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Have any of you calculated SS this way?

mogley98mogley98 Member Posts: 18,291 ✭✭✭✭
edited December 2017 in General Discussion
If you retire early say at 62 and you work and earn over the limit they reduce your benefit 1 dollar for every two dollars you earn over the limit.

However once you reach full retirement age they recalculate and restore the benefits you lost.

This could be a good strategy to make sure that if you die pre full retirement age you still draw something and if you live past full retirement age and beyond you could still recalculate to a nice size check. Plus the extra years of earning could replace years out of the thirty five calculated that you may have earned less and provide another increase.

My thinking is if you bank what you get the interest earned, the additional earnings and the recalculation at full retirement age might be a good strategy but I haven't plugged it all into a spread sheet yet. Anyone else looked at it this way?

From SS web site "Social Security will recalculate your monthly amount, giving you credit for any payments that were withheld during the time when you earned more than the annual earnings limit"
Why don't we go to school and work on the weekends and take the week off!

Comments

  • mogley98mogley98 Member Posts: 18,291 ✭✭✭✭
    edited November -1
    An example

    "If you've already started collecting benefits and you're under full retirement age, it's not too late to get a raise. One strategy: Go back to work. If you earn more than $14,160, the Social Security Administration will dock $1 in benefits for every $2 you earn. But once you reach full retirement age, your benefits will be recalculated to account for the money you didn't get while working. So, for example, someone who took their benefits at 62 -- at a 25% reduction compared to full benefits -- but went back to work from ages 63 to 66 and earned enough to zero out his entire Social Security check could end up collecting close to full benefits at age 66. "

    Of course taxes come into play too
    Why don't we go to school and work on the weekends and take the week off!
  • droptopdroptop Member Posts: 8,363 ✭✭
    edited November -1
    Recently I've read 62 is the best age to retire. Wasn't sure if I'd live past 65 or 70 so went with 65. BUT, didn't intend to ever work another hour in my life.

    Needs a "pencil and paper" factoring in what you intend to do.

    Get some ideas, this is one search "retire at 62 or 65 which is best". Better places than the "fool" but it's just ideas.
    https://www.fool.com/retirement/general/2014/05/31/social-security-why-taking-benefits-at-62-is-smart.aspx
  • beneteaubeneteau Member Posts: 8,552 ✭✭✭
    edited November -1
    I retired at 62 in 2006. Wished I had worked until my full retirement age of 66. My SS payment would be about double.
    0M9InwN.gif[
  • danielgagedanielgage Member Posts: 10,583 ✭✭✭✭
    edited November -1
    the real unknown is when we will die

    if we knew that we would know what was best to do
  • Smitty500magSmitty500mag Member Posts: 13,623 ✭✭✭✭
    edited November -1
    How much is 4 years of your life worth? I retired at 62 instead of 66 and I'm glad I did. That's 4 years of doing what I wanted to do while I was still healthy instead of jumping through hoops for someone else in order to buy food.
  • BrookwoodBrookwood Member, Moderator Posts: 13,768 ******
    edited November -1
    IMHO the entire SS program is one of the biggest mysteries, unknown to working, paying, citizens. (That is on the retirement end of things.)

    There are way more rumors than facts floating about and to try to get answers you end up with more questions![:(!]

    About as bad as our IRS policed and monitored tax system.
  • mogley98mogley98 Member Posts: 18,291 ✭✭✭✭
    edited November -1
    I have a 62, 66 and 8 months versus 70 spread sheet and based on that info I plan to go out at 62. One other plus unless they change it is I get more distributions then salary and that isn't counted as income against SS. So I am not worried about paying taxes on the benefit while continuing to work.


    :)
    quote:Originally posted by danielgage
    the real unknown is when we will die

    if we knew that we would know what was best to do
    Why don't we go to school and work on the weekends and take the week off!
  • sammashsammash Member Posts: 617
    edited November -1
    Retired at 62......have not regretted one single second.
  • riflemikeriflemike Member Posts: 10,599
    edited November -1
    quote:Originally posted by droptop
    Recently I've read 62 is the best age to retire. Wasn't sure if I'd live past 65 or 70 so went with 65. BUT, didn't intend to ever work another hour in my life.

    Needs a "pencil and paper" factoring in what you intend to do.

    Get some ideas, this is one search "retire at 62 or 65 which is best". Better places than the "fool" but it's just ideas.
    https://www.fool.com/retirement/general/2014/05/31/social-security-why-taking-benefits-at-62-is-smart.aspx


    that would be great if you could survive on SS only

    if you have no BIG pensions.... big 401K etc etc

    only folks i know that can at 62 are on GBF a few brag about their millions......one in particular that thinks SS and medicare/medicaid should be trashed

    I aint one of them

    my fault............
  • droptopdroptop Member Posts: 8,363 ✭✭
    edited November -1
    quote:Originally posted by Smitty500mag
    How much is 4 years of your life worth? I retired at 62 instead of 66 and I'm glad I did. That's 4 years of doing what I wanted to do while I was still healthy instead of jumping through hoops for someone else in order to buy food.


    Exactly ^^^^ but only had to feed myself, makes a big difference.
  • gunnut505gunnut505 Member Posts: 10,290
    edited November -1
    Not an expert by any means, but after $14K of SS benefits, are you hinting that Uncle wants to split the profit on what I earn over the $14K of SS benefits??
    When I filed last year, my h&r guy said that I get taxed on 50% of what I make after I go over $36K in benefits and pension/retirement pay.
    I got medically retired at 57, couldn't receive pension till after disability determination (2years, 11 months, 26 days), had to adjust taxes back 4 years; SSDI expires next year, and converts to SS at same amount plus recent $28 raise, Medicare already kicked in, and my monthly nut is $300.
    I figure that whatever I make now, and whatever I pile on top from Odd jobs; I want to pay some taxes on it!
    The more I pay; the more I made! I'd absolutely get woozy if I were able to pay $6M in taxes!
    Move over, Mr. President; I wanna earn more than you![:D]
  • BrookwoodBrookwood Member, Moderator Posts: 13,768 ******
    edited November -1
    If you really think deeply about it, people in the past had to make do their entire lives.

    Heck! Daniel Boone never had health insurance, 401k, Social Security, lots of money socked away under his mattress, or much besides a good dog and a good shooting rifle! He lived to be a ripe ole age too boot.

    I may be a bit of a dreamer but no matter what our circumstances may be we will exist until we get called home.
  • gruntledgruntled Member Posts: 8,218 ✭✭
    edited November -1
    I only regret starting SS at 62 because I should have started taking that much out of my IRA instead. I should have wiped out my IRA before starting SS because now the mandatory IRA withdrawals are taxed PLUS causing extra SS tax. That means my IRA withdrawals are taxed at 185%.
    If I had lived on the IRA until it was gone it only would have been taxed at 100% & my SS would be much higher.
  • nmyersnmyers Member Posts: 16,892 ✭✭✭✭
    edited November -1
    Statistically, men usually are better off retiring early than women, because we won't live as long. You have to consider your entire household income, especially other pensions & investments that kick in at a later age.

    You don't really need to "retire" at 62, just keep on working after you apply for benefits. You will probably need to keep working a 40 hour week, in order to get any benefit from a recomputation at a later age. And, you have to avoid resenting the fact that a portion of your SS entitlement is being snatched back by greedy politicians.

    The only real "loophole" was closed 2 years ago; that was a trick that allowed you to file for benefits but postpone receiving them until you reached full retirement age. (Allowed old men with young children to get childrens benefits.)

    Neal
  • mogley98mogley98 Member Posts: 18,291 ✭✭✭✭
    edited November -1
    The other "loophole' they closed as I understand it is the option to take early and if you lived to full retirement age, pay it back and restart.

    quote:Originally posted by nmyers
    Statistically, men usually are better off retiring early than women, because we won't live as long. You have to consider your entire household income, especially other pensions & investments that kick in at a later age.

    You don't really need to "retire" at 62, just keep on working after you apply for benefits. You will probably need to keep working a 40 hour week, in order to get any benefit from a recomputation at a later age. And, you have to avoid resenting the fact that a portion of your SS entitlement is being snatched back by greedy politicians.

    The only real "loophole" was closed 2 years ago; that was a trick that allowed you to file for benefits but postpone receiving them until you reached full retirement age. (Allowed old men with young children to get childrens benefits.)

    Neal
    Why don't we go to school and work on the weekends and take the week off!
  • Wild TurkeyWild Turkey Member Posts: 2,425 ✭✭✭✭
    edited November -1
    Another joker in the SS deck is the "Windfall Provision" that bit me.

    If you paid into a retirement system that isn't part of the SS system your SS gets docked.

    So since I worked a lot before and during my teaching career (including Army Reserve) my SS was about half of what it would be otherwise.

    And only certain states apply this provision.

    Thanks a lot, Sen McConnel[:(!]
  • Rack OpsRack Ops Member Posts: 18,596 ✭✭✭
    edited November -1
    quote:Originally posted by Wild Turkey
    Another joker in the SS deck is the "Windfall Provision" that bit me.

    If you paid into a retirement system that isn't part of the SS system your SS gets docked.

    So since I worked a lot before and during my teaching career (including Army Reserve) my SS was about half of what it would be otherwise.

    And only certain states apply this provision.

    Thanks a lot, Sen McConnel[:(!]


    How is the Ky Teachers retirement any of Mitch McConnel's concern?
  • mjrfd99mjrfd99 Member Posts: 4,553 ✭✭✭
    edited November -1
    If you have a PD FD Teacher, guess others too- pension you get 1/2 of what you EARNED. I have to decide what to do soon [60 y/o]
    Yep the POS government voted to penalize pensioners while THEY get both. IIRC back in rep Dan Rostenkowski days. Guess pos mconnnel was there then too.
    I try to cheat them worse than they cheat me.
    They started it.
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