Social Security Questions

[focusondisney]

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.

This is what we will be doing. I carry the health insurance for my DH & myself, it is a better plan & price. I can continue it in retirement, but at full cost which right now would be about $2050 a month. Not happening! A friend said you could possibly qualify for a low cost plan under the affordable care act after retirement if your income is low enough. But I wouldn’t want to gamble on that. So I will keep working til 65 & retire & start my SS shortly after that.

 

[starry_solo]

Not old enough to collect but when I am, I will collect at 62.
I should be retired by then, getting health insurance through my retirement and then transitioning to Medicare at 65.

I look at it this way, nice round numbers.
I can collect $1000 a month at 62 or $1500 a month at 67.

So for 5 years, I've collected $60,000.
But if I wait to 67 for the extra $500, it will take me 120 months or 10 years to make up that extra $60,000.

*note: these are not my actual numbers but it's easier to explain with round numbers.*

Obviously if your benefit doubles between 62 & 67, maybe it'll be worth it to wait but it doesn't seem to.

 

[vacationer1954]

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.

I thought you were mistaken, but you are not.

https://www.aarp.org/retirement/social-security/questions-answers/spousal-benefits-until-70/

 

[focusondisney]

I thought you were mistaken, but you are not.

https://www.aarp.org/retirement/social-security/questions-answers/spousal-benefits-until-70/

Yep. We’re in our early 60s, so I have been researching all this stuff. I heard of that strategy years ago from older coworkers. It was a very popular option & I think many people will be surprised to find out they won’t be able to do it.

 

[Pea-n-Me]

One article I came across:

- Early Retirement Health Insurance – Options for Adults Aged 62 to 65

https://www.healthedeals.com/blog/save/early-retirement-health-insurance/

And another:

- Retiring At 62 Or Before? 9 Ways To Cover Your Health Costs For An Early Retirement

https://www.newretirement.com/retirement/retiring-at-62-early-retirement-health-costs/

 

[Snowflakey]

HOw do you find out your full retirement age? Why is it different for people?

 

[msjprincess]

HOw do you find out your full retirement age? Why is it different for people?

It depends on when you were born https://www.ssa.gov/planners/retire/retirechart.html

 

[focusondisney]

HOw do you find out your full retirement age? Why is it different for people?

 

[cedricandsophie]

I’m almost 70 and my husband is 73. I was lucky enough to retire from a corporate HR job when my stock vested. He’s still working as an attorney

Based on our financial advisors advice I started SS at 62 and my husband at 66 because he could collect full benefits and still keep working with no Impact on his benefits. Also we have a disabled adult daughter. She was collecting SSI from the state which paid her about 409 a month. As soon as her dad applied for SS she was able to apply for SS disability which was half of his full benefit or about 1400 a month. Then after 24 months of SS disability she qualified for Medicare. So we are all on SS and Medicare. I applied for all our benefits online. It was very easy.

If you or your spouse keeps working though after getting Medicare and you earn over a certain amount you will pay a monthly supplement for Medicare over and above the normal amount. It doesn’t apply to our daughter but because my husband and I file a joint return it applies to both of us which adds over 600 s month to our Medicare cost. But even with that plus the Cost of our blue cross supplement plan it’s still less than we were paying before.

 

[Dakota731]

Can I take spousal benefits at 62 if my husband starts his at 62 as well?

 

[Snowflakey]

View attachment 392842

Thank you - ugh mine is 67. Better get back to work

 

[focusondisney]

Thank you - ugh mine is 67. Better get back to work

Mine is 66 + 6 months. But I am not waiting til then. I’ll retire & start collecting when I qualify for Medicare. I’ve already put in 41 years as a nurse. My body can’t take the extra year & a half.

 

[barbaraann]

Once you reach your full retirement age, you can collect Social Security, and still work, and make as much as you want. Of course, I understand that not too many people do that.

 

[Traveliz]

Once you reach your full retirement age, you can collect Social Security, and still work, and make as much as you want. Of course, I understand that not too many people do that.

That is what my husband plans to do. He is not ready to retire and his full retirement age is less than a year away. I’ll have to wait a couple of more years to collect half of his.

 

[Kitty 34]

Not old enough to collect but when I am, I will collect at 62.
I should be retired by then, getting health insurance through my retirement and then transitioning to Medicare at 65.

I look at it this way, nice round numbers.
I can collect $1000 a month at 62 or $1500 a month at 67.

So for 5 years, I've collected $60,000.
But if I wait to 67 for the extra $500, it will take me 120 months or 10 years to make up that extra $60,000.

*note: these are not my actual numbers but it's easier to explain with round numbers.*

Obviously if your benefit doubles between 62 & 67, maybe it'll be worth it to wait but it doesn't seem to.

Yes, I totally agree with you. I did the math before I started to collect and actually I would make more SS money by the time I was 70 collecting at 62 vs 66.

 

[vacationer1954]

Yes, I totally agree with you. I did the math before I started to collect and actually I would make more SS money by the time I was 70 collecting at 62 vs 66.

Isn't that always the case? I believe the way it works, the ultimate break-even point is somewhere in your early 80's. If you are sure you're going to die by age 75, you should really consider taking Social Security early. Otherwise, waiting until you're 70 years old will pay off.

 

[North of Mouse]

If you are collecting, at what age did you start?
If you started early (after 62 but before full retirement age), were your reasons based on advice or just wanting to get started as soon as possible?
How did you apply? In person? By phone? On line?

Dh & I both started collecting ours at 62. He went to SS Office in person, mine was done online one year later. We have been collecting it for 11 & 10 years respectively - have no regrets taking it early. We did the pencil work and even with greater amt. per month if started later, would take forever to even break even. We are not dependent on SS, but it has aided in some very good retirement years so far.

Our take - why not start taking it when you can enjoy it. None of us are guaranteed long years, and we've had friends that decided to wait, work longer, and never collected one dime. There is no right or wrong - whatever works for each individual.

 

[North of Mouse]

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.

Not the poster quoted, but I, too collect half of what dh gets. I was a SAHM all our marriage, and my amt. is probably more than I could have collected on my own had I worked an 'average' job. So, the answer is 'yes'!

 

[North of Mouse]

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.

Incorrect! We took early retirement at 62 and I'm getting 50%.

 

[jo-jo]

Not the poster quoted, but I, too collect half of what dh gets. I was a SAHM all our marriage, and my amt. is probably more than I could have collected on my own had I worked an 'average' job. So, the answer is 'yes'!

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.