Trade in your social security check for a bigger one
- Thread starter lightwaves
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Art G
Thinks s/he gets paid by the post
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- Nov 5, 2007
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I must be missing something. If I return all the money, then die tomorrow, didn't my heirs just get screwed out of all that saved up money? How is this different than being annuitized?
RonBoyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
But what if you don't die? Anyway, you are correct it is just (merely?) an "inflation-adjusted life annuity." However, it does start with a 9.5% payout on the "returned" money.
Raise Your Living Standard---Reapply for Social Security - Registered Investment Advisor
I think her benefits can only go up to a maximum of 1/2 of his full retirement age (66) benefits.
OAG
Thinks s/he gets paid by the post
You may be right, but in my research on this which included the question to a SSA call center worker, indicates what I stated. Do you have a better reference? I would be interested to see it.
Retirement benefits by year of birth
4. The maximum benefit for the spouse is 50% of the benefit the worker would receive at full retirement age.
Note full retirement age on this page is less that 70.
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OAG
Thinks s/he gets paid by the post
See the bottom of the page you provided: "Note: If you delay your benefits until after full retirement age, you also may be eligible for delayed retirement credits that would increase your monthly benefit."
Don't want to nit pick but seems in line with what I was told from the call center. Delay retirement, which withdrawal and repayment causes, since the original application is null and void, get additional credits. BTW what is the "spouse" drawing prior to your age 70 since there is no basis to determine because you are not drawing benefits. She gets benefits on her own record since that is the only one that applies, until you start drawing benefits at, or before, age 70.
New Thinking
Recycles dryer sheets
RWood wrote"
RWood: Where do you get the husband at 10 years of $150/mo? I think the most the husband could do is four years from Full Retirement Age of 66 to age 70...You could also have some serious tax consequences if you are withdrawing money from an IRA to pay back a large amount..I think that this strategy is not going to be worth it for most people..IMO, it is encouraging individuals to try to get an interest free loan of a few thousand dollars and they could end up paying more than that in taxes due to the complexity of the tax rules..The worst part of the strategy is that it is encouraging higher earning husbands to start SS early..then few will ever write a check for $XX thousand at age 70..So the survivor benefit will not be passed on to the future widow..Just my opinion..
RWood: Where do you get the husband at 10 years of $150/mo? I think the most the husband could do is four years from Full Retirement Age of 66 to age 70...You could also have some serious tax consequences if you are withdrawing money from an IRA to pay back a large amount..I think that this strategy is not going to be worth it for most people..IMO, it is encouraging individuals to try to get an interest free loan of a few thousand dollars and they could end up paying more than that in taxes due to the complexity of the tax rules..The worst part of the strategy is that it is encouraging higher earning husbands to start SS early..then few will ever write a check for $XX thousand at age 70..So the survivor benefit will not be passed on to the future widow..Just my opinion..
I agree your benefit benefit will increase if you delay until 70 but I don't think the spouse's benefit will increase past the maximum of 50% of your benefits at full retirement age. (~66) However i would love to be proved wrong on this.
OAG
Thinks s/he gets paid by the post
Opps, should have said 7 years. Spouse is 3 years older, she draws $300 a month on her own record, and other he applies for benefits under HER record and gets 50%). She is 62 on day 1 of her benefits, husband is 59, and, at age 62, draws under her record until he is 70 (7 years) at which he applies under his record and hers is "kicked" to 50% of his over 70 rate. Why do you have to take money out of an IRA? Take it out of taxable money (CD's, MMA, etc.,) or maybe a HEL.
Kind of mute for me since I am 67 but I am waiting for a reply from SSA on my application to withdraw.
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I would fear that the spouse would only be able to take 50% of the age 66 benefit, not 50% of the age 70 benefit. I am pretty sure that the rule for spousal benefit is a maximum of 50% of the spouses "full benefit." The definition of full benefit is the benefit at "full retirement age" as explained here: Financial Guide: SOCIAL SECURITY BENEFITS: How To Get The Maximum Amount
It is also explained how the retirement benefit increases further with what is called "delayed retirement," but this language does not imply that the "full benefit" increases with delayed retirement, and it is the "full benefit" that the spousal benefit depends on.
I will grant that it is difficult to find clear, systematic explanations of these conditions, so if there is different information from the above, I will stand corrected.
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
It looks as if there is no benefit increase for the spouse due to delayed retirement. Found this on SSA.gov: Benefits for your spouse
"Even if he or she has never worked under Social Security, your spouse
- can receive a benefit equal to one-half of your full retirement amount if they start receiving benefits at their full retirement age.
- Note: The benefits for your spouse do not include any delayed retirement credits you may receive."
