The Lump Sum (Retroactive) Social Security Payment
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- Опубликовано: 5 сен 2024
- This video is all about getting retroactive Social Security benefits. Specifically, the one-time lump-sum payment when you file for your retirement benefit. This may seem like a good deal, but is it? I’ll tell you what you need to know to make this decision for yourself.
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Resources:
POMS page on retroactivity. secure.ssa.gov...
SSA Handbook on retro payments www.ssa.gov/OP...
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P.S....Close to dying in that accident, my entire outlook on life is different!..I continue to serve, worship, obey, and thank GOD for all my blessings and life!
You have no idea how angry it makes me to hear about these drunk driving accidents. Unacceptable! And yet anytime I'm out to lunch I see my professional colleagues consuming alcohol with their meal. This is a side rant...but one I can get fired up about really quickly!
@@DevinCarroll Well, I thank you and glad you do understand how i feel Devin. Thank you for all you do.
Amen
@@seventhchild7270 your story reminds me of my own car accident..it was a 4-car pile up and the driver behind me missed my gas tank by a quarter of an inch!
Amen
Real simple.
Government does NOT give, government takes.
If it sounds to good, it probably is.
Anyway I have 8 years left until "full benefit" so all this will most likely be modified 8 more times anyway...
It is very good to know that Mr. Carroll is knowledgeable and dependable.
His advice is sound and well worth taking into consideration!
I haven't watched the video yet but I know this , the house always wins.
I chose this option and it worked out great for me.
It gave me the ability to pay off debt so I could retire and become my wife's full time caregiver.
I don't think this option is for everyone, but in my case it worked out well.
I have never heard this before anywhere.
tim maybanks , google it...
The Old Bait and Switch routine, never gets old does it...
And let’s make up new rules as we go. You are so right.
@@gwendolynsmith6423
EXACTLY Gwendolyn, Just like the Democrats {Make up NEW rules as they go along}. Hey, I think Social Sec. is a scam anyway. They freaking tax u on ur $$$ and hey, we shouldn't be paying taxes either, PERIOD. However, these greedy, evil elites that run this crappy world are screwing us (Slaves) workers since 1913 when taxes were instituted. Hey, try to enjoy ur Retirement $$. We're all probably getting WAY LESS than we deserve.
@ Not everyone one had the sophisticated education or knowledge to understand exactly what is happening, and when the question is asked rather than said let me reach out for help from a friend in the know they feel pressured and make a bad decision in the long run... Strange but True...
@ SSA are like you said not responsible for your own decisions, but the question is yes and no... Your response is yes I heard the question, not that I agree with the option given... But they have no Idea what you mean, so it's up to you to make the good decisions... The SSA employee has no idea that they have explained the consequences well enough for you to understand the outcome of such decisions... Sometimes the retiree is on meds, sometimes old age has taken it's toll...
Often times a person is flooded with confusion at this time of there life, and need more time but the clock is ticking and it's almost 4:30pm, I need to wrap this up to day, so you understand... you said yes, and yes it is... Sign here and here, initial their... Thank you your check will be direct deposited into your checking account within 10 days... Goodbye Enjoy your retirement...
Yep, NO LUMP SUM, I always have to consider my wife first, thx for the vid Devin, always a pleasure learning from your channel.
Thanks for watching! Happy to see folks like you what have been around for a while still enjoying the content we put out.
Yes I am 69 and called intermittently regarding my benefits and at each call was described the lump sum benefit. I am not a fan as I waited these extra years for the MONTHLY benefit and do not need to pay the extra taxes on that lump sum as I am still working full time as well. Great subject to make people aware.
No lump. Delayed gratification has served me well.
I never ever heard of that type of social security benefits
There's no such thing, that's why you've never heard of it.
I’ve never heard of a lump sum benefit. This sounds like click bait.
Yes there is, but they don't tell you it decreases your future payments. It happened to a close friend of mine.
@Albert Leong yes it is. I have checked it out
I asked about a lump sum payout in Oregon, and the social security folks laughed at me. The gov't is not in the habit of benefiting the citizens it's fleeced.
i guess it depends on your heath and financial situation . i am 10 years older than my wife and the higher earner i will have a F.E.R.S.retirement so for me survivor benefits are important some how it feels very crooked that our government makes it so complicated. i lost my first wife during the 6 month waiting period for ssi disability and got no payment on the money she payed in during her life .i enjoy your videos on navigating ssi keep up the good work
jim rotharmel Did you do an appeal? Someone may have given you the incorrect information.
I switched from survivor's benefit to my own account at age 70 last year. The agent asked me if I wanted a six-month lump, and I declined. I am now receiving my maximum payment possible. With good health and lots of longevity among my ancestors, I intend to rack up the cash for a long time. Y'all keep working and paying in.
I just turned 66 on Nov 23rd...However I've been collecting widows benefits since I turned 60.....I'm still working part-time to mak3 ends meets...At this point I think my survivors benefits would be high than my own SS at this point...I'm going to continue to collect my widows benefits, work part-time until my benefits are higher, hopefully....I'm really don't know if I would take a lump sum if offered....It's a real struggle keeping my head above water as it is.....And I don't see anything getting better..for anyone except the wealthy...The rest of us will continue to struggle...GOD BLESS everyone....
hello I'm not rich but investing a bit and its helping some more than not and more than when I started. I hear a lot of people say the wealthy are just getting richer and no one else, how do these people think that these people got rich? did the poor go to school for them, or took on the risk that they did to start and continue to run businesses, or do they think because they buy the products that they make, if it is the latter then why do they buy it and not make it themselves? how did the rich make the poor, poor. My great grandfather, started out poor but worked building the rail roads in the late 1800s in the early 1900s he bought land with the money he earned and grew cotton, and alfalfa and he got rich, he then gambled it away except a 25acre parcel that he had bought because it could make excellent adobe brick, he put the plot into service and became rich again selling adobe brick for homes in those days in New Mexico, USA. The poor are poor because they lack ambition and motivation and excel in procrastination, how then is this the rich peoples fault? My Great grand father was a go getter, and believed in himself willing to take a chance which is a gamble, and in a gamble lost it all, just to rise up from the ashes again. His kids didn't want to struggle or continue in his business they didn't have his drive. They are all gone now only the adobe pit is still in the family but still sits idle to this day. Sad. It was originally willed to me but my moms cousin a grand daughter of my great grand father was able to supersede me before the last daughter died my great aunt. so I have no control. What is a millionaire? People win the lottery and become millionaire twice a week in this country, but because they are not true millionaires when they spend a penny of it they are no longer a millionaire and have no idea how to earn that one cent back. Some become broke and in a much worse condition than before their great win. A millionaire is a person that if they had a million dollars in their hand on one day and lost it all the next day, within one year they will have it back in their hand again. Pouting about not being rich or in a condition that they dont care for only makes a person bitter, and that's what makes life poor. Riches or financial insolvency is a mind set, pick one then own it, believe in yourself. Good day.
@@utuber13x well, well, well - what a piece of workmanship - truely! You are a superb writer! My, my, my - sure makes you stop and think a bit....
Please be aware that if you take any sort of retroactive lump sum you will have to pay back the survivor’s benefit for the same time period because you cannot get both
Thank you for explaining, my husband is retiring soon and this video helped immensely
I was 66 in Aug 2019 -- I plan on filing online this month (December) -- but ask to delay my benefits to Jan 2020 -- this way I will get 5 months of delay benefit --- I was told if I file in 2020 -- the delay benefits would kick in 2021. Your video was very helpful to me-- I will Not apply for the lump sum and lose 4% -- No way I would do that
I'm planning on filing at age 70 in 2020 and have my wife file for the 50% equivalent. I'm fortunate enough to have enough ready funds so that I won't need that lump sum. Thanks to this video I'll be very sure that that is NOT considered automatically or if offered, refuse. I want to do everything i can to maximize that monthly pay out.
I waited 4 months after my full retirement age. They offered a limp sum for those 4 months. I waited those 4 months to get increased amt. now cant get the amt I am entitled until Jan 2021. They are crazy . Always trying to keep your money.
Thanks to your videos I'm now much more informed and wiser about these matters.
Really happy you find value in my content!
Everyone's Situation is different. I was in a near fatal car accident with a drunk driver, and after the accident i went out on social security disability and also received my state pension...being divorce and a state employee, i took both of my disability retirement, good health benefits, still receive income tax refund ,I am so glad of the decision i made!....car paid, debt free, good credit (dont use) downsized to large apartment, nice neighborhood,..Im happy, at peace, live nice and frugally....with no regrets!
You did exactly what you were suppose to do and yes most people are not aware of what you can collect, obviously you were. Good for you. Well done
@@anthonydiomede4818 Thank you, Anthony
Thanks for this video! I've never heard of Retro Lump Sum. My initial thought is: good for government coffers, not so good for me.
Born in Dec. 1951, my FRA is 66; I turn 68 next week & will retire from work end of next month (31 Dec. 2019). Eight years senior to my spouse (without her own social security benefits), I want to maximize my pension in order to leave the highest possible survivor-ship. Thusly, I do not plan to apply for Social Security pension until Dec. 2020 (age 69) -- or, depending on the answer to Q1. below, perhaps Dec. 2021 (age 70).
Q1. A while back, one source (I don't recall if the video was yours) reported that for those born in 1951, the 8 percent annual increases would be maxing out at 124 percent (age 69), and NO LONGER increase to 132 percent (at age 70) -- and thus no reason to delay filing beyond 69. Is that true?
Q2. I would like to prevent "just being given the retroactive lump sum payment, without being asked." Admittedly, I've not done the calculation as yet, but my gut tells me I would not benefit from the four percent reduction, and more importantly, in the future, my probable surviving spouse would not be served well either. Is there a way I can try to prevent "just being given" the retroactive lump sum payment, not to mention the associated 4 percent benefit drop?
NOTE Special Circumstances: An expat without a U.S. mailing address, I am not authorized (legally) to create a My Social Security online account; SSA reps will not engage me in conversation or email messaging. I must address all queries and actions through the Federal Benefits Unit at the distant US Embassy, the office holder which may, or may not be, a social security professional. Just saying. Any advice considered and much appreciated.
Parkland Baptist Church
No lump sum! 4% over time, I'll wait. Pay me monthly!
I filed for S/S 6 months after my 70th birthday. They called to ask if I'd like to receive a $14,000 lump-sum distribution. I assumed it was because I had waited a while and they were just making it up from what I should have received had I filed closer to my birthday. I said yes, they sent it the money, and I'm still getting the full monthly amount I had expected -- no 4% reduction. Maybe I was lucky.
Bruce Hood , yours is a different situation... , @70, you were already maxed out , they simply gave you money they owed you, if they'd lumped it all the way back to your "full retirement age", then your check would get reduced
I know a friend that took the retroactive social security benefit (6 months). That increase put him in a higher bracket where he had to pay an IRMAA surcharge for his medicare premiums. Be careful of this option, it's a trojan horse.
Yes! I didn't mention this in the video, but if you already have a fairly high income this is a real possibility.
Excellent point
I got one large check then the remainder in 6 months increments it won't hurt you at all
Looking at these negative comments on taking the lump sum, I'm thinking most folks don't really understand the math. If you can get to take a 6 month lump sum that means you are at least 6 months beyond FRA. Over 50% of the people take SS before age 66. (It's probably higher than that). So taking a lump sum at 66.5, or 67 or 68 or 69 or 70....you are probably way ahead of others that settle for a lower amount by taking SS at 62/63/64/65/66
I have been fighting the Social Security folks for 9 months now, waiting for my lump sum. I started SS at age 69 back in March 2020. I accepted the &40.00 per month reduction for 6 months of retroactive money. They didn’t do the paperwork correctly. I have been calling every six weeks to get it corrected. It is November now and they still haven’t sent the money to me. I did do a lot of calculations before deciding to do this. Figured in different life expectancies, what I could earn on the lump sum if I invested it, etc. I am really good at managing money.. it infuriates me that they promised me a lump sum and then didn’t send it. You get different answers when you call the office and talk to different people
@Susan Kievman...I agree. You call social security ask a question call back another day speak to different person ask same question get a different answer.
For my part here's what I'd do. I'd take the lump sum go find a financial services consulting business and pick out an annuity which would start giving me an immediate payout weekly and invest it. Boom! No governmental interference and you can take part of that and reinvest it in many different ways as well.
No lump sum for me. If the government tries to convince you it’s best for you, and it’s about money, you can bet it’s the best option for the government.
That's probably true :-)
Exactly
Your loss, my gain! Elezibeth is going to cut it when she gets in, better to have the money on hand.
@@richardc488 Princess Talking Bull will NEVER be President in 2020
Well said!
In this example you get $12,000 L.S. versus and additional $80/month. The break-even point for this differential would be in 12.5 years when you turn 79. I think I would take the L.S.
Personally , I am taking the long term approach and maximizing my monthly take on all fronts because I might live beyond my means just to spite myself . Inflation sucks and will steadily erode whatever princely sum you started off with , so start off with as much as possible.
Short of a rare home run investment opportunity suddenly appearing when this decision is needing to be made - I will not be taking the lump sum.
No lump funds for me. Thank you.
Thank you for this information.
I will not go for a lump some at the risk of my benefits being cut as much as 4%.....although it is tempting but not a good idea.
How can they offer a lump sum, OR a reduction, when they don't know how long you might be collecting that benefit?
Since I was born in January, in 2020 I reach FRA. I think I will quick time it to the SSA for my beny's :)
Thank You Devin for sharing very important information about SS.
It's very much appreciated.
No lump sum for me!!!!😀👍😎👍
Two additional factors he didn't mention: First, the lump sum payment is fully taxable for federal tax and possibly state tax the year it's received. Second is how long would an individual need to receive the lower monthly payments before he/she reaches the point where the lump sum payment amount is surpassed. Most people would need to draw 8-10 years of the lower monthly payments to equalize the lump sum payment. If one is in bad health, or in real need of the money, it may be a good deal to take the lump sum up front.
I think you meant to say "Most people would need to draw 8-10 years of the *higher* monthly payments to equalize the lump sum payment". But it is longer than 8-10 years. It is 10-16 years depending on your age at filing (later filing = longer time to repay).
Considering what they're paying out a 4% cut would be a very bad thing.
"The thing is, it's MY money and i want it now"....lol.
Social security will never pay out a lump sum to you at all you get your once a month this guy normally knows what he is talking about and this time he does not it is all bs.
@ social security tried to offer this to me an just on suspicion I turned it down. In the long run my benefit has grown better than I could have guessed. Sure the lump sum looks like a good deal but I am glad I refused it at the time.
@@robertmartinez8576 u get it in every 6 months increments now
I never received this offer,I worked full-time till I was 65 in order to receive full benefits, born in January 1953.
@@robertmartinez8576 it's actually once every 6 months
The same reasoning used to determine when to file, should be applied to this decision.
I suppose that I could work until age 70 1/2, then file and collect 6 months lump sum.
You could
Does that still cut 4% from your age 70 Benefits ?
@@Fdt172 The monthly benefit amount does not increase any beyond age 70. The monthly benefit at 70 1/2 is the same as age 70.
Thanks for bringing this to my attention, Devin. I am waiting until I turn 70 in another few months. I didn't know about this lump sum payout and might have been suckered into taking it, thus thwarting my effort at maximizing my monthly payment.
I ran into a problem recently I was surprised and upset when it happened. I still work 2 days a week and my full retirement year is January 2021. I went over the earnings cap in 2018 and 2019 so I knew there would be a deduction for overpayment. What I didn’t expect was for an entire check to be withheld in 2020 for pending tax year filing in 2021.. It took 5 phone calls and 3 appeals for someone to finally tell me that even though I had not yet gone over the earnings cap. For tax year 2020 they took the check “in anticipation “ of me going over the earnings cap!
The question should be worded "Are you willing to screw yourself over for a lump sum payment?".
What's sad is for those who aren't given the choice.
Some people die before they get the payment everyone is different it's not a one size fit all.
You have to look at your life expectancy and your living situation everyone is not wealthy or healthy. But if you are then wait but you can't say they are ripping people off. It's your choice just like if your company offers retirement plans its based on age if take it early your taking a reduced benefit.
Using easy numbers if I take the lump sum and get a modest 5% interest if I invest it all, I come out ahead. That is no considering the increase in income possibly creating an increase in income tax due. My break even point is 12 years. If I leave the lump sum alone it continues to increase in value (if invested wisely). There are so many factors to consider...it's a bit of a shell game. If someone wants a straight-forward solution I would say not taking the lump sum is the way to go but it all depends on one's financial circumstances.
Social security part a and b is $144 but 2021 it will be $157 let's make America great
It's the same thing that the company does when it buys your retirement
Hello Mr Dev ,, boldly appreciated!! aint waitin, “the” plan 62 @ 5/30/21. draw early SSI, pension started at 60. problem is !! taxes on pension was not withheld so $3000 in taxes = 🤪😂🖖,, hey Dev I really liked that BBQ pit,, nice, you got seperate video on grilling too?
Thank you for sharing your knowledge!
No lump sum Higher monthly
I did 6 years ago and I'm glad I did.
I was just approved, and my backpay is close to 54,000 yet they plan to give me 15k 3 times over the next 1.5 YEARS? ABSOLUTELY NOT, I will never agree to that. I cant even purchase a vehicle or find housing if I were to. Ridiculous!!!!
Well I retired last year at 70. So I had accumulated 32% since age 66 above my normal retirement amount. I was offered the 6 month payout and then monthly reduction. I took the lump sum payout for two reasons: First, I invested the entire amount in an annuity that has a 6 to 8 percent return per year. The account also has a nice fixed rate return portion where I’m drawing a small monthly disbursement. I’m actually drawing a larger sum that way then if I had taken a full monthly benefit. Second, no one knows what future tax rates will be, and since I fell into the 50% of social security with combined income I paid a smaller rate upfront.
While I know not everyone is in my situation, looking back on it now I feel this was a good decision investing the money to extend my total income. This year is my RMD but that’s another story.
Don't know where you can get 6-8% for an annuity these days but if you did, good for you!
@@Larry821 my annuity has been invested since 2003 and the rate of return is an overage for 2020. If your not making at least 4 percent I question your investment company.
@@michaelsnyir4353 Well the tenure of your annuity might explain matters. New annuities will pay less at any guaranteed rate.
So your suggesting that the ssa may not be acting in our best interest?
Wow.
I'm baffled....after all this is Murika.
Only because, we would have back bills to pay, by than and food to get . And car upkeeps and yes yes yes please give us the lump sum with the monthly payment. Would be perfect. Would really help out alot. Thank you God 🙏💖
Yes ,I would pay my loans off. And since I own my own home....I come out ahead...
You always hear the FRA Benefit amount but this PIA is determined by a calculation that uses formula parameters determined at age 62. Both the bend points and AWI indexing factors (less two years) are used from the year you turn 62.
Waiting til 70 to collect. Don’t plan to do anything to decrease my benefits!
Praying you make it.... too many folks I know recently didn't... it's a gamble.
Same here. Good luck to us! Tell Lucy I said "Hi!"
Ethel Mertz.... Go for it!
On my part, if I keep working, I bring more money in than social security. Working also keeps me more active and is better for my health. My parents lived to 82 and 89. We have family that have lived to 95 and 103. I want my social security payment to be higher than my husband who retired at 63. That way, if it's only me, I have the higher figure and if I die, my husband can draw my higher figure. Living on one income may have to be supplemented with our savings.
Good Luck Ethel.
ze5132 ok LUCY
@@imxploring gamble, yes, but odds are most make it beyond break even point. Claiming early is a scare tactic for most. Not all, but most.
I took it, bought my motorhome to live in rent free. I'm single, so no survivors benefits to worry about.
Thank you Devin for making us aware of all of this. May God Bless you.
The only "lump sum" I have heard of is when you file a claim to start collecting S.S. and they deny it and you have to go through the legal system in order to start receiving S.S. and then they give you a lump sum back to when you originally filed. They will give you a payment from the date you filed up til current and then you will receive your normal monthly check after that.
I assume that lump sum comes with a sizable tax payment as well.
Personally, I have no intention of reducing my monthly payments by taking a lump sum.
Social Security is non taxable income unless your income is a certain amount. Then it only becomes partially taxable.
@Bo Zo that is completely bogus i have been drawing social security for over 20 years not once have i been taxed on it even with my wife working and filing joint returns. Now if your income is over the allowable limit yes you can be taxed. But if your being taxed you must have one heck of a large income. So you better learn what your talking about before talking because on this subject as i said been dealing with it for over 20 years.
@Bo Zo thats ok i will just ignore your ignorance as i doubt you have any experience in the matter. Like i said i have been drawing social security for a very long time if it was taxable i expect i would know that by now. However a percentage can be taxed if your gross income reaches a certain point. That varies depending on your income bracket you fall under. So if your drawing social security and having to pay taxes on it you got to have a very large gross income. If you have no other income but social security it is not a taxable income. Only earned income is taxable period.
If they give it they'll be taking or pinching off the other! That's what they did to me! I didn't get the lump sum because they were talking about crap you can't get the full amount of both from the same source, them!
@Bo Zo ,your name is approiate
I'm 81 years old and have worked for 50 years. What do I need to know about how I will be paid, should I live another 10 years? Some people do. I'm in great shape physically, and would like to get some glimpse of my financial future. I have little outside monies. My husband, who is 68 is on disability Social Security. So there's the picture. Thank you,
To answer your question, since we haven't filed yet, heck no, we won't take lump sum payments. But I have a question for you: My wife of more than 10 years does not qualify for SS on her own (less than 40 credits). We intend to file when she reaches full retirement age, which is 7 months after my FRA. Your thoughts please on whether to apply on-line vs. over the phone vs. in person. We don't do Facebook or other social media due to privacy concerns. Thank you.
I filed for social security benefits after 70 years and 6 months and I was sent the lump sum. I did not know that I had a choice. I doubt I can do anything now.
After 70, you don't. Now you want the lump sum because the benefit will never get any bigger that it was at age 70. Now at age 70, it would reduce the size of the benefit. because the benefit would now be based upon age 69.5.
Take lump sum and invest it..would get more than 4% if invented low risk
No lump sum! Great reminder to think of beneficiaries first.
A survivor isnt eligible for the delayed retirement credits that the spouse earned. Its capped at full retirement age
You can always invest that lump sum or portion thereof and make far more than any benefits can give...
Always the gambler lol
No lump sum! filing in two years
No Lump sum. And I hope you feel better soon!
Haha...I guess my voice gave it away huh?
@@DevinCarroll Yes, and your eyes. A little glassy. Take care!!
Scott Sachs I’m RARELY I’ll, but the cold hit nearly everyone in my family at the same time.
I will stay with my higher payment!
I deferred taking my monthly benefit until age 70, and I don't recall the lump sum payout even being brought up!
I got one lump sum n March got two more coming got another coming m Sept the next n March 2021
The same with me
👍👍
I would most definitely take the higher monthly benefit that lump sum we're not go far at these days much rather live in the present with more money every month
If I decide to ditch out and live in an RV in the desert that could work.
What should you be telling SS if they offer it (or just give it to you without asking)? Do you just say no I want my full benefit?
Thank you so much for helping us to understand this. I would not know this.
Defently, I would want the lump sum with the monthly payment
No lump sum...
no to lump sum
My inclination now is not to take the lump sum. But I can imagine situations where, if offered, it could make sense. I'll decide what the time comes. Thanks.
GIANT SCAMMERS. THANK YOU DEVIN
Another thought....Devin asks at the end of the vid what we would do in such a situation. First of all,.....recognize that MOST people do NOT defer for higher payments anyway....most do not wait until their full retirement age (currently age 66 for those born 1943-54)....so this whole question does not affect many people (relatively speaking). The stats I have say about 44% of eligable people take their benefits at age 62....whereas only 15% or so,( call this "1-out-of-7" people), take at age 66....and only 1-2% take at age 70, the max). Then...after that....what I say below in my other comment takes hold.....whether to take the lump sum or not is a "Call" you make depending upon your prediction of when you will pass, based on the best data you have. If you think you'll pass rather early in your retirement years....take the lump sum. If you think you'll live into your 80's....wait and don't take the lump sum.
Devin has his "trusty" PowerPoint illustrations, Josh Scandlen his "trusty" calculator. Me? I have my trusty Ouija board! 😁
@@johnc2438 ...Devin does a good job. Just sayin' too many people will ask "what's best for me?"...and that's something he can't answer, but the person affected can think this through a bit more if they thinkthey'll be long on this earth...or not.
@@TheWilferch Keep in mind that the SSA itself tells you that whether you collect at 62, FRA, or age 70 that you will collect roughly the same benefits over your lifetime. They have it figured out... so the choice becomes a personal one based on expectations and needs.
I find it disingenuous reading all the articles telling folks to wait until 70 for those bigger checks (that you will get for a shorter period) knowing full well that a sizable number of people will die during that 62-70 age period and never collect a dime... but once again... it's part of the system they have worked into the scheme!
@@imxploring ...again.....your answer is the common one....implying folks should be biased to "take it early, you don't know how long you will live" . That's my gripe. That is only ONE way it can go wrong. The OTHER way it can go wrong is that you live untill the late 80's or even in the 90's....and you look back and say, "how stupid it was not to wait those extra 4 years.....SO MANY YEARS AGO......when I was in my 60's....and now that expenses ( typ medical expenses) are so high.... I WISH I would have waited before I got my benefits, so I would have $X00 more now". My gripe is that all I hear from people is only the one-sided problem if you die early.....what about the problem going the other way?....of outliving your money you wish you had, but don't have because you claimed early? As I said.....it all depends on the crapshoot if you die early or late in life....there is no "one answer is best" for all. Don't forget, the "break even" point for folks born 1943-1954.....comparing the 75% amount you get at 62, vs. the 100% amount you get at 66..... is age 78 when it all evens-out.
@@TheWilferch All good points... but there's also the value of the money you get and how you can enjoy it while younger and able to do so. Another issue is medicare premiums. Waiting until 70 brings that expense into play at age 65... as does collecting at 62 when you are not paying those premiums. Add to that the supplemental plan premiums you'll need to pay to cover the 20% medicare doesn't cover! Factoring in these costs when waiting on those bigger SS checks at age 70 makes collecting earlier even more attractive. Statistics indicate that approx 32% of the US population dies by age 70. Approx 14% die between 65 and 70.... so there are significant risk in waiting not even taking the dollar value of earlier collecting into account. Sure you can out live your income... but as you age your expenses usually (other than doctors and diapers ) go down. No new cars... if you're even driving... wardrobe is stuck in the prior decade... and so on. Sure inflation comes into play. It's a gamble...no doubt. But death ends the game... and that's hard to predict... so you do the best you can while the game is still in play. I won't even bring up SS own assessment (and they put it on every statement) about the reduction in benefits that folks will be hit with in the near future if nothing is done to correct the funding deficiencies. They've included that on the annual statements far too long for it to be ignore or simply dismissed as smoke...
NO, on the lump sum.
Like any SS decsision where, if you "wait to get more".....the REAL question and roll-of-the-dice is---> how good your prediction is for how LONG you will live. In this vid's example, the lump sum option MAY be good for those with health issues (or if you have a DNA and family record of living a short life).....but as Devin says..... over the long haul, this can be a net-negative for those that live long. It's pretty much the same question as for those people that wrestle with the question of taking early benefits (say at age 62 and getting 75% of your full amount the rest of your life).....vs waiting those few short extra years ( to age 66) and getting 100% amount for the rest of your life. WHICH ONE is better for you....depends on how old you will get to be, before you die...a crap shoot, but one you can judge by your family history and your health. There is no "one-answer-fits-all".
Absolutely true
Also the impact to your spouse. Mine is 10 years younger, so no lump sum!
Another factor is how you are doing income wise at the present moment and in the near future. If you are making a good income and you enjoy your job and it is probable that you can keep working past FRA than you should wait to get more. But if you have a very low income or you hate your job or your type of job is becoming difficult to do as you get older, then it maybe better to file earlier. A lot of people are in a situation where there income is drastically less than it used to be, for whatever reason. Maybe your company was downsized or went bankrupt. Or maybe the line of work you do most people are in their 30's and you are still competent but it just feels awkward and you don't really want to fight the status quo. Not everybody's situation is all rosy. Maybe you were unjustly terminated. People are not perfect, maybe you were rightly terminated, maybe you even were convicted of a crime and now cannot get a high income job. There are a lot of situations where people are not making a good income and it would benefit them to take SS benefits sooner rather than later.
I have a question. I'm recently widowed and I'm only 52 . but I've never worked and my husband was disabled from a work injury..can I draw off him now?
Yes
Very large tax payment and what the hell will you live on.
If you waited the 6 moths to increase your monthly amount,, why would you ever thi k to take this offer? If you didn't want the higher monthly benefit, then just file at full retirement age, and then keep working for the extra money, banking those first 6 checks, you'd end up better than taking that offer, my opinion.
I heard about this somewhere else online. I believe that they don't want us to know about it.
No lump sum but a higher benefit in my check ever month.
Higher monthly income for me.
Not filing until 70 and NO lump sum. Taxes and IRMA penalty would eat that up in no time.
You’re probably right
What about ssdi, when I received my disability the back pay was less
I filed for SSDI and was turned down a man told me to file again.. I thought I had waited to long. They sent me to 2 doctors and 15,000 in my checking account.
I’m not sure I was the higher earner even with my husband being in the military. Our hypnotize should say he died and he was a vet. But I was never offered any lump sum whatsoever. They just took me right from disability and said you’re no longer on disability because you’re in full retirement and just switched me over so I never had the option they never gave me the option but after listening to some of your video here maybe it was for the best but they did tell me that if something should happened To my first husband to get in contact with them because he has considerably more being a teacher. So not sure what I would do really. But thank you for the information.
Filed at 62. 1200 per mo. 14.5K per year. Now its a how long can i live contest. Bet i win!😆🇺🇸❤
@Ryben Flynn Nice! Ya, had 5 active and 18 Nat.Guard 7a mo.Now it's time i take it EASY!😆
Enjoy your retirement 🇺🇸❤
I was never offered a lump sum, i never heard of this!!!
Beverly Balius
I've heard of this somewhere online. I don't think they want you to know. (Social security).
I know this isn't the kind of lump sum payment discussed in this video buy, IF the SSA was willing to pay me all the money I've contributed over the years, plus a modest amount of interest (for loaning them the money), instead of a monthly annuity until death, I'd take it. I'd prefer to have what I've earned in my bank account, rather than in theirs, where they can hold it over my head. I'd prefer not to be obliged in that way.
More to the point, there should be no strings attached for the lump sum since those were benefits earned!!! It's absolutey wrong for the SSA to take earned benefits away on either end of the deal.
i think im better off skipping the lump sum thank u for your help
could really use your advice can you drop me a line plz
Did I understand it correctly, if you don't elect to receive the lump sum retro benefit after you file past FRA, then you will get the higher base amount of benefits at the time you file but will forfeit the 6 months of benefits that you could have received? In your example, you lost $12,000 but gained 4% more monthly base benefit, but in effect created a longer time to "break even."/// In this event, since I have no spouse, although I am likely waiting to FRA or beyond, I might be tempted to take the lump sum....
Randy B Sounds like you have it right
Something everyone should be aware of is that if you claim SS after your FRA but before 70, the monthly premium you initially receive is always calculated based on what you are entitled to on Jan 1 of the year you claim. You will not reap the benefit of the delayed credits until Jan 1 of the year after you claim. This might effect when you want to claim.
No lump sum after retirement.🤗
Can you get your Retirement Social Security if you worked most of your life then your now on disability