Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
More on SS claiming strategies
Old 08-02-2013, 04:46 PM   #1
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,675
More on SS claiming strategies

This from the Journal of Financial Planning
Understanding Unusual Social Security Claiming Strategies

It talks about two strategies - claim & suspend, and claim now & claim more later. Both apply to married couple. The first is more appropriate when one spouse earned little compared to the other. The second is appropriate for couples who earn similar amounts.

I haven't read it in detail since SS is way in the future for me. But hope it helps those who are making these decisions today.
__________________

__________________
walkinwood is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-02-2013, 05:23 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Thanks for the link wiw. Very interesting read.

This caught my eye~

Quote:
We estimate the potential cost of allowing couples the option of “claim and suspend” to be about $0.5 billion dollars a year, while that of “claim now, claim more later” to be around $10 billion a year. It is possible that policymakers may evaluate these strategies as they look to trim expenses by reducing cost increasing provisions to ensure they are consistent with the basic goals of the Social Security program.
I am curremtly participating in what is called "claim now, claim more later" as DW is 4 years younger that I and has a lower SS benefit. I had no idea that this cost the SSA $10B annually! I thought that it was a really good deal for us, but had no idea that the total was that much EACH year.

With same sex-marriage claims being acceptable and the magnatude of this "claim now, claim more later" drain being so much, Congress may want to assess this benefit as it seems skewed.

The final sentence of the study emphasizes this.

Quote:
This cost will climb sharply as large numbers of baby boomer couples start retiring and the strategy gains popularity.
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 08-02-2013, 06:09 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,315
Quote:
Originally Posted by mickeyd View Post
Thanks for the link wiw. Very interesting read.
With same sex-marriage claims being acceptable and the magnatude of this "claim now, claim more later" drain being so much, Congress may want to assess this benefit as it seems skewed.

The final sentence of the study emphasizes this.
Sort of like spiking the pension.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 08-02-2013, 07:08 PM   #4
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,240
Quote:
Originally Posted by mickeyd View Post
Thanks for the link wiw. Very interesting read.

This caught my eye~



I am curremtly participating in what is called "claim now, claim more later" as DW is 4 years younger that I and has a lower SS benefit. I had no idea that this cost the SSA $10B annually! I thought that it was a really good deal for us, but had no idea that the total was that much EACH year.

With same sex-marriage claims being acceptable and the magnatude of this "claim now, claim more later" drain being so much, Congress may want to assess this benefit as it seems skewed.

The final sentence of the study emphasizes this.
With our $17T national debt, $10B seems like the proverbial drop in a bucket. Even though SS is "funded" separately, it all still falls to the bottom line at some point. Just sayin'. Obviously, YMMV.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 08-02-2013, 08:18 PM   #5
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Could you claim spousal benefit before your spouse actually claim his/her own?
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 08-02-2013, 10:40 PM   #6
Thinks s/he gets paid by the post
timo2's Avatar
 
Join Date: Jul 2011
Location: Rio Rancho
Posts: 1,438
Quote:
Originally Posted by walkinwood View Post
This from the Journal of Financial Planning
Understanding Unusual Social Security Claiming Strategies

It talks about two strategies - claim & suspend, and claim now & claim more later. Both apply to married couple. The first is more appropriate when one spouse earned little compared to the other. The second is appropriate for couples who earn similar amounts.

I haven't read it in detail since SS is way in the future for me. But hope it helps those who are making these decisions today.

Interesting article. the primary sections of the article that got my attention (in a negative way) was the repeated emphasis on 'keep working'..until FRA...until 70..until whenever.
__________________
"We live the lives we lead because of the thoughts we think" Michael O’Neill
timo2 is offline   Reply With Quote
Old 08-03-2013, 01:12 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Quote:
Originally Posted by Koolau View Post
With our $17T national debt, $10B seems like the proverbial drop in a bucket. Even though SS is "funded" separately, it all still falls to the bottom line at some point. Just sayin'. Obviously, YMMV.

You're not suggesting that the federal government should not take all measures to reduce unnecessary expenses are you? LBYM.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 08-03-2013, 01:19 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Quote:
Originally Posted by Chuckanut View Post
Sort of like spiking the pension.
I was unfamiliar with that term. I now agree with your statement.



Quote:
Pension spiking, sometimes referred to as "salary spiking",[1] is the process whereby public sector employees grant themselves large raises or otherwise artificially inflate their compensation in the years immediately preceding retirement in order to receive larger pensions than they otherwise would be entitled to receive. This inflates the pension payments to the retirees and, upon retirement of the "spikee", transfers the burden of making payments from the employee's employer to a public pension fund. This practice is considered a significant contributor to the high cost of public sector pensions.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 08-03-2013, 02:00 PM   #9
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Originally Posted by Spanky View Post
Could you claim spousal benefit before your spouse actually claim his/her own?
In case anyone wants to know:
You cannot collect a spousal benefit until your spouse files for their own benefit.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 08-03-2013, 05:00 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Apr 2011
Posts: 1,552
We're the cn,cml camp. And this doesn't mention the surviving spouse increased benefit of the high earner waiting longer.
__________________

__________________
gerntz is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 12:18 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.