When Filing for Social Security at Full Retirement Age (or Later!) Is Your Best Choice
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- Опубликовано: 5 сен 2024
- Only 35% of Social Security recipients file at Full Retirement Age (FRA), yet most of them should... This short video will help you make the decision about when to file for this important part of your retirement income.
Questions to Ask A Financial Planner to Determine if They Know How Social Security Really Works
Please explain what the best age is for me to file for Social Security and Why?
Please explain provisional income to me.
What is the best age for my spouse to file for Social Security if her/his retirement benefit is less than half of mine?
What are Social Security Credits and how are they calculated?
What is a Social Security Breakeven Analysis and is this a good way to determine when to file?
Do I need to file for for Social Security for my spouse to receive spousal benefits.
What is the Survivor Benefit and how is it determined?
What is the payout percentage difference between filing at full retirement age and minimum filing age?
Note: If you financial planner does not know the answer to these basic questions, I recommend that you move on to someone who does.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
Thanks Holy Schmidt for the video. One thing missing from your break even chart is the possibility that someone may continue to work after 62, which impacts your total cash flow since electing to draw benefits at 62, 63,64,65 all will reduce your potential benefits, if your employment income exceeds the maximum allowable limit during those working years. I reach full retirement at 66 1/2 and plan to continue to work until at least 70 ($60,000 salary). So when you evaluate total cash flow, waiting until I am 66 1/2 provides the best short and long term cash flow over a 10-12 year period, (until 2034) which is when the Social Security funds have been predicted to run out, because our government is corrupt and can't keep their hands off our money!!
This is great for people who haven’t been forced into retirement by the corporate world. Ageism in America is an increasingly devastating reality for many. This is particularly true for women, who have traditionally earned less and grew up during the 60’s-80’s, where economic opportunities for women weren’t available. If someone is lucky enough to wait, that’s great. For me, I’m collecting earlier and leaving the US to live a better quality of life in another country. It’s just not that simple to wait for some of us.
I actually believe the ageism problem has reversed. They are throwing money at me not to retire. All across the tech industry, a major brain drain has started. Experienced workers are starting to retire and they cannot find enough qualified people to hire and train fast enough to make up the difference. This situation will continue to get worse as Gen X retires.
I'm attempting to hold out till 70. I just passed my FRA about 4 months ago and it is a challenge to hold off knowing you can just turn on some additional income. I am still working. Note, it's actually more than an 8% jump from 69 to 70, at least that's what the SS administration's doc tells me for my Ss benefit. I'm in good shape with no life limiting illnesses yet. I just need to keep my job for a couple more years. I'd also like to add the average life expectancy given is from birth. For a 62 year old make it's 80.1 so at 62 you have a 50/50 chance of making it to 80.
Y give ur life away at a job if u could retire now n everything is covered like the basics y wait until 70 time is not on our side just my opinion but 2each is own I respect ur decision doe ......
If someone has a healthy spouse that is a few years younger and earned much less lifetime income than they did, drawing your social security at age 62 will have a significant impact on your spouse's social security survivor benefits if you pass away first. In that situation it is not about just to draw as early as you can "because it's your money" and "want to get it before you die." Your early withdrawal would impact your spouse negatively if you chose to do so in the situation mentioned.
I disagree with using age 78 as an age of death. The age of death s/b in the 80's , since your expected age of death increases for older people. In addition, the age of death is more like 92 when discussing a survivor of a couple. Running out of money because you lived too long is a big problem compared to dying earlier and not optimizing your Social Security. You won't care that you didn't optimize because you are no longer around.
78 is not realistic. I'm 64 now and going to wait another 2 years and 10 months for FRA. Every life expectancy test I've taken (at least 20 different ones) indicate I "should" live until 91...if I don't get hit by a bus.
The 78 yr life span takes into account many people passing before they make it to 65. For females, the average 65-year-old can expect to live to 86 years old, and males can expect to live to 83
That average uses infant deaths, suicides and accidents in the formula. If you are 65 today...you are projected to live into your late 80's/early 90's. We are living longer...so plan for it.
Several factors but you are more likely to enjoy the money at a younger age.
The "Life Expectancy" you give is an overall average. If you were to ask what the life expectancy of someone 60 years old in the us, that age is about 85. I am 60 now, and anyone asking when they should take their Social Security should take this into consideration.
The 78 yr life span takes into account many people passing before they make it to 65. For females, the average 65-year-old can expect to live to 86 years old, and males can expect to live to 83
It depends on your company, your retirement plan, your 401k, your insurance coverage at work and after retirement, and how much younger your spouse is to you. You see, it's a multivariate problem that cannot be simplified. Each person has to decide for themselves based on their own situation. If you need help, ask a "fee only" RIA to give you your options about when to retire.
Remember, Social Security is only supposed to cover 40% of your normal retirement costs, period.
The 78 yr life span takes into account many people passing before they make it to 65. For females, the average 65-year-old can expect to live to 86 years old, and males can expect to live to 83
If you’ve reached age 62, your life expectancy from that point forward (assuming reasonable health) is probably much higher than 78.6, even 81.5. So I think that should factor in the analysis. Unfortunately, there is a fear that social security will have to cut back benefits in a few years, though, which drives a lot of people to file earlier while it’s still available.
Those life-expectancy charts are bogus because the total amount of benefits is meaningless when it comes to your own individual situation. If you'll depend on Social Security for a major part of your income in retirement, then you'd want to maximize that monthly amount. Assuming no other income, would you rather try to live on $1100 per month (age 62) or $2300 per month (age 70)?
Not everyone can afford to wait. Sometimes loss of income can mean a need to take benefits at 62 or at full retirement age, if unable to hold off until later.
On the other hand, some folks have other sources of income that make the Social Security benefit essentially "extra" money. If you don't need it to live on, might as well start early and save it or use it to pay off debts.
Thanks for your view.
Tax avoidance is a sound reason to wait. Burning a bunch of your SS benefits and Traditional 401k withdrawals on taxes is silly.
@@headlibrarian1996 IF you can afford that strategy. The primary factor is the individual's situation, whether or not they want to continue working or can support themselves with other assets prior to filing. Personally, I will defer SS until age 70 even though I plan to retire at 62. I can do that because I have implemented a saving/investing strategy that will allow me to support myself during that interim 8 years, but not everyone will be able to do that.
I started at 62. I am now 83 ! My healthy wife started at 70 and died at 72. My takeaway is file asap. She collected way more than me monthly but I couldn't claim the difference because they told me that is because I took early retirement !
The Open Social Security website says I should take it at 65 years and 4 months for maximum lifetime benefits
Good video as always. I would like to point out that while your benefits are reduced if you earn over the threshold amounts, you do not lose those benefits as they are factored back in later.
You are correct and most youtubers neglect to tell people this.
@Joe It will be increased, but not to the FR amount. They basically take the amount they didn't give you (using your original claimed $2000 monthly amount) and spread that over the average lifespan. When you work out the math, the FR amount is always higher than that. Per this video for example, by the end of the average lifespan, FR payments always add up to more than early payments. Thus, filing early, then waiting to actually take the money at FRA, won't change that, and the payments will still be less than had you waited to claim at FRA.
@@roberthansen9558 You're comparing apples and oranges. Yes, the adjusted payments at FRA will be less than FRA payments, but they would have been less even without the penalty for earning above the allowable income limit. The point is, even with the reduction for being over the income limit, you're still made whole with supplemental payments once you reach FRA. "Made whole" meaning what you would have received in early retirement payments had you not gone over the income limit.
Your intuition is correct that using 78.5 years as the life expectancy is wrong because that is the life expectancy at birth. For people older than 65 use the following: Male over 65: lifespan expectancy is 18.1 years. Female over 65: lifespan expectancy is 20.6 years.
One strategy I've considered by waiting til 70 is to have more money available should I need long term healthcare vs. buying insurance for that - this directly helps the next generation as they are less likely to have to spend their own money on my potential health costs
I'm suspecting that it makes sense to delay if you are still working or are consolidating various savings and retirement accounts and doing Roth conversions.
I realize this video is 3 years old but I make roughly $60k and my SS statement says that at age 67 I would get $2,697 a month…
Geoff, I've alway taken the view that I'd rather keep 88 cents and pay 22 cents in taxes on every dollar of investment profits. So, I can't buy the "my investments paid out too much" concept, simply to avoid paying my 22 cents. Aren't I still ahead by 88 cents?
Uh 88 plus 22 is $1.10 not $1.00
@@markdamon6696 ha😀 I screwed that math up didn’t I
Well it's a zero sum game and only if you net profits that are between paying the difference and the gain you might acquire by smart investing. But you can't teach that as a guarantee. SS payments if scaled into safe instruments will do that. Of course. But the learning curve and maintenance of those investments take a level of skill some assume everyone has. They don't. IMO.
Very Informative. Can you help in this specific instance.
My FRA would be this year( 2023) in JULY but I will begin receiving my SS in March of this year (four months early of FRA). I also want to continue working until Sept. of this year. By the end of Sept I will have made 50,000. Will I have to pay any penalties'?
My FRA is 66 and 6 months, but I am going to apply as soon as I turn 65. There is not that much $ difference between 65 and 66&6 months in my case.
what about the difference between 65 and 70 in your case?
Love this Schmidt!!! Great Presentation. I'm waiting until 70. This Video Sums up and Expands on this concept. As the Late Great Al Davis once put it to me. "Just Win Baby!!!
What my judgement is made on….can I afford to live. I could give a s# about getting my money back. I need to be able to afford to live. I am planning on age 70
I'm waiting for FRA to file, but I wondered if I'm getting a bi-monthly check from Workers Comp from an injury on the job. And it looks like it's possible this payment could cross over my FRA timeline, will my SS be penalized or will my Workers Comp bi-monthly check be penalized. Or can I be greedy person and receive both at full payments.
my husband has reached his full retirement age. he had planned to work till 70. however, his company is not fully up and running because of COVID19. so he has been working part-time since Aug of 2019. he made less than half his pay last year. should he file since his wages are much lower and they use the last few years of his income to determine his monthly checks? i never worked and will be 65 in 2022
They don’t use the last few years to determine your benefit. They adjust all wages before the age of 60 to inflation. All wages after 60 are taken at face value. Then they pick out the highest 35 years and use them to determine your benefit.
@@johnscott2746 thank you and thank god.. 😁
why would I take it before 70 when I am making over 100k a year ? I love my job and if I took SS .... then I would be adding 85% of my SS amount to my yearly income this could possibly put me into even a higher bracket. What makes me laugh are these people that say collect your SS early but never explain how there are circumstances that may cause them to pay taxes on the SS.
TOTALLY AGREED. But people who are still in full-time employment, started taking at FRA saying they can "save" up the SS money, but what's the point if they had to pay taxes currently.
The most consistent factor for taking it later is loving the work.
@@wisconsinfarmer4742 Loving not to be with your family and loved ones because of job and money? Priorities for some are messed up. You can't take it with you.
@@bruced.370 your perceptions are impoverished and projective.
@@wisconsinfarmer4742 Yes. I know a couple of persons like that. They like their job so they keep on working. It's not about need. There is a satisfaction from doing a good job.
I have watched many videos about the "right" age to begin collecting Social Security. When I look at my SS statement it seems so obvious that the best age is 70. I'm 66, my benefit today would be $3,313. If I wait until I'm 70 it will be $4,342. Am I missing something?
Yes. What about the $159,024 (3313 x 48) you gave up by waiting? It will take you 12.7 years to to just break even, are you going to live until 79? I hope so, but who knows? In the meantime you could be saving, spending or investing that $159,024. Bird in hand...
@@CorvetteGuy3033 Actually your logic has flaws. First the average life expectancy is based on your attained age, so for a 66yo about 83-85. Obviously also on your health.
Next, the “bird in the hand” argument is flawed. If you live long, you will likely have larger total returns by waiting. This is counterintuitive, but true, especially if market returns average 6% or less, and becomes more true the longer you live. Next SS is much more reliable, and mostly inflation protected than the stock market.
Current market conditions point out the fallacy of always assuming that portfolio returns will be 8-10%. That may be true over 50 years, but much more unpredictable over 5-10 year periods. You don’t invest the same with a 15-20 year horizon as you do with a 30-40 year horizon.
Delaying to age 70 is more often the better choice, especially when married.
@@randolphh8005
Good points, but I am single, and based on family history I don't expect to make it to 80. Also, taking SS now allows me to leave my 401K untouched so my kids can inheret. You can't leave your SS payments to them...
@@CorvetteGuy3033 Best time to collect is 70. Why did you accept a small check?
@@haroldcarlson7668 your reply seems to indicate you are simply looking for an argument. I was rather clear in my reasoning above; my life expentancy is short, I want to leave as much as possible to my kids (you can't inheret Social Security, right?) and this will allow me to leave my other assets untouched until my death. There is no right age for everybody, it depends on your personal circumstances. Sorry you don't understand that.
Great video as always, sir. I am coming up on 62 and looking into taking social security survivor benefits, but the Social Security people are hard to get thru to. I had an appointment, but no one called - I was staring at my phone for over two hours waiting. Finally, I called them and someone said I was listed as having not picked up the call. They are so booked up now, they can't even give you an appointment. Just a lame promise that they'll call you in a week. It hasn't happened yet.
Frustrating. Keep at it, it will happen.
That is odd. I have had multiple appointments by phone and it’s always right on time.
@@youngtimer964 I rescheduled the appointment shortly after this post and it went smoothly a week later. I think the first time a newbie musta got the appointment and tried to cover their mistake. I got the answer I needed. Delaying taking out survivor benefits for a year or two or three. Got to feather my nest first.
I am receiving conflicting information from the You Tube community about spousal benefits. If my wife takes her Social Security benefit of $200 at age 62. Will her spousal benefit ( approximately 1550) at age 67 be reduced? From what I can determine at 67 she will will get her $200 benefit plus $1350 bump up to meet the $1550 spousal benefit. We are three years apart, so when I’m 70 I’ll start my benefit’s, she will be 67 and eligible to receive the spousal benefit then. None of the informational videos talk about such a wide dollar gap in benefits, any thoughts would be great.
Ray
So, your combined at her FRA would be 1550 + 3100. You must file in order for her to collect spousal benefit. Have you considered taking before your age 70? She would get less than the 50% If filed prior to her FRA and yours would be reduced but the combination of the two for a longer time period may beat waiting. I would look at a scenario where one of you lives to mid 90's.
Can anyone explain to me the "Catch 22" that the Social Security Administration (SSA) has created that occurs between age 65 and your personal full retirement age: When you sign up for your social security (SS) benefits at age 65 the SSA forces you to sign up for Medicare Parts A & B or pay a penality for being late when you do sign up and you are subject to that max earning rule ($18,960 for 2021). If you decide to forgo SS and remain in the work force you have to personaly pay for for Medicare or pay a late fee even though you were getting health care coverage from your employer. How is an individual susposed to keep working until their personal full retirement age if the SSA is going to penalize you on Medicare even while you and your employer are still witholding the FICA from your pay check? Can anyone enlighten me?
I did not have to pay the Medicare penalty while getting work health insurance past 65. You will have to have proof and Medicare will ask what the coverage was. If you don't start Medicare affter your work insurance stops then you can be penalized. The penalty depends on the number of months
You are exempt from the requirement to sign-up for Medicare if you are working and you carry qualified employer health insurance. Once you quit having that employer health insurance, you must sign-up for Medicare.
Great video,
Thanks John
Mr. Schmidt, Have you created a comparison of early vs. late with consideration to INVESTING (and growing) the 'unneeded' money (if started early)?
I'd like to see different rates of growth of that money ... I think this is a common sticking point in this decision that EVERYONE seems to ignore.
Thanks for the question. Check out my video on this question here:
ruclips.net/video/8Do6edWYRH0/видео.html
@@HolySchmidt maybe not a good decision to assume that good market returns will continue in the future,especially if important that the money be there
I think it's worth considering that Social Security is more like an Annuity than an investment. The markets are never guaranteed and if you're like most others considering that question, you likely already have money invested in the markets.I personally think that it's one of the biggest benefits of Social Security.
@@MILGEO That is the thing. People often make this "break even" argument, but it really isn't about the absolute difference in dollars. In fact, unless you die really early or really late, the difference isn't that large. The real difference is that by filing late you will be getting an inflation adjusted guaranteed amount for however long you live that is probably enough to live on (especially if you wait till 70). Too many people look at this break even argument and say "I'll probably die when I am 80 and the numbers look the same, I'll take it early so that I start getting it". But I say to that, yes, that is the point, the numbers are the same, so for the same money, you get a guarantee in case you do live longer than average. But I understand the trepidation of waiting and surviving solely on savings till then.
@@roberthansen9558 I would have to say that many people overlook the cost of living in the area they chose to live which is likely close to family, friends, and where they have spent most of their life. For those of us in the North East its expensive to live. So if someone has the ability to put off claiming early, they will have more money coming in when they're older if they are still around that long. And if not well then they won't be around to have to worry about it!
unless decision already made for you effectively via becoming disabled
I took SS early in 2008. But the market was down and I was an income investor. I used SS to pay bills while I bought things like Ford preferred stock, as an example, around $10, Par$25. I was getting a yield like %25 on preferred stocks. Just saying that when you take SS is situation oriented.
Your slide at 6:10 is incorrect with regards to spousal benefits. The benefit is based upon the spouses age. At their FRA, it is 50% of the primaries FRA amount regardless of whether they took theirs early.
Young timer…
Your reply, “their” can imply primary earner, or, it can imply spouse… the spousal benefit, is based on what the benefit could be, @the hypothetical full retirement age of the primary worker… ( does not mean, primary worker retires at full retirement age), but,
that spousal benefit, would still be a reduced amount, if the spouse ( or, ex spouse) decides to claim the spousal benefit before the spouse reaches full retirement age…
Thanks for making these presentations. They are very, very helpful.
Yet another great video, thanks so much!
Outstanding and simplified explanation thx 🙏🏻
Jeff, I am about 2 months away from FRA. Do I have to wait until then to start my filing or can I start it early? I am a subscriber and really appreciate your excellent presentations. Thank you for sharing.
you could have started at age 62
@@DrSchor But I wanted to get my full retirement and not be penalized for my income that I continue to make. Either way, I found out that I could file earlier than my FRA date and set the date to start my SS.
At full retirement age continuing to work full time. Can you collect social security without going on Medicare ? The full time job includes medical insurance and there is a need to cover a dependent as well.
Medicare and SS are two different programs, so no need to go on Medicare.
jerry kurata thx
You DO need to sign up for Part A Medicare (hospitalization) when you reach age 65 and will continue working. There is no cost for Part A. Then when you do decide to retire, you can sign up for Part B and any other options without penalty but will pay monthly premiums for those.
Thanks.
If I am eligible to get $853 of SS at age 62 and $1200 at age 67, does it mean that I wouldn't feel the impact of the difference until age 79? Meaning the extra $51k in benefits I get over those extra 5 years of collecting $853 between age 62 and 67, would take another 12.3 years until I would use up those extra earnings? Are my calculations correct?
You should not ask for that level of math to be done for you on youtube. Ask a third grader.
@@DrSchor 😜
I love this guy. Why pay 1% to a “financial advisor” when you can get this stuff for free!
Because there are services we need and someone else can do better. You pay someone to paint your house, cut you grass, do your taxes, prepare your will, change your car's oil etc.
@@tomblevins5020yeah but the painters don’t charge me 1% of my entire retirement account every year to paint my house. Apples and oranges. Add up that annual fee over 20 years and think about it for a while.
Yes i will retire at full retirement 33
Wait till 70 unless u sick and can't work it's better to get more cuz u might live to 90
There are very few instances where it makes sense to file before you are 70. Why would anyone want a small check???
People who don't expect to live very long and people who have dependents. Those are two off the top of my head
@@johngill2853 Avery small minority in both cases
If you postpone until age 70 as opposed to filing earlier (say, 62) then you have thrown away 8 years of payments. That's 96 months of $0 checks. Can't get much smaller than zero.
@@dauminfranks337 Look again at his chart. Yes, the money starts later but builds faster, and at around 80 yrs old, all the pay rates cross. If you live past ~80yrs old, it pays to wait. As a financial planner asked: If you don't need the money now, wait and make more later.
Yes but the original comment stated "why would anyone want a small check?", which is pretty silly. It's comparing apples and oranges. The numerical amount of each check is smaller, but you receive A LOT MORE of them. Until you hit the break even point, the earlier retirement scheme is always ahead in dollars received. And once you hit the break even point (which takes many years) it is the EXACT SAME AMOUNT either way. Only after the break even point does the delayed retirement scheme start to yield better totals -- if you live long enough to reap the benefit. Which is a helluva gamble.
People do not make a decision on SS until at least 62, so you have already extended your probable age of death beyond what you are using. Do not use your number as break even in this decision. If you are single, you might as well consider starting at 62. If you are married try to get to FRA befores starting. Under special conditions, go for 70. Such as you are working till age 70 and you want to maximize your spouses survivor benefit and you have very little other (IRA, ROTH, LIFE INS) income sources for the spouse.
I understand if you have a spouse, that adds even more purpose to waiting to claim and maximizing survivor benefits. But I don't understand why if you are single, you wouldn't still maximize how much you can spend? If plan A allows you to spend $5000 a month for life, and plan B $6000 a month for life, why does being single say you should take plan A?
@@roberthansen9558 A primary reason one delays, especially to age 70 is to boost your spouses death benefit where you assume you might die several years earlier than your spouse. A single person typically does not have that motivation. Taking it early helps ensure you get your share of social security, and you can boost your income from other assets during your most active years. Statistically single people die younger, so that is also a factor towards starting earlier.
@@billyrayband Well, if you know you are going to die early then of course the discussion is moot. But if you are going to live at least average, taking it late actually allows you to spend a little bit more in your younger years, not less, and then past 70 most of that larger budget is guaranteed and inflation adjusted. That is assuming that you have enough funds to wait till 70. The only way taking it early will result in more spending money is if you assume a market return of 10%. But at the more conservative assumption of 6%, the SS monthly benefit increases faster from 62 to 70 than the market can make up for. Keep in mind, while you are relying on your funds prior to 70, afterwards you are relying on SS, which is why in the end you get to spend more.
@@roberthansen9558 I see a lot people keeling over before age 70 that I did not think would and others 80+ that keep going. All you can do is guestimate when you will die and make your choice. Its a simpler process for single people with much fewer outcomes.
I am soon to be 68 and have been receiving survivor benefits from my wife's SS since I was 62. I surely shorted myself because I stopped working at 56 years old but I have no regrets. I am contemplating taking my SS soon after I turn 68 but common sense tells me to wait. I am torn.
I'd talk to the SSA - they really do want to help (there are real people on the other end of the phone). Their phone number is in the comment section below.
@@HolySchmidt Thanks for commenting back
I have a question that I hope is not considered stupid. What happens if we outlive the number of SSI payments you speak of?
I am not aware of limit of SSI payments.
That's what part of Social Security is it's old age insurance. You can collect checks as long as you live. No limits involved
For many it comes down to being able to keep up or losing mental capacity Alzheimers is a disease of the 80's (as in years old) and if you have to go into any facitlity you may as well enjoy your retirement prior to losing alot!
you could rationalize that a dollar of (inflation adjusted?) income is worth more to you at a younger age,say,68,than at an older age,say,84
If a person were unlucky enough to become a vegetable in a nursing home at some point I don't think we even know whether that person would even have any awareness of their own existence let alone any awareness of having income
think modern medical breakthroughs are more effective at adding years to life rather than life to years,especially at advanced age. Didn't the late Doctor George Sheehan make some quotable observation about "adding life to years" being superior to adding "years to life" in one of his running books or articles?
Dementia is a preventable disease! If you take steps to prevent it in your 30s 40s and 50s, by eating the right foods (rich in omega fatty acids, coq10, vitamin d, magnesium, etc) or even supplementing these nutrients, these terrible diseases can absolutely be avoided. People need to focus on incorporating healthy practices into their lives long before old age in order to prevent chronic illness, rather than assuming they will be afflicted with these illnesses and simply accepting that eventuality.
@@dlg5485 as a nurse it is a disease of the 80s most will get it the older you get and nursing homes take everything..yes the better you take care of yourself it is better but not a curable disease and not preventable for many
@@madusonkeeper Well, I may not be a medical professional, but I still don't agree with that. I simply don't believe that ANY disease is inevitable IF there is emphasis on healthy living and prevention starting early in life.
@@dlg5485 DNA....it's all in your DNA no matter what you eat or pill you swallow.
Comment thread is full of bad math, bad assumptions and bad attitudes.
I had NO idea all of you hated working so much.
What miserable lives you have led.
Living in misery waiting for that day "when I can REALLY start living".
Sad and tragic.
I have NO idea if anyone on here can answer this question, but I'm going to try. What is the scenario if I retire at sixty four but do not collect my SS until what would be my full retirement age at 66 and a half? Since I stopped working before my FRA, would the payment be less than if I continued to work? I can't seem to find the answer to that. Thanks in advance if anyone can comment.
You have to put into the calculator "expected earnings during future years Zero"
the Social Security estimate mailings they used to send me yearly while I was working assumed that I would continue to earn what I earned the previous year,after I retired (but not taking SS) a couple of years the estimate mailings began to use the assumption "expected earnings in future years Zero"
It helps to have 35 good years of earnings subject to the Social Security Tax,if you had that when retired then having stopped working early might not make much difference unless you could have made more money in a future year that would have then replaced one of the 35 years you already had. They use the best 35 years I understand but years a long time ago might get an inflation adjustment that raises their value
if you had less than 35 years of Social Security Tax covered work when you retired early then you might lose more from your eventual benefit than if you had already at least 35 such years
at least that's my understanding and I think 35 is the right number of years they count into their calculation
yet another thought:(I did this) when you retire if you can take a huge amount of leftover leave and convert it into a large paycheck such as multiple thousands that possibly you can defer income tax on by rolling it "catch up" into your 401 or 457 account(s) you can still pay Social Security tax on that as part of the final year income reported to IRS and Social Security,say if that ends up being 20,000 more than your other year's earnings it will pump up your benefit calculations at least a little bit. One of your best 35 years.
It doesn't matter if u stop working but wait to take Soc Security Years later? It is based on your Top 35 years no matter when or what order, low year or No income doesn't matter along as you have 35 years . If less than 35 count as 0 Add them Up divide by 420 ect.
@@josephj7991 Thanks Joseph!
Thanks for making the videos. Good info... For some of the corrections by other people. Use a little common sense.
If able can I work past 70 and collect
All ss including medical
Can anyone answer the following question? If I take early retirement ( age 63) and collect social security I can only have earned income of approximately $19,000 annually without incurring a deduction of benefits. Can I use a Roth IRA contribution to offset this earning allowing me to earn more than $19,000 annually without having my SS deducted ? Thank you
yes you can take distributions from passive sources.
Your Roth IRA is not classified as Income.
I think the others thought you meant taking money from a Roth INSTEAD of earning. If you earn $19000, nothing is going to offset that with respect to SS earning limits. It isn't like taxes.
What happens if you forget to file for social security for several years?
Do you get what is past due?
You only need to file once. If you wait to file the payment becomes larger. It’s rare that someone forgets to file unless through special circumstances like a spousal benefit.
@@HolySchmidt well, it's my mother. She's receiving disability, and we thought it was retirent...
She's 77 now.... What do we do?
I’d recommend speaking to the SSA.
@@HolySchmidt just wondering if you had any thoughts on the matter... Not going to hold you to it, just nice to hear different things
@@gsgidney I had always heard that it was an automatic conversion from ssdi to retirement. But when? FRA?