Social Security Questions

[Joe T.]

All,

The wife and I just turned 67 last November. I have been putting off starting SS until I am 70 to maximize our monthly benefit. My wife, a Pharmacist, retired in May, 1992. So, her SS will be considerably less than mine. I am a retired engineer and worked until I retired in December 2010.

I have been searching for honest guidance on SS. I have called the local office to no avail (never got off of hold). All of the FAQ on the SS website are about useless. So, how can I get straight forward advice, no spin and on one looking to handle my investments, etc.?

We have been trying to determine EXACTLY what each of our SS monthly incomes will be when started at some arbitrary date in the future. It seems the best we can do is use the 'SS Estimator,' of which I have little confidence in its accuracy. I need to know exactly what our monthly incomes will be at some future start date.

But, something just dawned on me last night. If I die before my wife, which is most likely, she will then move to my 'survivor' benefits - I think. I THOUGHT she would keep her benefits, too. But, I realized last night that was probably incorrect. Is that assumption correct, or am I misunderstanding the rules?

Finally, where can we get honest, unbiased advice? The SS department has not been useful to this point.

Regards,
Joe T.

[Navydad]

Not going to answer your questions because I'm not 100% sure of the answers. When I retired at 56 years old 7 years ago I went to a well known financial adviser in our town who has been great for me and my wife who just retired at age 59. He not only directed us with our investments, but he also knows the Social Security ins and outs and is up to date on medical insurances as well as the tax codes which can be a mess to understand. Ours in an independent adviser not affiliated with any financial or insurance institution. Maybe a search in your area for such an adviser would be helpful.

[Joe T.]

Thank you. I have considered that route. I may do it.

Regards,
Joe T.

[wyliec]

Before I started drawing my SS I had a sit down at the local office. I don’t know about your local office, but mine was great. I went there a few times, and spoke to the same person. There is nothing better than eye to eye contact, than talking over the phone.

I started a thread a few weeks back about the current increase in SS benefits. IdahoMountainSpyder had some excellent input, others no so much.

[2dogs]

Something you might do, as inconvenient as it may seem, list all your questions and make an appointment with your local SS office. Go see them directly with your questions and get answers from the horses mouth, so to speak. It doesn't cost you anything but your time. As far as investments go, they may not be able to give precise answers until final calculations are made when you apply for SS. However, after your demise your wife will pick up a portion of your SS boosting her allotment by an unknown amount until that time comes.

[Joe T.]

I can't get through to my local office. Continuous hold - - - - I couldn't make an appointment.

Joe T.

[Joe T.]

Thanks. My local office doesn't answer the phone.

Maybe after the holidays I can get through to them.

Regards,
Joe T.

[canamjhb]

Maybe Government shut down. Try again when they reopen. Good luck..... Jim

[IdahoMtnSpyder]

All,

The wife and I just turned 67 last November. I have been putting off starting SS until I am 70 to maximize our monthly benefit. My wife, a Pharmacist, retired in May, 1992. So, her SS will be considerably less than mine. I am a retired engineer and worked until I retired in December 2010.

But, something just dawned on me last night. If I die before my wife, which is most likely, she will then move to my 'survivor' benefits - I think. I THOUGHT she would keep her benefits, too. But, I realized last night that was probably incorrect. Is that assumption correct, or am I misunderstanding the rules?

I'll try to help a bit based on my own experience and research.

First, age at which to start drawing. There is this thing called the crossover age. That's the age at which the total benefits are greater if you wait to start drawing. That is in the area of about 78 to 80. In your case it may be more like 82. Life is a gamble but if you have reasonable expectation to live past the cross over age then delay the benefits. If your family history and genetics makes it doubtful you'll live past the crossover age then don't wait. Besides, 2 years won't add much to your monthly benefit.

Your benefit is based first on what is called indexed earnings record, i.e., earnings early in your career are indexed for inflation to somewhat match what they would be today. That is done for each year's earnings individually. Your base benefit is determined at your full retirement age which for you is 66. It is then adjusted up or down depending on how much before or after that birthday you start your benefits.

Your wife's benefit will be the greater of 1/2 your base benefit or the benefit she has earned. Both are adjusted up or down to reflect her age when she starts receiving benefits. When you die she will continue to get the greater benefit. I haven't studied how survivor benefit compares to spouse benefit. One thing for certain. She will not collect the total of both her benefit and a spouse benefit. Actually, the way SS calculates her benefit is they pay her her earned benefit. But if her spousal benefit would be greater they then add to her benefit the amount needed to match what her spousal benefit would be had she not worked.

You have gotten the annual earnings report from SS for both you and your wife, right? If you can't find it you can download your earnings report from SS.Use that to input your data into the online SS calculator. The calculation is not simple, but you should be able to get a reasonably good number if you painstakingly follow all the steps. It will be an estimate. That's all you will ever get until you actually start drawing. There is no way to accurately forecast your benefit two years from now because of cost of living factors between now and then.

If you haven't done so yet you will need to set up user accounts for both you and your wife. I was going to double check the earnings record availability just now but the SSA service is shut down for nightly maintenance.

I'm sure both you and your wife can wade through the SS material on their website. It will be arduous but the regulations are regulations and you can understand them as well as any SS person can. Make liberal use of the search function and the calculators. Take your time, read the material carefully, and you'll be sure to come up with as good an answer as the SS officer can give you. But, if regulations and such rattle your brain then go down to your local SS office. I'm not sure they will make an appointment over the phone. I haven't read the news closely enough to know if they're affected by the shutdown or not.

Another thing. If you are inclined to work part time you can earn all you want without any reduction of your SS benefits. But, your SS benefits are not free of federal income taxes. If your total adjusted gross income is high enough then for every dollar you earn above the threshold 80 cents of your SS benefit is taxed.

Here's the thread WylieC referred to: https://www.spyderlovers.com/forums/...-receiving-S-S.

Hope this helps.

[SPECTACUALR SPIDERMAN]

for my wife & i we have talked to our accountant on how it will work

[wyliec]

I walked in and waited the first time. The second time I had made an appointment the first time I was there. SS has a booklet on their website that you may want to browse, and develop some questions.

[PrairieSpyder]

Thanks, Mac, for the thorough and thoughtful explanation. My only quibble may be with full retirement age of 66. I believe it would be 65 for Joe T., as it was for me. But I could be wrong.

I'll try to help a bit based on my own experience and research.

First, age at which to start drawing. There is this thing called the crossover age. That's the age at which the total benefits are greater if you wait to start drawing. That is in the area of about 78 to 80. In your case it may be more like 82. Life is a gamble but if you have reasonable expectation to live past the cross over age then delay the benefits. If your family history and genetics makes it doubtful you'll live past the crossover age then don't wait. Besides, 2 years won't add much to your monthly benefit.

Your benefit is based first on what is called indexed earnings record, i.e., earnings early in your career are indexed for inflation to somewhat match what they would be today. That is done for each year's earnings individually. Your base benefit is determined at your full retirement age which for you is 66. It is then adjusted up or down depending on how much before or after that birthday you start your benefits.

Your wife's benefit will be the greater of 1/2 your base benefit or the benefit she has earned. Both are adjusted up or down to reflect her age when she starts receiving benefits. When you die she will continue to get the greater benefit. I haven't studied how survivor benefit compares to spouse benefit. One thing for certain. She will not collect the total of both her benefit and a spouse benefit. Actually, the way SS calculates her benefit is they pay her her earned benefit. But if her spousal benefit would be greater they then add to her benefit the amount needed to match what her spousal benefit would be had she not worked.

You have gotten the annual earnings report from SS for both you and your wife, right? If you can't find it you can download your earnings report from SS.Use that to input your data into the online SS calculator. The calculation is not simple, but you should be able to get a reasonably good number if you painstakingly follow all the steps. It will be an estimate. That's all you will ever get until you actually start drawing. There is no way to accurately forecast your benefit two years from now because of cost of living factors between now and then.

If you haven't done so yet you will need to set up user accounts for both you and your wife. I was going to double check the earnings record availability just now but the SSA service is shut down for nightly maintenance.

I'm sure both you and your wife can wade through the SS material on their website. It will be arduous but the regulations are regulations and you can understand them as well as any SS person can. Make liberal use of the search function and the calculators. Take your time, read the material carefully, and you'll be sure to come up with as good an answer as the SS officer can give you. But, if regulations and such rattle your brain then go down to your local SS office. I'm not sure they will make an appointment over the phone. I haven't read the news closely enough to know if they're affected by the shutdown or not.

Another thing. If you are inclined to work part time you can earn all you want without any reduction of your SS benefits. But, your SS benefits are not free of federal income taxes. If your total adjusted gross income is high enough then for every dollar you earn above the threshold 80 cents of your SS benefit is taxed.

Here's the thread WylieC referred to: https://www.spyderlovers.com/forums/...-receiving-S-S.

Hope this helps.

[BoilerAnimal]

If you were born after 1954, your full retirement age is increased, depending on your age. I was born in January, 1955, so my full retirement and is 66 years and 2 months. It steadily increases from there, to age 67, for anyone born after 1959.

https://www.ssa.gov/planners/retire/ageincrease.html

[Bob Denman]

Mine is at 66 years, and four Months...

[Easy Rider]

for my wife & i we have talked to our accountant on how it will work

This is the best advice.

They can also advise on the "wait till later" option.
If you do that math, you have to live for a LONG time to break even by waiting.

You probably can get close on calculating your future benefit but likely not EXACTLY. Why is that so important to you ??

[Bob Denman]

I guess that I've never understood the fascination with reducing a Life to a mere math problem.
If you have friends and family with you when your time comes: it won't matter how you lived your waning years. You will have left a better legacy than most!

[Easy Rider]

I guess that I've never understood the fascination with reducing a Life to a mere math problem.

Spoken like a person who has never experienced real poverty, hunger or illness that you can't afford to treat.

It's not a "fascination".

[sandeejs]

I want to second (or third) the motion to go to the Social Security office. Once the government re-opens, of course. The fellow I met with was very helpful, even working out the difference between applying on my earnings vs. ex-husbands earnings. I think it was $0.05 a month.

I might have stopped by the office to make an appointment, instead of hanging on the phone.

Good luck & remember you earned this money. Enjoy retirement.

~Sandee~

[PrairieSpyder]

If you were born after 1954, your full retirement age is increased, depending on your age. I was born in January, 1955, so my full retirement and is 66 years and 2 months. It steadily increases from there, to age 67, for anyone born after 1959.

https://www.ssa.gov/planners/retire/ageincrease.html

Thanks. I was born in 1952, so my full retirement age is/was at 65 y.o. It's moot for Joe T., though, since he's already 67 y.o.

[IdahoMtnSpyder]

Thanks. I was born in 1952, so my full retirement age is/was at 65 y.o. It's moot for Joe T., though, since he's already 67 y.o.

Oops, I do believe you misread the charts! The age for full retirement is shown here: https://www.ssa.gov/planners/retire/retirechart.html. The last birth year for full retirement at 65 was 1937. It moved up 2 months every year until birth year 1943 when it reached 66, where it stayed until birth year 1954. Beginning in 1955 it moved up 2 months every year until 1960 when it reached 67. That is where it stays unless or until Congress changes it again. Since I was born in 1944, and you in 1952, full retirement for both of us was 66.

Medicare is a different story. The age to begin receiving Medicare Part A coverage was, and still is, 65. You can delay the start of Part A coverage but since there is no premium charge there is no good reason to do so. If you are still working your insurance plan may automatically make Medicare the primary coverage and if you don't have it, it could hurt. Part B is available at 65 but coverage by it can be delayed. You can voluntarily postpone its start but you will pay a greater premium equal to the current premium in effect for each year you are covered by it, plus a 10% surcharge or penalty for every year beyond 65 that you delay coverage. There is one exception though. If you are covered by an employer based insurance program because you or your spouse is working there is no penalty for waiting to start Part B coverage. But the penalty will be applied for any delay in starting Part B after your employer based insurance coverage ends.

[Bob Denman]

Spoken like a person who has never experienced real poverty, hunger or illness that you can't afford to treat.

It's not a "fascination".

You survived...

[IdahoMtnSpyder]

I guess that I've never understood the fascination with reducing a Life to a mere math problem.

Insurance actuaries live to do just that! You do sell life insurance, right?

A couple of years ago my dentist was pushing me to get a crown. I said if I had a reasonable expectation that it would be a 20 year investment I'd probably go for it. But since family history indicates it would likely be at most only a 10 year investment I took a pass. Besides, he has done a great job keeping my tooth together without a crown! I asked my brother several years ago if I should use redwood or treated pine 4 x 4's for posts for a fence in the back yard. He said to use the redwood. They were straighter and easier to use, and look nicer. "Besides, they're going to outlast you anyway!"

Just a few weeks ago I did a spreadsheet analysis of the financial benefits of selling our house and downsizing to one that would have been a great buy. Because current interest rates are higher than my current mortgage I guesstimated it would take 10 years to come out ahead by any significant extent so I said I'll pass on it. And that was based on taking all of the equity from our current house and putting it into the new house! Why 10 years? Family history strongly indicates that by the time 10 years from now have come and gone both I and my wife will be residents of the local final resting place.

Yep, after about age 65 projected life expectancy begins to be a significant factor in planning future activities.

[Bob Denman]

I'm a P&C broker

[ARtraveler]

Best advice is to consult with a good financial adviser.

[Joe T.]

From another website:


Have you tried this?
https://www.ssa.gov/myaccount/


I had not found this site. Too many commercial sites that use Social Security as 'Click Bait.'

This was a real help! Accurate data, for the present time.

Joe T.