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What you could do is claim the suspended money, get that lump sum, then pay yourself the additional money out of the lump sum (the 160.00 a month every month) but if you die sooner, rather than later, your heirs have that lump sum. $1000 x 24 months = $24000.00. Divide by 160, it would last for 150 months, which is 12.5 years from 68 (age 80.5).
This post leads me to a question that popped into my mind. Let's say one half of a married couple files and suspends SS payments at FRA but dies before age 70 and does not collect a cent. Does the surviving spouse have the ability to collect all SS earnings to that point from the date of filing? She would then be able to survivor/or widow(er) payments? Or am I reaching?
This post leads me to a question that popped into my mind. Let's say one half of a married couple files and suspends SS payments at FRA but dies before age 70 and does not collect a cent. Does the surviving spouse have the ability to collect all SS earnings to that point from the date of filing? She would then be able to survivor/or widow(er) payments? Or am I reaching?
I can't find a linkable source but DH & I have been told that once you file - even if you later suspend- you've essentially "frozen" your file date until you re-file.
However, only you can collect a lump sum payout. If you die before collecting benefits, your widow or widower would be eligible for survivor benefits based on what you would have received at time of death, but not a lump sum payout of uncollected benefits. And if you are single, there are no survivor benefits.
Last edited by biscuitmom; 07-14-2015 at 07:39 PM..
I have posted both of your questions (golfingduo and biscuitmom) on my fellow SSA employee and retiree group FB page, and when some of my expert friends, post an answer, I will let you guys know.
I tried "file and suspend" on ssa.gov, got a good web page, but it didn't address your questions.
Ok, the friend I was hoping would answer, did answer, (he still works at SSA) but found the answer, not on in the manual (POMS), but in an article. It is short, but to the point.
Well that just makes sense. If they allowed the survivors to retro claim the lump sum, then just like if you had lived, the survivor would then only get the FRA amount, not the DRC enhanced amount. If the pair were surviving without the other SS income prior to death then presumably the survivor could do better with the larger amount on their own. SS was never meant to be a source of enhanced net worth for the heirs or estate, but for many, that is exactly what it is. That is always the "risk" of delaying. Dying and not getting any back, while reducing your estate while not collecting. It is one of the reasons I dont think anyone can really know if they will delay or not until they get "there", right? You would be pretty pissed if you weren't dead. I know I would be! Naturally there are easily plenty of situations where the lump sum would be preferred.
So that brings the next question. What is needed action and time wise to claim all your past SS from your suspend date and actually get it????
Well that just makes sense. If they allowed the survivors to retro claim the lump sum, then just like if you had lived, the survivor would then only get the FRA amount, not the DRC enhanced amount. If the pair were surviving without the other SS income prior to death then presumably the survivor could do better with the larger amount on their own. SS was never meant to be a source of enhanced net worth for the heirs or estate, but for many, that is exactly what it is. That is always the "risk" of delaying. Dying and not getting any back, while reducing your estate while not collecting. It is one of the reasons I dont think anyone can really know if they will delay or not until they get "there", right? You would be pretty pissed if you weren't dead. I know I would be! Naturally there are easily plenty of situations where the lump sum would be preferred.
So that brings the next question. What is needed action and time wise to claim all your past SS from your suspend date and actually get it????
according to SS the only action needed it to notify them you want to unsuspend and you want the lump sum back to FRA. Supposedly you can even do this by phone, though in writing would certainly be better I would think.
So if you feel like you may die or are diagnosed with a fatal illness Call the SS right away and write that letter as well. Not sure how long it takes to actually pay, But even if you die before the payment your heirs would still get the money under The above circumstances.
I have posted both of your questions (golfingduo and biscuitmom) on my fellow SSA employee and retiree group FB page, and when some of my expert friends, post an answer, I will let you guys know.
I tried "file and suspend" on ssa.gov, got a good web page, but it didn't address your questions.
Ok, the friend I was hoping would answer, did answer, (he still works at SSA) but found the answer, not on in the manual (POMS), but in an article. It is short, but to the point.
according to SS the only action needed it to notify them you want to unsuspend and you want the lump sum back to FRA. Supposedly you can even do this by phone, though in writing would certainly be better I would think.
So if you feel like you may die or are diagnosed with a fatal illness Call the SS right away and write that letter as well. Not sure how long it takes to actually pay, But even if you die before the payment your heirs would still get the money under The above circumstances.
A big caution to all of you, and not only in this situation. When you are dealing with a time sensitive situation with SSA, you really need to cover your tracks- meaning keep your own records, copies etc of what you did, who you spoke with, their title, location, when you did it etc. Very important that you do this!
For instance, if you want to enroll in the Special Enrollment Period granting you Part B without a penalty, and you had the form filled out by your employer, and by you, if you decide to mail it in - do it by certified mail. If you decide to bring it in, don't just drop it at the desk, even if the person at the front desk, says fine "I will give it to the person who handles this". Either, you ask if they can do the action themselves right there, or if not, you wait to see someone who will do the action. Then you ask that person for a copy of your form with a SSA date stamp on it. That way, if for some reason the computer kicks out the info, or nothing happens and you don't hear, you have proof that you submitted your form on a timely basis.
I am sure many of you already know how things get lost- and staffing at SSA is not what it should be, so the employees are always up front interviewing and have so little time at their desk doing the actions. The priorities are endless and although it is a priority to you, everyone feels their case is a priority and management has their own set of what is a priority. So even if the employee says to themselves "Oh, I have 2 hours at my desk today, more often than not, the supervisor comes over and says "I need you to work on this case, that case, answer these phones etc.etc. That pile of letters that the public sent in, is a low priority.
A situation like "unsuspending" is not common or routine and to tell you the truth, I am not even sure how it is done- whether the field office can do it -quickly, easily with a few key strokes, or whether it is to be done by the Program Service Centers that handle each region. However, I retired in 2008, was back for 2 times in 2009 and 2010- but was handling a different workload. I do know that pre 2008, I was never trained on file and suspend and only met one claimant who had suspended. So, if you write a letter, the person opening the mail may not even know who handles it. Or, it gets put on a desk and that person doesn't know what to do with it, so it gets put aside.
I hate to be "telling tales out of school" and hate to be badmouthing an agency that gave me a wonderful career, but there are realities to dealing with an underfunded bureaucracy, during a time when the baby boomers are retiring in droves, and the staffing, training etc has not kept up with the challenge.
And the 800# is not the "national office", or some such place. The 800# is staffed by telephone reps, they are given training, but by and large they communicate with the local office via computer, sometimes a phone call. You need to get action done by the people in your local office, and then sometimes they are at the mercy of the Program Service Centers, who have to take an action of your behalf.
If all else fails, you contact your Congressperson or Senator and then only accept a reply that actually answers your questions. I am helping someone on this site who went to their Senator, wrote me a copy of the reply from the Supervisor at the local office- it was totally unacceptable, so she is back at the Senator's office who will advocate for her again.
My wife and I have discussed her taking SS beginning next year, when she will be 65. However, we could probably afford for her to delay taking it for another year or more. But she will not be working in either case. SS tells us that her payment will go up every year if she delays taking it. BUT, is that with the assumption that she will continue to work?
So the question is, what is the effect on your future SS payout when you stop working, but delay beginning SS? I know there are some real experts on this topic on this forum, so I figured I'd ask.
Thanks in advance for correct answers.
You need to do the numbers as just the make cost over not taking it at 62 can be quite a few years. No delaying means higher payments. But it can it means you need to make the amount you loss over those years not taking it and of course what you can do with that money. There are some figures on average the number needed to make up that loss some where here I have seen. Seems I recall not taking it had a figure of needing to reach 70 on average before breaking even between taking it at 62 versus 66 full retirement.
The current online SS calculator from the SSA website will allow you to put in the estimated amount of earnings for future years in order to calculate your SS amount if taken at different ages. It uses your actual numbers up to last year and then you put in your estimates of future years and let it do it's thing.
Most shocking to me is the percentage collecting at age 62. Looks to be 44% and if you add those collecting at 63 it's over half the population.
It makes complete sense to me.
If you don't need the SS income for daily expenses, the earlier you take it the better the total income from SS (assuming the money is invested or used for cost avoidance) well into your 90's.
If you have to have the SS to survive because you got down sized/forced retirement, you take it early because you have too - sucks, but for many in todays job market it is a harsh reality!
So, the well prepared and the unprepared are the most likely filers for SS at 62/63 - what is interesting to me is that it is the two opposite ends of the income spectrum (or perhaps better stated as the opposites ends of retirement prepared spectrum) that are the most likely early SS filers.
Quote:
Originally Posted by nicet4
My employer and I have been talking about my eventual retirement starting next June 1st (I will be approaching 68) the plan is for me to work two days a week and for that I will take a 60% cut in pay. While it's a steep cut my wife will be collecting her full ss benefit (I will file and suspend so she gets 50% of my FRA benefit) and together we should be ok until I am 70 even if we do have to take a thousand or two once in a while out of savings.
The benefits of waiting are to good to pass up.
Sounds like you have a good employer who is working with you on the timing of your retirement - I think that is great for you, and says good things about your employer IMO.
On the bolded statement, have you taken into account the opportunity cost of forgoing SS payments for a couple of years? If you are essentially only going to live only on SS with no other income streams or assets, I think you have nailed it, but you have to remember you are passing up a monthly income for two years to get essentially 16% higher monthly benefits - it may take 20 or more years before you reach an income advantage from delaying SS to 70 vs. drawing at 68 (just something to consider).
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