Poll: Your Estimated SS Benefit at 62

[Amethyst]

I seem to be the first to have voted "zero." Neither my husband nor I qualify for SS, despite having paid into it at various jobs before being accepted into Federal government positions.

A.

 

[Sue J]

I have a 22 year gap in my employment record so my benefit at 62 would be $477 according to my statement for 2008.

DH only has 36 credits so as of now he will get nothing from SS but he will get a public employees pension. Even if he does complete his credits his SS will be reduced by the WEP so I'd expect it to be very small.

 

[Cruisinthru]

My answer was "0". I have a government pension that offsets the need to pay me anything. I worked between ten and fifteen years and paid into SS.

 

[ziggy29]

My answer was "0". I have a government pension that offsets the need to pay me anything. I worked between ten and fifteen years and paid into SS.

You paid SS taxes for 10-15 years and get *nothing* as a result of the WEP/GPO? If so, this is a case where that really needs to be reformed. It makes sense in many situations to reduce SS payments as a result of WEP/GPO but those who paid into it for a lot of years (but less than 20) really get screwed by it.

 

[Cruisinthru]

ziggy29,

You are preachin' to the choir. There is nothing fair about the system. I am just very lucky that I was smart enough to go for a government job with a great pension.

 

[NW-Bound]

...this is a case where that really needs to be reformed...

ziggy29,
You are preachin' to the choir. There is nothing fair about the system...

No can do! Rightly or wrongly, if after reform someone gets more, then it means someone will get less and will be very upset.

SS is a form of welfare tax. People should, or rather have to, pay in, but should not expect a proportional pay-out.

It is a tax which by itself may not be wrong or bad. I just wish it were "advertised" as such, and not as a true retirement fund like IRA, 401k, or what have you, that the individuals should be encouraged to put aside for themselves.

 

[ziggy29]

I am just very lucky that I was smart enough to go for a government job with a great pension.

So which is it -- lucky or smart?

 

[rescueme]

My DW/me will both turn 62 soon (me-Jan, she-May). Average (between both) is $1483.50 (right on top of the existing bell curve).

However, it really dosen't matter since our plan is for her to take her's in May at age 62, and I will delay mine till I turn 70 (current estimate is just under $3,100/mo, just for me).

Yes, I do believe (at our age) that it will still be there. Additionally, we will fight (via our congressman) that it continues for you "young folk" out there...

 

[Cruisinthru]

It was lucky and smart! Lucky to get that government job with the great pension and smart to hold onto it for enough years to build the pension. Retired at 55 with very few money worries.

Had I stayed with jobs that were in the SS system I would undoubtedly be still working.

You guys that are drawing SS can thank me for my contributions! That surely wouldn't hurt anyone.....

 

[NW-Bound]

...we will fight (via our congressman) that it continues for you "young folk" out there...

It can only work if there will be even younger folks still to continue to pay into it. Higher birth rates? More open immigration? How do we swim against the demographic trend?

 

[Disappointed]

$1,870 at 62 but probably won't work till 62.

mP

 

[RE2Boys]

Hard to believe that one would get zero if they have the required 40 quarters of work in, even with a government pension. Haven't pulled up the calculator though. I've 29 years federal service but between part time jobs in high school, college, and 4 years military (1970s), I've got my 40 quarters and am eligible for SS at 62. Of course, with the Windfall provisions, I'd get something just short of $300 a month.

RE2Boys

 

[Bimmerbill]

1385 per month at 62
2009 at 67 (full retirement age for me)

 

[TromboneAl]

However, it really dosen't matter since our plan is for her to take her's in May at age 62, and I will delay mine till I turn 70 (current estimate is just under $3,100/mo, just for me).

You might consider taking it at 62, then, at age 70, paying back what you've gotten and start at the new amount. That way, if you die at age 68, you'll have received $100,000 more than if you had waited.

 

[jdw_fire]

My answer was "0". I have a government pension that offsets the need to pay me anything. I worked between ten and fifteen years and paid into SS.

WEP only reduces your SS payment not eliminates it and GPO only affects you getting a spousal benefit so i think you are mistaken about getting nothing unless you didnt earn your 40 quarters

 

[NW-Bound]

It was lucky and smart! Lucky to get that government job with the great pension and smart to hold onto it for enough years to build the pension. Retired at 55 with very few money worries.

Had I stayed with jobs that were in the SS system I would undoubtedly be still working.

You guys that are drawing SS can thank me for my contributions! That surely wouldn't hurt anyone.....

The SS recipients would thank you even more if your pension would get thrown into the lot, and your benefits recalculated.

Not that I really want that to happen to you, of course. We in the private sector have our own 401k and IRA that we try to protect, like the character in Lost in America and his "nest egg".

When in Pennsylvania, we made a tour of the Amish country. We then learned that the Amish went to the IRS and Congress to demand to opt out of SS. As the result, the Amish do not pay SS, but also get no SS benefits. Note that they pay full income and sales taxes.

I am not at all familiar with how public pensions work, but it appears that some were able to get excluded like the Amish. Good for them; their money did not get thrown into the "lock box". If you had to pay into SS for a few years which were now forfeited, I think you are still ahead.

 

[oldtrig]

Let me ask someone this . If say I am 62 and make $40,000 a year. My estimate SS would be $1000 a month if I started recieving today. I would end up not getting any money from SS if I kept working because of the $14,160 limit. Is that correct ? But if I delayed SS until I am 66 then I could then recieve the $1000 a month plus my salary. Oldtrig

 

[REWahoo]

oldtrig, here is the answer to your question: Can you work and get Social Security at the same time?

 

[RE2Boys]

Certain religious groups can request exemption to social security on religious grounds. From instructions for IRS Form 4029:

Recognized religious group. A recognized religious group must
meet all the following requirements:
c It is conscientiously opposed to accepting benefits of any private
or public insurance that makes payments in the event of death,
disability, old age, or retirement; makes payments for the cost of
medical care; or provides services for medical care (including social
security and Medicare benefits).
c It has provided a reasonable level of living for its dependent
members.
c It has existed continuously since December 31, 1950."

RE2Boys

 

[Moemg]

Certain religious groups can request exemption to social security on religious grounds. From instructions for IRS Form 4029:

Recognized religious group. A recognized religious group must
meet all the following requirements:
c It is conscientiously opposed to accepting benefits of any private
or public insurance that makes payments in the event of death,
disability, old age, or retirement; makes payments for the cost of
medical care; or provides services for medical care (including social
security and Medicare benefits).
c It has provided a reasonable level of living for its dependent
members.
c It has existed continuously since December 31, 1950."

RE2Boys

My sister is a sister in fact she is the head nun of a large community of teaching nuns and they pay SS . Their order has an assisted living to complete care for the older nuns and apparently SS really help with this .

 

[scrabbler1]

Because I did not work in 2009, my projected earnings going forward will include a lot of zero years to complete the 35 years needed for the indexed average in the benefit calculation. However, because SS replaces only 15% of the higher layer of income (i.e. bend point), the hit I will take no matter when I begin drawing benefits will not be too big.

I was assuming a 4% annual wage indexing factor which has been the long-term average to adjust my historical earnings.

 

[NW-Bound]

I am not a public worker, hence would not even be aware of the recent changes in SS if I did not first learn about it from this thread:

http://www.early-retirement.org/forums/f52/social-security-fairness-act-of-2009-h-r-235-a-43380.html

Certain religious groups can request exemption to social security on religious grounds ...IRS Form 4029...

Interesting! I wonder when the last time was that the IRS received that form. Note the requirement that a religious group must be in existence since 1950. It prevents any new sect from being formed for the purpose of avoiding SS.

 

[samclem]

Interesting! I wonder when the last time was that the IRS received that form. Note the requirement that a religious group must be in existence since 1950. It prevents any new sect from being formed for the purpose of avoiding SS.

So if someone claimed to belong to such a group and did all the documentation, I wonder if they have to periodically recertify? Or, can a person just be Amish-for-a-day, get out of social security, and then continue to worship and adhere to the tenets of the religion in a more private, personal way for the next 40 years (I mean, in such a way that he wouldn't actually attend services or keep in touch with the rest of the flock).

If you contribute to SS for 40 quarters and then get religion for 30 years, do they reduce your SS check under some type of WEP-like proviso for the religiously observant?

Why do I learn of every loophole too late to use it?

 

[rescueme]

You might consider taking it at 62, then, at age 70, paying back what you've gotten and start at the new amount. That way, if you die at age 68, you'll have received $100,000 more than if you had waited.

If I'm dead, I don't think any amout of money will make a difference ...

Anyway, we've reviewed the plan concerning payback at age 70 (and a lot of other posts have been made on this current "option", on many forums) but I'm a simple person and don't want the hassle of paying tax on current unused benefits (e.g. current SS income, which would have to be saved/invested), filing/refiling taxes, and facing the risk of the law changing within the next eight years (when I turn 70).

I would be different if (as in our case) we really needed that SS income in retirement; fortunately we don't. It's just extra icing on the cake. Along with the fact that our remainder estate is going to charity, we don't have to worry about funding another generation. If we're there when the train leaves the station (e.g. we're still alive, and collecting SS) - great. If not? So be it.

There have been many studies/articles on the "split decision" as related to the 62/70 solution - here's one reference (look under "Team Play"):

Two Ways To Optimize Social Security Benefits - Features

 

[MichaelB]

My answer was "0". I have a government pension that offsets the need to pay me anything. I worked between ten and fifteen years and paid into SS.

You need 40 quarters of SS for minimum eligibility, 10-15 years should provide that.