A Social Insecurity Question
The other thread on Social Insecurity got me to thinking. I have tried to find the answer to my questions on the SS website in their FAQ, and have even tried emailing them, with no answers found or given. Since I do plan to retire in the next few years, I would like to have some answers.
I understand the amount you are allowed to draw in retirment benefits is somehow dependent on how much money you made while working.
What period of time is considered?
Is it the last several quarters before applying for benefits?
Is it the best several quarters of your working life?
Three scenarios:
1. I work at my present job until I turn 62, retire, and apply for "early retirement" benefits from SS.
2. I work at my present job until I turn 56 and retire. Then, I work at a lesser-paying job for 6 years and apply for "early retirement" SS benefits.
3. I work at my present job until I turn 56 and retire. For the next 6 years, I earn no money, but only collect my TMRS retirement benefits. When I turn 62, I appy for "early retirement" benefits from SS.
Would the varying circumstances described in any of the above scenarios have any affect on my SS benefit?
I understand the amount you are allowed to draw in retirment benefits is somehow dependent on how much money you made while working.
What period of time is considered?
Is it the last several quarters before applying for benefits?
Is it the best several quarters of your working life?
Three scenarios:
1. I work at my present job until I turn 62, retire, and apply for "early retirement" benefits from SS.
2. I work at my present job until I turn 56 and retire. Then, I work at a lesser-paying job for 6 years and apply for "early retirement" SS benefits.
3. I work at my present job until I turn 56 and retire. For the next 6 years, I earn no money, but only collect my TMRS retirement benefits. When I turn 62, I appy for "early retirement" benefits from SS.
Would the varying circumstances described in any of the above scenarios have any affect on my SS benefit?
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Your income from your first reported income forward is used - all income.
I don't know the other answers, but every time I have called the toll-free SS(D.C.) number, I have received good answers.
Good luck.
Doug0 -
quote:3. I work at my present job until I turn 56 and retire. For the next 6 years, I earn no money, but only collect my TMRS retirement benefits. When I turn 62, I appy for "early retirement" benefits from SS.
Offers the best chance to enjoy your golden years. I have no clue about the SS benefits at all; I'm not counting on them being there for me.
I know so many people who don't live very long after retiring - cancer, strokes, heart attacks, and so forth. My advice is knock off the regular employment as soon as you can afford it.0 -
Not sure but I think it is the highest of the last few quarters. Unless you have dependents about $1.800.00 is all you can expect at full retirement or disability. I make pretty good money and I think I'm getting $1.804.00 a month. (wife is gone shopping) If you intend to retire then go at 62 because you probably won't live long enough to make up the difference. If you retire at 62 you can only make $1.280.00 a year at another job. If you feel you have to work and don't hate your job then do like me. I'm getting full SS, an old union pension and sitting on my fat butt drawing full salary!![:D] Good luck whatever you decide. 0 -
Your benefits will be determined by averaging your highest 35 years of employment. Currently the maximum amount per quarter is $1000, or $4,000 per year. If you did not earn the maximum per quarter for those 35 years then your lower earning years will be added to your total in order to reach the mandatory 35 years. Of course there are exceptions to these rules but this applies to most folks. 0 -
Henry I have been listening to that same old BS for 65 years and SS is still here. It may change. People may have to pay more but it will be there. I am fortunate that I always had a good job and saved my money. However, If I had not done so I could live very easily on SS. I am glad it is still there and I think it always will be. 0 -
Nunn it my not answer you question and it can be depressing. The best thing you can do is get a financial adviser of some sort and give them your plan with #s of your assets etc.
For me at right now at age 45, for me to retire on a 35k a year budget
(given inflation, insurance, medical, SS etc) I will need at least 1 million in the bank.0 -
Don't you get the yearly letter from SS telling you what your payment will be at whatever age you retire? I do, every February. 0 -
quote:Originally posted by iluvguns
Don't you get the yearly letter from SS telling you what your payment will be at whatever age you retire? I do, every February.
i just got mine Friday, it was pretty depressing if you ask me
rosie you must have made a very good living, i don't know anyone that ever got more than 1,200 a month out of SS0 -
Nunn:
When I went through this they took my last 10 years of employment, so becareful of taking a lower paying job for a 6 year period it could drop what you get.0 -
Kristov is correct as I understand it. They average the highest 35 years of income and SS paid in and your benefits are calculated from that average.
You should be getting a statement each year which gives you the amount that you will draw if you retire at 62 (if eligible), and the amount you will draw at full retirement age of 65. It also list the amount that you will draw if you file for disability. It also lists the amount of income you had each year that you worked and the amount you paid into the SS system each year. I highly recommend that you carefully check this statement !!! When my wife got her statement this year, they neglected to include 44,000 dollars for the year 2005. They included 2 of her W-2 forms and did not include the third. It took several weeks to get them to correct this and we will not know until her next statement is received if they did actually correct it.
If it were me, I would work at my current job just as long as I possibly could since it will probably be a higher paying job and therefore add more to my monthly benefits.
Of course this is easy for me to say because I had to retire on disability and would have rather continued to work.
I understand that you have a very stressful occupation and understand your reasons for wanting to retire from it ASAP.
Either way, I would file for SS at 62 or as early as possible.
Your number one scenario would be my choice.
Thanks---Peabo0 -
www.ssa.gov/pubs/10070.html
"Many people wonder how their benefit is -figured. Social Security benefits are based on your lifetime earnings. Your actual earnings are adjusted or "indexed" to account for changes in average wages since the year the earnings were received. Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or "primary insurance amount" (PIA). This is how much you would receive at your full retirement age-65 or older, depending on your date of birth."0 -
1911A1
Have worked for the same company for 47 & 1/2 years now. Have been on salary as a supervisior for at least 37 years. Unlimited company vehicle and all the other goodies. Worked my ass off in the earlier years to get to where I wanted to be. If you knew my back ground you would see that I came a long way. I have been fortunate. FrancF. A million is not that hard for a hard working man. Also you may think you need a million but could get by on a lot less.0 -
A few interesting facts that I can add to the discussion are these:
Once you start drawing social security benefits, if you continue to work each year part time, you pay in additional social security taxes and the amount you receive each month in benefits goes up a little bit. But you can only earn the allowed amount per year between 62-65+.
After you reach your full retirement age, mine was 65 and 4 months, then you can earn as much as you want and it will not reduce your monthly benefits. The SS taxes paid in will increase benefits.
I retired at age 63 and my beneifts are higher than the $1200 that one gentleman discussed. Between 62 and your full retirement age, if you earn over a stated amount allowed you will have to return benefits through your tax return caculation.
Also each month that you work past age 62 prior to retireing, your monthly social security benefit will increase.
They look at all your income now and take it into consideration for the calculation of monthly benefits. It used to be only the last 40 quarters, but that has changed.0 -
It has nothing to do with quarters, it has to do with years and income.
Every year you can make up to 4 credits; 1 credit for every $1000 you earn.
I get a statement from them every year and it has all the details.
I've worked and paid into the system since 1967. On this statement is every year since 1967, my taxed earnings and my Medicare taxed earnings.
There is also a section that says if i take an early withdraw at age 62, my monthly payments will be xx. Then it goes on to say if I don't take it until age ?, its higher, etc.
According to the statement, you need at least 40 credits to be eligible for benefits, the amount depends on how much you put in over that time period.
But the numbers on the statement that says if I take an early retirement at 62, the payout is based on my working up to to age 62 and I retired at 51. So my statement may be higher than what I'll actually get, because they estimate that I'll keep paying as much into the system until age 62.
So its a matter of numbers.
expenses vs. income.
Income from your retirement after taxes plus what they will pay, vs expenses.
And figure in a monthly figure for all expenses, utilities, rent, mortgage, insurances, car payments or any payments like credit cards, food, mtce, clubs, clothes, toys, supplies, etc. The maintenance price is bigger that we imagine if you consider the house, vehicles, machines (big or small), sicknesses/injuries/dental, etc.
That is the best I can explain it.0 -
If you owe money at retirement and don't have a large pension or at least enough to pay off your debts you are in a world of hurt. 0 -
I had a pretty decent job and worked 45 years. I retired at 63 1/2 with $1476.00. I worked construction when I was a kid and helped build the DuPont plant where I ended up working. When DuPont changed their product lines they sold the plant to a private corporation. The new company robbed it for 10 years and then went TU. I helped build the plant, then I worked in the power house when the plant shut down and got to shut off the switch. I was then "employed" by the State of Kansas for 6 1/2 years. I ended up with three small pensions and SS.
I also managed to save a little. Life is good.
The yearly statement from SS was very close to the final # that I received. Also, like Rosie, I don't look for SS to dissapear.0
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