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Two Social Security Questions
Old 11-30-2014, 04:17 PM   #1
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Two Social Security Questions

1. If my projected SS benefits at age 67 are $2500 per month what can I expect if I retire next May at the age of 64 but do not take my benefits until 67?
2. My DW took her SS benefits at age 62 ($750 per month) she is now 67 four years older than I am if I take my SS benefits at 67 (she will be 71) is she still eligible for spousal benefits (half of mine)?
Thanks
BF
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Old 11-30-2014, 05:33 PM   #2
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You can get a pretty good projection from the SSA.gov website.

Go to the estimate benefits calculator
Retirement Estimator
You need to enter your SS # and mother's maiden name - and you'll need your earnings (earned income) from last year's tax return.

It will pop up the estimates as if you work till the various retirement ages. But you can do more with it... click on Add a New Estimate
Pick the age you will start to collect.
Enter '0' for the average earnings between now and then.
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Old 11-30-2014, 07:04 PM   #3
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Check out the T. Rowe Price SS site Social Security Benefits Evaluator - T. Rowe Price

Also, the retirement estimator on the SS site assumes you are working until the age you put in the calculator. The way I understand it, if you retire and do not collect SS until later, the amount your collect later will be a just a little less than if your worked until the day you file for SS.
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Old 11-30-2014, 07:18 PM   #4
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Originally Posted by timo2 View Post
Check out the T. Rowe Price SS site Social Security Benefits Evaluator - T. Rowe Price

Also, the retirement estimator on the SS site assumes you are working until the age you put in the calculator. The way I understand it, if you retire and do not collect SS until later, the amount your collect later will be a just a little less than if your worked until the day you file for SS.
That's why I suggested you put in zero dollars earned per year going forward.
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Old 11-30-2014, 07:23 PM   #5
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Quote:
Originally Posted by Bigfish View Post
1. If my projected SS benefits at age 67 are $2500 per month what can I expect if I retire next May at the age of 64 but do not take my benefits until 67?
2. My DW took her SS benefits at age 62 ($750 per month) she is now 67 four years older than I am if I take my SS benefits at 67 (she will be 71) is she still eligible for spousal benefits (half of mine)?
Thanks
BF
The ssa.gov site has a section to get an estimate if you stop working before drawing benefits. Assuming you have worked a long time retiring a few years prior to FRA shouldn't affect your benefit very much.

On your second question, I believe that she would be eligible for spousal benefit but it might be lower than half your FRA benefit because she started at age 62.
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Old 12-02-2014, 04:34 AM   #6
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if your spouse takes ss early she never gives up her own benefit.

what happens is when you file or file and suspend they take 1/2 your full amount and subtract what her full amount would have been. the difference is added to her own and she gets a bump up but it will always be less than 1/2 yours because she filed early.


so i will make up some numbers.

lets say her amount is 750 as an early benefit which she took.

her full would have been 1100 (just making up a number)

your full is 2500.00 so 1/2 is 1250.00

they would take the difference of 150 bucks and add it to her 750 so she would be increased to 900.

as you see that is less than the 1250 she would have gotten as a spousal benefit had she waited
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Old 12-02-2014, 09:06 AM   #7
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so I have a similar question. I'm 58, DW is 61. We plan to FIRE in 2 years (60 and 63).


SS estimates are:


Age DW ------- Me
62 $973 ----- $1,673
FRA $1,318 --- $2,355
70 $1,761 --- $3,149


My plan is
1) DW to start SS at FRA of 66, $1,318
2) I draw spousal at my FRA of 66.4 $659
3) I draw my SS at 70, $3,149


If I understand correctly, my draw of spousal for 3.8 years will have no impact on my SS at 70.


If I understand correctly, only one of us can draw spousal, so we can't get DW to draw my spousal at 66 and wait till 70 to draw hers.
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Old 12-02-2014, 02:39 PM   #8
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Quote:
Originally Posted by RetireBy90 View Post
so I have a similar question. I'm 58, DW is 61. We plan to FIRE in 2 years (60 and 63).


SS estimates are:


Age DW ------- Me
62 $973 ----- $1,673
FRA $1,318 --- $2,355
70 $1,761 --- $3,149


My plan is
1) DW to start SS at FRA of 66, $1,318
2) I draw spousal at my FRA of 66.4 $659
3) I draw my SS at 70, $3,149


If I understand correctly, my draw of spousal for 3.8 years will have no impact on my SS at 70.


If I understand correctly, only one of us can draw spousal, so we can't get DW to draw my spousal at 66 and wait till 70 to draw hers.
Correct, spousal draw does not affect yours, except to allow yours to increase 8% per year (from Full Retirement Age to 70), so its really great.

I also think only 1 can draw spousal, but less sure as is yrs away for me.
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Old 12-02-2014, 02:42 PM   #9
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Originally Posted by RetireBy90 View Post
If I understand correctly...
AFAIK, you understand everything you wrote correctly.
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Old 12-02-2014, 03:05 PM   #10
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Quote:
Originally Posted by braumeister View Post
AFAIK, you understand everything you wrote correctly.
Quote:
Originally Posted by Sunset View Post
Correct, spousal draw does not affect yours, except to allow yours to increase 8% per year (from Full Retirement Age to 70), so its really great.

I also think only 1 can draw spousal, but less sure as is yrs away for me.
Thanks to both for the quick replies.
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Old 12-02-2014, 03:12 PM   #11
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Quote:
Originally Posted by Bigfish View Post
1. If my projected SS benefits at age 67 are $2500 per month what can I expect if I retire next May at the age of 64 but do not take my benefits until 67?
2. My DW took her SS benefits at age 62 ($750 per month) she is now 67 four years older than I am if I take my SS benefits at 67 (she will be 71) is she still eligible for spousal benefits (half of mine)?
Thanks
BF
To be getting $2500 at 67 if you keep working, it means you're at near the top possible & you've got 32+ years of paying in the (near) max. SS uses your highest 35 income years to figure your benefit. Net, if have another 3 years at/near the top already, the impact will be next to nothing. If your other years are low, then you might see a $50-100/month drop. BTW, I stopped working at 64 with 35 years at/near top & benefit isn't affected for age 67.
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