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Social Security questions
Posted on 2/17/23 at 2:55 pm
Posted on 2/17/23 at 2:55 pm
Any good sites to look at? I feel like I get different info every time I look at something. Webinars, good youtube channels? Planning on drawing and continuing to work before full retirement age.
10
Posted on 2/17/23 at 3:34 pm to tygerfan1
A good site to answer what questions??? What do you want to know?
Posted on 2/17/23 at 3:38 pm to tygerfan1
Posted on 2/17/23 at 5:05 pm to tygerfan1
quote:
Planning on drawing and continuing to work before full retirement age.
The limits on what you can earn while drawing are pretty low before they cut your benefits. It's not as bad in the year you reach full retirement age.
Posted on 2/17/23 at 5:53 pm to tygerfan1
https://opensocialsecurity.com/
This one is good if you are close to retirement and/or have a spouse to see how to maximize benefits. I wish my parents had known this. It would have been better for my mom to have filed for SS at 62 and then have my dad delay his till 70.
https://ssa.tools/calculator.html
This one lets you see what your SS benefits looks like based on future earnings and when you file. You'll just need to log into ssa.gov and get your earnings record or if you have the statements you can manually do it.
If you log onto ssa.gov they have a similar calculator but not as flexible. For example, the above will let you see your PIA if you work to 55 but delay SS to 70. The calculator on ssa.gov assumes you are working until you file for benefits.
https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits
Though by working while drawing SS you might cause yourself to get hit by the SS tax torpedo which can cause you to have a marginal tax rate of 40-50% if you fall in a certain range of income.
This one is good if you are close to retirement and/or have a spouse to see how to maximize benefits. I wish my parents had known this. It would have been better for my mom to have filed for SS at 62 and then have my dad delay his till 70.
https://ssa.tools/calculator.html
This one lets you see what your SS benefits looks like based on future earnings and when you file. You'll just need to log into ssa.gov and get your earnings record or if you have the statements you can manually do it.
If you log onto ssa.gov they have a similar calculator but not as flexible. For example, the above will let you see your PIA if you work to 55 but delay SS to 70. The calculator on ssa.gov assumes you are working until you file for benefits.
https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits
Though by working while drawing SS you might cause yourself to get hit by the SS tax torpedo which can cause you to have a marginal tax rate of 40-50% if you fall in a certain range of income.
This post was edited on 2/17/23 at 8:55 pm
Posted on 2/17/23 at 8:49 pm to tygerfan1
If you wait til you are 70 to claim SS you will receive 77% more than you would receive at 62 and around 24% more than if you claim at 67. Can you delay claiming it or do you absolutely need the income?
Posted on 2/17/23 at 9:06 pm to La Place Mike
quote:
If you wait til you are 70 to claim SS you will receive 77% more than you would receive at 62 and around 24% more than if you claim at 67.
Do you mean you receive 77% more per month or 72% total?
Posted on 2/17/23 at 9:55 pm to CajunTiger92
77% more. The longer you wait the more you receive.
Posted on 2/18/23 at 6:55 am to jralspanky
Because the examples that they give don't fit my scenario. Plus I want exact answers
Posted on 2/18/23 at 6:57 am to Jag_Warrior
Are there unlimited earnings the first year if you retire mid year? I know they cut the benefits if I make over the cap but do I get that all back when I hit full retirement age? I would love a face to face where someone can put a pencil to paper for me
This post was edited on 2/18/23 at 6:59 am
Posted on 2/18/23 at 6:58 am to gpburdell
Thanks. I'll try those
Posted on 2/18/23 at 8:04 am to La Place Mike
quote:
77% more. The longer you wait the more you receive.
I'm taking a wait and see approach. My family has a history of the males dying in their 60s. At 62, I will decide if I want to go ahead and draw. The obvious problem with waiting is not getting any of your money back. Depends on your financial situation
Posted on 2/18/23 at 8:10 am to tygerfan1
quote:
Planning on drawing and continuing to work before full retirement age.
That was my thought too, but I worked out an arrangement with my employer to work part time - maybe 3 months a year. Even with just 3 months it's not worth it to draw social security given the penalty of losing $1 in benefits for every $2 you earn above something like $21k. I'll wait for full retirement - it will be good to have the higher SS income a few years later.
Posted on 2/18/23 at 8:21 am to Tigris
quote:
's not worth it to draw social security given the penalty of losing $1 in benefits for every $2 you earn above something like $21k.
My understanding is that it’s not really a penalty (and it’s $1 for every $3), except for loosing the time value of money. That $1 reduction isn’t really lost, it is added to your benefit and your benefit recalculated when you reach full retirement age. They don’t reduce your benefit once you reach full retirement age.
Posted on 2/18/23 at 8:40 am to CajunTiger92
OK, I had to dig a little more.
For 2023 - if you are drawing social security and will be below the age for full SS retirement for the whole year they will withold $1 for every $2 earned above $21,240. If you reach full retirement age in 2023 then the formula is $1 witheld for every $3 earned above $56,520; so it makes a big difference if you reach full retirement age in that year.
And you are right that the deduction isn't "lost", it is used to give you more credit when you hit full retirement age. I'm not sure that I trust the formula to make that worthwhile vs. just waiting to draw social security in the year in which you reach full retirement.
For 2023 - if you are drawing social security and will be below the age for full SS retirement for the whole year they will withold $1 for every $2 earned above $21,240. If you reach full retirement age in 2023 then the formula is $1 witheld for every $3 earned above $56,520; so it makes a big difference if you reach full retirement age in that year.
And you are right that the deduction isn't "lost", it is used to give you more credit when you hit full retirement age. I'm not sure that I trust the formula to make that worthwhile vs. just waiting to draw social security in the year in which you reach full retirement.
Posted on 2/18/23 at 9:10 am to gpburdell
That opensocialsecurity website is a terrific tool!
Posted on 2/18/23 at 11:11 am to La Place Mike
As long as you don’t die.
Posted on 2/18/23 at 11:45 am to Tigris
quote:
I'm not sure that I trust the formula to make that worthwhile vs. just waiting to draw social security in the year in which you reach full retirement.
Fair enough. I think most people understand that later you wait the more you get. That’s not necessarily the case and it really depends on how you look at it. Certainly in a monthly basis but it’s not as straight forward for the total amount.
Most financial advise I see say to wait until at least full retirement before drawing, some even recommend going to 70. I don’t think that’s good advise for everyone. I did an estimate of retirement benefits at 62 vs full retirement and I think the break even poin was somewhere around 77 years old. That was without taking into account the time value of money, if I did that it would be later, perhaps much later.
Posted on 2/18/23 at 11:48 am to kywildcatfanone
quote:
I'm taking a wait and see approach. My family has a history of the males dying in their 60s. At 62, I will decide if I want to go ahead and draw. The obvious problem with waiting is not getting any of your money back. Depends on your financial situation
I've read that the majority of people take social security before full retirement (i.e. 62-66) and very few wait till 70.
As you said, everyone's financial situation is different. If someone actually needs the money to make ends meet then it's a no brainer to take it when you have to.
I'm planning to wait till 70. I won't need the money and for me it's longevity insurance against running out of money. If a serious health concern came up between now and then, I would reconsider.
There was a good thread over on Bogleheads about delaying to 70. It showed that you can increase your yearly withdrawal rate and spend more in retirement by delaying. Though that assumed someone wasn't concerned about maximizing an inheritance.
Posted on 2/18/23 at 12:36 pm to gpburdell
quote:
It showed that you can increase your yearly withdrawal rate and spend more in retirement by delaying. Though that assumed someone wasn't concerned about maximizing an inheritance.
I’d like to see that, do you have a link?
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