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View Poll Results: When did you (or when do you plan to) start taking Social Security benefits?
Age 62 66 55.00%
Age 63 2 1.67%
Age 64 3 2.50%
Age 65 10 8.33%
Age 66 19 15.83%
Age 67 or older 20 16.67%
Voters: 120. You may not vote on this poll

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Old 06-20-2015, 01:41 PM
 
Location: Grove City, Ohio
10,129 posts, read 12,378,690 times
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Quote:
Originally Posted by mathjak107 View Post
not me , stuff like that makes my hair hurt !
Sorry,

One thing I man should always consider first is his spouse.

My wife receives a small ($400) monthly state pension that she has been receiving since she turned 60. Pretty good, they provide her supplement Medicare plan (it's a good one, it's government) and good dental insurance for both of us. After they take everything out they direct deposit $151 on the first of every month.

However, when she turns FRA in a few months I plan to file and suspend so she can get 50% of my FRA benefit (I will be nearing 68) but she won't get half.

My understanding is her social security will be reduced by $2 for every $3 she receives in her state pension. Government Pension Offset. If my FRA benefit was $2,250 she will receive $2,250*.5-($400*.667) or $858 or thereabouts. Take her Medicare B out and she's down to only $763 but add the $151 to end up with $914 which isn't bad when you consider that is after her Part B, a Medicare Advantage plan for her and dental insurance for both of us.

Now, as I understand it, in the event I die first she will receive all of my social security benefit as a survivor without a pension offset since her survivor benefits are all based upon my income, am I right? If this is the case and I put off collecting to age 70 she'll be very well set even though we don't have what some tell us we should have in our IRA's. We got some but it ain't no half million or so.

Quote:
Originally Posted by reed303 View Post
Numbers are OK except the comment in red. The $2562 is their TOTAL tax. If you plug these numbers into any 1040 calculator, you'll see that the SS tax portion of the $2562 is about 30% of the $34000 SS benefit @ the 15% bracket rate = $1537 . It is still more than the first scenario.

FWIW, my own situation results in roughly the same numbers
Thank you sir, I stand corrected (not to mention more knowledgeable).
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Old 06-20-2015, 02:24 PM
 
2,294 posts, read 1,559,623 times
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Quote:
Originally Posted by mathjak107 View Post
not me , stuff like that makes my hair hurt !
Math...

Re: taking early at 62 or waiting, one could also simply investing the early payouts ( if one didn't need them) and I don't think that was factored in the calculations involved in taking it early or waiting. So, sure if you need those payments they would be spent, but if you didn't need them and say could live on a pension it might still be the smartest thing to take Social Security payments early and simply stick them in an index fund until later years .
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Old 06-20-2015, 02:31 PM
 
71,501 posts, read 71,674,131 times
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actually , what was figured more realistically is not so much investing the social security but in most cases it is just leaving what you do have invested staying invested .

but that is basically the same thing as having a pension and investing the ss. in either case a balanced portfolio with about a 6% return was figured over the long haul.

that is why break even got stretched out to 22-24 years.
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Old 06-20-2015, 03:09 PM
 
10,812 posts, read 8,058,272 times
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Quote:
Originally Posted by mathjak107 View Post
any of my references assume the pay check ended. if you are working still or have a pension that covers your cost of living then nothing i refer to would apply
^^^^

I'm 67, DH is 64 and neither of us is taking it yet. We both draw good pensions so don't need the SS income. Further, we're in a multi-year process of converting IRAs to Roths so the SS income would put us in a higher tax bracket than desirable right now.

But the biggest reason we're postponing SS is to wait until DH turns 66. Then we'll both be FRA and that opens up options for maximizing SS benefits.
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Old 06-20-2015, 03:13 PM
 
10,812 posts, read 8,058,272 times
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Quote:
Originally Posted by nicet4 View Post
Now, as I understand it, in the event I die first she will receive all of my social security benefit as a survivor without a pension offset since her survivor benefits are all based upon my income, am I right?
Wrong. GPO applies to survivor benefits also:

Retirement Planner: Government Pension Offset (GPO)
Quote:
The GPO will reduce the amount of your Social Security spouse's, widow's or widower's benefits by two-thirds of the amount of your government pension.
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Old 06-20-2015, 03:21 PM
 
71,501 posts, read 71,674,131 times
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Quote:
Originally Posted by biscuitmom View Post
^^^^

I'm 67, DH is 64 and neither of us is taking it yet. We both draw good pensions so don't need the SS income. Further, we're in a multi-year process of converting IRAs to Roths so the SS income would put us in a higher tax bracket than desirable right now.

But the biggest reason we're postponing SS is to wait until DH turns 66. Then we'll both be FRA and that opens up options for maximizing SS benefits.
the nice things about pensions is the pay check never really stops . so things that pertain to those living off their own investments do not apply or do not apply fully to many with pensions or still working.
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Old 06-20-2015, 04:04 PM
 
2,294 posts, read 1,559,623 times
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Quote:
Originally Posted by mathjak107 View Post
the nice things about pensions is the pay check never really stops . so things that pertain to those living off their own investments do not apply or do not apply fully to many with pensions or still working.
This is a little unrelated but something to keep in mind if you will receive a pension is how COLAs
(Cost of living adjustments) are treated in your own case. With "no or less than inflation cost of living adjustments" the monthly pension can erode greatly over time...say 5, 10,20, 30 years (or more). And many have been lulled into thinking that low inflation will be a constant thing. It most likely won't. Social security will keep up with inflation so should be factored into any decisions.
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Old 06-20-2015, 07:21 PM
 
Location: Los Angeles area
14,018 posts, read 17,729,443 times
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Quote:
Originally Posted by Burkmere View Post
This is a little unrelated but something to keep in mind if you will receive a pension is how COLAs
(Cost of living adjustments) are treated in your own case. With "no or less than inflation cost of living adjustments" the monthly pension can erode greatly over time...say 5, 10,20, 30 years (or more). And many have been lulled into thinking that low inflation will be a constant thing. It most likely won't. Social security will keep up with inflation so should be factored into any decisions.
Absolutely. The cost of living provisions of a pension, or the lack of same, are a very important part of the pension. My own has (to me) a rather strange cost of living adjustment provision: We get two percent per year (non-compounded) regardless what the actual rate of inflation, or even deflation, is. I retired ten years ago, so I am ahead of the game right now. In the future, I may well fall behind, but the 2% will still beat nothing.

By "non-compounded", I mean that the 2% is figured each year on the amount of the original pension only, not on any previous 2% increases. In other words, it is the same fixed amount each year.
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Old 06-21-2015, 12:20 AM
 
2,294 posts, read 1,559,623 times
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Quote:
Originally Posted by Escort Rider View Post
Absolutely. The cost of living provisions of a pension, or the lack of same, are a very important part of the pension. My own has (to me) a rather strange cost of living adjustment provision: We get two percent per year (non-compounded) regardless what the actual rate of inflation, or even deflation, is. I retired ten years ago, so I am ahead of the game right now. In the future, I may well fall behind, but the 2% will still beat nothing.

By "non-compounded", I mean that the 2% is figured each year on the amount of the original pension only, not on any previous 2% increases. In other words, it is the same fixed amount each year.
Sounds like a CALPERS pension. I work in the public pension arena.
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Old 06-21-2015, 01:25 AM
 
2,429 posts, read 3,222,625 times
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Quote:
By "non-compounded", I mean that the 2% is figured each year on the amount of the original pension only, not on any previous 2% increases. In other words, it is the same fixed amount each year.
I'm lost..... if it's "not compounded," how is it 2% EACH year?
If you retire with a 2,000 a month pension, and the COLA adjustment is 2%, then how does it ever go up, if it doesn't compound from one year to the next.
2,000 the first year, then 2 percent more the next year, the third year isn't it still 2K plus 2%, and the 10th year the same...2K plus 2%?
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