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 04-07-2016, 02:41 PM
 
11 posts, read 17,157 times
Reputation: 12

Advertisements

I'll turn 70 in the middle of December. Will I get the maximum benefit if I start collecting social security in December, when I'm 70 for only part of the month, or in January when I'm 70 for the entire month?

Thanks.
Reply With Quote Quick reply to this message

 
Old 04-07-2016, 02:44 PM
 
71,563 posts, read 71,730,589 times
Reputation: 49156
do january . it will work out better because of when they compute the credits .
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 02:52 PM
 
Location: Alaska
5,356 posts, read 16,347,342 times
Reputation: 4023
In order to get the highest benefit, you need to start SS the month following your birthdate. This means your first payment will occur in February. The only exception is if your birthday is on the 1st.
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 03:10 PM
 
Location: Idaho
1,454 posts, read 1,155,024 times
Reputation: 5492
My husband's birthday is near the end of December and he plans to collect SS benefit at 70 so we have exactly the same question.

I think I found the answer in this article

Filing for Social Security? Choose Your Start Date Carefully | Fox Business

The article only addresses filing at 62 and at FRA and not 70 but I think the rules for filing at FRA should apply to filing at 70 as well.

Quote:
If you wish to begin Social Security when you turn 66, the exact day of the month not important. “Full retirement benefits are payable beginning with the month FRA is attained regardless of the day of the month,”
Since the benefit does not increase after turning 70, I would think that one should collect the payment as soon as one turns 70 (i.e. the beginning of the month which one turns 70).

I'd like mathjak107 to explain why it is better to start collecting the benefit in January. Being newly retired, I have a lot to learn about SS and medicare.
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 03:17 PM
 
Location: RVA
2,165 posts, read 1,266,382 times
Reputation: 4456
He is correct I believe, because he means they compute the actual benefit based on the latest inflation adjustment multiplier for every year earned every January. USUALLY, the starting benefit goes up every year due to that.
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 03:25 PM
 
Location: Idaho
1,454 posts, read 1,155,024 times
Reputation: 5492
Quote:
Originally Posted by Perryinva View Post
He is correct I believe, because he means they compute the actual benefit based on the latest inflation adjustment multiplier for every year earned every January. USUALLY, the starting benefit goes up every year due to that.
Why wouldn't the newly calculated benefit in January applies to people who already receive the benefit say starting the last December? I assume that the monthly benefit is not 'locked' at a certain amount for the full year. Is this assumption wrong?
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 03:27 PM
 
Location: Gulf Coast
1,159 posts, read 649,789 times
Reputation: 2249
This is something I've been trying to figure out also. How about if one turns 70 the last week in June? Filing for the June date means that payment starts / arrives in July, correct? In this case there's no benefit to wait until July to begin collecting is there?
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 05:20 PM
 
Location: OH>IL>CO>CT
5,234 posts, read 8,402,791 times
Reputation: 7186
Quote:
Originally Posted by Pat Answers View Post
This is something I've been trying to figure out also. How about if one turns 70 the last week in June? Filing for the June date means that payment starts / arrives in July, correct? In this case there's no benefit to wait until July to begin collecting is there?
Yes, this is exactly what happened in my own case. I turned 70 in Aug 2014. I started my application on-line in May 2014, with benefits to start in Aug, and first payment in Sept. (SS always pays the month after eligibility. There is no pro-rating for partial months.) You get a phone interview confirming your application, and requesting any additional documentation. (in my case my military discharge form DD214)

This works when you start benefits exactly at 70. If you start at say 69.5, different rules apply, that have been explained by MathJak in many previous threads.
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 05:27 PM
 
Location: RVA
2,165 posts, read 1,266,382 times
Reputation: 4456
From what I have been reading, but if anyone knows for sure otherwise, please chime in, yes, the monthly amount used as the base number for each subsequent earned credit is locked in for each year, unless there has been earned income that causes a recalculated amount. Which also occurs once a year. If you've had no earned income for say 5 years previous, I doubt the difference would be more than a few bucks a month though. This assumes that you are NOT missing an eligible months credit gain, ie 70 years and one month, which you would get as back owed anyway. And that's the part that always confuses me. It appears to me from what was posted, that if you turn 70, that is the last month of earned credit. But yet when you start you always have to wait a month, so I Would have to say go down to SSA and get an answer on the amount of your monthly benefit if you apply in Dec as well as Jan!

Last edited by Perryinva; 04-07-2016 at 05:38 PM..
Reply With Quote Quick reply to this message
 
Old 04-07-2016, 05:59 PM
 
Location: Idaho
1,454 posts, read 1,155,024 times
Reputation: 5492
I checked on when SS COLA adjustment takes effect each year and learned that

https://www.ssa.gov/news/cola/

Quote:
After 1982, COLAs have been effective with benefits payable for December (received by beneficiaries in January)
So if my husband applies to have his benefit starts in December, he will receive the 1st payment (with COLA adjustment if it happens) in January and the payment stays the same for one year until the next COLA adjustment.

If he applies to have benefit starts in January (after he already turns 70), he will receive January benefit in February. Since there is no increase in monthly benefit after 70, in doing so, he will miss one month of payment.

Maybe for people who was still working up until the day that they retire, waiting until January so that the earned credits will be higher with the inflation adjusted factor may yield a higher monthly benefit than starting in December. However for people who either does not work the last few years before collecting SS or already has the max 35 years earned income earlier, I just don't see any benefits. In addition, inflation rate has been very low so whatever increased amount due to this adjustment is likely not enough to compensate for losing a whole month of SS payment.

As I mentioned in the previous note, all of this SS stuff is new to me so I am still learning and would like to know if my understanding is incorrect.
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