Social Security - Know What to Expect

[RASAP]

Not correct. My still outstanding DRC's were earned in the first half of 2021. They did not show up in January 2022, nor have they shown up since. I firmly believe they are not "lost", there just isn't any logic around when they will show up.

I get what you are saying but it seems to me your situation (claimed benefits BEFORE age 70) is different from mine (claimed benefits AFTER age 70).

This is making my brain itch!

 

[Rustic23]

No real bearing on this thread, but I filed for SS about 10 years ago. No problem. About a year later I got a letter telling me my SS was figured wrong, and I wad due a lump sum plus increase monthly benefit. I looked for the part where all I had to do was send them my bank account, two credit cards and two grand children. I wasn't there, and sure enough the money hit my bank account the next month. Now I am waiting for the letter saying the first letter was wrong and I have to give it all back!

 

[copyright1997reloaded]

You have reached 70 1/2 and used this to "push" the income into a different tax year

Thanks for posting this. Might come in handy for those born in the 2nd half of the year who are trying to maximize Roth conversions up to and including year 69.

 

[RASAP]

Know What to Expect - The Final Chapter

After calling my local SSA office on 5/27/2022 and making them aware of the issue with my benefit amount, today I received a letter from the SSA stating that they have corrected it. No explanation was offered as to why it was initially incorrect. According to the letter, I will be receiving an additional check to make up for the amounts not received for June and July.

So, as I said initially, "Know What to Expect" since we now know that the SSA can make mistakes - hopefully in very rare cases.

I wonder if they would have found this error on their own if I had not made the calls .

 

[jollystomper]

After calling my local SSA office on 5/27/2022 and making them aware of the issue with my benefit amount, today I received a letter from the SSA stating that they have corrected it.

Congrats! Glad this issue is over for you.

 

[palomalou]

We all now know to watch and double-check those numbers with an eagle eye--what a difference! So glad it got worked out for you.

 

[cloud9nd]

I learned a lot in this thread.

I'd like to see what the original terms of SS were, and or the golden years of it when they tried to sell it to the people.

So, I worked from 16-43 (other than teen jobs)but self employed 2 years in there too.

I didn't know or forgot about the 35 year expectation or working up to claiming being a point.

If only I could have selected NO to it and invested personally. I know some disagree, but... This is an example of why that might be a good option.

 

[MikeWillRetire]

It is pretty unbelievable, but not entirely. Have you been to a government website lately? They are generally so bad that I worry for our country's cybersecurity. Surely we have people who can write code better than what's at say, https://www.eftps.gov/eftps/ right? Right?

Yes, the country does have people who can write code better, but for the most part, they are not going into government service. The federal government gets the "C" students these days.

 

[Koolau]

If only I could have selected NO to it and invested personally. I know some disagree, but... This is an example of why that might be a good option.

I'm not convinced I could have come out better than SS by investing the "contributions" myself. The built in inflation protection has dramatically increased the value of the monthly payments since I began paying in 50+ years ago. YMMV

 

[CRLLS]

I learned a lot in this thread.

If only I could have selected NO to it and invested personally. I know some disagree, but... This is an example of why that might be a good option.

I do believe that some, possibly most of the members here might have been able to beat the SS benefits if self-directed. We are a very small subset of the general population. As for the rest of the population, I highly doubt they could or would be able to. An example would be a 401K and/or IRAs. Not every working person has taken advantage of these programs. Without SS being there, these people would be out of luck for retirement. Making part (or all) of SS an optional, self-directed alternative is not a good option. I believe strongly in a multi legged stool with at least one leg mandatory and protected from an individual's poor choices. There are plenty of other ways for funding one's retirement that are under their own management. That is where the other legs of the stool co me in to play.

 

[harllee]

I do believe that some, possibly most of the members here might have been able to beat the SS benefits if self-directed. We are a very small subset of the general population. As for the rest of the population, I highly doubt they could or would be able to. An example would be a 401K and/or IRAs. Not every working person has taken advantage of these programs. Without SS being there, these people would be out of luck for retirement. Making part (or all) of SS an optional, self-directed alternative is not a good option. I believe strongly in a multi legged stool with at least one leg mandatory and protected from an individual's poor choices. There are plenty of other ways for funding one's retirement that are under their own management. That is where the other legs of the stool co me in to play.

Totally agree. While many of us here could have invested the SS money ourselves and come out OK, it is my bet that 90% of the country could not or would not do that. If everyone had self directed SS we would have a lot more homeless, hungry elderly people.

 

[MRG]

Totally agree. While many of us here could have invested the SS money ourselves and come out OK, it is my bet that 90% of the country could not or would not do that. If everyone had self directed SS we would have a lot more homeless, hungry elderly people.

+1
I have a family member, who was self employed, who manged to screw up their SS by cheating on their taxes and then wondering why they don't get much benefit. She always drove a new car though.

 

[finnski1]

Totally agree. While many of us here could have invested the SS money ourselves and come out OK, it is my bet that 90% of the country could not or would not do that. If everyone had self directed SS we would have a lot more homeless, hungry elderly people.

Completely agree. We can't go by the outliers on here. I'm not sure I could do better myself. I am happy that DW and I have SS to look forward to in a few years.

 

[Koolau]

Totally agree. While many of us here could have invested the SS money ourselves and come out OK, it is my bet that 90% of the country could not or would not do that. If everyone had self directed SS we would have a lot more homeless, hungry elderly people.

Yeah, with all the valid gripes about the way SS money was "invested" the system has lowered poverty levels for older folks since inception. I think it's been worth it for the most part. Too bad it periodically becomes a political football. YMMV

 

[Chuckanut]

Without SS most would be some sort of government welfare program. At least with SS most who get it have also put money into it. Or a very close family member has. Without SS they would have contributed nothing.

 

[Chuckanut]

Here's an artticle explaining SS changes for 2023 as well as some Medicare changes. (SS and Medicare are two completely separate programs.)

https://www.creators.com/read/your-social-security/12/22/social-security-update-for-2023

There's lots of minutia for those who want to wander into the tall grass of Social Security, and Medicare to a lesser extent.

It has been my custom for most of the past 25 years to write a year-end column that summarizes the Social Security changes and updates scheduled to take place the following year.

I don't want to get into this complicated issue of Medicare premiums other than to make this quick point. Even though they are linked in the minds of most senior citizens, Social Security and Medicare are entirely separate programs, administered by entirely separate federal agencies, and they have entirely separate rules and regulations regarding their benefit and payment structures. For example, I already explained how Social Security COLAs are figured. The Part B Medicare premium has nothing to do with the CPI. Instead, by law, it must be set at a level that covers 25% of the cost of running the program. Taxpayers pick up the remaining 75%. (And again, wealthy people pay more than the 25% share.)

 

[zaqxsw]

Old thread, but I didn't want to start a new one. I posted to this one before.

My full retirement age was May 2020. I did not file for Social Security until October 2021. I received 8 "Delayed Retirement Credits" (DRC's) for 2020 with my first SS payment in November 2021. I was still owed 9 DRC's for my deferred months in 2021.

I received them this month, April 2023, including a lump sum equal to those missed months.

Unless you are 70, you have to be patient. They only run this automated program every two years or so that catches up with delayed DRC's.

 

[RunningBum]

Old thread, but I didn't want to start a new one. I posted to this one before.

My full retirement age was May 2020. I did not file for Social Security until October 2021. I received 8 "Delayed Retirement Credits" (DRC's) for 2020 with my first SS payment in November 2021. I was still owed 9 DRC's for my deferred months in 2021.

I received them this month, April 2023, including a lump sum equal to those missed months.

Unless you are 70, you have to be patient. They only run this automated program every two years or so that catches up with delayed DRC's.

Does that mean your monthly benefit payment is only what you had at FRA? What if you wanted a higher monthly payment instead of getting those lump sum credits?

 

[zaqxsw]

No, I received my 2020 DRC’s with my first SS payment in Nov. 2021.

It’s only the later, 2021, DRC’s that I didn’t get until this month. It does appear they included interest in the lump sum, but no way for me to calculate it…

 

[zaqxsw]

Oh, and my new monthly benefit increased significantly.

The lump sum just makes up for the missed increases during the 9 months of 2021, 12 months of 2022, and 3 months of 2023.

I now get another monthly raise like I received for my 2020 DRC’s.

 

[Time2]

My 70th birth day is Mar 11th 2025. When should I apply to get my full 70 year old benefit?
Ya, a little early, but an-ti-ci-paya-tion, it making me wait!

 

[pb4uski]

I'm thinking the same thing but my 70th birthday will be later in 2025.... late Nov 2025. So if I wait until early Jan 2026 to apply for SS will I get all my delayed retirement credits to start with effective Dec 1, 2025?

Is it better to apply in Dec 2025 or Jan 2026? Or does it not matter?

 

[Telly]

I'm thinking the same thing but my 70th birthday will be later in 2025.... late Nov 2025. So if I wait until early Jan 2026 to apply for SS will I get all my delayed retirement credits to start with effective Dec 1, 2025?

Is it better to apply in Dec 2025 or Jan 2026? Or does it not matter?

Delay in DRCs does not apply to a person starting SS at age 70. Your birthday in November, for SSA purposes, is the month of November. "Apply" months earlier, with your requested "Start Date" as November. Your payment for November will come in December, with the DRC in it, and every month thereafter. The shenanigans of January, updating, and all that are not applicable if one waits till age 70.

 

[Time2]

I'm thinking the same thing but my 70th birthday will be later in 2025.... late Nov 2025. So if I wait until early Jan 2026 to apply for SS will I get all my delayed retirement credits to start with effective Dec 1, 2025?

Is it better to apply in Dec 2025 or Jan 2026? Or does it not matter?

Yes, If I could I would push that income into the next year for another year of Roth Conversions. But my birthday is too early in the year to wait.

 

[MissMolly]

My 70th birth day is Mar 11th 2025. When should I apply to get my full 70 year old benefit?
Ya, a little early, but an-ti-ci-paya-tion, it making me wait!

You can apply up to 3 months ahead of your birthday month. Just be sure to put your start date the month of your birthday. You will get your first benefit payment the month following your birthday month.