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Old 12-17-2018, 11:34 AM
 
823 posts, read 215,906 times
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Quote:
Originally Posted by Bette View Post
Thanks for the response which is what I thought, however, there was a previous thread where the spouse continued to work past 70, collected at 70 and his SS has increased each year. I can't find it though.

My husband and I have already made the decision to wait until 70.

He, however, has clients who have asked such questions and he always refers them to SSA but it's good info. (He's a CPA).

I do worry if it's only 1 of us down the road (of course).

I did try to find that thread and was surprised when I read it.

IOW, if you continued working after 70 and kept your earnings higher, that way it would increase would be to cancel the lower earning years. By that time, we will have over 53 years (at 70), that is.
I wasn't clear from your post about a spousal benefit. Are you and your spouse both waiting to collect to age 70? Depending upon your age, there are various options so spouse can start collecting a 50% spousal benefit sooner than age 70 that may be more advantageous.

Last edited by Maddie104; 12-17-2018 at 11:45 AM..
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Old 12-17-2018, 12:08 PM
 
Location: Boca Raton, FL
5,177 posts, read 8,701,447 times
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Smile See below

Yes, until 70.

We are the same age. Literally, the same age. Same date of birth.
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Old 12-17-2018, 12:43 PM
 
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If you or your spouse were born before 1/1/1954, have you considered doing a restricted application?

https://www.thebalance.com/social-se...ations-2388915
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Old 12-17-2018, 12:52 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,828 posts, read 54,521,132 times
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Quote:
Originally Posted by Maddie104 View Post
If you or your spouse were born before 1/1/1954, have you considered doing a restricted application?

https://www.thebalance.com/social-se...ations-2388915

We are prepared to do this if my wife decides to retire before me, she is a year younger and her SS benefit will be less than half of mine.
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Old 12-17-2018, 01:07 PM
 
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We are same age as well (not same dob). My husband will file first and I will file restricted application at FRA and then change to my own benefit at 70. He has a pension so this serves as "deferred retirement annuity" for me.
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Old 12-17-2018, 03:23 PM
 
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Originally Posted by NewbieHere View Post
Iíve read itís best to avoid zero years. I managed to have $20 in one year but index with inflation, it will turn into $1000 in todayís dollar. I take it.

I just played with my spreadsheet that calculate my benefit. I turned a max income year into $0. It dropped my benefit by $675/year from $43,629 to $42,953. Sure, it's best to avoid zero years but it doesn't change the benefit all that much to have one if the other 34 are all consistent.
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Old 12-17-2018, 03:48 PM
 
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Quote:
Originally Posted by GeoffD View Post
I just played with my spreadsheet that calculate my benefit. I turned a max income year into $0. It dropped my benefit by $675/year from $43,629 to $42,953. Sure, it's best to avoid zero years but it doesn't change the benefit all that much to have one if the other 34 are all consistent.
Also factor social security taxes on additional years of work. When I reviewed my years, with inflation indexed wages, it wasn't worth working an additional year after factoring paying social security taxes and the benefit formula's bend rates.
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Old 12-17-2018, 04:19 PM
 
Location: Boca Raton, FL
5,177 posts, read 8,701,447 times
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Smile After 1954

Quote:
Originally Posted by Maddie104 View Post
If you or your spouse were born before 1/1/1954, have you considered doing a restricted application?

https://www.thebalance.com/social-se...ations-2388915
Few years later

We have decided not to file until 70.

Plus you need to be FRA for restricted - not close at that point.

Note: This was not just about us but clients who are over 70 and still working. It was because of that other thread.

Last edited by Bette; 12-17-2018 at 05:00 PM..
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Old 12-18-2018, 07:24 AM
 
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Quote:
Originally Posted by Bette View Post
Few years later

We have decided not to file until 70.

Plus you need to be FRA for restricted - not close at that point.

Note: This was not just about us but clients who are over 70 and still working. It was because of that other thread.
Yes; I know (and comprehend) all that you posted and attached an informative link. Sorry you did not find it helpful.
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Old 12-18-2018, 04:40 PM
 
Location: Ohio
19,935 posts, read 14,249,679 times
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Quote:
Originally Posted by Bette View Post
Thanks for the response which is what I thought, however, there was a previous thread where the spouse continued to work past 70, collected at 70 and his SS has increased each year. I can't find it though.
Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process, and benefits are paid in December of the following year.

There are two reasons why that might happen.

My mother has 76 years, works, and her benefits increase every year, but that's because she only had a 20 year work history when she took benefits at age 70. She plans on working until age 80, and that will give her a 30 year work history, and her benefits will increase because of that.

The only other reason is that higher wages kick out lower years of wages.

Understand I'm talking about indexed wages here, not nominal wages.

90% of people will not see substantial increases in their benefits, literally we're talking about a few dollars per month, unless their wages they are earning are higher than their highest year's earnings.

It's just simple math.

The amount you receive when you first get benefits sets the base for the amount you will receive for the rest of your life.

If you applied in 2018, your base amount is 90% of $895 or $805/month.

That's the base amount for the rest of your life. That will never change.

If you apply in 2019, your base amount will be 90% of $926 or $833/month and that amount will never change for the rest of your life.

The only thing that is recalculated is the 2nd bend point, which is fixed to the year you retired.

If you retired in 2018, that will always be $896 to $5,397.

If your average monthly wage is $2,400, you get 32% of that or $768. If you can increase your average monthly wage to $2,500, then you'd get $800, or an extra $32 per month.

But, increasing your average monthly wage is a lot harder than it sounds, and you can really only do it if you had very low wages early on in your career, or you worked part-time for a number of years (common for married women) or had no wages at all.

You should probably set up a spread-sheet and work it out. If you're working because you like it, or need the extra income, no issue there, but if you think it will increase your benefits, it most likely will not.
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