So if my credit is frozen can I open an account at the local office or do I first have to unfreeze my credit?
They say you should open an account so that a thief can’t do it for you and lock you out!
My DH has a gov’t job and doesn’t pay into ss therefore can’t collect, but I did the calculator and it looks like he gets a spousal benefit? Is that true? We’re a ways out from collecting but I’m interested none the less.
yes, you need to unfreeze to open an account either on line or in an office.
I set up my online account after reading this thread. All of the questions were within the last 3 years and easy to recall, fortunately. At the same time, I was also able to order a replacement card which I misplaced during my last move. I doubt I will ever need it but I just feel better having it.
@SeeksKnowledge , your husband’s spousal benefit will be reduced or eliminated by the Government Pension Offset. There’s a calculator for this on the SS webpage. It looks like my spousal benefit will barely cover my Medicare part B premium when the time comes.
I worked as a teacher in a state where teachers do not contribute to SS. My SS benefit (I worked in the system a bit) is reduced by 2/3 due to the offset and windfall provisions. In addition, I am never eligible to collect based on my husband’s earnings.
My SS benefit barely covers my Medicare bill…with IRMA due to my husband’s higher working salary still.
It is what it is.
And yes…I checked and rechecked this.
Hello all. I am resurrecting this thread as, now that I am 66, we are revisiting this issue.
Does the 8% annual increase in social security payments for each year delaying filing happen at the beginning of the calendar year or after one’s birthday?
OK- folks advised me its amortized each month after the birthday. Still trying to decide when to consider filing. Can we do better investing teh $ on our own or let it sit for 4 more years? What else need to be considered (assuming we don’t plan to spend that $ now). Thoughts?
I view SS as longevity insurance and will take it as late as possible—when I turn 70. I suspect I will live a long time and H’s pension will drop by 45% if he predeceases me (he’s more than a decade older).
I took it at full retirement age, 66, mainly because if my mother had waited until she was 70, she wouldn’t even have known what Social Security was. My husband won’t take it until 70.
Is the spousal benefit limited to the benefit at FRA? If the higher earning spouse takes SS at age 70, would the spouse claiming 1/2 receive half of the FRA benefit or half the age 70 benefit?
If you think you can earn at least 8% on the $$$ they send you each month starting at age 66, then sure – why not? However, two things: (1) 8% in the current environment is unlikely. (2) If you start taking the benefit at age 66, the benefit you receive at age 70 and into the future will always be 32% less than if you wait.
The other consideration is how long you anticipate living. I have read that if you anticipate living beyond age 83, it’s worth it (financially) to wait until age 70, because you’ll collect more over your lifetime than if you take the benefit at age 66. If you don’t anticipate living that long, then you’ll get more money by taking the benefit at age 66.
Another consideration is, if you wait until age 70, if you’ll be taking funds from your savings at age 66 to supplement your other income. If you will, you need to factor in the reduction in your savings during those years as well as lost growth those savings would have earned.
All this assumes, as you said, that you don’t need the SS benefit at age 66.
Thanks, everyone. I am still pondering the pluses and minuses. I am not sure I understand your post, @somemom, but DH won’t touch his until he is 70 (which is a ways away) because the deeming rule affects him. Mine is more than half of his so I wouldn’t touch his either (and if I understand the deeming thing, it puts a lock his SS in if I even considered it) so that was never a consideration.
Thanks too, @VeryHappy . DH is pretty good with investments, so might actually be able to beat the 8% return, but of course that isn’t guaranteed every year. I did see that age 83 seems to be the break even/cross over age (if I live longer than that, I make more from SS over my lifetime). Who knows. My dad lived longer than that, but my mom did not. No major health issues at present, so no way to guesstimate longevity.
We hadn’t even considered taking my SS until 70, but that ss calculator that was recommended here said to consider taking it in a year. So I have a year to benefit from everyone’s continued advice here!! Thanks. Looking forward to additional thoughts and suggestions.
Adding to @VeryHappy 's points, assuming one can live on one’s savings, consider Income Taxes between the time one no longer earns wages & age 70.
For example, it might make sense to draw down from 401k or IRAs in order to decrease RMD from age 70.5 before using regular savings or investment accounts to cover living expenses.
I have same question as @somemom: My ss at FRA is more than 1/2 spouse at FRA. I’m taking mine (per calculators) at age 66. But if he waits to age 70, then I’m better off with 1/2 of his. How does this work? Once I claim at FRA, is it fixed in stone, or can I re-apply when he claims his at age 70?
Another side note: Our first reaction was to both take SS at FRA, and leave our own savings (if anything is left) for potential inheritance. Is that taken into account with the calculators?
@kjofkw
Once you start taking benefits, the amount you receive sets the base for how much you’ll get for the rest of your life. But if you change your mind, there’s a 12 month window where you can change your mind, but you have to repay all the money you received. I’m not sure when 12 month do over period starts (ie at time of application or at time of receiving first check).
https://www.ssa.gov/planners/retire/withdrawal.html
We’ve been thinking about taking SS earlier than recommended, because we will have to take RMD’s at 70 1/2 that will be taxed higher, and what’s the point of waiting so long if the benefit will be taxed away?
I just put our numbers into a Schwab RMD calculator. The final age they calculated it out was age 115. Umm…what??
That’s the wrong question, IMO… SS is a guaranteed increase, i.e., no risk, or at least lowest risk investment that you will ever have. (assuming SS not cutback in '35, but that is a political discussion so not worth raising here.) I’m a fan if comparing the SS increase to s government bond, inflation protected, i.e, TIPS. btw: don’t forget to discount the cash flows.
Absolutely and all discounted back to Present Value. For example, run OpenSocialSecurity advanced and play with the mortality tables.
I’m now thinking of taking it at FRA, despite the longevity in my family, because who knows what Washington is going to do with SS between now and the time I turn 70 (I’m 63 1/2 now.)
If you believe that there will be a significant reduction in SS benefits (in your lifetime), then taking early is a no-brainer.