Want me to look over your numbers? You've got options. Check out the website for more information: www.approachfp.com/ Note: I do not discuss offerings, pricing, etc. in these comments. Please proceed to the website, where you can find a substantial amount of detail.
Superb and clear video! Thank you so much. I'm 57 and my husband is 56. He's an auto mechanic and wants to stop working at 65. I'm the larger wage earner and was looking to work until FRA at 67. The Open Social Security page is a great tool.
That online calculator is *fire*. Woohoo!! I entered the recommendations from the tool into my retirement planner tool and it pushed out IRMAA out an extra 10 years and reduced IRMAA from tens of thousands to $5k. A few Roth Conversions and my tax plan should be on point.
My wife unable to work while I stilworking passed 65 instead if retiring as I still have to work until 70. I know Medicare is very expensive even my employer offers my wife on Cobra if I retire. She is younger than me 8 years and that is a reason I am still working! She wasn’t qualified for Obama care or other markets place ! When I retire next year 70, and she is 63 two years away to apply for Medicare
Thanks Sir. This is the best video with the most helpul tools. I read many articles and watched videos but you could get confused for different situations. The SSA website has good explainations but only limited to 1 or 2 examples and they don't fit everyone's situation. The tools you listed solved all these complicated situations and the tools explained very clearly (sprousal benefits or survial benefits, and others)! I played a few cases like you showed on the video and results were very clear. The SSA calculator for PIA inside the "Open Social Security" link is another great tool that you can play around to decide if you or your spouse will work more years with expected SSA wages. It seems like most questions will be self-answered once you input the data into the tools.
As people wait longer to have children, if you have minor children when you turn 62 and you claim social security your children can also claim until they graduate high school. The key is even if you retire at 62 your children's benefit is based as if you had actually retired at Full Retirement Age. My case involved a child who collected tax free well over 1,000 a month for 4 years which went a long ways to paying for his college at a state univerisity. This scenario isn't widely known and rarely mentioned on videos like this.
Exactly. My youngest will collect just over $2k a month for 17 months. That’s probably 2 years of a state college. Taking SS at 62 will be a no brainer for me, though my wife is still happily employed at 58 and will likely take hers at full retirement age, or later.
All depends on one's need for cash and how much one saved over the years for retirement. Started maxing out my 401k at the age of 22 and now 58, it's grown into a great, incremental retirement. Still taking mine at age 70 as my glass is always half full and will focus on living versus how fast I will die.
I'm 4 years older than hubby ...took my little benefit at 62 I'm now 64...,He's waiting til 70 if health permits...my mom and her mom both lived to 90's...so whatever he gets at 70 I'll have to live on that amount if he goes to heaven first.....
I always struggle with the idea of maximizing my Social Security benefit versus having additional income earlier in my retirement when we can really take advantage of it. I assume that our lifestyles will be slowing down by the time we hit 67 and certainly by 70. What benefit is that extra money then? Also, if I have ANY desire to leave money to my heirs, spending down my nestegg in favor of a larger SS payout benefits them not at all. The tax and RMD ramifications are a separate issue that takes a bit more work. It's complicated and I feel like we are rolling the dice, no matter what we decide. Thanks for the great information though, including the Open Social Security calculator. That was eye opening.
Am I missing something? There would seem to be a big hole in this strategy. If I take SS benefits early, assume I am getting 75% of full retirement, and my spouse with a larger SS waits till 70 and gets 130%, if she dies first I can switch to her SS, but I will only get it at the 75% level because I took benefits early. So, while I may get a slight increase in SS upon her death (by taking over her SS), it will be nothing close to what she was getting, because I only get it at 75%, not her 130% level. It make much more sense for us to both take SS at the same time (we are the same age). Maybe this works different for a spousal benefit type situation, but not for 2 full wage earners.
Just making up numbers here, let's say your benefit at FRA is $1,000 and your spouse gets $3,000 at FRA. If you claim early, you start with $750 (or the 75% you mentioned), and we'll ignore any spousal top-off. Your spouse would eventually get $3,900 (or 130% of 3k, again sticking with your numbers here) when she claims. If she dies at age 72 (let's hope not), you would take over the *full* benefit she was receiving or entitled to. In other words, you could get $3,900+/month, and it is not reduced due to your early claiming (your 75% is history once you switch to a survivor benefit). This is just one example of why it's critical for spouses to consider what happens if one person dies early. The survivor can take over that bigger benefit. More on that topic here: ruclips.net/video/BGAzzExec4Y/видео.html Note that this is an oversimplified example, and the details may vary based on your circumstances.
@@JustinOnRetirement I was told by SSA that if an ex spouse claims their benefit early at 62, this permanently reduces Ex spouse & Survivor benefits......I am confused.
@@le4470 It’s a little confusing. If you take your Social Security at 62 this would not affect your survival benefit as long as you switch at age 67 or older. The SSA was talking about just taking just the “survival benefit” between ages 60 and 67. Taking the survival benefit before the age of 67 would reduce the amount.
This is specific for an individual’s situation. For example, if you don’t need the money you could argue to take it early and invest it. Or take it early and travel while healthy. Or you could delay and convert to Roth to fill up your tax bracket . If you are a single earner in the family, you can delay and provide a larger survivor benefit. For me I am delaying because I have inherited IRAs that need to come out before I turn 70. Also, SS colas are larger if delay and since only 85% is taxable, that will maximize the amount of tax free income.
Yeah, a lot of people say to take it early and invest it, but what's unsaid is their assumption that stocks and investments only go up. OTOH, doing nothing and letting your pending SS payments increase at more than 8% a year - guaranteed - is a no-stress way to "invest." I don't want to risk waking up to find that the CEO of the company I bought stock in ran off to the Bahamas with my money.
My wife took hers 2 months shy of her 66th b-day (FRA) 3 years ago. I'm taking mine in January 2024 4 months shy of my 70th b-day. By taking it 4 months early I am only losing only $55.00 a month.
Some say, "You don't know how long you'll live, so take it early." This is flawed logic because that statement can ALSO mean that they outlive their 90-yr old parents. Said another way, if someone said, "I think I'm going to live to 90, so I'm taking it now!", which makes no sense. To me, it's far worse to outlive your money than to leave some on the table, but everyone's free to make their own decisions.
Love your videos and to be honest , according to your website, that one time fee of $685 to talk to you seems worth it. You are very knowledgeable and cool
Retired at 62, claimed at 64, diff was around $35 a month more with the big COLA. If I waited till full retirement age 67 and months I would have lost around $65,000. If I waited till 70 it would be over $87,000 as of this years lookout. It would take several years to make that up at getting around $60 to $100 more a month years later. Do the math and hope for the best.
Thanks for you video. I did go the that calculator. My spouse delaying till age 67 would get about $300 more month. That is not peanuts. It will cover most of SS medicare premium. If a couple is healthy I don't see the wisdom in taking the spousal benefit earlier than full retirement for the spouse. The break even point is a little less than 10 years. Thoughts? Thanks again.
If you have enough in savings to carry those early years of retirement or are willing to work longer, and you expect to live past 80, delaying for the max benefit is a no-brainer in my opinion. Claiming early leaves too much on the table and life expectancy is only going to increase in the future as medicine advances. I'm 54 and single, still 8 or 9 years from retirement, but I plan to delay SS until 70. I'll have a decent nestegg by then and I really like the security of having that max garunteed income locked in for life so my portfolio doesn't have to do the heavy lifting. Fortunately, I'm in excellent health and I work hard to keep it that way so I plan on living it up for long time!
Hardly a “no-brainer”……..the best case is you start to make some extra bucks at about 81, which you may not live to see, and even if you do, you may not be in the best health, so what to do with it? Also, taking at 62 (all else equal) allows your savings portfolio to grow more, for nearly 20 years. That makes the break-even closer to 85 than 80. Bottom-line, the possibility of having a bit more money while you are in a nursing home, or to leave to your heirs, likely isn’t worth it for many people - compared to the certainty of having more money for almost 20 years
I live in one of few states that’s impacted by WEP/GPO. This hurts police, firefighters,teachers, all state public servants. I stayed home to raise our kids and I am being penalized for it. I have 40 quarters in for social security. However, I didn’t make a lot nor will I get much in my pension because I don’t have enough years. Thank you America as I tried to do the right thing for America by staying with my kids. Maybe I should have been more selfish!
At 0:25 your chess pieces look cool but show that the videographer does not know how to play chess. Two of the pieces are misplaced to begin play. Thanks for the OpenSocialSecurity walk-through-it was very helpful!
Fantastic and very helpful video. Both Wife and I are 55 and plan to collect at 62. I am the high earner and wife does not have enough credits to collect her own. Me collecting at 62 get $2300 and 67 (FRA) get $3400. So if my wife filed and collect spousal benefit at 62, will she get 32.5% at my 62 ($2300) benefits or at my FRA ($3400) benefit? Thank you.
The spousal benefit should be based off the "working" spouse's FRA amount (or the higher earning spouse when you both have an earnings record). So, whatever percentage she ends up getting would be calculated off your age 67 benefit-not your age 62 amount. Thanks for watching and for the kind words.
@@JustinOnRetirement Is the spouse benefit 50 % of your full retirement benefits even if the main working spouse start drawing SSS at age 62 years old ? Thanks
I have watched dozens of videos and read many articles about spousal benefits and when to claim what, but can make no real sense of them. Unless of course it is super simple, but made so complicated in explanations. My wife is 5 years younger than I and will have a very small payout of about $500/month. I on the other hand had 37 years of maximum contribution and am planning on waiting until age 70 to file mainly because if/when I die first, my retirement will only pay my wife 50% and she will inherit my SS payment. We don't really need the money right now, so waiting is not a problem. So in 5 years, she files for hers and in 8 years I file for mine. Seems so simple, but all these videos make it sound like I must be missing something.
I think our situation turns everything upside down. My wife makes a lot less than me, but she’s 2 years older, and she gets a state pension instead of social security. She will get more with her ss spousal benefits than she gets with her state pension so it makes sense to go through all of the windfall provisions that cut her benefits by 2/3. But, this only works if she claims spousal at 67. Spousal benefits cap at FR -age 67- so it makes no sense to delay. This means I have to start taking at 65. But good.
My wife is going to start taking it at 62 and I will at 65 three years later and being the higher amount I will get, she will then switch to spousal benefits so she can get half of mine which will be higher than what she will get at 62
Postponing collecting Social Security but withdrawing from retirement accounts before being required to take RMDs at age 73 or 75 generally can mean being able to use a lower ordinary income tax rate during those earlier years, depending on how much one takes out of the retirement accounts (ideally withdrawing enough to at least match the level of one’s itemized deductions). Up through 2025, one can also choose to utilize capital gains from investment accounts at a lower federal tax rate, which would incur a federal tax rate of 0 to 15% as well. (States can tax the withdrawals, too.) After collecting Social Security at age 70, then starting to take RMDs at age 73 or 75, about 85% of Social Security will be taxed at an ordinary income tax rate and 100% of the RMDs as well as any additional withdrawals from retirement accounts. The federal tax rate might be about 28% and states may tax the retirement withdrawals as well (perhaps 6 to 12%). You could end up reaping only about 60% of your retirement assets if you wait to withdraw them after you start collecting Social Security (and then have to take RMDs) since your tax rate will be higher.
Wife and I are the same age. Both have worked full time for 30+ years. Planning to claim one SS @62 and one @67 or 70. Should the lower earner or the higher earner claim first? (I will have a pension to collect at 62).
If the stock market is down a good clip after turning 62 we will start 1 or both of our social security payments to let all of our stock holdings recover and grow
I was married in different country for 27yrs and my marriage ended as I MIGRATED USA and have no job when this happened. Can my ex still claim my social security still .
What if the situation is reversed is as such, the higher earning spouse is eight years younger and the lower earning spouse is 70 and still working. Should the lowered earning spouse keep working to 70 or take at 62. Younger is still working
I haven't audited it, but I believe the math to be accurate, and it has a good reputation among other people I trust. That said, there could certainly be errors and other issues I'm not aware of. Most importantly, the math is only one piece of the puzzle, and it uses certain assumptions. If the assumptions (longevity, as just one example) don't apply to the user, then you want to be aware of that. That's nothing against Mike or the software-people just need to be careful about the inputs they're using. And it's also important to look at the big picture. For example, do you want to do some tax planning, possibly involving Roth conversions and/or pre-tax IRA withdrawals? If so, there are more factors to consider.
10:48 'At most you would pay tax on 85% of your benefit...' I retire in 2034, the year in which SS is telling us that only 80% of benefits will probably be paid, so why in the heck should we have to pay tax on ANY benefits when SS is essentially already putting us in a 20% "tax bracket"?? I should be getting about $1,948 / month which barely puts my wife an I into the 12% bracket (even IF she would receive half of my SS amount). This reduction in benefits effectively puts us in what would otherwise be a tax bracket for those making roughly triple what SS will give us!! Hiding behind wording or exact terms does not change the fact that the recipients are getting the short end of the stick. What's even more damning is that this is not graduated like the tax brackets, rather it starts from dollar one AND THEN has the tax bracket piggy-backed on top of it. And, to rub salt in the wound, those of us scheduled to retire in 2034 (or later) will still be expected to pay in 100% of our contribution. Would anyone knowingly invest in a fund that promises a NEGATIVE 20% return??
Based on the video - I think I know the answer, but want to double check... Both Spouses are currently 61. One spouse earns much more that the other. FRA Spouse 1 - $3000 - plans to collect SS at age 67. FRA Spouse 2 - $500 - here is the question..... --> Can Spouse 2 - collect their own SS at age 62, (about $350 at age 62), and then start collecting the full Spousal Top Off to get to $1500 at age 67?
If Spouse 2 starts at 62, they will have a permanently reduced benefit, and will not end up getting 50% of Spouse 1's benefit (even with the spousal top-off). It is possible to get the full top-off, but that goes on top of a reduced base.
Curious, I intend retiring/working much less in 5 years and keen to know best, how people split their pay, how much of it goes into savings, spendings or investments? I earn up to $180K per year, but nothing to show for it yet
That's a good question, and I'm not aware of a good rule of thumb for how much of your income should go to each category. I think you'd look at where you stand and see where you'll make the biggest impact. If you're five years out with little saved, it could make sense to prioritize saving/investments so you're better prepared for retirement. But you also need to live and have some fun, so finding the perfect balance is the challenge.
Can someone explain the rationale of delaying claim all the way to 70. Because if you claim at 62, you will start to receive money now and have 8 years worth of moneys received ahead of age 70 (if you reach that age) even if the latter is higher monthly amount than the former…. lower_amountpermonth*12months*8years so you are way ahead than the other who delayed
Divorce can potentially affect your benefits, but it doesn't always do so. In some cases, an ex spouse can get benefits like the (ex) spousal benefit or a widow/widower benefit, so divorce doesn't necessarily derail retirement plans. But you need to meet specific criteria to get those benefits.
Too simplistic. Many times, waiting is the best option. If a large age difference, this affects survivor benefits and disabled/underage children for a long long time.
The government is indifferent to when you draw SS, but the general accepted breakeven age is 78-80, where waiting to 70 will result in more lifetime $.
Making the most money when you are aging the quickest makes no sense to me unless you are continuing to work past your FRA therefore you probably need the top income if you are working that late in life . For those who saved and SS is just one leg of the stool and you want to start enjoying your retirement at an age when you still have good health the take it as early as your financial plan will allow and start enjoying your retirement .
Does a divorced spouse get 50 percent of exspouses SS payment, or will they get 50 percent of their Ex's FRA regardless of when the higher earning spouse retired?
Assuming the divorced spouse is eligible for a spousal benefit, the spousal benefit amount is generally based on the other person's FRA amount. Your claiming age can affect how much you actually get, and claiming before your FRA would typically result in a reduced benefit. There are some complications here, so be sure to read through the SSA website and speak with an SSA rep and/or an expert before making any decisions.
Thanks much for the info, I am the higher wage earner and I'm aware of the earlier, FRA, and later retirement factors for myself. The question I was asking about was solely pertaining to my ex spouse who is 6 years my senior. What I was confused about was that when she's at 67; I'll just be 61; but because we're divorced already for a few years; (married 20) she'll still be able to get her half of my FRA benefit at her FRA as soon as she is 67 even though I'll only be 61 years old at this time and not yet able to claim anything, but we're divorced so it doesn't matter right?
Hi, I’m 59 yrs old and I’m getting SSDI. My wife is 61. When she turns 62, can she draw off my ss even though I’m not at retirement age but am drawing my ss disability insurance? She doesn’t have much of a work history.
That's a good question, and unfortunately, not one I've worked with before. I believe it may be possible, but I am not the best person to provide guidance on the topic.
It depends. If both spouses worked, it will depend on their earnings history. So, if they both have a similar history and SS benefit, they'd probably just get their own benefit. Spouse A gets $2,200/month and Spouse B gets $2,500/month, for example. In that case, it doesn't really matter if they're married or not, although it could matter if a survivor benefit would be helpful. However, the spousal benefit is more important when one of the spouses has a significantly lower benefit (half or less) than the other. So, if Spouse B's benefit was only $600/month, the spousal benefit would be more important. In that case, Spouse B could potentially get *up to* $1,100 total each month-based on Spouse A's benefit of $2,200-instead of just $600.
My wife fast away last Sept 16 ,2023 .She file her disability retirement at age of 65 ..because shes been diagnose of liver cancer..im planning to survivors bnefits this year .this april 14 .im already 62 . and i make a part time to my company ..do i qualified mdical insurance from company .pls give me an advice . b
I'm sorry to hear of her passing. I'm not sure that I fully understand the situation, and I don't have deep expertise with company health coverage, so I would suggest starting with the employer's HR/Benefits department to learn more. They might direct you to the health insurance company, but hopefully somebody can answer your questions.
I'm 64 and the higher earner, wife is 62, I started ss at 64, if she claims ss at her full retirement age of 67 does she get 50% of my reduced ss payment or 50% of what I would have got if I waited till my full retirement age of 66 and 10 months?
The spousal top-off is based on your FRA amount (not your reduced benefit from early claiming). So, if she waits until her FRA for spousal benefits, she could get as much as 50% of your FRA amount. That said, if you were to die first, her survivor benefit could be affected by your early claiming.
Great video, still unclear on percentages, 4 years older than my wife can she claim at 62 reduced rate then claim spousal benifits at 67 (FRA) then would she get 50% of mine?
Thank you, and yes, it's complicated. Short answer: If she claims her own benefit at 62, she will not get 50% of your FRA amount, regardless of when she becomes eligible for the spousal benefit (while you're both still living). Even if she gets the full "spousal top-off" (or "offset"), it goes on top of her own permanently reduced benefit, so the total would end up being less than 50% of your FRA benefit (again, while you're both alive-it's a different story with survivor benefits). Playing with that OpenSocialSecurity calculator may help to illustrate the impact of different claiming ages.
@@JustinOnRetirement, mySSA's calculations don't seem to agree with what you wrote here. The spousal benefit *would* augment the spouse's Social Security up to the 50% of the worker's PIA when the worker retires.
Can a divorced lower earner take spousal benefit at 62 and then switch to their own full benefit at 70? Does the divorced person have to wait until the higher earner is receiving their benefit?
A divorced person does not need to wait for the ex-spouse to claim to begin taking spousal benefits (assuming all other eligibility requirements are satisfied-be sure to triple-check those). As far as switching, I would not count on that strategy while you are both living. Once you file, you're deemed to have filed for whatever benefit you're eligible for, especially if you're currently around age 62 or younger. That said, if the ex-spouse dies, then it may be possible to switch to a survivor benefit. Of course, I could be misunderstanding the question, and I don't know all of your details, so this could be all wrong. Please speak with SSA and an expert who is familiar with your details before making any decisions.
My husband took his at age 67.4, which was his full retirement age. I am turning 62 in November. Does it affect my husband's amount if I take mine in November?
If your husband is the higher wage earner and won't be collecting any benefits from your record, whenever you retire doesn't make a difference for your husband, only for your numbers.
Amazing. The single most important factor in collecting Soc Sec $ early is your spouse's income. Your spouse earns more than $32K then your Soc Sec Benefit will get hammered. How in the hell do you leave out the single most important item a person has to know about filing for SS early ? How ? Outrageous.
How can I get benefits from my deceased husband who died of a terminal illness I am 56 years old and trying to get some kind of benefits I have no income
What kind of benefits can I claim he was my mine provider and we have no minor children I’m 56 years old living below poverty level since my husband has died of a terminal illness lived three months
I would start with any resources from your local Health and Human Services departments. Unfortunately, this isn't an area I have expertise in, but hopefully they can point you in the right direction. Also, eventually, you may be able to get retirement benefits from Social Security (age 60, or potentially sooner if you qualify with a disability), and Social Security pays a small death benefit, as well.
I noticed the Open Social Security calculator does not add any COLA to the benefit amount. It seems like that would affect the strategy in real life or does that wash out in the math somehow?
I believe you're referring to the income being shown in today's dollars. The assumption is that your Social Security income would match inflation, so you'd be able to spend at roughly the same level (in today's dollars) after adjusting for inflation. In other words, any COLAs should match inflation, so you shouldn't lose purchasing power (hopefully). In reality, the dollar amounts of both spending and income will likely increase. SS might or might not match your inflation perfectly, but that's the assumption.
In my opinion this is a horrible process, how many High income folks can carry on until 70 and continue working and if you plan on stopping and living on savings or investments I’d say 80% of good investment planners will say don’t hemorrhage your savings funds instead of social security money that let’s not forget is your money that you have contributed that you will never see a 100% return on( you won’t ever get back as much as you have put in) This is just bad advice in my opinion
I waited to 70 years old, my 64 years old wife will most likely get it when I pass. I studied the subject for the last 12 years, came up with different scenarios as I got older. Changed my plans four times during that process and continued to work until 69. The result is is that I have had reasonable money flow through that time even though I had to pull some money out of my IRA to live on my 69th year. But now we have enough money to enjoy our lives travel help our kids and such.
The misconception is that the SS that you paid somehow is put in a pot for you to draw on for retirement. However, there is no pot of money. Current workers pay for current retirees. So when politicians say we're going to run out of money for SS, what they should be saying is we're running out of enough workers to pay for the number of retirees we have. So, we need more workers. Where do you think we can get more workers?
My thought is to leave my spouse in the best financial shape possible so 70 is the answer for the person making the most money or until you reach your full retirement age. If I did my job in supporting my family then the money we get is SUPPLEMENTAL. is what SS is supposed to be about. You should not need it but it allows you to have a very nice retirement.
Want me to look over your numbers? You've got options. Check out the website for more information: www.approachfp.com/
Note: I do not discuss offerings, pricing, etc. in these comments. Please proceed to the website, where you can find a substantial amount of detail.
Superb and clear video! Thank you so much. I'm 57 and my husband is 56. He's an auto mechanic and wants to stop working at 65. I'm the larger wage earner and was looking to work until FRA at 67. The Open Social Security page is a great tool.
I was also a mechanic for 41 years… the sooner he retires the better… get him a part time job and he will be a lot happier!
One of the most informative videos I've watched online for Social Security planning fine tuning for my wife and I.
That online calculator is *fire*. Woohoo!!
I entered the recommendations from the tool into my retirement planner tool and it pushed out IRMAA out an extra 10 years and reduced IRMAA from tens of thousands to $5k. A few Roth Conversions and my tax plan should be on point.
Super useful video, thanks. Nice to see within virtually all parameters spouse claiming at 62 and me at 70 is the optimal strategy.
Is that what he shared? Hmm
Another outstanding RUclips video from Justin Pritchard! The graphics that accompany the video are neat too.
Thank you, David! The spousal part can be so confusing. I'm hoping the visuals help paint the picture.
My wife just got a health insurance quote. She's 64, she has had some medical problems. The quote was for $1,250 a month. That is a big consideration!
keep income low and get it for cheap on healthcare exchange till she is eligable for medicare.
My wife unable to work while I stilworking passed 65 instead if retiring as I still have to work until 70. I know Medicare is very expensive even my employer offers my wife on Cobra if I retire. She is younger than me 8 years and that is a reason I am still working!
She wasn’t qualified for Obama care or other markets place !
When I retire next year 70, and she is 63 two years away to apply for Medicare
Thanks Sir. This is the best video with the most helpul tools. I read many articles and watched videos but you could get confused for different situations. The SSA website has good explainations but only limited to 1 or 2 examples and they don't fit everyone's situation. The tools you listed solved all these complicated situations and the tools explained very clearly (sprousal benefits or survial benefits, and others)! I played a few cases like you showed on the video and results were very clear. The SSA calculator for PIA inside the "Open Social Security" link is another great tool that you can play around to decide if you or your spouse will work more years with expected SSA wages. It seems like most questions will be self-answered once you input the data into the tools.
Thank you! Very well explained.
As people wait longer to have children, if you have minor children when you turn 62 and you claim social security your children can also claim until they graduate high school. The key is even if you retire at 62 your children's benefit is based as if you had actually retired at Full Retirement Age. My case involved a child who collected tax free well over 1,000 a month for 4 years which went a long ways to paying for his college at a state univerisity. This scenario isn't widely known and rarely mentioned on videos like this.
Exactly. My youngest will collect just over $2k a month for 17 months. That’s probably 2 years of a state college. Taking SS at 62 will be a no brainer for me, though my wife is still happily employed at 58 and will likely take hers at full retirement age, or later.
Great video. Answered my questions and doubts.
All depends on one's need for cash and how much one saved over the years for retirement. Started maxing out my 401k at the age of 22 and now 58, it's grown into a great, incremental retirement. Still taking mine at age 70 as my glass is always half full and will focus on living versus how fast I will die.
Sounds like the best plan is the Do Not Die plan.
I've been enjoying these videos. Thank you
Lower at 62 and higher at 70… did this and was perfect for us…
Thank you!
I'm 4 years older than hubby ...took my little benefit at 62 I'm now 64...,He's waiting til 70 if health permits...my mom and her mom both lived to 90's...so whatever he gets at 70 I'll have to live on that amount if he goes to heaven first.....
I always struggle with the idea of maximizing my Social Security benefit versus having additional income earlier in my retirement when we can really take advantage of it. I assume that our lifestyles will be slowing down by the time we hit 67 and certainly by 70. What benefit is that extra money then? Also, if I have ANY desire to leave money to my heirs, spending down my nestegg in favor of a larger SS payout benefits them not at all. The tax and RMD ramifications are a separate issue that takes a bit more work. It's complicated and I feel like we are rolling the dice, no matter what we decide. Thanks for the great information though, including the Open Social Security calculator. That was eye opening.
I am currently planning for my retirement next year and my wife's retirement in 2033. I haven't figured out how I'm going to tell her yet.
men I really love your videos!!!! fantastic
Thank you for your support!
Very helpful
Am I missing something? There would seem to be a big hole in this strategy. If I take SS benefits early, assume I am getting 75% of full retirement, and my spouse with a larger SS waits till 70 and gets 130%, if she dies first I can switch to her SS, but I will only get it at the 75% level because I took benefits early. So, while I may get a slight increase in SS upon her death (by taking over her SS), it will be nothing close to what she was getting, because I only get it at 75%, not her 130% level. It make much more sense for us to both take SS at the same time (we are the same age). Maybe this works different for a spousal benefit type situation, but not for 2 full wage earners.
Just making up numbers here, let's say your benefit at FRA is $1,000 and your spouse gets $3,000 at FRA. If you claim early, you start with $750 (or the 75% you mentioned), and we'll ignore any spousal top-off. Your spouse would eventually get $3,900 (or 130% of 3k, again sticking with your numbers here) when she claims. If she dies at age 72 (let's hope not), you would take over the *full* benefit she was receiving or entitled to. In other words, you could get $3,900+/month, and it is not reduced due to your early claiming (your 75% is history once you switch to a survivor benefit).
This is just one example of why it's critical for spouses to consider what happens if one person dies early. The survivor can take over that bigger benefit. More on that topic here: ruclips.net/video/BGAzzExec4Y/видео.html
Note that this is an oversimplified example, and the details may vary based on your circumstances.
@@JustinOnRetirement I was told by SSA that if an ex spouse claims their benefit early at 62, this permanently reduces Ex spouse & Survivor benefits......I am confused.
@@le4470 It’s a little confusing. If you take your Social Security at 62 this would not affect your survival benefit as long as you switch at age 67 or older. The SSA was talking about just taking just the “survival benefit” between ages 60 and 67. Taking the survival benefit before the age of 67 would reduce the amount.
This is specific for an individual’s situation. For example, if you don’t need the money you could argue to take it early and invest it. Or take it early and travel while healthy. Or you could delay and convert to Roth to fill up your tax bracket . If you are a single earner in the family, you can delay and provide a larger survivor benefit. For me I am delaying because I have inherited IRAs that need to come out before I turn 70. Also, SS colas are larger if delay and since only 85% is taxable, that will maximize the amount of tax free income.
Yeah, a lot of people say to take it early and invest it, but what's unsaid is their assumption that stocks and investments only go up. OTOH, doing nothing and letting your pending SS payments increase at more than 8% a year - guaranteed - is a no-stress way to "invest." I don't want to risk waking up to find that the CEO of the company I bought stock in ran off to the Bahamas with my money.
I would love to tour in a Backback!
Very clear!
My wife took hers 2 months shy of her 66th b-day (FRA) 3 years ago. I'm taking mine in January 2024 4 months shy of my 70th b-day. By taking it 4 months early I am only losing only $55.00 a month.
Some say, "You don't know how long you'll live, so take it early." This is flawed logic because that statement can ALSO mean that they outlive their 90-yr old parents. Said another way, if someone said, "I think I'm going to live to 90, so I'm taking it now!", which makes no sense. To me, it's far worse to outlive your money than to leave some on the table, but everyone's free to make their own decisions.
Love your videos and to be honest , according to your website, that one time fee of $685 to talk to you seems worth it. You are very knowledgeable and cool
Retired at 62, claimed at 64, diff was around $35 a month more with the big COLA. If I waited till full retirement age 67 and months I would have lost around $65,000. If I waited till 70 it would be over $87,000 as of this years lookout. It would take several years to make that up at getting around $60 to $100 more a month years later. Do the math and hope for the best.
Yes, break even is somewhere between 78 and 80 years old.
Best video I've seen on when a married couple should claim.
Great to hear this, thank you
Thanks for you video. I did go the that calculator. My spouse delaying till age 67 would get about $300 more month. That is not peanuts. It will cover most of SS medicare premium.
If a couple is healthy I don't see the wisdom in taking the spousal benefit earlier than full retirement for the spouse. The break even point is a little less than 10 years. Thoughts? Thanks again.
If you have enough in savings to carry those early years of retirement or are willing to work longer, and you expect to live past 80, delaying for the max benefit is a no-brainer in my opinion. Claiming early leaves too much on the table and life expectancy is only going to increase in the future as medicine advances. I'm 54 and single, still 8 or 9 years from retirement, but I plan to delay SS until 70. I'll have a decent nestegg by then and I really like the security of having that max garunteed income locked in for life so my portfolio doesn't have to do the heavy lifting. Fortunately, I'm in excellent health and I work hard to keep it that way so I plan on living it up for long time!
Hardly a “no-brainer”……..the best case is you start to make some extra bucks at about 81, which you may not live to see, and even if you do, you may not be in the best health, so what to do with it? Also, taking at 62 (all else equal) allows your savings portfolio to grow more, for nearly 20 years. That makes the break-even closer to 85 than 80. Bottom-line, the possibility of having a bit more money while you are in a nursing home, or to leave to your heirs, likely isn’t worth it for many people - compared to the certainty of having more money for almost 20 years
I live in one of few states that’s impacted by WEP/GPO. This hurts police, firefighters,teachers, all state public servants. I stayed home to raise our kids and I am being penalized for it. I have 40 quarters in for social security. However, I didn’t make a lot nor will I get much in my pension because I don’t have enough years. Thank you America as I tried to do the right thing for America by staying with my kids. Maybe I should have been more selfish!
At 0:25 your chess pieces look cool but show that the videographer does not know how to play chess. Two of the pieces are misplaced to begin play. Thanks for the OpenSocialSecurity walk-through-it was very helpful!
Are there any calculators that take into account spousal benefit if the spouse has a federal benefit?
Fantastic and very helpful video.
Both Wife and I are 55 and plan to collect at 62. I am the high earner and wife does not have enough credits to collect her own.
Me collecting at 62 get $2300 and 67 (FRA) get $3400. So if my wife filed and collect spousal benefit at 62, will she get 32.5% at my 62 ($2300) benefits or at my FRA ($3400) benefit?
Thank you.
The spousal benefit should be based off the "working" spouse's FRA amount (or the higher earning spouse when you both have an earnings record). So, whatever percentage she ends up getting would be calculated off your age 67 benefit-not your age 62 amount. Thanks for watching and for the kind words.
Thanks for asking this question, my wife and I are in the same boat, almost exactly.
...she can not get spousal part til you file ...
@@JustinOnRetirement Is the spouse benefit 50 % of your full retirement benefits even if the main working spouse start drawing SSS at age 62 years old ? Thanks
I have watched dozens of videos and read many articles about spousal benefits and when to claim what, but can make no real sense of them. Unless of course it is super simple, but made so complicated in explanations.
My wife is 5 years younger than I and will have a very small payout of about $500/month. I on the other hand had 37 years of maximum contribution and am planning on waiting until age 70 to file mainly because if/when I die first, my retirement will only pay my wife 50% and she will inherit my SS payment. We don't really need the money right now, so waiting is not a problem. So in 5 years, she files for hers and in 8 years I file for mine. Seems so simple, but all these videos make it sound like I must be missing something.
If you die without drawing SS, will that prevent your spouse from drawing yours?
I think our situation turns everything upside down. My wife makes a lot less than me, but she’s 2 years older, and she gets a state pension instead of social security. She will get more with her ss spousal benefits than she gets with her state pension so it makes sense to go through all of the windfall provisions that cut her benefits by 2/3. But, this only works if she claims spousal at 67. Spousal benefits cap at FR -age 67- so it makes no sense to delay. This means I have to start taking at 65. But good.
My wife is going to start taking it at 62 and I will at 65 three years later and being the higher amount I will get, she will then switch to spousal benefits so she can get half of mine which will be higher than what she will get at 62
You have to factor in your FRA for spousal benefit not age 65
If she starts spousal at 62 she will top off at about 30 percent. It is permanently reduced for taking it early.
Your spouse only gets 50% of yours if she starts at her FRA. Starting at 62 will cause an approximate 30% reduction for her
Most "if not all" the SS calculators fail to consider the withdraw of assets in retirement when delaying SS.
Postponing collecting Social Security but withdrawing from retirement accounts before being required to take RMDs at age 73 or 75 generally can mean being able to use a lower ordinary income tax rate during those earlier years, depending on how much one takes out of the retirement accounts (ideally withdrawing enough to at least match the level of one’s itemized deductions). Up through 2025, one can also choose to utilize capital gains from investment accounts at a lower federal tax rate, which would incur a federal tax rate of 0 to 15% as well. (States can tax the withdrawals, too.)
After collecting Social Security at age 70, then starting to take RMDs at age 73 or 75, about 85% of Social Security will be taxed at an ordinary income tax rate and 100% of the RMDs as well as any additional withdrawals from retirement accounts. The federal tax rate might be about 28% and states may tax the retirement withdrawals as well (perhaps 6 to 12%). You could end up reaping only about 60% of your retirement assets if you wait to withdraw them after you start collecting Social Security (and then have to take RMDs) since your tax rate will be higher.
@@dmulvanyawful lot of speculation built into that, projecting current and future tax rates, assumptions on amount of withdrawals……
Wife and I are the same age. Both have worked full time for 30+ years. Planning to claim one SS @62 and one @67 or 70. Should the lower earner or the higher earner claim first? (I will have a pension to collect at 62).
what does the irs think about commonlaw marriage?
It is only recognized in a few states.
If the stock market is down a good clip after turning 62 we will start 1 or both of our social security payments to let all of our stock holdings recover and grow
I was married in different country for 27yrs and my marriage ended as I MIGRATED USA and have no job when this happened. Can my ex still claim my social security still .
What if the situation is reversed is as such, the higher earning spouse is eight years younger and the lower earning spouse is 70 and still working. Should the lowered earning spouse keep working to 70 or take at 62. Younger is still working
How accurate do you think Open Social is? I think it's an awesome tool and applaud that it's free, but just wondering if it's something to rely on.
I haven't audited it, but I believe the math to be accurate, and it has a good reputation among other people I trust. That said, there could certainly be errors and other issues I'm not aware of. Most importantly, the math is only one piece of the puzzle, and it uses certain assumptions. If the assumptions (longevity, as just one example) don't apply to the user, then you want to be aware of that. That's nothing against Mike or the software-people just need to be careful about the inputs they're using. And it's also important to look at the big picture. For example, do you want to do some tax planning, possibly involving Roth conversions and/or pre-tax IRA withdrawals? If so, there are more factors to consider.
10:48 'At most you would pay tax on 85% of your benefit...' I retire in 2034, the year in which SS is telling us that only 80% of benefits will probably be paid, so why in the heck should we have to pay tax on ANY benefits when SS is essentially already putting us in a 20% "tax bracket"?? I should be getting about $1,948 / month which barely puts my wife an I into the 12% bracket (even IF she would receive half of my SS amount). This reduction in benefits effectively puts us in what would otherwise be a tax bracket for those making roughly triple what SS will give us!! Hiding behind wording or exact terms does not change the fact that the recipients are getting the short end of the stick. What's even more damning is that this is not graduated like the tax brackets, rather it starts from dollar one AND THEN has the tax bracket piggy-backed on top of it. And, to rub salt in the wound, those of us scheduled to retire in 2034 (or later) will still be expected to pay in 100% of our contribution. Would anyone knowingly invest in a fund that promises a NEGATIVE 20% return??
You would need to be making around $175K with SS and anything else to be close to pay a marginal tax Tate of 20%.
Based on the video - I think I know the answer, but want to double check... Both Spouses are currently 61.
One spouse earns much more that the other.
FRA Spouse 1 - $3000 - plans to collect SS at age 67.
FRA Spouse 2 - $500 - here is the question.....
--> Can Spouse 2 - collect their own SS at age 62, (about $350 at age 62), and then start collecting the full Spousal Top Off to get to $1500 at age 67?
If Spouse 2 starts at 62, they will have a permanently reduced benefit, and will not end up getting 50% of Spouse 1's benefit (even with the spousal top-off). It is possible to get the full top-off, but that goes on top of a reduced base.
Curious, I intend retiring/working much less in 5 years and keen to know best, how people split their pay, how much of it goes into savings, spendings or investments? I earn up to $180K per year, but nothing to show for it yet
That's a good question, and I'm not aware of a good rule of thumb for how much of your income should go to each category. I think you'd look at where you stand and see where you'll make the biggest impact. If you're five years out with little saved, it could make sense to prioritize saving/investments so you're better prepared for retirement. But you also need to live and have some fun, so finding the perfect balance is the challenge.
Can someone explain the rationale of delaying claim all the way to 70. Because if you claim at 62, you will start to receive money now and have 8 years worth of moneys received ahead of age 70 (if you reach that age) even if the latter is higher monthly amount than the former…. lower_amountpermonth*12months*8years so you are way ahead than the other who delayed
How does a divorce impact social security payments?
Divorce can potentially affect your benefits, but it doesn't always do so. In some cases, an ex spouse can get benefits like the (ex) spousal benefit or a widow/widower benefit, so divorce doesn't necessarily derail retirement plans. But you need to meet specific criteria to get those benefits.
Always get free money as soon as possible… the government is betting on you dying before collecting anything
Too simplistic. Many times, waiting is the best option. If a large age difference, this affects survivor benefits and disabled/underage children for a long long time.
The government is indifferent to when you draw SS, but the general accepted breakeven age is 78-80, where waiting to 70 will result in more lifetime $.
Making the most money when you are aging the quickest makes no sense to me unless you are continuing to work past your FRA therefore you probably need the top income if you are working that late in life . For those who saved and SS is just one leg of the stool and you want to start enjoying your retirement at an age when you still have good health the take it as early as your financial plan will allow and start enjoying your retirement .
It’s not free money
No such thing as “free money”!
Does a divorced spouse get 50 percent of exspouses SS payment, or will they get 50 percent of their Ex's FRA regardless of when the higher earning spouse retired?
Assuming the divorced spouse is eligible for a spousal benefit, the spousal benefit amount is generally based on the other person's FRA amount. Your claiming age can affect how much you actually get, and claiming before your FRA would typically result in a reduced benefit. There are some complications here, so be sure to read through the SSA website and speak with an SSA rep and/or an expert before making any decisions.
Thanks much for the info, I am the higher wage earner and I'm aware of the earlier, FRA, and later retirement factors for myself.
The question I was asking about was solely pertaining to my ex spouse who is 6 years my senior. What I was confused about was that when she's at 67; I'll just be 61; but because we're divorced already for a few years; (married 20) she'll still be able to get her half of my FRA benefit at her FRA as soon as she is 67 even though I'll only be 61 years old at this time and not yet able to claim anything, but we're divorced so it doesn't matter right?
Hi, I’m 59 yrs old and I’m getting SSDI. My wife is 61. When she turns 62, can she draw off my ss even though I’m not at retirement age but am drawing my ss disability insurance? She doesn’t have much of a work history.
That's a good question, and unfortunately, not one I've worked with before. I believe it may be possible, but I am not the best person to provide guidance on the topic.
The surviving spouse who filed early will receive permanently reduced survivor benefits
Not with survivors. You can do a switch one time in your life.
If both spouses worked until SS age do they receive individual payments at the same rate they’d be entitled to if they were both single?
It depends. If both spouses worked, it will depend on their earnings history. So, if they both have a similar history and SS benefit, they'd probably just get their own benefit. Spouse A gets $2,200/month and Spouse B gets $2,500/month, for example. In that case, it doesn't really matter if they're married or not, although it could matter if a survivor benefit would be helpful.
However, the spousal benefit is more important when one of the spouses has a significantly lower benefit (half or less) than the other. So, if Spouse B's benefit was only $600/month, the spousal benefit would be more important. In that case, Spouse B could potentially get *up to* $1,100 total each month-based on Spouse A's benefit of $2,200-instead of just $600.
@@JustinOnRetirement thanks very much for your detailed reply. Wife and myself will be getting close to the same benefit.
My wife fast away last Sept 16 ,2023 .She file her disability retirement at age of 65 ..because shes been diagnose of liver cancer..im planning to survivors bnefits this year .this april 14 .im already 62 . and i make a part time to my company ..do i qualified mdical insurance from company .pls give me an advice . b
I'm sorry to hear of her passing. I'm not sure that I fully understand the situation, and I don't have deep expertise with company health coverage, so I would suggest starting with the employer's HR/Benefits department to learn more. They might direct you to the health insurance company, but hopefully somebody can answer your questions.
I'm 64 and the higher earner, wife is 62, I started ss at 64, if she claims ss at her full retirement age of 67 does she get 50% of my reduced ss payment or 50% of what I would have got if I waited till my full retirement age of 66 and 10 months?
The spousal top-off is based on your FRA amount (not your reduced benefit from early claiming). So, if she waits until her FRA for spousal benefits, she could get as much as 50% of your FRA amount. That said, if you were to die first, her survivor benefit could be affected by your early claiming.
Thanks 👍
Great video, still unclear on percentages, 4 years older than my wife
can she claim at 62 reduced rate then claim spousal benifits at 67 (FRA) then would she get 50% of mine?
Thank you, and yes, it's complicated. Short answer: If she claims her own benefit at 62, she will not get 50% of your FRA amount, regardless of when she becomes eligible for the spousal benefit (while you're both still living).
Even if she gets the full "spousal top-off" (or "offset"), it goes on top of her own permanently reduced benefit, so the total would end up being less than 50% of your FRA benefit (again, while you're both alive-it's a different story with survivor benefits). Playing with that OpenSocialSecurity calculator may help to illustrate the impact of different claiming ages.
@@JustinOnRetirement, mySSA's calculations don't seem to agree with what you wrote here. The spousal benefit *would* augment the spouse's Social Security up to the 50% of the worker's PIA when the worker retires.
What specific claiming ages and benefit amounts (at FRA) are you using, and what output are you getting?
Can a divorced lower earner take spousal benefit at 62 and then switch to their own full benefit at 70? Does the divorced person have to wait until the higher earner is receiving their benefit?
A divorced person does not need to wait for the ex-spouse to claim to begin taking spousal benefits (assuming all other eligibility requirements are satisfied-be sure to triple-check those). As far as switching, I would not count on that strategy while you are both living. Once you file, you're deemed to have filed for whatever benefit you're eligible for, especially if you're currently around age 62 or younger. That said, if the ex-spouse dies, then it may be possible to switch to a survivor benefit. Of course, I could be misunderstanding the question, and I don't know all of your details, so this could be all wrong. Please speak with SSA and an expert who is familiar with your details before making any decisions.
My husband took his at age 67.4, which was his full retirement age.
I am turning 62 in November.
Does it affect my husband's amount if I take mine in November?
If your husband is the higher wage earner and won't be collecting any benefits from your record, whenever you retire doesn't make a difference for your husband, only for your numbers.
Amazing. The single most important factor in collecting Soc Sec $ early is your spouse's income. Your spouse earns more than $32K then your Soc Sec Benefit will get hammered. How in the hell do you leave out the single most important item a person has to know about filing for SS early ? How ? Outrageous.
How? Because it’s $22,000, not $32,000, and regardless, your spouse’s income has nothing to do with your benefit.
How can I get benefits from my deceased husband who died of a terminal illness I am 56 years old and trying to get some kind of benefits I have no income
What kind of benefits can I claim he was my mine provider and we have no minor children I’m 56 years old living below poverty level since my husband has died of a terminal illness lived three months
I would start with any resources from your local Health and Human Services departments. Unfortunately, this isn't an area I have expertise in, but hopefully they can point you in the right direction. Also, eventually, you may be able to get retirement benefits from Social Security (age 60, or potentially sooner if you qualify with a disability), and Social Security pays a small death benefit, as well.
I noticed the Open Social Security calculator does not add any COLA to the benefit amount. It seems like that would affect the strategy in real life or does that wash out in the math somehow?
I believe you're referring to the income being shown in today's dollars. The assumption is that your Social Security income would match inflation, so you'd be able to spend at roughly the same level (in today's dollars) after adjusting for inflation.
In other words, any COLAs should match inflation, so you shouldn't lose purchasing power (hopefully). In reality, the dollar amounts of both spending and income will likely increase.
SS might or might not match your inflation perfectly, but that's the assumption.
In my opinion this is a horrible process, how many High income folks can carry on until 70 and continue working and if you plan on stopping and living on savings or investments I’d say 80% of good investment planners will say don’t hemorrhage your savings funds instead of social security money that let’s not forget is your money that you have contributed that you will never see a 100% return on( you won’t ever get back as much as you have put in) This is just bad advice in my opinion
I waited to 70 years old, my 64 years old wife will most likely get it when I pass. I studied the subject for the last 12 years, came up with different scenarios as I got older. Changed my plans four times during that process and continued to work until 69. The result is is that I have had reasonable money flow through that time even though I had to pull some money out of my IRA to live on my 69th year. But now we have enough money to enjoy our lives travel help our kids and such.
The misconception is that the SS that you paid somehow is put in a pot for you to draw on for retirement. However, there is no pot of money. Current workers pay for current retirees. So when politicians say we're going to run out of money for SS, what they should be saying is we're running out of enough workers to pay for the number of retirees we have. So, we need more workers. Where do you think we can get more workers?
STOP SAYING "HERE" SO MUCH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! WE KNOW IT'S "HERE"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
My thought is to leave my spouse in the best financial shape possible so 70 is the answer for the person making the most money or until you reach your full retirement age. If I did my job in supporting my family then the money we get is SUPPLEMENTAL. is what SS is supposed to be about. You should not need it but it allows you to have a very nice retirement.