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Old 03-07-2018, 05:19 PM
 
Location: New Jersey
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What is the decrease (Percentage) of benefit if I retire at 65 instead of 66 (full retirement age)?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~

After some research I see 95.3% at age 65.

Last edited by camaro69; 03-07-2018 at 06:01 PM..
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Old 03-07-2018, 06:46 PM
 
Location: OH>IL>CO>CT
5,252 posts, read 8,434,403 times
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Quote:
Originally Posted by camaro69 View Post
What is the decrease (Percentage) of benefit if I retire at 65 instead of 66 (full retirement age)?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~

After some research I see 95.3% at age 65.
The factor at age 65 is 93.3

The decrease is 100-93.3 = 6.7%. You would receive 93.3% of your FRA amount.

See https://www.ssa.gov/planners/retire/1943.html for a month by month chart.
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Old 03-07-2018, 07:22 PM
 
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Quote:
Originally Posted by ukrkoz View Post
yeah, done that. It shows $2120 as of now and $4120 at 70. But I am planning on working for at least 3.5 more years at 6 figure income. That is what I am actually trying to figure - how much those 3 years of working will change - or not the final outcome at 66.5 retirement.
The max is about $2700 per month. You'll get between 2120 and the max.
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Old 03-08-2018, 12:41 AM
 
Location: In my head
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They keep it complicated so that you really don稚 know what you値l ever get and you値l never know if the government is giving you the correct amount or not.
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Old 03-08-2018, 08:09 AM
 
708 posts, read 504,110 times
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[quote=Mircea;51114157]That's not how it works.

That has to do in part with the fact that in the year you retire, the wages for that year are not indexed yet, and it takes about 9-10 months to determine the wage index for the year prior.

You bring up a point I wondered about. I am taking SS starting this November. My earnings this year
will be in top 35 years replacing a much lower earnings year. When you say it will take 9-10 months
to figure out the wage index, does that mean they will increase my monthly SS after they index my last
year? Thanks
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Old 03-08-2018, 09:49 AM
 
11,175 posts, read 8,570,826 times
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Quote:
Originally Posted by Sunaimer View Post
They keep it complicated so that you really don稚 know what you値l ever get and you値l never know if the government is giving you the correct amount or not.
No. It's called actuarial science.
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Old 03-08-2018, 11:01 AM
 
Location: New Oxford, PA
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I retired a little over two years ago, and according to my annual SS statement, I'll be losing a grand total of $250/month if I never earn another dollar between the ages of 46 and 62.
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Old 03-08-2018, 02:55 PM
 
Location: OH>IL>CO>CT
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[quote=Willistonite;51246995]
Quote:
Originally Posted by Mircea View Post
That's not how it works.

That has to do in part with the fact that in the year you retire, the wages for that year are not indexed yet, and it takes about 9-10 months to determine the wage index for the year prior.

You bring up a point I wondered about. I am taking SS starting this November. My earnings this year
will be in top 35 years replacing a much lower earnings year. When you say it will take 9-10 months
to figure out the wage index, does that mean they will increase my monthly SS after they index my last
year
? Thanks
Yes, your benefit will be adjusted; if when they add in the latest years earnings it is more than a previous "highest 35". However, be careful of expecting too much of a change, if any. Just increasing one of the 35 years when averaged with the other 34, may not make much change.

Also, because of the way SS indexes all previous years actual income for inflation, a 2017 income may not replace a 1970/80s inflation-adjusted year. I have 2 years from 1963 & 64 that are in my 35 due to tons of overtime those years (18 y/o and I hit those years max SS deduction limit of $4800 )(They were adjusted up to $38,000)
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Old 03-08-2018, 03:13 PM
 
Location: Ohio
19,968 posts, read 14,268,565 times
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Quote:
Originally Posted by Sunaimer View Post
They keep it complicated so that you really don稚 know what you値l ever get and you値l never know if the government is giving you the correct amount or not.
The process is not complicated.

You can request your work history using this form:

https://www.ssa.gov/forms/ssa-7050.pdf

Or you can get your work history from your Social Security account.

All you have to do is index your wages to account for Inflation and other factors, add your adjusted wages for the 35 highest years, divide by 420 to get your average monthly earnings, then apply the bend-point formula to determine your benefit.

The principles involved only require 6th Grade math skills.

Quote:
Originally Posted by Willistonite View Post
You bring up a point I wondered about. I am taking SS starting this November. My earnings this year will be in top 35 years replacing a much lower earnings year. When you say it will take 9-10 months to figure out the wage index, does that mean they will increase my monthly SS after they index my last year? Thanks
Since you're applying for benefits in 2018, your wages will be indexed to year 2016.

The Social Security Administration will not make any future adjustments to your benefits. Even if you waited until December, your wages would still be indexed to 2016, because that's how they apply the formula to everyone.

If you waited until January 2019, your wages would then be indexed to 2017.

Note that those who applied for benefits in 2011 got screwed, because the wage index for 2009 actually declined from $41,334 in 2008 to $40,711 in 2009.

Will the wage index for 2017 decline? I seriously doubt it. I see absolutely no evidence to indicate that it would. According to BLS, real average hourly earnings increased 0.8% from January 2017 to January 2018.

The wage index for 2016 is $48,612.15 so good possibility it will be $49,031.14 for 2017.

35 years ago in 1981 the index was $13,773.10.

That makes your multiplication factor 3.53 using 2016 and 3.56 for 2017.

Let's say you earned $10,000 in 1981, then:

$10,000 * 3.53 = $35,300

$10,000 * 3.56 = $35,600

That's a difference of $300.

25 years ago in 1991 the index was $21,811.60.

That makes the multiplication factor 2.23 and 2.25 respectively.

Let's say you earned $30,000 in 1991, then:

$30,000 * 2.23 = $66,900

$30,000 * 2.25 = $67,500

That's a difference of $600.

Anyway, the point is your average monthly earnings would increase somewhat, and that would result in a slight increase in your monthly benefit, so if you can afford it, you might want to delay applying for benefits two months until January 2019.
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Old 03-08-2018, 06:52 PM
 
Location: New Jersey
8,523 posts, read 12,481,524 times
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Quote:
Originally Posted by reed303 View Post
The factor at age 65 is 93.3

The decrease is 100-93.3 = 6.7%. You would receive 93.3% of your FRA amount.

See https://www.ssa.gov/planners/retire/1943.html for a month by month chart.
HMMM???

Guess I was looking at the wrong chart.

Thanks
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