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Old 02-11-2018, 11:17 AM
 
Location: Ypsilanti, MI
2,447 posts, read 3,666,532 times
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I have a good friend, more like the older brother I never had, who is 71 years old. He collects his pension, Social Security, and for 3-6 months each year he returns to his old job as a Contract Employee making $100/hour. Between these short gigs he collects unemployment.

Maybe I am misunderstanding all the income as it sure doesn't seem right.
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Old 02-11-2018, 11:19 AM
 
Location: Ypsilanti, MI
2,447 posts, read 3,666,532 times
Reputation: 4819
I have a good friend, more like the older brother I never had, who is 71 years old. He collects his pension, Social Security, and for 3-6 months each year he returns to his old job but as a Contract Employee making $100/hour. Between these short gigs he collects unemployment.

Maybe I am misunderstanding all the income as it sure doesn't seem right.
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Old 02-11-2018, 12:18 PM
 
6,885 posts, read 7,286,872 times
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^^ In some places you're employment is offset by other income, like any pensions.

I know when some former co-workers were (laid off) -- and retired, and got a pension, D.C. unemployment told them they didn't qualify for unemployment, because of the pension. (And also their pension was more than their unemployment would have been.) So even if they had 'qualified' -- which they did based on working -- the offset due to their pensions would have meant getting no UE check anyway.

But MI-Roger....you have given me an idea if it's doable: Work half year, collect unemployment half a year. It wouldn't be much though because six months isn't that many quarters of work time.

But given that once I retire I won't work AT ALL -- period. I won't be fooling around with trying to collect unemployment.
I won't want to hear anything about or know anything about work, working employment -- nothing like that. I will happily be out of the workforce -- period.
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Old 02-11-2018, 12:42 PM
 
11,137 posts, read 8,548,081 times
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Quote:
Originally Posted by selhars View Post
^^ In some places you're employment is offset by other income, like any pensions.

I know when some former co-workers were (laid off) -- and retired, and got a pension, D.C. unemployment told them they didn't qualify for unemployment, because of the pension. (And also their pension was more than their unemployment would have been.) So even if they had 'qualified' -- which they did based on working -- the offset due to their pensions would have meant getting no UE check anyway.

But MI-Roger....you have given me an idea if it's doable: Work half year, collect unemployment half a year. It wouldn't be much though because six months isn't that many quarters of work time.

But given that once I retire I won't work AT ALL -- period. I won't be fooling around with trying to collect unemployment.
I won't want to hear anything about or know anything about work, working employment -- nothing like that. I will happily be out of the workforce -- period.
Collecting unemployment isn't automatic. Your former employer has to agree to pay it.
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Old 02-11-2018, 12:48 PM
 
Location: SW Missouri
15,847 posts, read 30,369,034 times
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Quote:
Originally Posted by selhars View Post
I'll be darned if another thread doesn't have me about all kinds of scenarios. Darn it.
Only 57 now but I'm always thinking...(a little too much maybe)

IF -- you don't need the money, does it ever makes sense to work and collect Soc. Sec.?

My case: I could collect from 62-65 when I plan to retire anyway...BUT my FRA is 67.
(I have a pension coming at 65. And had planned to wait until AT LEAST my FRA to collect. and likely will if collecting early doesn't make sense.)

The plus is:
-- you get some benefit early, minus the 1 for 2 holdback, that's you'll get eventually when they recalculate your benefit.
-- you're working so you're still putting into the system, so that will help with the higher recalculation later

The con is I guess that, no Mather how much you replenish into the system you're benefit would still be lower than if you's waited. Right?

IS THERE ever a scenario where collecting while working from 62 to 65 makes sense?

(for easy math)
Let's say:
-- you make (your taxable income is) -- 25K
-- your age 62 benefit would be -- 2K a month

You're 8K over the 17K earning limit for the 1 for 2 holdback, so that reduces your 24K Soc. Sec by 4k? Right?
So you'd still currently collect a benefit of 1,666. (instead of the full 2K)

Is that about how it would work?
And, again does it ever make sense to work and collect?

Or forget that idea?
I can't imagine not working, ever.
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Old 02-11-2018, 01:26 PM
 
Location: Ohio
19,929 posts, read 14,242,533 times
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Quote:
Originally Posted by selhars View Post
IS THERE ever a scenario where collecting while working from 62 to 65 makes sense?
Yes, to maintain healthcare benefits until you turn 65 and qualify for Medicare.

Quote:
Originally Posted by selhars View Post
A different issue from the earnings limit for the holdback while working, but....

^^ IF Uncle Sam doesn't raise the MAGI threshold for taxing Soc. Sec. -- a whole lot MORE people will have part of their Soc Sec taxed. And you do NOT have to have high income for that. The threshold is only about 24/25k. (for a single person)

Does anyone see that happening.....lawmakers raising that threshold?
No.

The threshold --which is $25,000 for a single person and $32,000 for married-- was set in 1990, the last time the FICA Payroll Tax was increased.

It's unlikely Congress will act to address the thresholds, without also addressing the FICA Tax.
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Old 02-11-2018, 02:46 PM
 
71,651 posts, read 71,777,271 times
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Quote:
Originally Posted by Mircea View Post
Yes, to maintain healthcare benefits until you turn 65 and qualify for Medicare.

.
Quote:
Originally Posted by selhars View Post
And, again does it ever make sense to work and collect?

Or forget that idea?

but you don't need to collect ss while working . if you are over the limit and will give it back then just don't collect . but if there are times you are over and times you are under than do it , my wife did .

some months she was over and some under but she got to keep most of the payments .
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Old 02-11-2018, 02:52 PM
 
3,139 posts, read 1,726,907 times
Reputation: 3515
Quote:
Originally Posted by Vision67 View Post
The answer in all these cases is to do the math.

For example, here is a tax forecasting free site from Quicken:

https://turbotax.intuit.com/tax-tool...ors/taxcaster/

In my own case, I took SS at my fra of 66. Now at 68, my company begged me to return part time. But I have to watch it because they are paying me so much that I'll quickly overshoot a $45K boundary and end up with a large marginal tax rate.

Look here: https://www.fool.com/retirement/gene...y-taxable.aspx

Tax planning should always be done early in the year to avoid surprises and penalties.
You mean you will refuse money because you have to pay tax on it?
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Old 02-11-2018, 04:38 PM
 
6,885 posts, read 7,286,872 times
Reputation: 9791
Quote:
Originally Posted by Mircea View Post
Yes, to maintain healthcare benefits until you turn 65 and qualify for Medicare.
That has nothing to do with the decision to collect Soc. Sec.
Quote:
I can't imagine not working, ever.
Oh, I imagine it, alright. Every day.
And dream of it. Every night.
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Old 02-11-2018, 05:48 PM
 
Location: Colorado Springs
4,845 posts, read 4,959,765 times
Reputation: 17327
Quote:
Originally Posted by cb2008 View Post
You mean you will refuse money because you have to pay tax on it?
I'll consider how much tax I'll have to pay on the next dollar earned and I'll decide if I'd prefer to just not work anymore.

I don't need the extra money; my retirement funds are enough, and I don't want to just feed the gov't.
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