reason: adding additional information
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Old 02-18-2016, 09:56 AM
 
Location: Miraflores
787 posts, read 896,847 times
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Quote:
Originally Posted by golfingduo View Post
You are also missing ER's point. that free healthcare is important too. But let me see if I can put one more item into your mind on this. You are not leaving that on the table. All earnings are going back into the kitty and it will increase the overall amount when you do begin to take full. It isn't like you are losing. That money is going back to your account to increase in later payments. Does that sound a bit better?





https://www.ssa.gov/pubs/EN-05-10069.pdf
[/SIZE]
Actually they are losing the portion of the family benefit related to his kids and possibly the Wife as caregiver till the kids hit 16.
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