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I'm not there yet: am in the window where I should begin planning. It's a nutso world. Most of the job-related mergers, restructures, acquisitions etc. that affect us are outside of our control.
I'm thinking ahead to 66, my FRA. Assuming I'm still working, there seems to be no downside to filing and suspending, from another thread here on this forum. Therefore, I'll file and suspend. But I'm not sure that I'm completely clear about what that means. For example:
I'd continue working (assuming I still like what I do, etc.)
Since I'd still be working, even though I've filed and suspended, will my final benefit be higher? I assume that with continued employment, SS deductions have continued, and I have more months/years of creditable service towards SS.
If I'm kicked to the curb before FRA, I'd have to run the numbers to see if I could avoid living in van by the river, while waiting till I'm 66. The penalty for early SS is so severe that in my case - being single - I would jump through a lot of hoops to avoid collecting early.
Am I viewing my circumstances correctly? Thanks for any insight.
if you have a spouse, which you said you don't who is going to collect off your record the only way they can collect is if you file . but if you want your own to grow while allowing them to collect off your record you file , the spouse files for spousal benefits and you suspend to let yours grow.
but what is not known is:
if a single you can still file and suspend . few know this but there is a big advantage to being single and doing a file and suspend . why do it if spousal benefits are not an issue ?
because if you file and suspend at fra and you plan to wait until 70 you will have the luxury of requesting a lump sum check retroactive at any age afterward going back to your fra.
so if your health takes a turn or you need a new roof you can request a check for what you didn't take and suspended since fra. you then have all future checks reduced to your fra amount but you get that lump sum.
if you do not file and suspend as a single you have no claim to be able to do that.
this is one aspect you never see mentioned as few know you can do that as a single.
remember- you heard it right here on city -data just by coming to this forum , because you will rarely see it mentioned .
Last edited by mathjak107; 02-01-2015 at 04:10 AM..
Very interesting MJ. I could see someone having circumstances, like a bad diagnosis, or financial crisis like a lay-off, that would make it a very viable option. But it's one that has to be planned ahead for the possibility of needing it. Sort of like insurance.
But if you don't request that retroactive lump sum, you get the higher payment you would have if you had not filed and suspended?? Am I getting that right??
MJ, thank you very much. I appreciate the info, and it is useful to every other single as well.
In sum, there is NO downside to filing and suspending! It affords the maximum flexibility - allows one to keep benefits growing while working beyond FRA, while providing the option of turning the benefit stream on, and collecting a retroactive lump sum benefit. Although, if you do elect the retroactive payment after filing and suspending, your payout remains forevermore at your FRA amount.
Very interesting MJ. I could see someone having circumstances, like a bad diagnosis, or financial crisis like a lay-off, that would make it a very viable option. But it's one that has to be planned ahead for the possibility of needing it. Sort of like insurance.
But if you don't request that retroactive lump sum, you get the higher payment you would have if you had not filed and suspended?? Am I getting that right??
yep , it is a win win. you get the higher sum by waiting unless you request the retro amount.
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