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Old 08-27-2010, 01:24 PM   #21
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I guess my friend was right:

Warning: Social Security PayBack System May be Discontinued
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Old 08-27-2010, 01:32 PM   #22
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Oh well, that sounds like one decision I won't have to make when the time comes.
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Old 08-27-2010, 01:38 PM   #23
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Oh well, that sounds like one decision I won't have to make when the time comes.
Yeah, but it makes the "When to take SS" decision infinitely more difficult.

I composed an email to my 67-year-old sister suggesting she consider it, but then I realized that the chances that she'd do the do over are extremely low.
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Old 08-27-2010, 01:47 PM   #24
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Yeah, but it makes the "When to take SS" decision infinitely more difficult.

I composed an email to my 67-year-old sister suggesting she consider it, but then I realized that the chances that she'd do the do over are extremely low.
Very true. Deciding when to take SS has to be easier knowing that you can always change your mind (providing you can afford the pay back).

I'm not surprised that your sister is unlikely to do it as I believe less than 1% of eligible folks actually do take advantage of this feature.
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Old 08-27-2010, 01:50 PM   #25
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I'm not surprised that your sister is unlikely to do it as I believe less than 1% of eligible folks actually do take advantage of this feature.
More like less than 0.01%...
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Old 08-27-2010, 01:55 PM   #26
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More like less than 0.01%...
Hey, I'm a conservative sort of a guy, and too lazy to look things up - thanks for pointing out how far below 1% my remembrance was
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Old 08-27-2010, 01:58 PM   #27
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More like less than 0.01%...
Yeah, but I'd bet collectively the folks on this board are going to be *way* more likely than average to be able to take advantage of it if it made sense to do so.

I reckon the vast majority of us will enter retirement debt-free (maybe very small mortgages or other 0% financing offers they could pay off if they wanted to) and have significant personal savings. That doesn't describe the average SS recipient, most likely.
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Old 08-27-2010, 02:36 PM   #28
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I remember talking to a friend who was agonizing over whether to take SS earlier or later. I told her about the do-over option. She laughed like I was an idiot, and said "But where would you get the money to pay it back?"
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Old 08-27-2010, 02:44 PM   #29
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I remember talking to a friend who was agonizing over whether to take SS earlier or later. I told her about the do-over option. She laughed like I was an idiot, and said "But where would you get the money to pay it back?"
Let me guess: paycheck to paycheck?
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Old 08-27-2010, 03:11 PM   #30
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I'm not so sure that the restart is mostly used by the "well-to-do". Consider the retiree who takes SS at 62, then before he reaches FRA of 66, decides to (or has to) go back to work. As I understand it, such a person would lose $1 of his SS benefit for every $2 he earns from wages in excess of $13,000. I believe this was the reason for allowing the repay and restart in the first place. The new proposal would appear to only allow the restart if one returned to work by age 63. What about someone who had to go back to work at an older age than 63 but still below FRA?
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Old 08-27-2010, 03:20 PM   #31
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You seem to believe that it's all fait accompli.

This has to be approved by congress. Liberals in congress believe that if you change one blade of grass in SS then it will all fall apart piece by piece and they will fight any and every change to the bitter end.

What you have read and what you have heard is just people talking and proposals being suggested. And there are as many proposals to fix SS as there are congressmen.

This do-over provision has not yet been taken away. I would ignore the chatter until you hear of definite changes. Otherwise you'll drive yourself nuts.

To be fair though, changes in SS are inevitable.
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Old 08-30-2010, 07:56 AM   #32
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I was thinking about how changes to SS often exclude people close to or older than retirement age. I used to think that this is done to avoid opposition from the only people who actually think about SS. However, I realized that a change could be disastrous those who are already dependent on upcoming SS checks, since they can't delay retirement or go back to work.

IOW, any upcoming changes to SS are less likely to impact us in the over-55 group (hopefully).
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Old 08-30-2010, 08:02 AM   #33
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Related thread on BH (in case you missed it):

Bogleheads :: View topic - No more Social Security Do-overs?
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Old 08-30-2010, 11:38 PM   #34
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I jumped on this today. My application for withdrawal is now officially timestamped and submitted.

I wasn't even sure I wanted to do it, but try to take that choice away and I was on it like maggots on meat.

I hope the tax refund hassles are not too great.

Ha
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Old 08-31-2010, 12:19 AM   #35
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I jumped on this today. My application for withdrawal is now officially timestamped and submitted.

I wasn't even sure I wanted to do it, but try to take that choice away and I was on it like maggots on meat.

I hope the tax refund hassles are not too great.

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Ha, how does it work with MediCare payments?
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Old 08-31-2010, 12:27 AM   #36
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Ha, how does it work with MediCare payments?
CJ, she said that they would bill me. Currently I am getting part D and Part B deducted. I suppose I will pay a larger Medicare part B fee next year, as the deduction has been artificially held down by the rule that your net payment cannot decrease year to year.

She seemed quite well informed about the whole thing, understood why I wanted to do it, etc. I did go to a suburban office instead of downtown as I thought it might go a little better.

Ha
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Old 08-31-2010, 12:42 AM   #37
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Thanks, Ha. You are a trailblazer. Keep us posted. I'd like to know how long it takes for them to let you know how much to pay back.
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Old 08-31-2010, 08:08 AM   #38
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I did not read all the articles, but isn't it strange that the government says it does not matter when you start SS as it is based on actuarial tables and the 'average' person will get the same amount weather they take it at 62 or 70. So why would they want to change it?
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Old 08-31-2010, 09:47 AM   #39
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I did not read all the articles, but isn't it strange that the government says it does not matter when you start SS as it is based on actuarial tables and the 'average' person will get the same amount weather they take it at 62 or 70. So why would they want to change it?
Because some people are "more average" than others? ...

Anyway, that statement also pertains to the indivudial. It ignores what can be done by married folks to tilt the system in their favor.

How many people have read that statement (without investigation/follow-up) and just accepted it as the truth (saved SS some work, I would think)
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Old 08-31-2010, 11:13 AM   #40
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I did not read all the articles, but isn't it strange that the government says it does not matter when you start SS as it is based on actuarial tables and the 'average' person will get the same amount weather they take it at 62 or 70. So why would they want to change it?
This alone says that any woman who is not mortally ill should take it at 70. And the various married couple dodges that have been discussed are clearly opportunities.

It is likely more of a toss-up for a single man like myself, but it is an easy way to improve monthly cash flow, and this was my reason for starting the process. With short term govt interest rates being what they are, and no visibility as to when they might change the added govt annuity seemed like a good idea. I had originally planned on waiting till age 70, but in Nov 2008 I thought this income might keep me from having to sell any depressed stock, so I took it retroactive to May 2008 (so I got a lump sum). And it likely paid off. I must admit it felt good to get a check from Uncle. My only prior checks were income tax refunds of my overpayments.

Ha
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