Social Security benefits and retirement (55, retired, friend, drugs)
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The media keeps publishing numbers that play down just how much ss can be …..
I was never a high earner but ended up with 2500 hundred a month as a pre fra amount and my wife gets half as much …
When half the country earns so little they don’t pay income taxes it dilutes the averages down so it looks like everyone gets this 1600 a month or so
And if you want Medicare - have you signed up already?
If you don't sign up by 65 and then decide to sign up later - you get penalized.
That is not exactly correct. If you working at 65 and beyond and are covered under a qualifying plan through work you do not have to take Medicare at 65. At retirement those who were covered under a qualifying plan and want to pick up Medicare have 3 months post retirement to do so without penalty.
SS Retirement benefits only use earned, FICA payroll taxed, income to arrive at the "highest 35 years". As reported on your SS Earnings Statement.
Not SS benefit payments or other so-called "unearned" income, like interest etc.
Right. This is why I asked here as it may be confusing. Thank you. That is the case indeed.
This here threw me off:
Are there other ways that work can increase your benefits?
Yes. 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.
You made me dig deeper, so there's that:
What income counts…and when do we count it?
If you work for someone else, only your wages count toward Social Security’s earnings limits. If you’re self-employed, we count only your net earnings from self-employment. For the earnings limits, we don’t count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains. We do count an employee’s contribution to a pension or retirement plan, however, if the contribution amount is included in the employee’s gross wages
I think you might be surprised how far Social Security contributes to some people's retirement expenses. My SO who is now 69 claimed his SS benefit at 67 which is currently $2,200/month. I am 64 and still working, and if I choose to take my SS benefit at my FRA of 66.6, according to my most recent statement that will be $2,600/month which both benefits combined = $4,800/month. With no mortgage, no car payment or other large outstanding debt our combined expenses not counting things like vacations and other extras will be just about $4,800/month.
Less health insurance costs, what is formidable. Also, if you make $4800 and your combined expenses are $4800, you have no buffer for things unforeseen, unless you have a nice stash to dip into, when needed - and it is, somehow, miraculously, NOT decreasing in value year to year.
Unfortunately, being in health care, I see many Medicare recipients that count and struggle with every penny of their expenses.
FWIW, the 8% DRC (Delayed Retirement Credit) would apply to the gross benefit, not the net check/deposit. And it is 8% each year from FRA to age 70. BTDT.
That is what I thought but even with the cola last few years I am still stuck at 37 dollars. Not even worth tracking down.
Forget the math.
Do you need the money now? Then take it.
Can you wait until FRA? Then waite.
I look at the SS funds you give up now as purchasing an annuity at FRA. If you die the next year you lost out. If you live until 100 you won. Either way who cares, your dead?
My reason for waiting, if you can, is you do not know what the future holds for your investments so if they tank after FRA you are better off with the increased SS payment. Just another way to help diversify your assets.
SS is never the sole source of retirement income,thats what Uncle has been telling us.
Of course selling your home has always been a source of income when you use the sales proceed to buy a jumbo CD,earning 12% interest(Hello,does anyone remember 10-12% bank interest for jumbo CD).
Then comes Ebay,downsize and rid your so called antiques/collectibles and turn them into cash.
this is a country which does not encourage anyone to save but to spend,what will the young generation do when they get old,may be bitcoin,GME,AMC stocks will come to the rescue and it they hold them long enough,
dont count on inheritance if your family last name is not Bloomberg,Gates,Musk,Buffet,Ellison
Less health insurance costs, what is formidable. Also, if you make $4800 and your combined expenses are $4800, you have no buffer for things unforeseen, unless you have a nice stash to dip into, when needed - and it is, somehow, miraculously, NOT decreasing in value year to year.
Unfortunately, being in health care, I see many Medicare recipients that count and struggle with every penny of their expenses.
They are both in their 60s. health insurance is almost nothing. Free Medicare A, $200ish/mo for Medicare B, Add a medigap or Advantage and a prescription plan, it's a fraction of the combined SS benefits they'll receive.
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