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Applied for SS benefits yesterday...
Old 04-23-2017, 07:06 AM   #1
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Applied for SS benefits yesterday...

Yes I'll only be 63 when I start receiving them in July but I've got a couple of health issues and I'm betting on losing if you get my meaning. Hope I'm wrong.

The money will help offset those huge healthcare premiums and more importantly right now -Physiologically It locks in my date 7/31. No more OMM! I feel relieved.

It occurs to me 63 isn't early retirement but I think as it stands now it we may need to change our thinking. I'll have 2 years of me paying full healthcare. Not sure of the exact number yet but It's bigger then my SS. My company will pay a small offset - they told me last year full price was $3,300 a month. Funny My one and only mortgage payment was around $1,200 a month. My college budget was $2500 a year. Daughters coming off so. It will drop a bit.

Not sure about any but a few having the ability to retire without benefits... the numbers are staggering.

$3,300 x 12 = $39,600 annually.
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Old 04-23-2017, 07:26 AM   #2
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Quote:
Originally Posted by rayinpenn View Post
Yes I'll only be 63 when I start receiving them in July but I've got a couple of health issues and I'm betting on losing if you get my meaning. Hope I'm wrong.

The money will help offset those huge healthcare premiums and more importantly right now -Physiologically It locks in my date 7/31. No more OMM! I feel relieved.

It occurs to me 63 isn't early retirement but I think as it stands now it we may need to change our thinking. I'll have 2 years of me paying full healthcare. Not sure of the exact number yet but It's bigger then my SS. My company will pay a small offset - they told me last year full price was $3,300 a month. Funny My one and only mortgage payment was around $1,200 a month. My college budget was $2500 a year.

Not sure about any but a few having the ability to retire without benefits... the numbers are staggering...
Was the $3,300/month COBRA? I am sure you can do better with an ACA plan. Even a Gold plan at your age should have monthly premiums for around $1,500 ..... less than half what you were quoted.

Also, keep in mind that you can offset any medical/dental expenses on Sch. A of your 1040 as long as you itemize deductions (and you will with high healthcare premiums). Any medical/dental expenses in excess of 10% of your AGI are deductible.

Remember that if you do apply for an ACA plan, try to keep your MAGI below $64,080( FAmily of 2) and you will qualify for a tax subsidy which should cut your monthly premiums by as much as 50%. This takes some planning ..... just try to make sure to minimize any year end capital gains distributions or "surprise" income streams which could end up having you cross the MAGI of $64,080 and paying back the tax subsidy when taxes are filed.

I do not think your situation is as dire as you imagine. It takes some planning and under current law, you cannot be refused coverage for pre-existing conditions. Good luck.
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Applied for SS benefits yesterday...
Old 04-23-2017, 07:46 AM   #3
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Applied for SS benefits yesterday...

Quote:
Originally Posted by MrLoco View Post
Was the $3,300/month COBRA? I am sure you can do better with an ACA plan. Even a Gold plan at your age should have monthly premiums for around $1,500 ..... less than half what you were quoted.

Apologies I omitted the following
1. I have a 18 year old son who will be on my policy for several years while in college. Also have 22 year old about to graduate college in a few days - she'll be off in July.
2. I priced it on healthcare.gov and it was $35,000 a year for the 4 of us and there is only one provider.

When she's off I estimate my slightly Company subsidized cost will be around $2,400 a month. I can't say for sure because I don't want to announce I'm retiring until June. They quoted me $1950 a month but that was before last years crazy increases...
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Old 04-23-2017, 12:57 PM   #4
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That is truly a horrible amount to pay for insurance.
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Old 04-23-2017, 05:36 PM   #5
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Frightening numbers. Worried all over again.
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Old 04-23-2017, 09:13 PM   #6
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$3,300 x 12 = $39,600 annually.
Ridiculous, outrageous and absurd just for health care insurance. I am paying about $225 per month under the corporate plan. Mega corp is offering an early retirement package that pays 25% of one year salary toward an existing pension account and $7500 toward a health care account that can be used to pay premium. If the same health care coverage is desired, the amount would be $3,850 per month - holy smoke. This is sickening. Why is it so expensive just to get health care coverage? : The entire health care needs an overhaul. How can anyone afford it without a subsidy from an employer or the government? Where does all the money go?
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Old 04-24-2017, 06:09 AM   #7
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I find it incredible that there is such a disparity in the cost from state to state.
My own state has its own exchange where one can "shop" and compare plans among insurance companies and choose a plan based on one's health and anticipated needs (bronze, silver, gold).
For my wife and I a silver plan at just below the required income level to qualify for a subsidy would cost $450/month for premiums ( ages 59 and 58) with a deductible of $9,600.....so max out of pocket annually would be approximately $ 15,000.
Not cheap but nowhere near what some of you are quoting. And this is only
if we were to max out benefits every year. If we only needed minimal services our annual cost would not be much more than the premiums.
Perhaps a solution (albeit radical) might be to temporarily relocate to a state where the cost is more reasonable and when turning 65 move back to one's home state when Medicare begins? Of course states can opt out of their state sponsored exchange and premiums I suppose could skyrocket.
No easy solution.
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Old 04-24-2017, 07:23 AM   #8
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Perhaps a solution (albeit radical) might be to temporarily relocate to a state where the cost is more reasonable
Minnesota provides excellent health care programs (e.g., Medical Assistance and MinnesotaCare for low income/asset people. Both programs have nearly zero premium with extensive health care coverage with very little or zero deductible.

https://mn.gov/dhs/people-we-serve/a...-and-services/
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Old 04-24-2017, 10:39 AM   #9
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Minnesota provides excellent health care programs

I believe they also automatically call it Medicaid, and put a lien against assets.

Minnesota Legislature: Medicaid lien issue addressed

Changes are in process, but keep your eyes open.
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Old 04-24-2017, 12:56 PM   #10
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ACA at work....
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Old 04-24-2017, 03:27 PM   #11
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I believe they also automatically call it Medicaid, and put a lien against assets.

Minnesota Legislature: Medicaid lien issue addressed

Changes are in process, but keep your eyes open.


This was an example of a clash between two sets of legislation, the debt reduction act in ~2004 and the ACA. This is a problem in varying degrees in all states. In many states, the estate recovery only seeks recovery for nursing home expenses. But in states like California and Minnesota, it applies to all expenses after age 55.

So those of you trying to get your income low enough for Medicaid qualification, realize what you could be doing to your estate. Note that your estate will be in the hock for what the state paid, not what was billed-and Medicaid pays relatively little.

It's nice to know Minnesota fixed it. I doubt California will. The state government has always been pretty greedy, IMO.
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Old 04-24-2017, 06:22 PM   #12
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Curious about how you applied......friend will do soon...understand you can apply online, by phone, or at local office. If not at local office, you have to send important personal documents away by mail?
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Old 04-24-2017, 09:19 PM   #13
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Kaneohe, you can apply online. I did it online, then got a call to make an appointment to come in for verification. It took less than 20 minutes at the SS office and that was it. Mine is automatically deposited to my checking account every third Wednesday of the month.
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Old 04-24-2017, 10:11 PM   #14
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I could not find my birth certificate or my social security card immediately when the 90 day application window opened. Figured I had nothing to lose, so I applied on-line. Application was accepted, got a call a week later from someone who explained how many dollars you could earn before you lost benefits (wasn't going to happen) and asked me if I knew I could get an "increase" if I waited a month or two. Ummm...no thanks, not going to forego the payments for the tiny increase in payment. Last contact until the deposit showed up.

I had already verified the numbers in their records, and my calculation of the benefit was the same as theirs. So quick and painless for me.
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Old 04-25-2017, 04:20 AM   #15
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I was unaware of how long you wait to get your first SS check. If you apply in July, you EARN your first check in May, and you are paid in June.

Worse than starting a new job and working 3 weeks before getting your first bi-monthly check.
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Old 04-25-2017, 08:41 AM   #16
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I live overseas and applied online when I was 62. Got the phone call a week later and then had to make an appointment to go to the embassy with my passport and ss card as well as for my two kids. The embassy was great and they even helped open a special bank account to have the money dumped into.

I notice people talk about the third wednesday of the month a lot in the forums to get their money deposited. Overseas, must be different as I get the deposit the 3rd of every month unless it is a Sunday, in which case I get it on the 2nd.
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Old 04-25-2017, 09:02 AM   #17
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I notice people talk about the third wednesday of the month a lot in the forums to get their money deposited. Overseas, must be different as I get the deposit the 3rd of every month unless it is a Sunday, in which case I get it on the 2nd.
Social Security deposits arrive throughout the month depending mostly on the day of the month of your birthday.

https://www.thebalance.com/when-and-...arrive-2388919
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Old 04-25-2017, 10:09 AM   #18
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Yep! That what insurance cost and companies are paying that also but many do not see it or it seems lower when grouped with younger people.

The big question for me is. Where does the money go? Is someone getting rich? Should I register in nursing school as a second career?

Follow the money to find the problem. Health insurance stock isn't booming. Why the government only talks about lowering costs but never really acts on these ideas baffles me??

That's my rant. Glad to be on my first year of medcare!
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Old 04-25-2017, 11:56 AM   #19
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Social Security deposits arrive throughout the month depending mostly on the day of the month of your birthday.

https://www.thebalance.com/when-and-...arrive-2388919


Thanks. Good news. I'm several years away but I always assumed SS payments would come around the 1st. Based on my birthdate it will be the 3rd Wednesday. Obviously could change but one of the issues with ER for me is getting one (pension) check per month on the 1st after working 35 yrs and getting paid 2x per month.
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Old 04-25-2017, 02:54 PM   #20
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Curious about how you applied......friend will do soon...understand you can apply online, by phone, or at local office. If not at local office, you have to send important personal documents away by mail?
I applied online last spring and had no issues at all. Not even a phone call from them, nor a request to show up at the SS office. They did send a letter explaining what the benefit would be and the amount was within a couple of dollars of the online estimator.

Then, just like magic, a couple thousand+ is deposited into a checking account every month.
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