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Old 02-17-2016, 08:05 AM
 
9 posts, read 6,261 times
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Good Morning all;
There's been alot of "Doom and Gloom" ads on the tube about Social Security benefits being changed come May 1st... No real info provided unless you go to a seminar. I'm retired, just turned 62, but unless I'm gonna get screwed by holding off a year or two, don't need the SS income as yet. Whats your thoughts? Thanks
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Old 02-17-2016, 08:43 AM
 
Location: Central Massachusetts
4,800 posts, read 4,864,124 times
Reputation: 6379
Quote:
Originally Posted by midwestcowboy View Post
Good Morning all;
There's been alot of "Doom and Gloom" ads on the tube about Social Security benefits being changed come May 1st... No real info provided unless you go to a seminar. I'm retired, just turned 62, but unless I'm gonna get screwed by holding off a year or two, don't need the SS income as yet. Whats your thoughts? Thanks


You are not screwed if you don't take it at 62. In fact your FRA will be 65 or 66 (someone here will correct me) but if you are still working then taking it at 62 will be affected. You will have an income restriction until FRA. Income will not include pensions or retirement accounts (IRA, 401k).
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Old 02-17-2016, 09:13 AM
 
Location: Charleston, SC
1,371 posts, read 773,574 times
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The big thing that was eliminated was the "File and Suspend" trick that some couples were using.

In my Opinion, accumulating Delayed Retirement Credits by waiting past FRA is a positive. But you have to balance that against the increased Medicare Premiums that you get hit with for not being "Held Harmless" when you start collecting.

It's of course a personal decision each person has to make, and the Net Present Value of SS Dollars is a factor.
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Old 02-17-2016, 09:33 AM
 
Location: Jamestown, NY
7,841 posts, read 7,350,900 times
Reputation: 13779
Quote:
Originally Posted by FiveLoaves View Post
The big thing that was eliminated was the "File and Suspend" trick that some couples were using.

In my Opinion, accumulating Delayed Retirement Credits by waiting past FRA is a positive. But you have to balance that against the increased Medicare Premiums that you get hit with for not being "Held Harmless" when you start collecting.

It's of course a personal decision each person has to make, and the Net Present Value of SS Dollars is a factor.
  • FRA for somebody 62 now is 66 + some months.
  • Medicare eligibility starts at age 65. You sign up for Medicare Part A at age 65 whether you are working or not, whether you have employee paid health insurance or not.
  • If you have health insurance through your employer, you do not have to sign up for Medicare Part B or Part D until you quit working, but depending upon your plan, you might prefer Medicare.
  • There are penalties for not signing up for Medicare A at 65 and for Medicare B at either 65 or when you quit working if you choose to sign up for Medicare at a later date, although technically, you don't have to sign up for Medicare at all if you feel "lucky".
  • Retiring at 62 will decrease your SS benefit by 25% of what it would be at FRA, and you get about 6% added for every year you continue to work, so retiring at around 65 would only shrink your SS benefit by 6%.
  • If you decide to retire later or if you can afford to wait to collect SS until after FRA, you add about 8% to your FRA SS benefit a year up until about age 70, so you'd increase your SS benefit about 30-33%.
  • The only major "new" Medicare change is the file-and-suspend stuff FiveLoaves mentioned, which involves married couples where both qualify for SS benefits on their own. If you don't have a wife or she wouldn't get much from SS on her own, this probably isn't something you would consider. I believe you have to sign up for SS before May 1 in order to be eligible for file and suspend.
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Old 02-17-2016, 09:57 AM
 
10,824 posts, read 8,090,324 times
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Quote:
Originally Posted by FiveLoaves View Post
In my Opinion, accumulating Delayed Retirement Credits by waiting past FRA is a positive. But you have to balance that against the increased Medicare Premiums that you get hit with for not being "Held Harmless" when you start collecting.
Those "held harmless" are only exempt from the increased premiums as long as COLAs are flat. Their future COLAs will be offset until they are at the new premium levels.
So over time, it's a wash.
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Old 02-17-2016, 10:26 AM
 
Location: Charleston, SC
1,371 posts, read 773,574 times
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Is there any more rigged government statistic than the COLA as applied to Social Security ?? When you leave out Food and Fuel costs, the COLA is flat......which is great if you don't have to eat or drive someplace !!

When they're telling me that Inflation was flat last year, it's measured by their metric, not mine. We have yet to see how the Hold Harmless clause is implemented over time.

In my Opinion, the NPV is the bigger data point. But again, it's a personal decision, one we all make for ourselves.
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Old 02-17-2016, 10:59 AM
 
Location: Idaho
4,653 posts, read 4,497,582 times
Reputation: 9150
Quote:
Originally Posted by Linda_d View Post
  • Medicare eligibility starts at age 65. You sign up for Medicare Part A at age 65 whether you are working or not, whether you have employee paid health insurance or not.
  • There are penalties for not signing up for Medicare A at 65 and for Medicare B at either 65 or when you quit working if you choose to sign up for Medicare at a later date, although technically, you don't have to sign up for Medicare at all if you feel "lucky".
I understood that if you are still gainfully employed past your 65th birthday and your employer provides approved medical coverage, then you do not have to sign up for Part A within that initial seven month window surrounding your birthday.

If you are correct, then my major employer, (5,000+ employees), has it totally wrong and there are a whole lot of people getting screwed. We would have heard about it by now.

It might be that my employer signs us up without us really knowing about it. I do know that my plan will switch. Same insurance company, same benefits, different plan - the switch is supposed to be transparent to us.
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Old 02-17-2016, 11:28 AM
 
Location: Cape Elizabeth
425 posts, read 389,177 times
Reputation: 745
Quote:
Originally Posted by volosong View Post
I understood that if you are still gainfully employed past your 65th birthday and your employer provides approved medical coverage, then you do not have to sign up for Part A within that initial seven month window surrounding your birthday.

If you are correct, then my major employer, (5,000+ employees), has it totally wrong and there are a whole lot of people getting screwed. We would have heard about it by now.

It might be that my employer signs us up without us really knowing about it. I do know that my plan will switch. Same insurance company, same benefits, different plan - the switch is supposed to be transparent to us.
No, you are right. SSA recommends signing up at 65 for Part A, whether you are working or not. Part A is "free", meaning no monthly premium, and is a secondary hospitalization plan, to your employer plan, which remains your primary health care insurance, until you actually retire. So, it us up to you if you want the Part A when you are 65, and decline Part B for later, when you plan to retire. Or if you are under your spouse's employer group health plan - when he/she retires.

Or, some folks, because even though they are under an employer plan, don't like all the copays and deductibles and/or if they have a lot of medical expenses, take the Part B as a secondary insurance. They decide that taking Part B, as a secondary plan, even though working, makes economic sense to them. When they do retire, Medicare becomes primary.

When you retire, (or your spouse retires- if he/she is the provider of your health care) then, even if your employer would carry health ins. for you into retirement- that is when the 7 month "special enrollment period" kicks in and you need to sign up for Part B of Medicare (for doctors, out pt etc), since it becomes your primary insurance.

Your employer doesn't sign you up- or know anything about your plans. It is all up to you. However, to avail yourself of the SEP, SSA has a form that you need to have your employer complete showing that from the time you turned 65 until the time you are requesting Part B, you were covered under the employer's group health plan. Meaning a large group.

Small employers don't have to provide health care to you as primary beyond age 65. So, those folks need to apply for Medicare A and B when they are turning 65. The cut off is fewer than 20 full and or part time employees.

This is in a nutshell. There are more complicated rules affecting you if you retire right around your 65th birthday, or if your small employer is part of a larger group, some who have 20 or more employees.
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Old 02-17-2016, 11:37 AM
 
Location: Wasilla, AK
7,330 posts, read 4,193,442 times
Reputation: 15985
Quote:
Originally Posted by golfingduo View Post
You are not screwed if you don't take it at 62. In fact your FRA will be 65 or 66 (someone here will correct me) but if you are still working then taking it at 62 will be affected. You will have an income restriction until FRA. Income will not include pensions or retirement accounts (IRA, 401k).

If someone just turned 62 their FRA is 66.
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Old 02-17-2016, 11:47 AM
 
Location: Wasilla, AK
7,330 posts, read 4,193,442 times
Reputation: 15985
Quote:
Originally Posted by Linda_d View Post
  • FRA for somebody 62 now is 66 + some months.

That is incorrect. If you are 62 right now your FRA is 66, period. The months don't kick in unless you were born in 1955 thru 1959. Those born in 1960 or thereafter have a FRA of 67. Subject to change as the ponzi scheme implodes.
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