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I Googled and couldn't find any info on how many people do this.
I have at least four co-workers who are doing this… collecting their FRA benefit -- AND still making low six figures.
They tell me that while they don't NEED the money, they want to get their benefit now. They have dollar signs for eyeballs and big smiles when they say it.
Is there something I am missing because I thought it was better to delay Soc Sec. But if they're collecting at FRA, while making that kinds of money…they they don't have the income limit -- AND are "replenishing" their benefit to be calculated higher, when they eventually do stop working.
Could they ever put enough back in so their later benefit would equal what their original age 70 amount would have been anyway. How long might they have to work to do that?
I'd also like to know -- without some complicated formula -- what the sliding scale is for having 50-85% of your Soc Sec taxed. If you're making 120K a year are you at 50%, 60%, 70% of it being taxed -- at the full 85%?
What stories or insights can you tell bout working AND collecting, past full retirement age?
What's the upper limit? Isn't there some kind of general scale somewhere.
I know it's a different animal but if they can come up with a phrase out scale for income limits for IRAs -- so you know about where you stand on that…why is is so hard to find some kind of general scale on the income levels at which the percentage of SS get taxed?
I hope someone will have info on the Soc Sec. recalculation also.
Because if a person can collect their FRA benefit at 66…..work until 70….and put back in enough to bump their benefit up to close to the original age 70 amount. That doesn't sound like a bad deal to me… Who 's the dummy me or them for delaying. They've got four years of benefits -- AND a higher amount later.
You can google it. I am out of town for a few days and have the info on my computer. I think for a couple over 45k in magi and your ss is taxed at 85%.
Magi is your taxable income before deductions plus 50% of your social security
What's the upper limit? Isn't there some kind of general scale somewhere.
I know it's a different animal but if they can come up with a phrase out scale for income limits for IRAs -- so you know about where you stand on that…why is is so hard to find some kind of general scale on the income levels at which the percentage of SS get taxed?
I hope someone will have info on the Soc Sec. recalculation also.
Because if a person can collect their FRA benefit at 66…..work until 70….and put back in enough to bump their benefit up to close to the original age 70 amount. That doesn't sound like a bad deal to me… Who 's the dummy me or them for delaying. They've got four years of benefits -- AND a higher amount later.
BTW, the "higher amount later" will be minimal due to the averaging of the "highest 35 years". These folks latest salaries would have to be significantly higher than previous years to have a major effect on future benefits.
Foolish...they think they're getting something over on the government having to pay out all those benefits rather than waiting. Might as well be flushing half of it down the toilet due to taxes and then they have that lower benefit for life.
DH started SS when he was laid off from a part time job at age 65.4. He retired at 52. from his real job.
TheSS office has a calculator that will tell you when to retire at the most beneficial time.
SS office said it would take 13 years of payment to make up the difference for waiting.
Due to being ADHD, he has a PT pissant seasonal job now. The pay doesn't cover car, lunch or dry cleaning. He loves it. We pay 38% tax on the SS benefit.
What's the upper limit? Isn't there some kind of general scale somewhere.
I know it's a different animal but if they can come up with a phrase out scale for income limits for IRAs -- so you know about where you stand on that…why is is so hard to find some kind of general scale on the income levels at which the percentage of SS get taxed?
I hope someone will have info on the Soc Sec. recalculation also.
Because if a person can collect their FRA benefit at 66…..work until 70….and put back in enough to bump their benefit up to close to the original age 70 amount. That doesn't sound like a bad deal to me… Who 's the dummy me or them for delaying. They've got four years of benefits -- AND a higher amount later.
As was said, the extra years of earnings have a small impact on the benefit, assuming the individual had 35 years of work, nowhere near the 32% increase obtained by delaying benefits from age 66 to age 70. And of course had they delayed but continued working, any increase due to those earnings would also show up at age 70. I believe I read somewhere that less than 5% elect to delay their benefit to age 70. Actually your acquaintances (who are working and don't need the money) should be exactly the type who delays. Remember that the 32% increase will be adjusted for cost-of-living increases for life (under current law). If they live long and if inflation comes back, they'll likely regret their decision. Hopefully they're saving.
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