Social Security Question for anyone who knows

[David Cramer]

I'm not there yet, but my question is the following: When you've been married for over 10 years you are able to get half of what your spouse gets. Example is if my spouse gets $3000 at 67, I'd get $1500 even if I'd be getting less without her.

So if you start taking social security at age 62 and get whatever amount you'd get individually, do you then get bumped up to half of your spouses if she waits till 67 to start taking hers and you are now 67 as well?

Numbers example is I'd be getting $700 at age 62 but once I start taking it, would I bump up to half of hers at age 67. Financial advisor didn't know for sure.

Has anyone had this experience?

Thank you very much

[Ron Citerone]

I've read enough to have a plan for myself and my wife. Our situation is a lot different than yours. I suggest you read up on this and perhaps you need an advisor who knows the ins and outs of SS. There are lots of strategies for different situations and you want o make sure you see all the options for you. My 2 cents.

Good luck Ron

[David Cramer]

Thanks Ron. I've truly been reading and searching but haven't found the answer yet. My financial advisor knew some stuff, but not my question. I appreciate the response.

[Frank Pasqualone]

Hi David - like others, I don't know the answer to your exact question. I am now able to collect SS but my circumstances are much different than yours. My suggestion is to call Social Security yourself. I called them with a number of questions before I made retirement decisions. The bad news is that you will wait on hold for a long time (45 minutes-ish). The good news is that the people i got on the phone to talk to me were pleasant, knowledgeable, answered many questions, went through lengthy explanations including numbers, and then followed it up with written correspondence via mail. I was pleasantly very surprised for a government agency. The other reason I suggest you call yourself is that I found many people that "knew a lot" about Social Security, my financial planner included, but none of them knew it well enough to make me comfortable with major decisions around SS. Good luck!


I'm not there yet, but my question is the following: When you've been married for over 10 years you are able to get half of what your spouse gets. Example is if my spouse gets $3000 at 67, I'd get $1500 even if I'd be getting less without her.

So if you start taking social security at age 62 and get whatever amount you'd get individually, do you then get bumped up to half of your spouses if she waits till 67 to start taking hers and you are now 67 as well?

Numbers example is I'd be getting $700 at age 62 but once I start taking it, would I bump up to half of hers at age 67. Financial advisor didn't know for sure.

Has anyone had this experience?

Thank you very much

[Ralph Okonieski]

Try calling your local SS office rather than the national 1-800 number. We have had better luck with our local office than the national number. Spousal benefits are very complicated. We have encountered numerous problems because of them.

[Sam Force]

In our situation my wife retired at 62, with a reduced amount for retiring early. I waited another 4 years to retire at 65+ years old. She was due a higher amount due to being eligible based on my amount of SS but since she had retired early she did get an increase in her SS but it was reduced due to her early retirement. It cost her around $300 per month less than if she had waited. But on the other hand she received SS for 4 years

[Jack Lemley]

My wife started collecting at 62. I started collecting last month and she was also bumped to have of mine. So, yes. that is how it works.

Jack

I'm not there yet, but my question is the following: When you've been married for over 10 years you are able to get half of what your spouse gets. Example is if my spouse gets $3000 at 67, I'd get $1500 even if I'd be getting less without her.

So if you start taking social security at age 62 and get whatever amount you'd get individually, do you then get bumped up to half of your spouses if she waits till 67 to start taking hers and you are now 67 as well?

Numbers example is I'd be getting $700 at age 62 but once I start taking it, would I bump up to half of hers at age 67. Financial advisor didn't know for sure.

Has anyone had this experience?

Thank you very much

[David Cramer]

My wife started collecting at 62. I started collecting last month and she was also bumped to have of mine. So, yes. that is how it works.

Jack


Thanks for *all* of the responses, I greatly appreciate it. I will call my local office if I can actually get through to someone. Jack seems to have had the same situation and it works the way I was hoping. Thank you all!

[Doug Garson]

I'm curious, what is the logic behind increasing your benefit beyond what you're normally entitled to just because your spouse gets more? Up here we get Old Age Security, usually referred to as OAS when we turn 65 based how many years we lived in Canada and Canada Pension Plan (CPP) based on our income history in Canada (we pay into it thru payroll taxes). We can draw CPP early at a reduced rate but not OAS. Neither depend on what our spouse gets.

[roger wiegand]

It's a fairness thing, and a desire to not penalize work. If you'd never worked and were entitled to a spousal benefit of $900, but only received $700 because you had worked, a lot of people would be justifiably unhappy.

My experience of calling SSA, aside from the wait time to connect, has also been excellent.


I'm curious, what is the logic behind increasing your benefit beyond what you're normally entitled to just because your spouse gets more? Up here we get Old Age Security, usually referred to as OAS when we turn 65 based how many years we lived in Canada and Canada Pension Plan (CPP) based on our income history in Canada (we pay into it thru payroll taxes). We can draw CPP early at a reduced rate but not OAS. Neither depend on what our spouse gets.

[Doug Garson]

It's a fairness thing, and a desire to not penalize work. If you'd never worked and were entitled to a spousal benefit of $900, but only received $700 because you had worked, a lot of people would be justifiably unhappy.

My experience of calling SSA, aside from the wait time to connect, has also been excellent.

Not sure I would call that fair. Two people retire with identical income histories, the married one gets more because their of their spouse's income history?

[Brian Elfert]

My mother did not work 40 quarters before retirement so my parents thought she would not going any Social Security benefits. They planned on just my father's Social Security for retirement income. It turns out she gets a benefit of half of my father's Social Security and then she gets my father's full benefit if he should die first.

Married couples tend to get a number of advantages under our tax laws good or bad.

[John K Jordan]

Thanks for *all* of the responses, I greatly appreciate it. I will call my local office if I can actually get through to someone. Jack seems to have had the same situation and it works the way I was hoping. Thank you all!

If you have a SS office near you can make an appointment to talk to someone in person without waiting. We did that when applying for our son. My wife said when she had questions about the spouse benefits she got online and asked a question and a very helpful person called her.

When she quit working but delayed drawing SS on her account she was able to draw an amount equal to 1/2 of mine in the meantime. She said the details depended on our ages, when we each retired, the way she signed up, and possibly some hand waving, too confusing to pick the best options without some guidance from SS.

[Ed Aumiller]

When we had questions, called the local SS office, rather than wait we could leave a number and they would call us..... much more convenient and they called within an hour... was very helpful also..

[Dave Fritz]

We also used our local SS office. Extremally helpful and knowledgeable.

[roger wiegand]

Not sure I would call that fair. Two people retire with identical income histories, the married one gets more because their of their spouse's income history?

The gubmint, in its infinite wisdom, has decided that marriage is a societal benefit and provides any number of financial incentives to promote it.

[David Cramer]

Not sure I would call that fair. Two people retire with identical income histories, the married one gets more because their of their spouse's income history?


I just got home from work and saw that there were a few more responses. Thanks, I will do the "have them call me back" approach.

I'm not going to get into fair or not as there are A LOT of things that aren't fair. But you are saying "2 people retire with identical income histories" is not what I was asking...not saying you can't ask something else:), just clarifying.

My understanding was whichever spouse has higher SS benefits due to a higher paying job over their career, does the one with less still get 1/2 of their spouses if they still take their part early, age 62, and wait for the 1/2 rule to kick in when the other spouse takes their full benefits at age 67. Jack posted that's exactly what happened with his wife and it's the same situation that I'll be in within a few years.

I'll call the Office on Friday and see how that goes but I'm sure Jack is correct. Thanks to ALL who posted responses.

[Jim Becker]

David, with my parents, my Father's SS was higher than my mothers because other that before she had kids, she did not work outside of the home. They both received a monthly benefit, but I do not know how hers was determined since SS wasn't on my radar back then. It was a reasonable amount, too. When my father passed away, her payment changed to what his was and hers went away. That's how the survivorship worked...survivor gets whichever is the higher amount. I've never heard of an increased benefit while both spouses are living, so yea...you need to talk with the "horse's mouth" and chat with SSA for clarification.

[Doug Garson]

I'm not going to get into fair or not as there are A LOT of things that aren't fair. But you are saying "2 people retire with identical income histories" is not what I was asking...not saying you can't ask something else:), just clarifying.
Didn't mean to sidetrack your thread, just curious as I said in my first post.

[Dave Zellers]

This is absolutely a fascinating thread that could be important to many people. I will be calling my local SSA soon. Very glad this thread was started.

[Sam Force]

I think you will find that as I mentioned the spouse that retires early is penalized as pertaining too the 1/2 rule

[Jerome Stanek]

I know my wife worked and her benifits wasn't as much as she thought. She did get spousal benifits but they did not equal half of my benifits. Same for my 2 sister in laws.

[Brian Elfert]

All I know is my mother gets 50% of what my father gets. Her case may be different because she didn't work the minimum 40 quarters to qualify for Social Security. My parents assumed only my father would get any Social Security benefits when they planned for retirement. It was a surprise to them that she gets any Social Security at all. My mother will go from 50% to 100% of my father's benefit if he dies first. They both applied for Social Security when my father retired.

[Jim Becker]

I think you will find that as I mentioned the spouse that retires early is penalized as pertaining too the 1/2 rule
That is certainly true and it could personally affect me. But I opted to take mine at 62 because it nearly doubled our disabled daughter's income, allowing her to live in her own apartment (with additional subsidy) and I'm fine with the implication. Statistically, it doesn't matter in the end...folks who opt in at 62 and folks who wait until 65 or 70 typically get about the same total income in their lifetimes from SS. But the monthly total being higher for folks who wait a little longer can certainly have greater impact on those who do not have other retirement resources that can provide enough income to live on. It can be pretty complex to make these decisions!

[Ron Citerone]

. It can be pretty complex to make these decisions!


The only way you could actually calculate the exact correct answer would be to know the date of your death and the date of your spouses death. I lost my crystal ball when I moved out of my apartment! :D

Like you said, people generally get the same dollar amount IF they die on their actuarial death date. I believe that is the way it was set up.

[Jim Becker]

Yup, they set it up so folks could choose to get a little less per "pay period" if they started prior to their target date; the normal amount at about age 65 per "pay period" and for those who want to throw the dice, even more per "pay period" at age 70. As you and I both note, overall lifetime payout will likely be the same...

[David Cramer]

Didn't mean to sidetrack your thread, just curious as I said in my first post.


It's all good. The more info the better!

I see the other responses below mine from yesterday. I am calling my local office tomorrow and setting up an appointment to get to the bottom of this elusive question:)...not really elusive but I truly wanna know as in a few years I'd like to do the smartest thing financially that I can.

O.T., but the financial advisor put me living till 92 and my wife till 94!!! I don't smoke or drink at all and work out 4-5 days a week, but...I don't see myself living till 92!!!!!


But that's what got me thinking about doing things right. Oddly, I never even thought about S.S. until a couple year ago, it just never dawned on me. Go figure:)

Whatever they tell me at my local office I will immediately share. I have no idea how long it will take to see someone, but I definitely want an in person session to hear the get the right answer.

[Jim Becker]

David, when I took my daughter to meet with the local office, the representative we saw was extremely helpful and knowledgeable...he very much cared about insuring things were set up correctly. In fact, he's the one who clued me into the SSI benefit that would be available to my daughter when I began to take benefits. And yes, having an appointment is a very good idea.

[David Cramer]

David, when I took my daughter to meet with the local office, the representative we saw was extremely helpful and knowledgeable...he very much cared about insuring things were set up correctly. In fact, he's the one who clued me into the SSI benefit that would be available to my daughter when I began to take benefits. And yes, having an appointment is a very good idea.


Thank you Jim! I had been doing the 800 number and going from clean shaven to a beard while on hold:) I'll be doing the face to face and will report back. Have a great day Jim!

[julian abram]

I certainly cannot answer your question, too many variables, SS like all gov't programs is a can of worms. However below is a link to a SS calculator that I have found informative by plugging in numbers for your various life scenarios.

https://opensocialsecurity.com/

[Brian Elfert]

O.T., but the financial advisor put me living till 92 and my wife till 94!!! I don't smoke or drink at all and work out 4-5 days a week, but...I don't see myself living till 92!!!!!


It is better to use a higher age rather than a lower one. If you spend you money assuming you are going to die at age 80 and live to age 92 you might be out of money before age 92. My grandfather outlived his money when he lived to 94. He was getting a lot of government assistance for the last years of his life. There was no money to go to his heirs. It was only the contents of his studio assisted living apartment that was left when he passed.

[Tom M King]

My Mother had enough money to last until she was 103. She's almost 107 now. Her SS pays for 3/4's of her Medicare.

[Andy Haney]

My local SS office can be reached by dialing an 800 number. I could only get that phone number by going into the office, being told I need an appointment, blah, blah, blah. The security guard gave me the phone number and I was able to handle all issues on phone call.

At my full retirement age (66+) I drew half my wife's PIA (age 66), even when she had started drawing SS @ 62. We limped along like that (I also retied at 62) until I turned 70 and could max out my SS. Turned out to be a good move, but you may be too young. That program did (or will) sunset. I got my information from a book titled "Get what's Yours", but that was 5 years ago. Hope you win BIG!

Andy

[Rob Damon]

Don't know if you have your answer yet.
We were going to start SSA 1-1/2 years ago but delayed until this year. So I had alot of time to do more research. There is a guy on Y-T named Devin Carrol that has hundreds of videos just about SS, several that talks about spousal benefits and how they are calculated.

[Keith Vertain]

Great thread here with lots of good input, not only for the OP but also for anyone approaching "those golden years" :). Don't forget that delaying receipt of Social Security benefits can drive a significant lift to payments down the road. The basic math is that each year you delay in receiving SS benefits yields an 8% increase in annual benefits in the future. Rough math then says that a three year delay in taking benefits (say, delay from age 62 to age 65) equates to roughly a 24% increase in the annual payments for the rest of your life.

This then also increases the payments for a spouse, as the spousal payout would also increase by the corresponding amount (24% in our example above).

Agree that a conversation with the local Social Security office would be beneficial as they have been a wealth of information the few times I've had to deal with them, and very professional and courteous.

One last thing: Financial Advisor Mike Piper offers a free site called "Open Social Security" where one can input just a few data points (age, marital status, and your expected SS benefit (aka your PIA) and the site will calculate your ideal payout strategy for you (and a spouse if one exists). This site has been recommended by Fidelity, the Wall Street Journal, etc. as a great self-help tool to use to help devise your best approach to Social Security.

[David Cramer]

Hello everyone! First and foremost, I apologize for the long delay. I tried to make an appointment over the phone for my local office and no dice. I was hung up on (computer or person) more than once and long waits with music playing that would put a hungry lion to sleep in 2 seconds flat!

I went in twice and waited for my name to be called to be checked in. Then the person wants to hear what your question is and decides if you need to set up an appointment with someone in the back. But my first time there I was told by the guy who checked me into the waiting line that I get bumped up to half of my spouses when I hit 67 even if I start at 62. As I left, I felt uneasy about his response.

I came back weeks later and got to the point where I talked with the person who hears your question at the main desk and she said if you take it at 62 and your spouse waits till 67, you get bumped up, but it's a reduced amount. I accepted it, left, but still felt like I didn't get a definitive answer.

So we met with a financial advisor last Friday who said that it used to be that way, but it changed and she'd verify it with a S.S. pro who was somewhere in the building. She got back with us via email later that day.

Here's the poop: I don't want to break any rules, but I'll post the link and if it breaks any rules, please delete it and forgive me for I know not what I do;)

Sometime around 2015, the government changed the rules.

Go to the link that I provide and put in your date of birth and the date that would be 1 month after you turn 62. Then hit the compute box below it. It will give you a percentage of the workers primary insurance amount.

If I start at 62 and my wife waits till 67, I'll get bumped up to 32.71% of what my wife starts getting at 67. If you wait till age 63, the percentage gets higher. It does so every year until you hit 67, where you get 50% of your spouses "if" you waited and started taking it at 67 as well.

So for numbers sake, if your spouse waits till 67 and will be getting $3500 and you started at age 62 getting $800, you'd get bumped up to $1144.85 per month ($3500 times .3271=$1,144.85)

If you're getting $2000 at age 62, then obviously you won't be bumped up any higher at age 67 as you're already over 50% of your spouse's amount, in this case $3500.

Without getting into too many details, let's say you are a contractor and didn't claim a lot---let's be real here friends;) Let's say your spouse has/had a decent job. When you get a fact sheet from the SS administration, you'll see what you made every year of your life since you started working. If the amounts are low, you won't be getting too much in SS whether you start at 62 or wait till 67 (my name is in that category).

The best thing to do for "most" people, is to start taking it at 62 and your spouse waits till 67 if you can afford to. He or she gets the full amount and you get a reduced amount of theirs but higher than what you've been getting for the last 5 years....in my case anyways.

For some, this info is meaningless if you and your spouse are both getting over $3000 at 67. The info I wanted to share is if you want to go early, aren't getting a lot, but wanted to know how much you'd be bumped up when your spouse hits 67.

Sorry for the long overly detailed post but I just wanted to be crystal clear with the information that was provided to me. I'm 60, which I still don't know how that happened????? I'm very spiritual, if I can say that, but I still don't know how 21 year old David got to age 60, it's crazy friends...but I'm there and can't go back;)

Here's the link friends. Again, my apologies for the delay but it was tough getting to the office in person and calling the phone number and getting someone was near impossible...which they admitted at the office.

https://www.ssa.gov/oact/quickcalc/spouse.html

[Jim Becker]

Once small point, David, your birthday can matter on this as folks born after a certain date have to wait a little longer for things to kick in that someone who is older might enjoy. That said, thanks for the explanation!

[David Cramer]

Once small point, David, your birthday can matter on this as folks born after a certain date have to wait a little longer for things to kick in that someone who is older might enjoy. That said, thanks for the explanation!


Thanks Jim! I figured that there was more to it but I was just happy as you know what to get some solid info from the advisor. I hope it helps somebody out there as many people on here have surely helped me:) Have a great evening Jim!

[Michael Weber]

After explaining the situation to ChatGPT and providing the example it reached the same conclusion of a reduction in whatever percentage reduction you had by taking it at 62. I went a step further and ask about your survivor benefits if your Wife precedes you. Your survivor benefits will also be reduced by the same percentage. AI is not infallible but it’s something else to consider.

[Rick Potter]

Is there a maximum/ minimum for SS?

[Michael Weber]

Is there a maximum/ minimum for SS? Yes. Maximum is $3895 a month but few qualify. There is also a minimum for low wage earners that otherwise qualify for SS but varies depending on the number of years the recipient contributed. paraphrased from ChatGPT.

[Dwayne Watt]

That is an "it depends" question. The age one takes SS plus your earnings history both factor into the maximum or minimum amounts. From the SSA web site: "The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2023, your maximum benefit would $3,267. However if you retire at age 62 in 2023, your maximum benefit would $2572. If you retire at age 70 in 2023, your maximum benefit would $4555."

The minimum benefit payable in 2023 is a bit more nebulous but appears to be approximately $723 for someone taking SS at age 62 with full earnings credits but a low wage history over their working lifetime. Full retirement minimum would then be $918. There are supplemental payment programs that can increase that amount somewhat.

Folks look at the maximum numbers but you really need to look at your personal information on the SSA website to get a solid estimate of what to expect. To get the maximum, one has to have hit or approached the peak tax withholding thresholds for ~35 years of their working career.

Is there a maximum/ minimum for SS?

[Bill Dufour]

Minimum seems to be about $200 a month. Both my wife and I are teachers. We have just years enough to qualify. I believe it is 40 quarters or ten years.
Teachers do not pay into SS. It is unclear if how long ago you paid into ss makes a difference except for wages were lower back then.
A year or a quarter is not a length of time. It is a set amount of money. Back when I claimed self employment, to buy into ss, a quarter was about $1,200 income. So every $1,200 adds one quarter of ss time up to a maximum of 4 quarters per fiscal year. So $4,800 is one year service credit. So is $48,000 or 48 million dollars
The $200 is just enough to cover medicare with maybe $20-30 a month back as cash.
Bill D

[David Cramer]

That is an "it depends" question. The age one takes SS plus your earnings history both factor into the maximum or minimum amounts. From the SSA web site: "The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2023, your maximum benefit would $3,267. However if you retire at age 62 in 2023, your maximum benefit would $2572. If you retire at age 70 in 2023, your maximum benefit would $4555."

The minimum benefit payable in 2023 is a bit more nebulous but appears to be approximately $723 for someone taking SS at age 62 with full earnings credits but a low wage history over their working lifetime. Full retirement minimum would then be $918. There are supplemental payment programs that can increase that amount somewhat.

Folks look at the maximum numbers but you really need to look at your personal information on the SSA website to get a solid estimate of what to expect. To get the maximum, one has to have hit or approached the peak tax withholding thresholds for ~35 years of their working career.



I don't know where the minimum amount of $723 is listed, but you are almost spot on Dwayne.
My projected amount is $724...low wage history indeed;) I'll get bumped up about $400 per month when my wife starts taking it at age 67. Thanks for the info that you provided.

[Ron Citerone]

Minimum seems to be about $200 a month. Both my wife and I are teachers. We have just years enough to qualify. I believe it is 40 quarters or ten years.
Teachers do not pay into SS. It is unclear if how long ago you paid into ss makes a difference except for wages were lower back then.
A year or a quarter is not a length of time. It is a set amount of money. Back when I claimed self employment, to buy into ss, a quarter was about $1,200 income. So every $1,200 adds one quarter of ss time up to a maximum of 4 quarters per fiscal year. So $4,800 is one year service credit. So is $48,000 or 48 million dollars
The $200 is just enough to cover medicare with maybe $20-30 a month back as cash.
Bill D

Bill, my wife and I are both teachers in PA. Here we do pay into SS. Varies by state.

[Patty Hann]

My local SS office can be reached by dialing an 800 number. I could only get that phone number by going into the office, being told I need an appointment, blah, blah, blah. The security guard gave me the phone number and I was able to handle all issues on phone call.

At my full retirement age (66+) I drew half my wife's PIA (age 66), even when she had started drawing SS @ 62. We limped along like that (I also retied at 62) until I turned 70 and could max out my SS. Turned out to be a good move, but you may be too young. That program did (or will) sunset. I got my information from a book titled "Get what's Yours", but that was 5 years ago. Hope you win BIG!

Andy

Why do you say the "max out your SS at age 70" program is going to "sunset" (as in go away?).
Is it because the full retirement age may be raised to 70?

I'm waiting to max out mine....still have about 18 months to go.

[Andy Haney]

My experience is quite dated, but I recommend a book titled "Get What's Yours..." available from Amazon. The authors have been updating the book when changes are made in SS. I firmly believe the information available there allowed us to maximize benefits.

Andy

[Andy Haney]

Patty,

That water is under my bridge, but when I was preparing to draw SSA regulations did not allow any increase beyond age 70. I believe that is still correct. Our age at the time allowed for me to draw based on my wife's SS between my full retirement age and age 70. At the time I was more familiar than I am now that method was planned to be eliminated by SSA. A check with your local SSA office would likely give you correct/current information. Please accept may apology for not seeing your question sooner.

Andy

[Perry Hilbert Jr]

Some ex spouses are awarded a percentage of social security benefits even decades in advance by divorce courts. When I was 65, I was trying to figure out whether to put off collecting until later. I could never get a straight answer in English from anyone at the social security office. It was always some canned response in bureaucrat mumbo jumbo that made no sense. In addition, if I keep working and keep paying in, what adjustments are made, if any. Can't get an straight answer. A former boss put off collecting SS until the last, I believe 67 but continued working and had one of the best years ever for earned income and his benefits did not go up, even though he still pays in. I heard a story from an accountant, that a self employed guy wanted to file much higher income amounts than he actually earned, his last 5 years, to maximize social security even though he hadn't paid in for 30 years. The guy was willing to pay taxes on a fictitious income just to boost social security.

I invested in a farm property for the right offs and to fund retirement. Every time I get ready to sell, the market sours.

[Larry Frank]

Wow....an amazing number of comments and various answers.

My wife and I used a great financial adviser. We looked at all sources of income, expenses and debts to make the determination. He was able to help forecast our income for years out ahead to make the best choices. There is no one universal answer

[Stan Calow]

As mentioned, the most important question is unanswerable: how long will you live? Thats why it's just a big guess. Our planner bases all projections on an assumption that we will both live until 90. But obvuiously, they dont know. There is a break even point for whether you will get more total benefit from drawing early, versus waiting till full retirement age. For me, I calculated that if I lived past 82, it would make sense to wait until 67, but my guess is I won't so I started at 63.

The SSA people I talked to were trained to scrupulously avoid giving kind of advice, rather, just to lay out the facts and numbers. You have to pay for better advice. And then, of course, inflation, politics, and mother nature all have a say in it.

[Jim Becker]

I retired at age 60 and likely would have waited until 65 to start SS income, but chose to take it at 62 because it provided a benefit to our disabled daughter and more or less doubled her income from SSA and helps her live "independently". (quotes because further subsidies are required for that in reality because living expenses are high...) While I was at it, I paid off my vehicle in three years since I had the extra income to do so. If I was relying on SS as my primary income, taking it early would have been less attractive, but everyone's situation is different. So I agree that there is great value in working with a qualified planner to determine what's the best way forward. We are about to do that for Professor Dr. SWMBO as she's retiring at the end of the Spring term for medical reasons at age 64. It's likely going to be just fine with her waiting until "full" eligibility after her 65th birthday, but there's value in running the numbers for sure.

[Bill Dufour]

What I do not understand is if you make more income do you get more SS when you retire. Assuming years of service and ages are identical.
Bill D

[Jim Becker]

What I do understand is if you make more income do you get more SS when you retire. Assuming years of service and ages are identical.
Bill D

Essentially yes.

From SSA:

Summary
Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. We apply a formula to this average to compute the primary insurance amount (PIA (https://www.ssa.gov/oact/cola/Benefits.html#PIA)). The PIA is the basis for the benefits that are paid to an individual.
The formula used to compute the PIA reflects changes in general wage levels, as measured by the national average wage index (https://www.ssa.gov/oact/cola/AWI.html). We have constructed examples to illustrate how retirement benefits are calculated (https://www.ssa.gov/oact/ProgData/retirebenefit1.html).

More... https://www.ssa.gov/oact/cola/Benefits.html

[Mark Rainey]

I retired at age 60 and likely would have waited until 65 to start SS income, but chose to take it at 62 because it provided a benefit to our disabled daughter and more or less doubled her income from SSA and helps her live "independently". (quotes because further subsidies are required for that in reality because living expenses are high...) While I was at it, I paid off my vehicle in three years since I had the extra income to do so. If I was relying on SS as my primary income, taking it early would have been less attractive, but everyone's situation is different. So I agree that there is great value in working with a qualified planner to determine what's the best way forward. We are about to do that for Professor Dr. SWMBO as she's retiring at the end of the Spring term for medical reasons at age 64. It's likely going to be just fine with her waiting until "full" eligibility after her 65th birthday, but there's value in running the numbers for sure.

Jim, I assume "full" eligibility for you and your wife is not 65, but closer to 66 2/3.

[Jim Becker]

Jim, I assume "full" eligibility for you and your wife is not 65, but closer to 66 2/3.

1957/1959 vintage respectively...I never looked at the details, honestly. But we will certainly be examining said details as The Professor moves into actual retirement and we want to make a "when" decision on that. We have flexibility since, as noted, SS isn't our primary source of retirement income so the balancing act revolves around what maximizes the best use of available resources.

[Perry Hilbert Jr]

I had a very bad bout with Crohn's disease in the late 1980's and barely had any income for two years. So that drug down my average for the 35 years. So if after I started collecting, I continued to work and pay into the system, even at part time wages, the amount would be more than my 1987. and 1988 incomes. I can't get them to give me an answer, despite the fact that I continued working and paying since I started collecting. Now we can say that an average over 35 yrs doesn't amount to much, but I turned down a lucrative full time job that for 11 months contract would have paid $92K. That would have boosted my average by a a couple grand per year. or about 160 a month. Three of my grandparents lived into their 90's. One died at 65 from a lung condition after working in quarries for 40 years. But his parents both lived to see 90. I turned down the job, in part because I would have had to get rid of our pets and livestock to travel, but also because I couldn't get an answer from SS

[Patty Hann]

Patty,

That water is under my bridge, but when I was preparing to draw SSA regulations did not allow any increase beyond age 70. I believe that is still correct. Our age at the time allowed for me to draw based on my wife's SS between my full retirement age and age 70. At the time I was more familiar than I am now that method was planned to be eliminated by SSA. A check with your local SSA office would likely give you correct/current information. Please accept may apology for not seeing your question sooner.

Andy

No problem Andy...the part of your post that caught my eye was the "sunset".
I know there has been talk (currently) about raising the retirement age, cutting benefits, etc to get more funds into the system.
I had always planned to wait until 70 before drawing SS (barring some unusual "life-changing" events).
All the women in my family (both sides) barring one or two exceptions lived well into their late 80s and early 90s...even my Dad's aunts who were born in the 1890s.
My Mother was 93 she died, and most of her aunts were in their 90s.
And I'm still pretty healthy...no chronic anything, no maintenance meds (just kind of an expanding midsection, the fighting of which is an uphill battle :rolleyes:)
So I saw (and can still see) every reason to wait until 70 to draw it.
And my financial advisor has done projections wherein he has me living to 105, and manages my investments accordingly.