I finally made my SS decision.

[ducky911]

I have read every post on this site on how to make the "Taking SS" decision.

I studied the posted spread sheets.
Tried making my own spread sheets.
Bought the 40 dollar Maximize My SS program.
Considered tax laws changing.
SS becoming insolvent.
Having SS being my only COLA retirement part.
Living to 70 or 100+.

I filed for it painlessly on line as I will be full retirement age in a few months. Not 62 nor 70.

Note: I listened for the past 20 years that SS would not be there for me when I needed it. So I am not even the least bit close to needing it.
Looking forward to getting an allowance....been since college...

 

[Senator]

I have read every post on this site on how to make the "Taking SS" decision.

I studied the posted spread sheets.
Tried making my own spread sheets.
Bought the 40 dollar Maximize My SS program.
Considered tax laws changing.
SS becoming insolvent.
Having SS being my only COLA retirement part.

I filed for it painlessly on line as I will be full retirement age in a few months. Not 62 nor 70.

Note: I listened for the past 20 years that SS would not be there for me when I needed it. So I am not even the least bit close to needing it.
Looking forward to getting an allowance....been since college...

Congrats!

What finally made the difference to collecting now, rather than 62 or 70?

 

[gayl]

Looking forward to getting an allowance....been since college...

Congrats on your allowance! I'm in the grandfathering age group so I'll take 1/2 my X's from 66 to 70 but your decision making process was more complex

 

[RobbieB]

I've always planned on taking at FRA.

 

[Sunset]

Congrats on your allowance! I'm in the grandfathering age group so I'll take 1/2 my X's from 66 to 70 but your decision making process was more complex

You don't actually take 1/2 your ex's, as satisfying as that might sound

 

[Sunset]

OP - is that what the Maximize My SS program said to do ?
If not why did you differ ?

 

[Car-Guy]

Went through the same analysis but took mine when I was first eligible at 62. (actually had already made up my mind well before I was 62) Didn't need it then and suspect I'll never need it but have never regretted my decision. Nice to see a few grand just pop-up in my account every month like clock work. They certainly took it out like clock work for 40+ years, nice to start getting something in return.

Thinking about this, it seems funny to me how I really needed the money in the earlier years when they took it from me and now I don't need it while they are giving it back.

 

[marko]

Good for you! One of the smaller overlooked benefits of taking it at 62 is that you get three years of not getting dinged for Medicare B. $134 a month (or more for some of us) extra.

 

[Blue Collar Guy]

Good for you! One of the smaller overlooked benefits of taking it at 62 is that you get three years of not getting dinged for Medicare B. $134 a month (or more for some of us) extra.

Thats interesting, I like that. Ill add that to my factoring

 

[pb4uski]

Good for you! One of the smaller overlooked benefits of taking it at 62 is that you get three years of not getting dinged for Medicare B. $134 a month (or more for some of us) extra.

Please elaborate.... doesn't make sense to me. What years are you referring to?

 

[pb4uski]

You don't actually take 1/2 your ex's, as satisfying as that might sound

I think what gayl meant was that the benefits under own work record was less than 1/2 of their ex's benefit so they will receive the higher of the two... 1/2 of their ex's benefit..... that is the way it works... the ex still gets their full benefit... so it is no different than if they were still married.

 

[omni550]

Please elaborate.... doesn't make sense to me. What years are you referring to?

I think marko means that those who are on Medicare but are choosing to wait until later to take their SS, are paying higher premiums for their Medicare Part B. Years in question 2016 & 2017, iirc.

The 70% of folks who are SS-eligible and ARE collecting SS have their Medicare Part B premiums deducted by the gov't before they receive their remaining SS deposited in their account. The remaining 30% of Medicare-covered people who are NOT collecting their SS yet, send in their Part B premiums quarterly.

There were increases in Medicare Part B costs over the past several years...and those who are on SS saw a very small monthly Part B premium increase (from 104.90 on average to 109. on average ). This was due to the fact that due to very low SS COLAs , the gov't could not raise the Part B premiums in excess to the COLA.

Those who were not yet on SS got to bear the cost of that increase from $121.80 in 2016 to $134/mo in 2017 (Or even higher if you were in a higher income bracket 2 years ago.)

Supposedly when SS COLAs increase down-the-road, the folks on SS will have their PArt B premiums increase until they are at parity with those not collecting SS yet. (Complicated to explain...hope this makes sense.)

omni

 

[W2R]

Congratulations, Ducky911!!!

I was really surprised at how MUCH difference a small SS monthly check can make in one's budget. You have already been paying for the necessities, so much of it might go towards fun and improved quality of life.

 

[Another Reader]

Please elaborate.... doesn't make sense to me. What years are you referring to?

Although you get less at 62, Medicare premiums are not deducted from your check until you turn 65. However, if you are paying more for health insurance elsewhere, that's not much of a bonus.

 

[marko]

Please elaborate.... doesn't make sense to me. What years are you referring to?

What I mean is that if you take SS at 62 you get (for example) $1800 a month. Three years later when you're eligible for Medicare they take $134 a month from that to pay for Part B, so now your SS check comes in at $1666 a month.

Some of us pay more than that for Part B due to a higher income level so the SS reduction is even higher.

My point was that for those three years that you're not taking Medicare (because you're 62, 63, and 64) your SS payment is higher. In essence you 'bank' $4824 ($134 X 36 months...or more) by taking SS at 62 vs 65 or older.

Now....having said all that, it wouldn't be the first time that I've misunderstood, double counted or hadn't considered something, plus, I've been drinking all afternoon, so word to the wise.

 

[marko]

Although you get less at 62, Medicare premiums are not deducted from your check until you turn 65. However, if you are paying more for health insurance elsewhere, that's not much of a bonus.

True, but in my case --and perhaps many others--my HC was covered through other channels so it was a true saving.

OTOH, for others, getting $10K-$20K a year SS boost can sure help pay for that HC for three years before Medicare kicks in.

 

[RunningBum]

What I mean is that if you take SS at 62 you get (for example) $1800 a month. Three years later when you're eligible for Medicare they take $134 a month from that to pay for Part B, so now your SS check comes in at $1666 a month.

Some of us pay more than that for Part B due to a higher income level so the SS reduction is even higher.

My point was that for those three years that you're not taking Medicare (because you're 62, 63, and 64) your SS payment is higher. In essence you 'bank' $4824 ($134 X 36 months...or more) by taking SS at 62 vs 65 or older.

Now....having said all that, it wouldn't be the first time that I've misunderstood, double counted or hadn't considered something, plus, I've been drinking all afternoon, so word to the wise.

No, that's two unrelated things, except for the medicare payment method.

You are going to get a certain amount of SS based on when you take it-- 62, 70, or somewhere in between.

You are going to pay a certain amount for Medicare no matter when you take SS.

So they are unrelated. My disclaimer is that I haven't really looked at Medicare so maybe I'm missing something, but the way you describe it, your SS isn't higher, it's that you don't aren't paying for medicare before 65, and it doesn't matter whether it's deducted from your SS benefit or if you are paying directly.

 

[btdt22]

Went through the same analysis but took mine when I was first eligible at 62. Nice to see a few grand just pop-up in my account every month like clock work.

How did you get $3000 per month from taking SS at age 62? I guessed I missed that gravy train

 

[iloveyoga]

I finally figured out that DH's SS comes on the third Wednesday of each month. Very nice!!

 

[marko]

No, that's two unrelated things, except for the medicare payment method.

You are going to get a certain amount of SS based on when you take it-- 62, 70, or somewhere in between.

You are going to pay a certain amount for Medicare no matter when you take SS.

So they are unrelated. My disclaimer is that I haven't really looked at Medicare so maybe I'm missing something, but the way you describe it, your SS isn't higher, it's that you don't aren't paying for medicare before 65, and it doesn't matter whether it's deducted from your SS benefit or if you are paying directly.

They are related to me! I used to get $X for three full years before I turned 65. Now I get $X minus my Part B payment. I'm getting less money.
If I waited for SS till 65 I'd never have pocketed that difference.
But I'm still drinking right now so I'm open to other perspectives!!!

 

[gayl]

You don't actually take 1/2 your ex's, as satisfying as that might sound

yeah .... meant half of what he's getting. It does make up for all those years of no child support though.

 

[Sunset]

yeah .... meant half of what he's getting. It does make up for all those years of no child support though.

Unlike in Canada,

I have a friend that is divorced and she can apply for sharing his CPP credits, so there, she actually ends up taking some of his Pension away from him and it goes to her.

 

[Another Reader]

I'm more concerned right now about the MAGI calculation that determines how much I'm going to have to pay in premium. I have a year to sort that out but I'm curious if there is anything I can do to mitigate the impact.

 

[RunningBum]

No, you're getting the same SS benefit. You now have a new Medicare expense.

 

[rodi]

They are related to me! I used to get $X for three full years before I turned 65. Now I get $X minus my Part B payment. I'm getting less money.
If I waited for SS till 65 I'd never have pocketed that difference.
But I'm still drinking right now so I'm open to other perspectives!!!

Um... not really. Presumably you were paying for medical insurance somewhere somehow prior to 65.

DH turned 65 this year and has been collecting since 62. Yes - his SS check went down because of the medicare part b deduction.... But we are no longer paying as much for insurance. (His part B, part D, and part F+ combined are much less than the HDHP HMO we were paying prior to medicare.)