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My brother in law got penalized heavily for working full time until he turned 68. He got a full time job while drawing full benefits at 67 but when he turned 68 it was no longer an issue.
His may have been different because it was partly disability (Vietnam War).
Spend the $40 for a year's subscription to https://maximizemysocialsecurity.com
I did and it was well worth it.
Lots of insight into when you should collect. When to take SS benefits is a huge decision with thousands (up to 100s of thousands) of dollars at stake.
OP, If you file for spousal after your husband files for his FRA benefit you will only receive half of that amount IF you are FRA yourself when you file. You can file before that but will receive a lesser amount based on how many months from your FRA you are. Also this supposes that your benefit is less than the half of his would be.
Also Keep in mind of course that if He is still working and gets his SS benefit that it is going to be taxed just like your regular income since he makes 94K now. So figure out how much you will lose in taxes when you make your decisions.
Originally Posted by volosong View Post
On the delay . . . to give you some guidance, I'll relate my own personal experience.
I retired at age 65 1/2. No real reason for that date, except for personal factors. My FRA is age 66, but I have yet to claim SS benefits, (I am currently 67 1/3). My personal plan is to start SS benefits next February or March, at which time I will be 67 1/2.
By waiting from my FRA till next Feb or Mar, my yearly SS income will have increased about $3,800 per year.
Quote:
Originally Posted by MaryleeII
Good points to consider
These are good points to consider but also consider that when you delay receiving benefits you are losing out on the current amount.
Let's say you delay receiving benefits of 2,000 a month for 2 years but your benefits increase by 3,800 per year. You are giving up 24,000 to receive 3,800 per year. I believe with actual numbers you receive the same amount if you live to the average age. If you live longer you will collect more than you gave up and if you live less you will collect less.
These are good points to consider but also consider that when you delay receiving benefits you are losing out on the current amount.
Let's say you delay receiving benefits of 2,000 a month for 2 years but your benefits increase by 3,800 per year. You are giving up 24,000 to receive 3,800 per year. I believe with actual numbers you receive the same amount if you live to the average age. If you live longer you will collect more than you gave up and if you live less you will collect less.
Yes, it is a gamble. The 'break even' point is somewhere in the early to mid 80's. If I die before then, I lose out. If I live longer, I make out. The only reason I was able to delay is because I had other sources of income, (i.e., 403(b), savings), to tide me over.
I am working and collecting. The year you hit retirement age (67 for me) is special. The months before your birthday the amount you can earn basically doubles, before they reduce benefits. Starting the month of your birthday, there's no limits on your earnings. As you continue to work, the money you pay in does count towards what you get from SS. You aren't locked into the benefit amount you qualified for when you filed. You are responsible for paying taxes on your social security while you are working.
In my case, it's been a God-send to do both. It's helped us get the house ready to sell, when I can finally retire from the job.
I think my SSA would be something like $940 at 66. I am currently 64.
You say you just did this? Isn't that called file and suspend? Or am I confusing that with something else? I thought File & suspend ended last year?
You are confusing it with something else. As mathjak mentioned, files and suspend is gone. This is called a restricted application.
You would file for your SS. If your full SS would be $940 then your age 64 SS would be around $846. And he would get half of your $940 which would be $470.
So combined you'd get $1316 a month, all the while allowing his SS to keep growing till age 70. And while he is still working. Based on your numbers, he earns a lot more then you.
So his SS will be way higher. But whenever one of you dies (either one), YOUR SS is going away. The surviving spouse will get his amount.
So, it makes sense to allow his to keep growing till age 70 !! And in the meantime, he can still work as long as he wants, and you combined collect an extra $15,792 a year ($1,316 a month)
Now the one thing that could mess this up is if YOU are still working and earning over $18,000 a year. Then you start getting "penalized" (temporarily) for earning too much. Do you mind saying whether you are working and if so how much?
As for me, had I collected at 62, my SS would have been $18,600. At age 70 it will be $34,000. It just crossed over the $28,000 point. I'm 67.5 so 2,5 more years to go,
But in the meantime, starting in January my wife will be getting about $16,000 in SS, and I will be getting half of her FRA SS which is about $8,500 a year. While mine keeps growing. So assuming I go first my wife will get $34,000 and not my original $18,600.
You are confusing it with something else. As mathjak mentioned, files and suspend is gone. This is called a restricted application.
You would file for your SS. If your full SS would be $940 then your age 64 SS would be around $846. And he would get half of your $940 which would be $470.
So combined you'd get $1316 a month, all the while allowing his SS to keep growing till age 70. And while he is still working. Based on your numbers, he earns a lot more then you.
So his SS will be way higher. But whenever one of you dies (either one), YOUR SS is going away. The surviving spouse will get his amount.
So, it makes sense to allow his to keep growing till age 70 !! And in the meantime, he can still work as long as he wants, and you combined collect an extra $15,792 a year ($1,316 a month)
Now the one thing that could mess this up is if YOU are still working and earning over $18,000 a year. Then you start getting "penalized" (temporarily) for earning too much. Do you mind saying whether you are working and if so how much?
As for me, had I collected at 62, my SS would have been $18,600. At age 70 it will be $34,000. It just crossed over the $28,000 point. I'm 67.5 so 2,5 more years to go,
But in the meantime, starting in January my wife will be getting about $16,000 in SS, and I will be getting half of her FRA SS which is about $8,500 a year. While mine keeps growing. So assuming I go first my wife will get $34,000 and not my original $18,600.
Thanks for the valuable information
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