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Honestly, I don’t think it’s a huge difference from 69 to 70.
Quote:
Originally Posted by reed303
From FRA to age 70 the increase for delaying is 8% per year. So if age 69 benefit is, say, $2000/month, 8% gets you a $160/month increase in benefit.
To some folks, that's huge; to others, not so much.
Quote:
Originally Posted by NewbieHere
You should read post 28, it states $85 per month tradeoff.
Post 28 does not exactly say how many months of delay or what "full" amount the $85 deduction was based on. It was less than a 12 month period. (April to Oct maybe ?)
My post explains the effect of a full 12 month delay (age 69 to 70) on a $2000/month base amount.
Post 28 does not exactly say how many months of delay or what "full" amount the $85 deduction was based on. It was less than a 12 month period. (April to Oct maybe ?)
My post explains the effect of a full 12 month delay (age 69 to 70) on a $2000/month base amount.
My comment is specific to OP situation. Not some general question. I’m posting in her thread after all.
Post 28 does not exactly say how many months of delay or what "full" amount the $85 deduction was based on. It was less than a 12 month period. (April to Oct maybe ?)
My post explains the effect of a full 12 month delay (age 69 to 70) on a $2000/month base amount.
Actually no, it is always 8% of the FRA amount, not the previous year amount. So if $2k/mo @69, assuming FRA of 66 (like OP), then $2000 would be 36 months of .08/12(FRA) plus FRA so 1.24(FRA)=2000 so FRA= 1613.
So for someone that gets $2k/mo@69, a full years delay to 70 is a monthly increase of $129.
SSA allows retroactive filing for a 6 month lump sum not to FRA.
So if the OP LOST $85/mo FROM HER CURRENT full age 69 SS, in order to get that lump sum, that means her 8% FRA increase is $85/6= 14.17/mo. Therefore, since .08/12=0.0067 then 0.0067(FRA)=14.17. So OP’s FRA could be ~ $2125/mo.
So at 69, her SS with delayed credits would be $2125+$510=$2635/mo. But when one gets a retroactive lump sum, they reset their start date to 6 months earlier, so her new rate woukd be for 67&6 months. Therefore her 6 month lump sum would be at THAT rate of 18 months + FRA or 6($2125+255) or $14,280 which “cost” her $85/mo or $1020/yr.
However, it is unclear from her wording if she meant that she “lost” an $85/mo increase had she gone to full age 70, vs the reduction from her “new” age 67&6months rate.
If that is the case, possible, based on her wording of her financials, then the difference of lost $85 would reflect not claiming 18 months of credits, which greatly reduces her calculated FRA to: 85/18=$4.72/mo where FRA(.0067)=4.72 means an FRA of $708/mo, so a 67&6 amount of $793. So she could possibly mean a lump sum of only $4758.
Only she can assess if the lump sum (which may be combined with her earnings for the year and possibly taxed) is worth it. Personally, if one with no other future income is going to collect a lump sum, better to collect the following year, totally untaxed, rather than added to current years income.
Last edited by Perryinva; 11-15-2018 at 01:35 AM..
From FRA to age 70 the increase for delaying is 8% per year. So if age 69 benefit is, say, $2000/month, 8% gets you a $160/month increase in benefit.
To some folks, that's huge; to others, not so much.
I understand your position. However: in my view, the framework becomes starkly different once your income from work stops.
When your income from work stops, you have no way to replenish money that you have to spend - other than through Social Security. Therefore, in my view, that extra $160/mo becomes incredibly valuable.
I'm ignoring investment returns. For 2015 and 2018, from what I discern, they were/are purely hypothetical. A circumstance about which I am mightily ticked off. Next time we hit a market top, I am DEFINITELY going to diversify some. But I digress.
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