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Old 10-18-2017, 07:03 AM
 
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do I have this correct?
With an FRA of 67...

If a person worked until 65 -- but does NOT work at all until age 70, and also delays collecting benefits until 70, is this percentage increase for delayed credits correct

-- the benefit at age 66 will be 6 percent more than the age 65 amount (of let's say 2,000)
-- the benefit at age 67 will be 12% more than the age 65 amount of 2,000 (2,240?) (math correct?)

-- the benefit at age 68 will be 8 percent more than the FRA age 67 amount of 2,240
-- the benefit at age 69 will be 16 percent more than the age 67 amount 2,240
-- the benefit at age 70 will be 24 percent more than the age 67 amount 2,240


thanks


Last edited by selhars; 10-18-2017 at 07:11 AM..
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Old 10-18-2017, 09:54 AM
 
Location: RVA
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Not exactly, but close. All percentages are based on FRA amount. So “increases” (or decreases if filing early) per year before FRA are 6% of the FRA amount, not 6% of the age 65 amount. The increase from FRA 67 to 68 is 8% of the age 67 amount. 70 would be 24% of 67 as you said. In projections, the numbers don’t line up exactly because of COLA. Once you stop working and paying in to FICA after age 60, and have your top 35 years accounted for , the projected amounts do not increase except for COLA. Your maximum possible PIA (primary insurance amount) and inflation adjusted multipliers are fixed. If you work after age 60, the total can only increase by the replacement difference of that year with a lower one.

For instance, at age 59, you make $100k. That amount with a 1.0 multiplier is compared against the lowest of your previous 35 inflation adjusted salaries. In 1979 your fica salary amount is multiplied by 4.19 for 2016. So if you made $20k that year it is counted as $83.8k and the $100k would replace it, which would raise the PIA GROSS amount by $16.2k which gets divided by 420 (35 years x 12 months) to give a net monthly increase of $38. Each year the step levels increase until age 60, so that $38 grows as part of the calculation for your FRA amount, including COLA. That is why increases per year seem larger than makes sense...until age 60. All earnings after age 60 always have a 1.0 multiplier and the previous years are fixed at the age 60 level The same scenario but at age 62 and the increase stays at $38 and does not change. If you make an amount less than your top adjusted 35 then your SS FRA does not change at all. The FICA you pay in nets you zero.

Last edited by Perryinva; 10-18-2017 at 11:01 AM..
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Old 10-18-2017, 10:05 AM
 
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If you do not work at all how would you get more benefits other than maybe COLA? Your estimate from SSA assumes you work and contribute until FRA.

Maybe I am missing what you are asking.

good luck
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Old 10-18-2017, 10:37 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by theoldnorthstate View Post
If you do not work at all how would you get more benefits other than maybe COLA? Your estimate from SSA assumes you work and contribute until FRA.

Maybe I am missing what you are asking.

good luck
that is correct but the numbers will not deviate much even though you are not working. For one there are the COLA's that are added some not so good as this one. Then there is the fact that you probably will have at least 40 years of substantial earnings but it is possible you might have some 0 years but all in all it will not drop precipitously.
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Old 10-18-2017, 11:05 AM
 
Location: RVA
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That is correct. The FUTURE estimates from SS do not become fixed (besides COLA adjustments) after age 60 until you have a year with zero income OR you already have 35 years of maxed earnings.
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Old 10-19-2017, 05:31 AM
 
Location: Central Ohio
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This might be helpful.



And people wonder why social security benefits are so low the answer is 44% of recipients elected to start collecting at 62.
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Old 10-20-2017, 03:21 AM
 
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i retired at 62 but worked part time for a year or so prior to retiring .

i just started to collect at 65 . the differences from what were projected with me working all that time were very small .
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Old 10-20-2017, 04:39 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by mathjak107 View Post
i retired at 62 but worked part time for a year or so prior to retiring .

i just started to collect at 65 . the differences from what were projected with me working all that time were very small .
I think that is kind of an oxymoron when you say you retired at age 62 but continued to work until you started collecting at 65. Honestly it is not a dig. It just kind of twists my head a bit.

When I start collecting at FRA or age 70 I will not say I just retired. Nope. I will say I retired at age 58.5 because that is when I stopped working. When I start collecting SS it will be called I just filed for "SS benefits". Collecting SS benefits might signify retirement for some people because that is how and when they switched over from working to not working by replacing their income earned with income benefits from SS.
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Old 10-20-2017, 06:03 AM
 
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no , i said i worked a year or so part time prior to retiring at 62 . i worked 4 days a week until i hit 62 . so those wages were reduced and then all my years after 62 were very low .

so what i am saying is compared to what was projected for age 65 i really ended up with no real difference not working at that anticipated income level . .

Last edited by mathjak107; 10-20-2017 at 06:35 AM..
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Old 10-20-2017, 01:59 PM
 
Location: Charleston, SC
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I wonder if I can get a quick question answered here, without starting a new thread......

What's the best strategy for my DW to start collecting half of my SS amount ??

She's turning 60 next February. (don't tell her I let the cat outta the bag)
Should she wait til her FRA, approx age 67 in her case ??

Could she start collecting on her own work record at age 62 and then switch to half of mine at her FRA ??
Her record would yield a much smaller amount than half of mine.

What's the best play here ??

Last edited by FiveLoaves; 10-20-2017 at 02:15 PM..
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