Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
simple SS question
Old 09-18-2016, 03:33 PM   #1
Recycles dryer sheets
 
Join Date: Feb 2006
Location: Valencia
Posts: 120
simple SS question

I'm 68 1/2. I used the SS benefits estimator 4 months ago. I used it again today. The numbers for "current" and "at age 70" remained the same.

1. I understand that the "at age 70" estimate did not change, but why didn't the "current" estimate change since I am now 4 months older? Don't benefits rise monthly?

2. They say to file for SS 3 months before you want the benefits to start. Assuming that benefits rise monthly, will I still get credit for the 3 months, or will it be based on "when" I started the process?

thanks
__________________

__________________
*
using an 8.5% withdrawal rate until SS kicks in
*
albundyz 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 09-18-2016, 04:20 PM   #2
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 14,685
The benefits rise 8% a year but probably don't show up monthly in the estimating software.

Re the second question, I read that a good reason to apply online is that they ask you that very question: "When do you want benefits to start?" Apparently at some SS offices they assume you want it starting from the date of application, not when you want it to at a later date.
__________________

__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 09-18-2016, 04:29 PM   #3
Recycles dryer sheets
 
Join Date: Jul 2014
Location: Undisclosed
Posts: 67
I have heard that age 62, FRA, and 70 amounts are set and although you earn the increases at other ages, the increases will not appear until the following January payment. So, in your case, which is after the January following your FRA, if you say to start in November, you get the previous January amount for Nov and Dec, then in January they bump it up to include the 10 months of increase. I am still in my 50's, so I could be totally wrong.
__________________
N02L84ER is offline   Reply With Quote
Old 09-18-2016, 11:41 PM   #4
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 2,951
Just yesterday I talked to a SS fellow face to face, regarding when you file to start it is very important to tell them what effective age you want it to start at. Because they have this default rule/thought everyone wants a bonus.

Say you file at age 70 because you want to max payments, if you don't specify you want it to start at age 70, they will start your SS giving you a 6 month lump sum and consider you started at 69.5 yrs old for the rest of your payments.
He told me it is optional, but you have to tell them or they decide the option you get.
__________________
Sunset is offline   Reply With Quote
Old 09-19-2016, 03:28 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 4,966
the increases are about 6% pre fra and about 8% from fra to 70 .

when you file pre fra you get every penny you accrued to date in your first check .

after fra you are only recalculated in january . while you get the delayed credits for the previous year in january in your checks going forward , you get nothing retro and lose forever what you accrued the previous year .

nothing is retro so filing in january after fra to age 69 is always best
__________________
mathjak107 is offline   Reply With Quote
Old 09-19-2016, 08:57 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 13,728
Quote:
Originally Posted by Sunset View Post
Just yesterday I talked to a SS fellow face to face, regarding when you file to start it is very important to tell them what effective age you want it to start at. Because they have this default rule/thought everyone wants a bonus.

Say you file at age 70 because you want to max payments, if you don't specify you want it to start at age 70, they will start your SS giving you a 6 month lump sum and consider you started at 69.5 yrs old for the rest of your payments.
He told me it is optional, but you have to tell them or they decide the option you get.
What a bunch of bloody idiots! Why wouldn't they either ask or use your actual age when you apply?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is offline   Reply With Quote
Old 09-19-2016, 12:55 PM   #7
Recycles dryer sheets
 
Join Date: Feb 2006
Location: Valencia
Posts: 120
just called SS to ask these questions, 2 month wait for an appt at my local SS office and 1 month wait to have a phone call appointment. geeez.
__________________
*
using an 8.5% withdrawal rate until SS kicks in
*
albundyz is offline   Reply With Quote
Old 09-19-2016, 01:14 PM   #8
Recycles dryer sheets
 
Join Date: Apr 2012
Posts: 141
FWIW, after FRA, your SS goes up 2/3 of 1% per month.
__________________
Steelart99 is offline   Reply With Quote
Old 09-19-2016, 01:33 PM   #9
Recycles dryer sheets
 
Join Date: Feb 2006
Location: Valencia
Posts: 120
ya, got that, but is that calculated on a monthly basis or a yearly basis? In other words, for those over 66, do they only recalculate at the start of a new calendar year? I know this sounds illogical, but I have no reason able explanation for why the SS estimator would recalculate monthly for those under 66 and not for those over age 66. The estimator implies that it is NOT recalculated every month for those over 66 because the dollar amounts don't change using the SS estimator during different time periods, in my case from may inquiry to september inquiry.
__________________
*
using an 8.5% withdrawal rate until SS kicks in
*
albundyz is offline   Reply With Quote
Old 09-19-2016, 01:41 PM   #10
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,582
I had to appear at an SS office to apply for survivor benes. They got me signed up and also gave me a print out of what my payments (on my own account) would be from age 62 to 70. It was by month and increased each month.

So maybe the "estimators" don't do this monthly, but SS does?
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is online now   Reply With Quote
Old 09-19-2016, 03:41 PM   #11
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,734
Quote:
Originally Posted by mathjak107 View Post
the increases are about 6% pre fra and about 8% from fra to 70 .

when you file pre fra you get every penny you accrued to date in your first check .

after fra you are only recalculated in january . while you get the delayed credits for the previous year in january in your checks going forward , you get nothing retro and lose forever what you accrued the previous year .

nothing is retro so filing in january after fra to age 69 is always best
If its calculated in January, would it be better to start SS in February for those above FRA?
__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Old 09-19-2016, 04:37 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,622
Quote:
Originally Posted by albundyz View Post
just called SS to ask these questions, 2 month wait for an appt at my local SS office and 1 month wait to have a phone call appointment. geeez.
At our local office, you can walk in and see someone for routine issues and questions on that same day. You go to a kiosk, answer some questions via touch screen and are given a number. Within an hour or two, you're called to a service window and have a few minutes to get the info you need or resolve your issue. If your situation is complicated, you might just get referred to a "specialist" and will have to make an appointment which, indeed, will be several weeks out.

Both DW and I had some complicated, serious issues with SS in the past couple of years and made numerous trips to the local office. The SS office is a very busy place! We were surprised to see that very few of the clients in the waiting area were fellow geezers working on retirement benefit issues. Rather, mostly younger people working on who knows what.........
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 09-19-2016, 04:58 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Posts: 6,696
Quote:
Originally Posted by youbet View Post
At our local office, you can walk in and see someone for routine issues and questions on that same day. You go to a kiosk, answer some questions via touch screen and are given a number. Within an hour or two, you're called to a service window and have a few minutes to get the info you need or resolve your issue. If your situation is complicated, you might just get referred to a "specialist" and will have to make an appointment which, indeed, will be several weeks out.
Same here. I've been in half a dozen times in the last five years and never had to wait more than an hour. The longest was just about an hour, and I commented on it to the guy I talked to. His response was "You never want to come in here during a week that has a holiday in it. We have no idea why, but that's always the case."
__________________
braumeister is online now   Reply With Quote
Old 09-20-2016, 02:12 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,643
Quote:
Originally Posted by albundyz View Post
I'm 68 1/2. I used the SS benefits estimator 4 months ago. I used it again today. The numbers for "current" and "at age 70" remained the same.

1. I understand that the "at age 70" estimate did not change, but why didn't the "current" estimate change since I am now 4 months older? Don't benefits rise monthly?

2. They say to file for SS 3 months before you want the benefits to start. Assuming that benefits rise monthly, will I still get credit for the 3 months, or will it be based on "when" I started the process?

thanks
We typically think that our SS monthly benefits go up by 2/3% of our PIA for for each month that we defer past our Normal Retirement Age.

However, that's not true about the first year that you get benefits. They only give you increases that occurred thru the prior year end (2015 in this case).

That explains the lack of increase in 1.

They will reset your benefit at the beginning of 2017 to include deferrals earned in 2016, but no retroactive benefit.


See this thread If you think you might start SS after FRA but before age 70

For example, suppose my PIA is $1,000/month, and I turn 66 half way through 2015. Then, if I start benefits

Three months into 2016, my benefit for the remaining 9 months of 2016 will be $1,040 (not $1,060). My benefit will go up to $1,060 at the beginning of 2017.

Six months into 2016, my benefit for the remaining 6 months of 2016 will be $1,040 (not $1,080). My benefit will go up to $1,080 at the beginning of 2017.

Nine months into 2016, my benefit for the remaining 3 months of 2016 will be $1,040 (not $1,100). My benefit will go up to $1,100 at the beginning of 2017.

The 9 x $20, or 6 x $40, or 3 x $60 that I don't get in 2016 is permanently lost.

However, (an exception to an exception) they give you all the increases immediately if you start exactly at age 70.
__________________
Independent is offline   Reply With Quote
Old 09-20-2016, 03:06 PM   #15
Recycles dryer sheets
 
Join Date: Aug 2014
Location: Phoenix
Posts: 326
Quote:
Originally Posted by Independent View Post
We typically think that our SS monthly benefits go up by 2/3% of our PIA for for each month that we defer past our Normal Retirement Age.

However, that's not true about the first year that you get benefits. They only give you increases that occurred thru the prior year end (2015 in this case).

That explains the lack of increase in 1.

They will reset your benefit at the beginning of 2017 to include deferrals earned in 2016, but no retroactive benefit.


See this thread If you think you might start SS after FRA but before age 70

For example, suppose my PIA is $1,000/month, and I turn 66 half way through 2015. Then, if I start benefits

Three months into 2016, my benefit for the remaining 9 months of 2016 will be $1,040 (not $1,060). My benefit will go up to $1,060 at the beginning of 2017.

Six months into 2016, my benefit for the remaining 6 months of 2016 will be $1,040 (not $1,080). My benefit will go up to $1,080 at the beginning of 2017.

Nine months into 2016, my benefit for the remaining 3 months of 2016 will be $1,040 (not $1,100). My benefit will go up to $1,100 at the beginning of 2017.

The 9 x $20, or 6 x $40, or 3 x $60 that I don't get in 2016 is permanently lost.

However, (an exception to an exception) they give you all the increases immediately if you start exactly at age 70.
I was the one who originally posted the graph that showed the strange kink in the curve of SS benefits between FRA and age 70. I missed your explanation in the thread linked above and want to belatedly thank you for that. It's been bugging me ever since and I'm glad to finally know the cause.
__________________
Ian S is offline   Reply With Quote
Old 09-20-2016, 11:09 PM   #16
Recycles dryer sheets
 
Join Date: Feb 2006
Location: Valencia
Posts: 120
Independent: thank you. that explains it.
__________________
*
using an 8.5% withdrawal rate until SS kicks in
*
albundyz is offline   Reply With Quote
Old 09-21-2016, 03:56 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 4,966
Quote:
Originally Posted by DFW_M5 View Post
If its calculated in January, would it be better to start SS in February for those above FRA?
filing in january gets you everything due you
__________________
mathjak107 is offline   Reply With Quote
Old 09-22-2016, 03:56 PM   #18
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,643
Quote:
Originally Posted by Ian S View Post
I was the one who originally posted the graph that showed the strange kink in the curve of SS benefits between FRA and age 70. I missed your explanation in the thread linked above and want to belatedly thank you for that. It's been bugging me ever since and I'm glad to finally know the cause.
Yeah, I'm like that, too.
__________________
Independent is offline   Reply With Quote
final followup
Old 09-29-2016, 02:40 PM   #19
Recycles dryer sheets
 
Join Date: Feb 2006
Location: Valencia
Posts: 120
final followup

FWIW, I went to my local SS office. I did not know that I could wait and ask them my question. Waited 90 minutes before being called.

(I'm 68.5 yrs old and want to file for SS in Jan 2017)

1. SS man said "if you are between 66 and 70, the SS estimator on the SS website, does not give totally accurate data on your monthly payment, it needs to be calculated (by me) manually." This puzzles me, but oh well.

2. The SS man gave me a printout, specifically for me, covering multiple months between ages 66 and 70 and highlighted Jan of 2017, like I asked. Each month showed an increase in my monthly payment. He also stated that I could file for Jan 2017 SS online, right now (9/29/16).

3. I asked him directly.. "If I had filed in May of this year, would I have received all of my benefits up to and including the month of May? " He said "yes". I said "So, I would not have lost any benefits between January and May." He said "No, of course not".

I post this only as the solution to my situation. I had found that the SS estimator numbers for "current" did not change from one month to the next making me suspicious and unable to accurately calculate what my payment would be in Jan, 2017.
__________________
*
using an 8.5% withdrawal rate until SS kicks in
*
albundyz is offline   Reply With Quote
Old 09-29-2016, 03:20 PM   #20
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 2,951
Quote:
Originally Posted by albundyz View Post
FWIW, I went to my local SS office. I did not know that I could wait and ask them my question. Waited 90 minutes before being called.

(I'm 68.5 yrs old and want to file for SS in Jan 2017)

1. SS man said "if you are between 66 and 70, the SS estimator on the SS website, does not give totally accurate data on your monthly payment, it needs to be calculated (by me) manually." This puzzles me, but oh well.

2. The SS man gave me a printout, specifically for me, covering multiple months between ages 66 and 70 and highlighted Jan of 2017, like I asked. Each month showed an increase in my monthly payment. He also stated that I could file for Jan 2017 SS online, right now (9/29/16).

3. I asked him directly.. "If I had filed in May of this year, would I have received all of my benefits up to and including the month of May? " He said "yes". I said "So, I would not have lost any benefits between January and May." He said "No, of course not".

I post this only as the solution to my situation. I had found that the SS estimator numbers for "current" did not change from one month to the next making me suspicious and unable to accurately calculate what my payment would be in Jan, 2017.
For 3. - this does not tell me the worker was thinking of everything.

For 1. - I find this scary,,, so what happens when I get a math challenged worker, do I get the correct number ?
__________________

__________________
Sunset 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


Similar Threads
Thread Thread Starter Forum Replies Last Post
E-file a simple Tax return - best simple software/SS? ERD50 FIRE and Money 16 04-10-2016 12:22 PM
Oil - Simple question, Simple answer? imoldernu FIRE and Money 14 12-18-2014 03:31 PM
A simple withdrawal rate question Roger_R FIRE and Money 7 03-07-2007 04:30 AM
Simple diversification question SecondCor521 FIRE and Money 8 02-26-2007 04:18 AM
SIMPLE IRA Question astroboy FIRE and Money 10 01-25-2007 03:55 PM

 

 
All times are GMT -6. The time now is 06:12 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.