I decided to apply early for Social Security and did so last week. I am delaying payment until my 64th Birthday Month which is this April. This first payment will be May.
The reasons that factored in to my applying "early" included longevity risks but more importantly that my actual earned income is right at what they allow before they start reducing the monthly check. A call to Social Security prior to my applying, confirmed they do not consider income from a K1(unless you are an employee and I no longer am), Interest or Dividends from Investments as Income for the purpose of calculating the monthly check, all of which are significant for me.
I will worry about the tax hit later or at least start planning other tax strategies! So few exist today!
The online application was a pleasant surprise. It's easy!
I just got a call today from the Boston office that is processing my application. Yes, SSA notified me via email that I would receive this call from this specific office.
Things I did not know but was pleasantly surprised to learn.
They will automatically enroll me in Medicare Part A and B so I don't have to remember to enroll in Medicare. That was the pleasant part.
I will have to enroll in my own Part D and any supplemental.
I also learned and for me this is the important piece of this post, because I asked the question after reading about it, that while I am taking Social Security before my FRA, which is 66 and 2 months, they will recalculate my payment when I turn 66 and 2 months and the payment will be increased to what is currently reflected on my statement for a Full Retirement Age payment (plus cost of living adjustments and credits for continued work).
For some reason I guess I thought my early social security payment at age 64 would be the same thru out the years with only cost of living adjustments. Learning that it will be recalculated and will increase at 66 and 2 months makes me feel even better about taking it at age 64!
The reasons that factored in to my applying "early" included longevity risks but more importantly that my actual earned income is right at what they allow before they start reducing the monthly check. A call to Social Security prior to my applying, confirmed they do not consider income from a K1(unless you are an employee and I no longer am), Interest or Dividends from Investments as Income for the purpose of calculating the monthly check, all of which are significant for me.
I will worry about the tax hit later or at least start planning other tax strategies! So few exist today!
The online application was a pleasant surprise. It's easy!
I just got a call today from the Boston office that is processing my application. Yes, SSA notified me via email that I would receive this call from this specific office.
Things I did not know but was pleasantly surprised to learn.
They will automatically enroll me in Medicare Part A and B so I don't have to remember to enroll in Medicare. That was the pleasant part.
I will have to enroll in my own Part D and any supplemental.
I also learned and for me this is the important piece of this post, because I asked the question after reading about it, that while I am taking Social Security before my FRA, which is 66 and 2 months, they will recalculate my payment when I turn 66 and 2 months and the payment will be increased to what is currently reflected on my statement for a Full Retirement Age payment (plus cost of living adjustments and credits for continued work).
For some reason I guess I thought my early social security payment at age 64 would be the same thru out the years with only cost of living adjustments. Learning that it will be recalculated and will increase at 66 and 2 months makes me feel even better about taking it at age 64!