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Social Security benefit increase
Old 12-20-2015, 08:44 AM   #1
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Social Security benefit increase

I am 10 months shy of 70 years. The Social Security benefits estimator online shows that if I collect benefits now it will be 3069/month and at age 70 it will be 3433/month. That is a 11.8% increase, not what I thought would be an 8% increase. I have run this several times through the SS website. Any thoughts on this large % increase?
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Old 12-20-2015, 09:14 AM   #2
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Quote:
Originally Posted by sanfanciscotreat View Post
I am 10 months shy of 70 years. The Social Security benefits estimator online shows that if I collect benefits now it will be 3069/month and at age 70 it will be 3433/month. That is a 11.8% increase, not what I thought would be an 8% increase. I have run this several times through the SS website. Any thoughts on this large % increase?
Do they still think that you are working, thus collecting more credits?

In any case, we've got to close these loopholes for the rich!!!

Ha
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Old 12-20-2015, 11:37 AM   #3
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SS benefits are based on the highest 35 years of earnings. With no income in 2015 and no income in 2016 the highest 35 years of income does not change.
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Old 12-20-2015, 12:06 PM   #4
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SS benefits are based on the highest 35 years of earnings. With no income in 2015 and no income in 2016 the highest 35 years of income does not change.
yes, but I was not looking at your salary history, nor have I created a file of your life
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Old 12-20-2015, 01:10 PM   #5
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Old 12-20-2015, 01:55 PM   #6
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The best file of my life was half round.
Lucky. Mine was a bastard.
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Old 12-20-2015, 02:25 PM   #7
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Originally Posted by sanfanciscotreat View Post
I am 10 months shy of 70 years. The Social Security benefits estimator online shows that if I collect benefits now it will be 3069/month and at age 70 it will be 3433/month. That is a 11.8% increase, not what I thought would be an 8% increase. I have run this several times through the SS website. Any thoughts on this large % increase?
Actually, the increase is 8% of the amount you would have received at your FRA (age 66 in your case) not 8% of the amount you would have received at age 69. And since the $3069 you mentioned is at age 69 and 2 months you would only get 10/12ths of that increase. This does not include any COLA increases that would have been applied in the ensuing years after your FRA.
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Old 12-20-2015, 03:04 PM   #8
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FRA benefit was 2929/month in 2012 when I turned 66. 8% of this is only $243. They are showing me an increase of $364 from 69 to 70. COLA's were/will be 1.7% in 13, 1.5 in 14, 1.7 in 15 and 0.0% in January 2016.
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Old 12-20-2015, 03:14 PM   #9
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FRA benefit was 2929/month in 2012 when I turned 66. 8% of this is only $243. They are showing me an increase of $364 from 69 to 70. COLA's were/will be 1.7% in 13, 1.5 in 14, 1.7 in 15 and 0.0% in January 2016.
Something seems off to me. If your FRA amount is $2929, then at 69 you should get 1.24 times that amount or $3631 and the amount at age 70 would be $3866 (1.32 times FRA amount), And these numbers do not include the COLAs.
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Old 12-21-2015, 04:04 PM   #10
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Originally Posted by sanfanciscotreat View Post
I am 10 months shy of 70 years. The Social Security benefits estimator online shows that if I collect benefits now it will be 3069/month and at age 70 it will be 3433/month. That is a 11.8% increase, not what I thought would be an 8% increase. I have run this several times through the SS website. Any thoughts on this large % increase?
This may be an example of a special "first year of benefits" rule.

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

This depends on when you start, relative to the calendar year, not your birth month.

I recently went to the SS office and this was reinforced. IIRC, if I want to get credit for all my deferred retirement credits during the first year I get benefits, I have to "be eligible" in January and get my first check in February.

Note the "no retro-active" catch-up part.
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