Social Security future benefits statement question

[piccolopat]

It should have zero impact on your benefits. I am, however assuming that you already have 35 years paying into Social Security. THOSE highest earning years will be the average You're 35 years of highest earnings are still there assuming you have been working and paying into Social Security 35 years as of today. Now, you could earn more in benefits if the salary you WOULD have earned in the 2 years you are not working was higher than the years in the previous 35 years. But it is very unlikely to reduce your benefits and if it did, it would be very small, like $20 a month..

You are right. For me, I am replacing a few high earning years (if I continued to work) with the very low earning years when I started to work. I have 40 years working and paying into the SS system. Others may not and so I thought it was worth mentioning.

 

[piccolopat]

From a purely dollar and cents standpoint, assuming you live past your breakeven age, delaying taking SS until you are 70 (or even full retirement age) makes sense. However there is more to life than just the money. The longer you wait to retire, the less likely you will be able to physically do some of the fun things in life that you might have on your bucket list. As long as you plan ahead, want to retire and have the resources, why wait? Deciding when to retire is also a separate decision from when to start taking SS. You can always make more money but you can never get back time.

 

[georgina]

We're in the waiting until age 70 camp. DH retired in 2017 at age 63. He is getting his company pension now, we will start the private annuity payments (bought a few years ago with some of his 401k money) when he hits 66, and wait until he hits 70 for SS. I am 8 years younger, so will have to wait until I am 67 to get half of his SS, which is more than the amount I would get on my own. Both his parents lived into their 90's, as did my mom. Everyone's situation is different, but since we don't need it we will wait for the maximum amount. Its more like an insurance policy for us.

 

[teller80]

One thing about early retirement (not early SS) is that it will likely lower your eventual SS benefits. They base your benefit on the highest 35 years of income. I'll retire this year at 60 and know I'll have two years of zero income before I can even think of taking SS. However I've planned for this and want to leave my 5 hour a day commute and pursue other interests.

A 5 hour commute? Yeah, I'd want to nix that asap too. Congrats on your upcoming retirement!

 

[piccolopat]

A 5 hour commute? Yeah, I'd want to nix that asap too. Congrats on your upcoming retirement!

Thanks! My commute was "only" 3 hours a day until my company moved last year. I've been here for 37 years and had no interest in changing jobs. I could handle the 3 hours a day and did that most of my working life (in NYC area so not uncommon) but the 5 hours is so incredibly tiring.

 

[NinaBella]

Is your husband under the new federal retirement system, FERS? My DH is 52 and a federal employee and is looking forward to retirement in the next 4 years when he is eligible. Under the current system, he can retire and receive an offset until he can begin collecting SS. If he receives the offset, he is not eligible for to work during that period between retiring and collecting SS. Once he begins collecting SS, the work offset rules apply. https://faq.ssa.gov/link/portal/340...k-and-get-Social-Security-retirement-benefits

The system changed over Jan 1, 1987. So yes. LOL.


I have the answer to my question anyways. DH pay is above the income limit to draw SS and still work. It was just a curiosity question. He wouldn't retire at 62 when we will have two kids in college that year.

 

[Judique]

The system changed over Jan 1, 1987. So yes. LOL.


I have the answer to my question anyways. DH pay is above the income limit to draw SS and still work. It was just a curiosity question. He wouldn't retire at 62 when we will have two kids in college that year.

That was the situation with me at age 62. I'm 65 now, and can draw and get a job if I choose to. I don't have to as waiting until 65 made both SS and my job's pension large enough for me to comfortably retire.

 

[Dakota731]

I am 8 years younger, so will have to wait until I am 67 to get half of his SS,

I’m in the same boat so curious why you have to wait?

 

[Dakota731]

It is confusing. The numbers are based on what you are earning now or have earned to present. As you keep earning, as you get older and as your income rises, the numbers adjust upward

The way it’s worded makes it sound like you have to continue with the same salary to receive the amounts on your statement. That makes it tough for women to figure out what they will receive if they take years off for child rearing etc.

 

[georgina]

I’m in the same boat so curious why you have to wait?

We had someone run all the numbers. 67 is my full retirement age. Apparently there were some changes a few years ago, I could claim my own SS after 62 but they will no longer increase the amount when I could later claim half of his at 67. I would be stuck with the lower amount permanently. I have pages and pages of calculations from this financial guy about how we would fare under different claiming scenarios (Went to a free dinner where they promised free SS analysis)

 

[loves to dive]

I'm closer to 61 than 60 and went from full time to approx. 40 hours a month this year. My boss is slowly closing the company. I'm torn about getting another job or just going ahead and retiring. I don't need to take my SS until I reach my full age, which is 67 1/2 for me since I have an annunity, an IRA and some left in my company 401K. I'm working as long as my boss keeps the company open, but I've worked for him for close to 30 years and the thought of staring over is just not thrilling me. My honey works from home so we are both a little worried about both of us being at home and not killing each other. We decided that after my boss closes it, I'll try living at home for a year and see how it goes. If I wait to 67 1/2 I'll draw just about what my paychecks were last year so that's good. I'd lose a good $400 a month if I drew it now.

 

[North of Mouse]

From a purely dollar and cents standpoint, assuming you live past your breakeven age, delaying taking SS until you are 70 (or even full retirement age) makes sense. However there is more to life than just the money. The longer you wait to retire, the less likely you will be able to physically do some of the fun things in life that you might have on your bucket list. As long as you plan ahead, want to retire and have the resources, why wait? Deciding when to retire is also a separate decision from when to start taking SS. You can always make more money but you can never get back time.

Agree! Quality of life can deteriorate so quickly, and none of us usually know far in advance when that can happen. Dh & I are in good health and love to travel - that could be halted at any time for any of us. We opted to take our SS at 62 (for dh was 10 yrs. ago). I get half of his as I was always a SAHM & wife - no regrets there either! We have his retirement (with benefits) plus annuities, so also drawing our SS early has given us the freedom to relax, travel, whatever, with no regrets.

Across the board waiting, to draw SS until full age, is definitely not the way to go for everyone. You need to decide what is important to you in life, and make decisions based on that and other personal factors. We did the pencil scrunching and knew that waiting was definitely not the way for us to go.

 

[tvguy]

We're in the waiting until age 70 camp. DH retired in 2017 at age 63. He is getting his company pension now, we will start the private annuity payments (bought a few years ago with some of his 401k money) when he hits 66, and wait until he hits 70 for SS. I am 8 years younger, so will have to wait until I am 67 to get half of his SS, which is more than the amount I would get on my own. Both his parents lived into their 90's, as did my mom. Everyone's situation is different, but since we don't need it we will wait for the maximum amount. Its more like an insurance policy for us.

It would be so much easier from a financial point if we knew how long we were going to live. Also very creepy.
My wife and I are both 60 (5 months apart) and plan to retire in just under 2 1/2 years when I turn 63 and she will be 62 1/2. . We don't plan to touch Social security until full retirement age of 66 1/2. The calculators say I have a life expectancy of 83 and she has a life expectancy of 86. The different software packages our Financial Planner and our CPA use indicate taking Social Security at 66 1/2 is statistically better for us.
My wife's concern is that no woman has lived past age 64 in her family. Her mom passed at 64, her dad at 74. My dad passed at 56, and my mom at 90. So you consider the best information available, but when it is all said and done, the best time to retire is still just a guess.

 

[Dakota731]

I get half of his as I was always a SAHM & wife - no regrets there either

Can anyone do this? I worked for ten years before kids and after they were in high school, so I will have very little if I use my own.

 

[Alexle2007]

Can anyone do this? I worked for ten years before kids and after they were in high school, so I will have very little if I use my own.

SSA should look at your account and your DH’s and pay you based on the higher of the two.

 

[North of Mouse]

Can anyone do this? I worked for ten years before kids and after they were in high school, so I will have very little if I use my own.

Short answer - yes!

 

[mommy2mrb]

I’m in a different boat.

Lost my DH 8 years ago. Received benefits for my DD until she was 16. Her’s end in June as she will be 18 and graduating HS. I can claim my DH benefits at age 60 in 5 years. Which I will most like do. I was a SAHM for 15 years and have been working very part time last 2 years. Worked about 20 years before having my DD. HIS waged far exceeded mine.

I am enjoying working part time and will continue. DD will be in college this fall and thankfully won’t be a burden with the investment of DH life insurance and scholarships, etc.

 

[Nebraska_Disney]

I am in my mid 40's and my wife 3 years younger. We have been actively planning for retirement since we were in college and have a good start for our ages. To us, we are not depending on or even counting on any Social Security payments. In any of the calculations or projections we do, we are not even including these funds. What this has forced us to do, is that we are planning on is having what we have saved and determining what we can do with it. In very conservative projections, we should have $2.5-3.0 million in savings/IRA's/403b's/401K's/mutual funds/stocks/bonds etc in the next 14 years. Once I hit 60, I am done working (I love my job btw) and once I hit 62, I am going to draw SS as this will be "bonus" money that I have not even planned on having in any of the projections I have done. To us, it is about the quality of life we can lead and doing the things we are not able to easily do now, but with time in retirement, we can do. Everyone needs to do what is best for them. We started saving in our early 20's and that time has paid off for us.

 

[wishuponastar1984]

Its more like an insurance policy for us.

Well that is because SS is insurance. The full name of the program is "old age, survivors, and disability insurance tax" and SS should not be considered a savings/investment vehicle. Do you keep tabs on how much you have paid in health/car/home insurance and see if you broke even on those insurance policies? SS was designed to ensure a minimum income for people. Just like health insurance, some will pay in more than they ever receive back in benefits yet we don't see people whining about well I paid is $XXX amount for health insurance and only ever needed $YYY in coverage so it is a bad deal. Insurance is if the worst should happen, not hey I hope I live long enough to be poor.

 

[tvguy]

Well that is because SS is insurance. The full name of the program is "old age, survivors, and disability insurance tax" and SS should not be considered a savings/investment vehicle. Do you keep tabs on how much you have paid in health/car/home insurance and see if you broke even on those insurance policies? SS was designed to ensure a minimum income for people. Just like health insurance, some will pay in more than they ever receive back in benefits yet we don't see people whining about well I paid is $XXX amount for health insurance and only ever needed $YYY in coverage so it is a bad deal. Insurance is if the worst should happen, not hey I hope I live long enough to be poor.

And it was designed to be a SUPPLEMENT to your retirement savings, not your retirement savingss