Social Security Questions

[Pea-n-Me]

I don't think that dying is the only issue. A lot of people have major health issues around the time of retirement (I often wonder if this is how those ages were decided upon) that impact their lives going forward. Further, longevity is great as long as you're healthy and happy and still have people around you that you want to be with and vice-versa. Otherwise, longevity can sometimes be a difficult prospect.

 

[adkkev]

Medicare coverage starts at 65, so if you retire and collect SS prior to that age, you'll need to have your own health insurance until Medicare kicks in. At 65 you'll then need to make decisions about your Medicare coverage (Part A is mandatory, the rest are optional).

 

[bushdianee]

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.

 

[aprilgail]

Medicare coverage starts at 65, so if you retire and collect SS prior to that age, you'll need to have your own health insurance until Medicare kicks in. At 65 you'll then need to make decisions about your Medicare coverage (Part A is mandatory, the rest are optional).

I retired at 50 and my employer covers my medical until I am 65 and at that point they give me 200.00 a month towards a supplemental policy.

Last time I worked for an employer that took out for social security was back in the early 80’s so I am not eligible to collect it-but I do collect full railroad retirement benefits at 60 on top of my pension which I started collecting at 50.

 

[sasywtch]

I will be applying online this month as my 62nd birthday is in July. Between my retirement pension and the SS I will get at 62, combined will bring me what I was making while working. Since my exH won't tell me what he gets from SS, I'm giving them his SSN to check. My understanding is, if one spouse (doesn't matter if male/female) makes more in SS, SS divides it in half. The lower earning spouse would get up to half of the other spouses ss. Example. If my ex gets 2200 a month. Half would be 1100. If I got 900 on my own, ss would give me an additional 200 to come up to that 1100. This is for anyone married over 10 years, not currently married (the person trying to get up to the half...such as myself). This does not take any money out of either spouses funds. Whether this is true or not, the employee at SS told me this was put in years ago when women stayed home to raise kids and didn't go into the workforce until years later and not able to put in 40 years into their ss account. My cousin is the exact opposite. She made 3x the money as her exH and he filed against hers. So it can go either way.
My state pension plan automatically converts my medical to medi-care the day I turn 65.

I agree with the pp. Go online and open an account with social security. They have a calculator to determine your benefits.

 

[karensi]

I am 73 and still working. At age 66, my full retirement age, I took my (deceased) husbands SS. I collected on his SS and continued working. At 70 I switched to my SS which was more than my husbands and continue to collect that now, even though I'm still working.
It works for me.

 

[vacationer1954]

That's one of the main reasons why I'm thinking of waiting until 70: At 67 I can start taking spousal benefits.

The other side of it is the impact of Social Security on taxes. The longer we (both) hold off taking Social Security, the longer we'll be able to withdraw money from 401ks and IRAs taxed at the lower rate, and the longer we'll be able to pay less (or nothing) in capital gains taxes.

 

[4kids4karen]

My DH will be 59 this year and many of his coworkers are retiring and going to take SS early. My mom took it early and the numbers worked out for her. I am only 45. I was recently researching the rules to try to figure out what we would do in a few years when DH eligible since it has been a topic within his office with his coworkers upcoming retirement, buying retirement homes in the Villages (we live in Tampa), etc.

What you have to look at is if you still need to work in addition to SS. For us, my two youngest are in 10th and 11th grade and want to go away to college. Looking at the income restrictions after taking SS, DH would not be able to work his current job as a DoD Civilian as it is over the income level allowed. We are not prepared for him to quit his DoD job until maybe after the kids graduate college. Then we can reassess once we are emptynesters and have a few more years paying down our debt. I plan to be out of credit card debt in less than three years. Then we have to focus on our mortgage/car loans.

Losing his full-time job income would hurt us too much. There are some benefits of taking SS early depending on life expectancy, etc.

 

[clutter]

Medicare coverage starts at 65, so if you retire and collect SS prior to that age, you'll need to have your own health insurance until Medicare kicks in. At 65 you'll then need to make decisions about your Medicare coverage (Part A is mandatory, the rest are optional).

This defines my retirement as well. I've got incredible insurance from my current company, which costs me very little each year. But... if I was to retire before 65, I would have to bridge the gap somehow. COBRA is only 18 months, and our insurance is expensive. So I could retire at 63 1/2 (in three years!), if I decide that I have that kind of spare savings, or I decide to draw SS at that point to pay COBRA or find some other insurance.

I could probably swing retirement now, but the health insurance is a big thing. Right now, the longer I work, the more money I have to play with later. But at some point, it's not going to be worth it. It's not my job that makes me want to retire, its the commute!

 

[Meriweather]

We took it at 62. Already retired. We figured we might as well start collecting it.
DH applied over the phone. I followed and did it online

 

[antmaril]

I started collecting SS at age 62. I applied in person. I retired at age 56 because my husband was dying. Then, I had a serious heart attack at age 58, so I decided to get while the getting was good. I will be 68 in June. I have no regrets. All is well.

I am editing to add that I actually started collecting SS Widow’s Benefits when I was 60. I took that benefit for two years and then applied for my own SS benefit because it was higher.

 

[barbaraann]

The spouse does not automatically get 50% of her husband's benefit. It is only 50% if she is at full retirement age, when she begins to get benefits. My husband's full retirement age was 66. So was mine. However, I did not have enough credits of my own. We waited for him to reach 66, and he applied for his benefits, so I could take the spousal benefits that I was entitled to. We were married over 40 years at that point. I received benefits before I was 66, and my benefit was slightly smaller than 50%. My husband deferred his benefits until he was 70. He now gets a much larger amount. He is still working, and almost 73. His benefit and mine, both still increase very slightly each year because he is still contributing to the system. Can't live on SS alone, so that is why he still works. It's not that he's a workaholic. He works from home, and makes a great salary. I was a stay at home mom, hence not even credits for me. That's the way the system is set. Nowadays both married people have jobs. Not true in my day, or my mom's.

 

[mnrose]

Dh brought this up just the other day. We need to discuss this with someone who understands better than us. I think what makes sense is for one of us to collect early, and the other as late as possible. I believe that the "amount" you collect is exactly the same IF you live to be your actuarial determined life expectancy. The trick is figuring out which side of that equation you are likely to end up on. It's really, really tough. My husband has some long life genes, with the exception of his Dad, who died at 80 because of complications of MS (my DH has no signs of this whatsoever). So, I'm pretty sure his life expectancy is on the longer side. I have both long and short (short on mom's side, long on dad's side). So there again, it's a crapshoot. My personal health is excellent at this point (can run a mile in under 8 minutes, which for a woman over 60 is damn good).

We don't "need" the money, so that doesn't factor in at all. For us, it will be "mad money" for travel, etc.....assuming we get it at all....who knows what's going to happen.

The more important factor is Medicare, which sadly is available to everyone on a date certain. Medical insurance is what keeps DH working.

 

[Pea-n-Me]

My DH will be 59 this year and many of his coworkers are retiring and going to take SS early. My mom took it early and the numbers worked out for her. I am only 45. I was recently researching the rules to try to figure out what we would do in a few years when DH eligible since it has been a topic within his office with his coworkers upcoming retirement, buying retirement homes in the Villages (we live in Tampa), etc.

What you have to look at is if you still need to work in addition to SS. For us, my two youngest are in 10th and 11th grade and want to go away to college. Looking at the income restrictions after taking SS, DH would not be able to work his current job as a DoD Civilian as it is over the income level allowed. We are not prepared for him to quit his DoD job until maybe after the kids graduate college. Then we can reassess once we are emptynesters and have a few more years paying down our debt. I plan to be out of credit card debt in less than three years. Then we have to focus on our mortgage/car loans.

Losing his full-time job income would hurt us too much. There are some benefits of taking SS early depending on life expectancy, etc.

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

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.

The spouse does not automatically get 50% of her husband's benefit. It is only 50% if she is at full retirement age, when she begins to get benefits. My husband's full retirement age was 66. So was mine. However, I did not have enough credits of my own. We waited for him to reach 66, and he applied for his benefits, so I could take the spousal benefits that I was entitled to. We were married over 40 years at that point. I received benefits before I was 66, and my benefit was slightly smaller than 50%. My husband deferred his benefits until he was 70. He now gets a much larger amount. He is still working, and almost 73. His benefit and mine, both still increase very slightly each year because he is still contributing to the system. Can't live on SS alone, so that is why he still works. It's not that he's a workaholic. He works from home, and makes a great salary. I was a stay at home mom, hence not even credits for me. That's the way the system is set. Nowadays both married people have jobs. Not true in my day, or my mom's.

Interesting point about benefits still increasing while working. I suppose this is true even if one is working part time and still paying into the system? Does anyone know what the income limits are for someone working while collecting?

I was talking to someone I know recently who always worked "under the table" and now, at 63, can't collect on her own (and husband has the type of job that collects from another type of system). Something to think about for the long term.

Dh brought this up just the other day. We need to discuss this with someone who understands better than us. I think what makes sense is for one of us to collect early, and the other as late as possible. I believe that the "amount" you collect is exactly the same IF you live to be your actuarial determined life expectancy. The trick is figuring out which side of that equation you are likely to end up on. It's really, really tough. My husband has some long life genes, with the exception of his Dad, who died at 80 because of complications of MS (my DH has no signs of this whatsoever). So, I'm pretty sure his life expectancy is on the longer side. I have both long and short (short on mom's side, long on dad's side). So there again, it's a crapshoot. My personal health is excellent at this point (can run a mile in under 8 minutes, which for a woman over 60 is damn good).

We don't "need" the money, so that doesn't factor in at all. For us, it will be "mad money" for travel, etc.....assuming we get it at all....who knows what's going to happen.

The more important factor is Medicare, which sadly is available to everyone on a date certain. Medical insurance is what keeps DH working.

I know that health insurance is one of the biggest expenses today in retirement, and that many wait or play the COBRA game or some combination before they're fully eligible for Medicare, but does anyone have information on what some of these plans you can get on your own actually cost? Like, what are we talking here for a couple? Any idea? Anyone? It's not something I've ever looked into.

 

[SC Minnie]

Interesting point about benefits still increasing while working. I suppose this is true even if one is working part time and still paying into the system? Does anyone know what the income limits are for someone working while collecting?

.

Just under $18,000

 

[mnrose]

I don't think that dying is the only issue. A lot of people have major health issues around the time of retirement (I often wonder if this is how those ages were decided upon) that impact their lives going forward. Further, longevity is great as long as you're healthy and happy and still have people around you that you want to be with and vice-versa. Otherwise, longevity can sometimes be a difficult prospect.

The initial ages chosen had nothing to do with health, but rather the average life expectancies of that time period. Indeed, when SS was started, the average male life expectancy was LESS than 65. This is one of the reasons that SS is "in trouble" for the long term. When it was set up, people collected for a year or two (with outliers in either direction, of course). Now, it's not uncommon AT ALL for people to collect for 20-30 years. If we changed SS to reflect what it was when instituted, the age you could start it would be somewhere in the mid-70's.

 

[mnrose]

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

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.


Interesting point about benefits still increasing while working. I suppose this is true even if one is working part time and still paying into the system? Does anyone know what the income limits are for someone working while collecting?

I was talking to someone I know recently who always worked "under the table" and now, at 63, can't collect on her own (and husband has the type of job that collects from another type of system). Something to think about for the long term.


I know that health insurance is one of the biggest expenses today in retirement, and that many wait or play the COBRA game or some combination before they're fully eligible for Medicare, but does anyone have information on what some of these plans you can get on your own actually cost? Like, what are we talking here for a couple? Any idea? Anyone? It's not something I've ever looked into.

I've done some looking. The kind of plan DH and I currently have isn't available at ANY cost. A high deductible plan for DH and I would be well north of $2000 a month. Probably more like $2500 a month. And, that would mean a VERY high deductible of over 10K. So, I'd be out of pocket more than 30K before the plan would pay anything (other than preventative care....one physical a year, and any other screening exams recommended by age). It really is a massive hit. We've run the numbers and it would cost us over $150K potentially until we were Medicare eligible. That's a big hit on retirement!

ETA: Also will note that with all the discussions taking place on the ACA in the political realm (and the current effort underway to undo the protections currently available for pre-existing conditions), it's a big old crap shoot to say what it would cost. Neither DH or I have any significant pre-existing conditions, but BOTH my children have diagnosis which will follow them forever and would mean our family premium could be even more than what I've suggested here since pre-existing conditions CANNOT be considered today. Scares the crap out of me.

 

[Pea-n-Me]

Just under $18,000

Thank you.

I've done some looking. The kind of plan DH and I currently have isn't available at ANY cost. A high deductible plan for DH and I would be well north of $2000 a month. Probably more like $2500 a month. And, that would mean a VERY high deductible of over 10K. So, I'd be out of pocket more than 30K before the plan would pay anything (other than preventative care....one physical a year, and any other screening exams recommended by age). It really is a massive hit. We've run the numbers and it would cost us over $150K potentially until we were Medicare eligible. That's a big hit on retirement!

Obviously unrealistic for most people.

I've seen some go without for a few years while waiting, and that's not good, either.

 

[nkereina]

How do you "decide" when to retire? Is there a rule of thumb that says if I have X dollars in my retirement accounts and am Y years old and worked Z years under social security, I can retire at whatever age?

Medicare coverage starts at 65, so if you retire and collect SS prior to that age, you'll need to have your own health insurance until Medicare kicks in. At 65 you'll then need to make decisions about your Medicare coverage (Part A is mandatory, the rest are optional).

Great point @adkkev. Both of my parents waited until they were age 65 to retire solely because of the health insurance aspect. Neither of the employers offered it to retirees, and to buy a plan on their own would have been very cost prohibitive. Once they were both eligible for medicare, they switched to that and retired shortly after. Their first social security check came in the first month after retirement. For them, it didn't make sense to draw SS when they were still working making their normal incomes. Every situation is different, especially for those who have other health insurance options.

 

[focusondisney]

I am 73 and still working. At age 66, my full retirement age, I took my (deceased) husbands SS. I collected on his SS and continued working. At 70 I switched to my SS which was more than my husbands and continue to collect that now, even though I'm still working.
It works for me.

This is no longer an option as I understand it. Anyone who was not 62 before Jan 1, 2016 will either get their own benefits or their spousal benefit, whichever is higher. Now it may be different if the spouse is deceased, but I know many people used to file for spouse benefits then switch to theirs later, after it has grown to a larger amount. You can’t do that anymore.