Collecting SS before FRA and still working question

[pb4uski]

Have you run her situation through open social security.com?

If she is in good health I suspect that the expected present value of taking now or at FRA isn't very different. If so, she might as well take now.

 

[Buckeye]

I would want to take a look at her school paystub to confirm the deductions for SS or scool system retirement. A surprise WEP reduction would be an unwelcome surprise.

 

[Graybeard]

Are you saying ahe makes 21+11 and you send money. Has no condo or car payment...what's supposed to happen when she no longer works at the school. It seems as though she needs to let her SS grow as long as possible even past FRA. She's going to need that money. She is not in a good position.

Correct. She can work as long as the program is funded and it has been for 15 or 20 years. She has no intention of leaving the teaching job as she loves that. Of course, unexpected illness can occur. She can't live on just the school job, the book store has to end, she is sick of retail after 24 years, we discussed other jobs but she doesn't have skills other than teaching so it is kind of iffy what she could do and it seems she does not want to have to work a 2nd job. burned out after 20+ years of 2 jobs.

Have you run her situation through open social security.com?

If she is in good health I suspect that the expected present value of taking now or at FRA isn't very different. If so, she might as well take now.

I suggested going to a SS office to discuss unknowns and I'll go with her. I have not heard back on that.

I would want to take a look at her school paystub to confirm the deductions for SS or scool system retirement. A surprise WEP reduction would be an unwelcome surprise.

We discussed this and she assures me SS is being deducted from her check besides SSA has up to date benefit amounts based upon her earnings.

"The Windfall Elimination Provision (WEP) is a formula that can reduce the size of your Social Security retirement or disability benefit if you receive a pension from a job in which you did not pay Social Security taxes. "
My sister does not have a pension.

 

[msanniee]

But it won't be reduced by WEP until she starts collecting her School Pension.
Also if she has 30+ yrs of SS contributions, then WEP does not take away any money.

Except it is 30 years creditable earnings. I got caught on this. My second career was teaching, but I was short 4 creditable years even with 30 years of contributions into social security.

In MHO, earning a pension I paid into, after working 30 years in the private sector, is not a windfall.

 

[MarieIG]

Are you saying ahe makes 21+11 and you send money. Has no condo or car payment...what's supposed to happen when she no longer works at the school. It seems as though she needs to let her SS grow as long as possible even past FRA. She's going to need that money. She is not in a good position.

That was also a question I had. Can she live on the reduced SS alone? There most likely will come a time when she no longer can work at the school or any place else.

SS could continue to grow at an increased pace if postponed past FRA.

I wonder if she could pick up a few more hours at the school. I don't think that she should remain at the bookstore either. . .

 

[Graybeard]

Good questions.

We had a talk and the uncertainty of the future juxtaposed against the present school/SS no book store job started to look a lot less viable. She now thinks that working to FRA is better and then look into SS at FRA. If she wants to earn more than that "working and collecting SS" level then it won't matter. She also is going to investigate the work center, can't remember the name, that someone suggested. As bad as the book store situation is, quitting and collecting SS has potential issues that can't be ignored.

If her heath is good, she most probably will work well beyond 70 at the school because she really enjoys it. One of her friends at that same school retired by choice at the end of the school year this past Spring at age 78 so it doesn't appear they force you to retire based upon age but then that person was in the union and my sister is not.

It all looked good on paper but when figuring in potential problems, this idea does have downsides. Thanks for the feedback everyone.

 

[boont]

Non Wages

The way I handled this was to plan for lots of "Non-Wage" income. I went with real estate and royalty income. There is no deduction from Social Security if you income just isn't wages. Rental income, you can have as much as you can get. Same with any kind of royalties books, article sales, mineral rights, selling air space above you building etc.