Social Security Question for anyone who knows

[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.