Social Security Questions

[North of Mouse]

I had work for a few years before/early in marriage. Stayed home with kids for 20 years. Went back to work just long enough to get enough credits. I had no idea a SAHM could collect while spouse was alive.

Can you help with some math??? (note, I'm just picking numbers for easy math) If spouse got 2,000 at full retirement , at 62 , he got 1500. At 62 is the SAHM getting 1,000 or 750?

I'm dumbfounded over this information.

In your sample math it would be 750!

 

[piccolopat]

I had work for a few years before/early in marriage. Stayed home with kids for 20 years. Went back to work just long enough to get enough credits. I had no idea a SAHM could collect while spouse was alive.

Can you help with some math??? (note, I'm just picking numbers for easy math) If spouse got 2,000 at full retirement , at 62 , he got 1500. At 62 is the SAHM getting 1,000 or 750?

I'm dumbfounded over this information.

Spousal benefits are 50% of the higher earner's benefit at his/her full retirement age (FRA) but reduced by an amount based on when the spouse first takes SS. Spousal benefits can't ben taken until the other party takes SS. Until then, she could take her own benefits (if she had enough of her own work credits) and this would be increased to her spousal benefit amount when he filed to collect. So in your example, even though he got 1500 at age 62, she could get up to 1000 if she waits to collect SS until her FRA or something less than that if she starts to collect earlier. There is a lot of info on this on the SSA.gov website.

 

[MrsPete]

We have longevity in both our families. DH is waiting until 70 to take his SS. I will wait until my full retirement age (67 I think) to take half of his. He did start taking his pension immediately upon retiring at age 63 because the monthly amount would not have gone up much over the next 3 years. It's a personal decision with many factors, we could afford to wait and take the significantly higher amount.

I'm the same; I'm sure I won't start to collect at 62 ... but I may not wait for the full 67 either. As someone else said on this thread, it is a gamble. For every year you "take it early", you give up something like 6% ... for life.

My best advice: When you're close to 62, go to an accountant or financial advisor who specializes in Social Security, and lay out your details for him or her. Given that you must live with this decision LITERALLY for the rest of your life, an hour of that person's time is a good investment.

So many things make a difference:
- Your age and your spouse's age
- Your health /life expectancy
- Salary you've earned and years you've worked
- Your plans for part-time work after retirement
- Pensions and investments available to you
- Your life insurance, which might make up for income for surviving spouse

Let the pros give your needs a look.

You can collect on his SS?

I thought he got his SS, you got your's, but when a spouse dies, one can pick whose ever is higher. This is not from experience, just what I've heard.

You can pick before your spouse dies -- it's complicated. We took a short class in retirement finances at the community college, and we learned A TON (and we had felt we were pretty well informed).

Yeah, I had no idea, at least in California, many ( if not all) public school teachers do not pay into social security from that employment.

For teachers (and a few other public service jobs), this varies from state to state. In NC, we pay into BOTH Social Security AND our state pension, so we can collect from BOTH.

I had to retire in 2016 at 57 due to health reasons. I started collecting SS in July of 2018. I started getting Medicare last July. I went to a SS lawyer who helped me file. I was approved on the first try. I was told that even though I am considered disabled I do not get SSD.

Your first four words -- regardless of health -- are sadly true. A whole lot of people don't get to choose when they leave their jobs /stop collecting regular paychecks. Ageism is very real, and it's not easy to get another professional job (with benefits) after 50 or so. It's wise for EVERYONE to be prepared to retire around 50 ... doesn't mean you have to retire, but have your finances in order.

I'm pretty sure the first rule of thumb for retirement is to have all debt paid off, including mortgage.

Totally agree.

College debt is a hot topic around here. If you're serious about retirement, consider having your kids go to affordable schools. Even if "they" take on a lot of debt, and not you, you may wind up with them needing your support later on.

I agree with the idea of choosing affordable schools instead of just passing the debt on to the kids.

 

[georgina]

You can collect on his SS?

I thought he got his SS, you got your's, but when a spouse dies, one can pick whose ever is higher. This is not from experience, just what I've heard.

Yep, but the maximum I can get is half of what his benefit would have been at HIS full retirement age. And since he is 8 years older it will be a while. We frequently get mailers inviting us to dinner by financial folks who want to sell us annuities. One of them ran a full social security analysis for free an gave us about 25 pages of scenarios with optimized ages. I have learned a lot at those free dinners!

We are very fortunate that DH's company provides retiree health care at a reasonable cost. He will start medicare soon and I can stay on the retiree plan until I hit 65.

 

[sasywtch]

I applied today for my first check in August. I'm going to be a third week'er. They did take down all my exH''s information. I get money from my pension (plus they pay all medical/dental), my rate of ss at 62 is $1003. My exH's is $2200 as he got his full age retirement at 63 due to an accident that left him unable to work. I thought they were going to give me a $100 out of his to make mine 1100 (half of his 2200) but she thinks it's more. We shall see in August.

 

[jo-jo]

We are going to look into all this information, but I have another question.........

DH at full retirement gets 2000, at 62 gets 1500. I take half his at 62 , so 750. What happens if DH dies before me.....Do I stay at 750 forever or can I get the 1500 he was getting?

I feel like I just discovered the spots on the buzz lightyear ride. If you hit them you get extra points, but first you have to know they are there.

And thank you to all who took the time to answer my questions(and is seemed everyone but me knew the answers LOL)

 

[barbaraann]

My husband never thought that I would get any Social Security money at all, because I stayed home almost our entire married life. Just worked the first year we were married. So he was pleasantly surprised when I got benefits. We sure appreciate the money. Retirement did not turn out like we expected. We have more responsibilities than we'd like at our age. Many people grow up thinking Social Security will take good care of them in their old age. Doesn't turn out that way. Medicare is working well for us. We have good health insurance. We each pay the $134 a month, and our Medicare Advantage page does really well. Especially for the medication I take. Never thought I would be on so many However, we do not know what the future has in store for us, until we live it.

 

[aprilgail]

We are going to look into all this information, but I have another question.........

DH at full retirement gets 2000, at 62 gets 1500. I take half his at 62 , so 750. What happens if DH dies before me.....Do I stay at 750 forever or can I get the 1500 he was getting?

I feel like I just discovered the spots on the buzz lightyear ride. If you hit them you get extra points, but first you have to know they are there.

And thank you to all who took the time to answer my questions(and is seemed everyone but me knew the answers LOL)

My father died way before he could get social security (he was 55)- when my mom turned 62 she started collecting yet she never worked at all, she stayed home and he worked but she is collecting just over 1200 a month.

 

[gwynne]

My father died way before he could get social security (he was 55)- when my mom turned 62 she started collecting yet she never worked at all, she stayed home and he worked but she is collecting just over 1200 a month.

I would think your dad paid into Social Security for many years during his work life.
Your mom, a widow, would be eligible for benefits based on his qualification. There is specific age information from SS on this situation for widows and widowers.

 

[Dznypal]

I retired at 61 when the hospital I worked for was taken over by another healthcare they offered me a nice package so I took it --

I got servance for so long and then unemployment for 6 months I was just a few months short of 62 so I had to wait a bit for SS to start but it all worked out--both my DH and myself started SS early cause like others have mentioned we knew people who waited and then either got sick or died before they could enjoy anything

my good friend is going through something similar she is 13 years younger then her DH who at 77 just had a stroke they've always had a money issue--he retired with a good pension and Im not sure when he started SS my friend was going to wait to collect the most

well now life through them a curve ball-her husband is not doing too well--shes only working maybe one day a week now that this happened--( she works at her sisters daycare)

shes trying to get him on Medicaid but got denied she wants to get him home but there has to be a lot of work done to the house sorry to have gotten off track but shes still not going to start SS

anyways I have a question when you start SS they hold your first check so I turned 62 in July yet didn't get my first check till Sept

for example when you start a new job they hold the first check--but after you leave you still have one check coming--SS doenst work that way casue when you die so does your SS so your out that held check--so if you turn 62 in July you should get your first check in Aug not sept

just something I noticed and no one can give me an answer

 

[Dznypal]

just want to add--theres always talk about SS having money problems but way back SS was started so when you retired it was to help you life and survie on --and you paid into it while you were working--now so many can collect if they never worked--have a disability or in my friends case

she was able to collect some for a limited time cause she had an older husband and they could collect for their son till he turned 17--whats that all about

my son in law is 12 years older then my daughter--if this is the case when he retires Im hoping myDD and DGK get something--my DGK are young yet DGD is only 4 and DGS in 1 Im sure they stopped this by now though

just another observation

 

[piccolopat]

Although the experts suggest waiting to take SS until you are 70 to get the highest possible benefit, there is at least one other reason for taking it as soon as you are eligible. For many people, waiting on SS means that they have to start drawing on their IRA or 401K retirement savings. Since retirement savings can be inherited by family members other than a spouse, taking SS early can help preserve those assets since there are no SS benefits after you die other than for a spouse. Everyone's situation is a bit different.

 

[tvguy]

Although the experts suggest waiting to take SS until you are 70 to get the highest possible benefit, there is at least one other reason for taking it as soon as you are eligible. For many people, waiting on SS means that they have to start drawing on their IRA or 401K retirement savings. Since retirement savings can be inherited by family members other than a spouse, taking SS early can help preserve those assets since there are no SS benefits after you die other than for a spouse. Everyone's situation is a bit different.

I think your last sentence is the most important. If you plan to work to 70, then waiting to 70 makes sense. I don't know a lot of experts who say to wait to 70 if you aren't working. For most people full retirement age is the best time.

My mom retired at 62 1/2. She took widows (survivor's) benefits off my dad's account until age 65. At 65 she switched to her full Social Security benefits. She didn't touch her IRA money until she was required to at age 70 1/2, and then it just went from the IRA account to her savings account. While that was taxable income, she took the minimum legally required distribution, which fell below the minimum taxable income level with the IRS.

My wife and I plan to retire next year at age 63 for me, and 62 1/2 and not take Social Security until our full retirement age of 66 1/2. We will live off savings, and if we run short, then touch IRAs or 401ks. But our game plan is to pay the least income tax possible in retirement. Again, I am taking the cue from my mom. She lived 28 years of comfortable retirement, but only had to file a tax return once in those 28 years because her taxable income was so low.

 

[maxaroni]

DH67 is still working full time but started SS at 66 when he was eligible for full benefits, rather than wait until 70. He plans on working until 70, if health continues to be decent. Our thing was that we do not need the SS money so banking that full check. I am 5 years younger than he is and I’d have to work until 66 4 months to get full. Our plan is that once DH stops working, I will stop. I would not be at 66 4 months, but will then take SS. If we find I do need to the full age, I will. However, our plan is to both stop working at the same time. One wrinkle with me is that my place of business is on shaky legs and we may not be open that full time anyway, so that would be the end of me working.

I had a meeting with someone from SS and believe I have this correct. In order for me to get half my DH’s benefit would be if I don’t collect until I would get full benefits. There is now an age cut off as to being able to collect half of DH’s, with me collecting at 62. I am too old for that, so missed that “perk” .

 

[disykat]

We're still trying to figure it out. I'm older than my husband and his income has been significantly higher. In general advice is that if the lower earner is older, they should claim early. My amount if I wait until 67 is only marginally higher than 1/2 of his when he will claim at 62.

I may go ahead and claim a reduced rate at 62, and then he plans to claim at 62. Shortly after he claims, I'll turn 67. At that point, I "think" from some of the things I read, that I can switch to claiming 1/2 of his and I might actually get half of what he would have gotten at 67 - if so, that would be a huge win for us. Even if I'll only get 1/2 of what he gets at 62, it will be higher than the lower amount I took when I was 62 - so either way I win. I will have had five years of collecting a smaller amount that more than makes up for what I lost for claiming early. It's so confusing and everything I read seems to give a slightly different version.

 

[tvguy]

DH67 is still working full time but started SS at 66 when he was eligible for full benefits, rather than wait until 70. He plans on working until 70, if health continues to be decent. Our thing was that we do not need the SS money so banking that full check. I am 5 years younger than he is and I’d have to work until 66 4 months to get full. Our plan is that once DH stops working, I will stop. I would not be at 66 4 months, but will then take SS. If we find I do need to the full age, I will. However, our plan is to both stop working at the same time. One wrinkle with me is that my place of business is on shaky legs and we may not be open that full time anyway, so that would be the end of me working.

I had a meeting with someone from SS and believe I have this correct. In order for me to get half my DH’s benefit would be if I don’t collect until I would get full benefits. There is now an age cut off as to being able to collect half of DH’s, with me collecting at 62. I am too old for that, so missed that “perk” .

I have 3 co-workers who started taking their social security when they hit full retirement age. One, a woman, is 67, the other two are men and are 73. All 3 are healthy. All 3 are using their Social Security to take amazing vacations. The woman heads out for 10 days in for New Zealand on Thursday. A trip she could not afford if she were not both working and drawing full social security. In her case though, she has no living relatives to leave anything to, so she continues to work for the money to do these trips while she is healthy. She will scale back when she stops working.

 

[dclpluto]

My social security will be low. I only maxed out my social security in 06 and 07. My estimate has been going down over the years. I will never max out my social security again and I’m only 49. Good thing for 401k. For 401k I only maxed out that two years in my life back in 06 and 07.
Just looked 2019 max for ss is 132,900 I won’t even come anywhere close to that.

 

[QueenIsabella]

Although the experts suggest waiting to take SS until you are 70 to get the highest possible benefit, there is at least one other reason for taking it as soon as you are eligible. For many people, waiting on SS means that they have to start drawing on their IRA or 401K retirement savings. Since retirement savings can be inherited by family members other than a spouse, taking SS early can help preserve those assets since there are no SS benefits after you die other than for a spouse. Everyone's situation is a bit different.

This was our thought, as well. We don't have a specific retirement plan at this time, beyond "DH plans to work until he's 65" (he's currently 56). But my thought is, take SS early (maybe 62, maybe 67--haven't decided), and invest the money. It'll be in our hands, not the government's. If we die early, we've beaten the system. If we die later, we've invested the system's money on our own. I have a very mixed family medical history. DH's father died young (58), but his uncles (both sides) are still kicking in their 80's, so who knows? His mom lived to be 86.

 

[tvguy]

Many people grow up thinking Social Security will take good care of them in their old age. Doesn't turn out that way. .

I have to disagree. My annual Social Security statement came today in the mail, my full benefit is more than I thought, 91% of my current take home pay*. How is that not taking good care of people in their old age? Remember, Social Security was never intended to be your entire retirement. It was designed to be a supplement to your retirement savings and pension if you have a pension.

*67% of my current take home pay if I take it at age 62 1/2. 118% of my current take home pay if I wait to age 70.

 

[piccolopat]

I have to disagree. My annual Social Security statement came today in the mail, my full benefit is more than I thought, 91% of my current take home pay*. How is that not taking good care of people in their old age? Remember, Social Security was never intended to be your entire retirement. It was designed to be a supplement to your retirement savings and pension if you have a pension.

*67% of my current take home pay if I take it at age 62 1/2. 118% of my current take home pay if I wait to age 70.

The system is set up so it actually replaces much more of the income for people earning on the lower end of the scale. For me, my full retirement age SS is less than a third of my take home pay. I worked and paid into the system for 40 years.