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When to apply for Social Security- It isn't that simple.

John Cummings

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Fern explained that she's already getting Jerry's benefit; the question is at what age to start collecting her own benefit in its place.

I wasn't referring to Fern in particular. I was simply saying that there is a lot more to consider than just the SS payback depending on ANY person's particular situation.
 

Born2Travel

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I'm not sure that most people have an income stream from investments, though it would be nice if everyone did. Personally, if I knew I was still going to be able to collect at 70 I would wait, but since I don't know, and there are no guarantees, my feeling is that I'd rather take it sooner hoping in the long run to at least collect for a longer period of time rather than trying to hold out until 70 and maybe never being able to collect at all.
 

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My FRA is 67, so what's another 3 years? If it's going bust, it will be before I'm eligible, which is after the boomers drain the pot.

Past 59.5 I can take from 401k and if not a FT job, could contract or do fun PT jobs. I could receive dividends in cash vs reinvesting and turn that spigot off again when SS kicks in. If I'm in trouble, fine, collect earlier than desired.

Collecting SS is so far into the future for me that I'm expecting to wait until 70 to get the full canoly if I can, but expect I'll get nothing. And that is how I'm planning my retirement, without figuring in SS but expecting to remain in the work force past 65.

Life will happen, plans will adapt.
 

M. Henley

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??

So, if the wife is drawing the 1/2 of spouse's benefit and the spouse dies the payment goes up to 100%?

"Benefit amount for a spouse
Updated 02/25/2011 11:59 AM | ID# 175
What are the benefit amounts a spouse may be entitled to receive?
A spouse receives one-half of the retired worker's full benefit unless the spouse begins collecting benefits before full retirement age. In that case, the amount of the spouse's benefit is reduced by a percentage based on the number of months before he/she reaches full retirement age."


Surviving spouse collects 100% of the deceased's benefits if at full retirement age. Here is the official info:

http://www.ssa.gov/survivorplan/ww&os2.htm
 

Blues

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So, if the wife is drawing the 1/2 of spouse's benefit and the spouse dies the payment goes up to 100%?

That's one way to look at it. In my mind, the total payment goes DOWN from 150% (husband + wife) to 100% (widow only).

-Bob
 

Conan

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That's one way to look at it. In my mind, the total payment goes DOWN from 150% (husband + wife) to 100% (widow only).

And don't forget how the system treats couples where both work. If the wife worked at a pay level that earned her a benefit that's 50% of the benefit the husband earned, she doesn't get 1 cent extra for having paid her social security taxes. While they're both alive her benefit is exactly what a non-working spouse gets, and likewise if her husband dies.
 

isisdave

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Thanks, but neither of these directly answers the question of how and when it actually is done. But in the calculator results I found this:

We withhold benefits starting at the beginning of the year. We do not pay partial monthly benefits based on estimated earnings. Next year, when we know how much you actually earned in 2011, we will calculate how much your benefits should have been reduced. We will then pay you any excess benefits we may have withheld or let you know if we did not withhold enough.

I interpret this to mean that they adjust the amount at the beginning of each year, and expect you to tell them in advance how much you're going to make that year. Then, at the end, when they find out how much you did make, they adjust the reduction either by giving you back some money or ... what, withholding more in the following year, or sending you a bill ???

If I knew how much I was going to make (i.e. had a regular, predictable job) I probably wouldn't need to tap SS before full retirement age...
 

John Cummings

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So, if the wife is drawing the 1/2 of spouse's benefit and the spouse dies the payment goes up to 100%?

"Benefit amount for a spouse
Updated 02/25/2011 11:59 AM | ID# 175
What are the benefit amounts a spouse may be entitled to receive?
A spouse receives one-half of the retired worker's full benefit unless the spouse begins collecting benefits before full retirement age. In that case, the amount of the spouse's benefit is reduced by a percentage based on the number of months before he/she reaches full retirement age."

That is correct. I asked that very question at the SS office a couple weeks ago.

A spouse receives 50% of the retired workers benefit IF the spouse is at full retirement age. The spouse actually pays a higher penalty for collecting before their full retirement age than a retired person of the same age. Even if the surviving spouse started collecting spousal benefits before full retirement age they will still get 100% of the deceased retired person's benefit.

As I said, we just went through all of that with our financial adviser and the SS office.
 

Pit

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That is correct. I asked that very question at the SS office a couple weeks ago.

A spouse receives 50% of the retired workers benefit IF the spouse is at full retirement age. The spouse actually pays a higher penalty for collecting before their full retirement age than a retired person of the same age. Even if the surviving spouse started collecting spousal benefits before full retirement age they will still get 100% of the deceased retired person's benefit.

As I said, we just went through all of that with our financial adviser and the SS office.

If a spouse is not collecting at all (never worked), and the retired worker dies. Does the surviving spouse (79 years old) recieve 50% or 100% of the retired worker's benefit?
 

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If a spouse is not collecting at all (never worked), and the retired worker dies. Does the surviving spouse (79 years old) recieve 50% or 100% of the retired worker's benefit?

Hmm, I don't understand why the spouse is not collecting. Even if she/he has never worked, she/he is eligible to receive SS based on the spouses employment beginning at age 62.

When the retired worker dies, the spouse loses her/his benefit but gets 100% of the retired worker's amount.
 

Fern Modena

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The info below isn't exactly correct. The spouse doesn't lose their benefit. They may choose to take the deceased spouse's benefit if it is more. But if they haven't collected theirs yet, if there becomes a point when their own benefit would be more, they can switch to their own. I am planning on switching when I reach age 65.

Fern

When the retired worker dies, the spouse loses her/his benefit but gets 100% of the retired worker's amount.
 

John Cummings

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Hmm, I don't understand why the spouse is not collecting. Even if she/he has never worked, she/he is eligible to receive SS based on the spouses employment beginning at age 62.

When the retired worker dies, the spouse loses her/his benefit but gets 100% of the retired worker's amount.

If the spouse starts collecting spousal benefits at age 62, they will only get approximately 35% of the retired worker's benefit as long as they are both alive. As I said earlier, spousal benefits have a higher penalty for early withdrawal of benefits than a retired worker does. For that reason they may not want to start collecting at age 62. However, if the retired worker dies then the spouse will receive 100% of the retired worker's benefit regardless of when the spouse started collecting spousal benefits.
 

John Cummings

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The info below isn't exactly correct. The spouse doesn't lose their benefit. They may choose to take the deceased spouse's benefit if it is more. But if they haven't collected theirs yet, if there becomes a point when their own benefit would be more, they can switch to their own. I am planning on switching when I reach age 65.

Fern

You are assuming that the spouse worked and is eligible to receive SS on their own earnings. That is not the case here. We are assuming that the spouse has not worked enough to qualify for SS. That is the case with my wife as she has never worked outside of the home.
 

Fern Modena

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You didn't read my post correctly, John. I was responding to someone who said the spouse would lose "his or her benefit." If they were already collecting their own benefit and switched, that would be correct. If they weren't, it wouldn't be.

It was in reply to someone's own benefit, not applicable in your case since your wife did not work under social security.

Fern
 

TSchmidt

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You didn't read my post correctly, John. I was responding to someone who said the spouse would lose "his or her benefit." If they were already collecting their own benefit and switched, that would be correct. If they weren't, it wouldn't be.

It was in reply to someone's own benefit, not applicable in your case since your wife did not work under social security.

Fern

Fern, you were responding to my post and I was discussing benefits for a spouse who did not work. Perhaps my post was unclear.
 

Fern Modena

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It was not clear to me. When you said "his or her benefit" I did not realize that you meant "his or her spousal benefit." Actually they don't lose that, it becomes a widow's or widower's benefit on the same account. But that's semantics. I did, in fact, misunderstand, and was responding to a different situation, one more like mine.

So the title of this thread is correct, "It isn't that simple."

Fern
 

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This was news to me: After 66, benefits don’t get cut no matter how much you earn. I had always heard any working income would reduce benefits, but didn't realize there was a cut-off date where this would no longer apply.

Thanks for posting this.
Actually it is "full retirement age" that the income penalty is removed. For some people it is age 66. Others it can be 67. It all depends on when you were born.

Joe P.
 
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