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Old 07-09-2010, 01:41 PM
 
Location: Los Angeles area
14,017 posts, read 20,829,221 times
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Quote:
Originally Posted by nan5623 View Post
Question:

If a person retires early, not getting FULL SS ~~ when they get to, let's say, 66 ~~ does their benefits go up to the FULL SS amount??
No it doesn't. It stays at the reduced amount for life. Otherwise there would be no reason to wait and everyone would take it early, thus obliterating the whole concept of "early" retirement versus full retirement age, and those who waited would be utter fools. It is like a trade-off, or a bet with yourself: Do you want to get a smaller amount now, or get nothing now and wait to get a larger amount later? It all depends on how long you think you may live, or on how desparate you are now.
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Old 07-09-2010, 01:56 PM
 
Location: Georgia, USA
36,962 posts, read 40,892,726 times
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Quote:
Originally Posted by nan5623 View Post
Question:

If a person retires early, not getting FULL SS ~~ when they get to, let's say, 66 ~~ does their benefits go up to the FULL SS amount??
Nope, the earlier you start drawing money out, the lower the monthly base payment forever. Cost of living increases are possible but not guaranteed.
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Old 07-09-2010, 01:56 PM
 
Location: Illinois
8,534 posts, read 7,364,123 times
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Thank you, Escort Rider & Suzy_q2010. One can only dream!! I have a few years until retirement yet. Just checking everything out.

Last edited by nan5623; 07-09-2010 at 01:57 PM.. Reason: added
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Old 07-11-2010, 01:33 PM
 
Location: Central Ohio
10,801 posts, read 14,858,122 times
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Quote:
Originally Posted by TuborgP View Post
If not aware of research the 62/70 strategy for working couples each with good SS benefits. It has been written about and discussed often.
The-62-70-Solution: Personal Finance News from Yahoo! Finance
But now two sets of researchers have suggested in separate papers a novel strategy that should benefit many married couples: One spouse (usually the wife) claims at 62 to 66, while the other waits until 69 or 70 to collect. This pays off because of obscure Social Security rules and some facts about life expectancy that aren't obvious if you don't make your living as an actuary.

At a minimum read the paragraph about joint mortality and why for many couples this is the best option. Also following the correct procedure the spouse who delays taking benefits can draw spousal benefits at age 66. You have to follow the procedure to do it. Read the article in interested and many should be.
That is what I have learned.

My wife is already drawing a small state pension and our plan is she will draw social security as soon as she is able at 62. This is not far off, just a little over one year.

It isn't much because she spent half her life with me being a stay home mom to the children. Even so, with state and SS combined, she should receive around $900/month at age 62.

Our plan is to save every dime of it because as long as I am working we don't need it. We'd have close to $70,000 cash with 2% interest when I retire at 70. When I retire we take a once in a lifetime cruise putting the remaining $60,000 into an account earning say 3% drawing $350/month from it for the next 18 plus years if we needed the money.

But I don't see needing it so it would sit untouched so when I die first she can access that to make up my full benefit.

Retirement at 66 will get me a little over $2,100/month but if I wait to age 70 it's should be around $2700 to $2,800.month. As I understand it if I die first my wife's SS will stop and she will start to receive mine capped at what it would have been at age 66 meaning total income for the two of us would drop from $3,800/month to $2,400/month which would be felt. We would leave the $60,000 alone to augment possible required income in the future.
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Old 07-11-2010, 10:47 PM
 
31,672 posts, read 40,879,318 times
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Quote:
Originally Posted by nicet4 View Post
That is what I have learned.

My wife is already drawing a small state pension and our plan is she will draw social security as soon as she is able at 62. This is not far off, just a little over one year.

It isn't much because she spent half her life with me being a stay home mom to the children. Even so, with state and SS combined, she should receive around $900/month at age 62.

Our plan is to save every dime of it because as long as I am working we don't need it. We'd have close to $70,000 cash with 2% interest when I retire at 70. When I retire we take a once in a lifetime cruise putting the remaining $60,000 into an account earning say 3% drawing $350/month from it for the next 18 plus years if we needed the money.

But I don't see needing it so it would sit untouched so when I die first she can access that to make up my full benefit.

Retirement at 66 will get me a little over $2,100/month but if I wait to age 70 it's should be around $2700 to $2,800.month. As I understand it if I die first my wife's SS will stop and she will start to receive mine capped at what it would have been at age 66 meaning total income for the two of us would drop from $3,800/month to $2,400/month which would be felt. We would leave the $60,000 alone to augment possible required income in the future.
Someone can correct me if wrong but I believe if you start drawing at 70 and pass she gets the amount you were drawing. That's why it is called the 62/70 strategy in that it maximizes the amount the surviving spouse gets.
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Old 07-11-2010, 10:51 PM
 
31,672 posts, read 40,879,318 times
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Quote:
Originally Posted by Escort Rider View Post
Can't argue; there are rich people collecting who don't need it. However, what about the fundamental fairness of if you paid into it, you have earned it? Also, have you considered that the calculation of the retirement benefit favors low wage earners over high wage earners? (I.e., low wage earners get a higher percentage of their earnings back in benefits than high wage earners). Also, have you considered that rich people are paying federal income taxes on 85% of their Soc. Sec. benefits, while the poor are not taxed on them at all? Also, don't forget that the rich are paying higher Medicare Part B premium rates than most people. Full disclosure: I am solidy middle class, not even close to being rich. But I still try to look at the overall structure of the system, and at its rationality, rather than how I could personally benefit from some change.
Absurd we should get back from SS as intended and not punished because we have other assets. If we want to use one of our SS benefits to buy a beach home that is our right. We earned the comfortable retirement we have by having done things wisely and making smart career and investment decisions. Why would someone who paid the max in get nothing out? That is a good way to get folks to contribute campaign funds to politicians who would eliminate SS, I would. What another wealth transfer? Then it really would be socialism beyond a doubt.
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Old 07-16-2010, 03:12 PM
 
11,523 posts, read 14,561,718 times
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Quote:
Originally Posted by AADAD View Post
I work currently full time. As I think about retiring I see the social security coming in at $2100/mo at 65 and $3100/mo at 70. I suppose I can keep working p/t til 70. Should be easy being an RN. Can one work p/t til 70? Any RN's do this or any other people here have a similar career or experience?
Can you work per diem till 70? Just every Saturday or every other weekend? That might be a good alternative--not much work, but a bit of money coming in. I knew a fair amount of nurses who worked past 65 that way. I remember them in my travels.
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Old 07-16-2010, 03:28 PM
 
105,670 posts, read 107,628,943 times
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Quote:
Originally Posted by nan5623 View Post
Question:

If a person retires early, not getting FULL SS ~~ when they get to, let's say, 66 ~~ does their benefits go up to the FULL SS amount??
you could pay back to ss whatever you got and refile at the higher amount....

thats our plan....... we will repay around age 69 and not only will we get the higher payments for life but we will use the paying back of the social security for a income tax deduction that will pretty much give us a free roth conversion and no rmd's..itS A WIN WIN ALL AROUND.

even if i crap out out shortley after odds are my wife will go on to collect those almost 2x larger payments...if we are both dead then it really is a moot point we payed it back isnt it?


there is one other bonus to this , it lets you pull and spend alot more out of your nest egg early on then you otherwise might have because you have the added security of refilling your nest egg later on in life with almost 2x the payments you would get at 62.....

we intend to retire early and right from day 1 start to take a larger withdrawl then we could if we were going to lock the payments in at 62

Last edited by mathjak107; 07-16-2010 at 03:40 PM..
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Old 08-04-2010, 02:57 PM
 
Location: Lyon, France, Whidbey Island WA
20,830 posts, read 16,961,699 times
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Quote:
Originally Posted by Phoenix lady View Post
Can you work per diem till 70? Just every Saturday or every other weekend? That might be a good alternative--not much work, but a bit of money coming in. I knew a fair amount of nurses who worked past 65 that way. I remember them in my travels.
That is the plan at this point in time. =)
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Old 08-04-2010, 04:07 PM
 
Location: Central Ohio
10,801 posts, read 14,858,122 times
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Quote:
Originally Posted by NewToCA View Post
Just as a side note though, I believe that Spousal Social Security (provided for spouses with low or no working income history) is capped at what would be received at normal retirement age.

I believe this does not increase if you delay receiving Social Security.
I believe you are right.

After reading everything my wife will start drawing at age 62 one year from now.

My benefits are identical to the original poster.

I don't care about me I care about my wife and if I worked to age 70 I would draw $2,800/mo but if I die she would get kicked back to $2,100.

So here is what we are going to do.

I got a great job I love doing so she'll draw at 62, receive $900/month and we will bank all of it for 3 years until I reach 66. That's an additional $32,400 in savings.

When I am 66 I will draw the $2,100 and together we'll bank 100% of our retirement income ($3,000/month) over the four year period saving an additional $144.000.

For the $700 I would lose by retiring at 66 we could draw that out of the $144k for 17 years (that is without earning any interest on it) and still be at break even. In the meantime if I would die at 71 she would have to learn to live on my $2,100/month but she should have over $300k in total retirement savings. Also, as I understand it, if I work to 70 my base will continue to rise as I put more into the system.

Income taxes are going to be a real pain between 66 and 70 though.

So am I missing anything?
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