I started SS at my FRA and am considering suspending payments until age 70. I understand that my SS payment will increase by 8% per year until I restart at 70. Is this correct?
I started SS at my FRA and am considering suspending payments until age 70. I understand that my SS payment will increase by 8% per year until I restart at 70. Is this correct?
I think that the 8% increase may be better than the minimal increases recently.
Yes, but you can suspend benefits at any time... you don't have to pay back what you have already received which you would need to do if you withdraw your application.
It's not really an increase, most of the 8% is merely you getting your investment into the system back over a fewer number of years.
....How is the law changing? Under the new law, you can still voluntarily suspend benefit payments at your full retirement age (currently 66) in order to earn higher benefits for delaying. But during a voluntary suspension, other benefits payable on your record, such as benefits to your spouse, are also suspended. And, if you have suspended your benefits, you cannot continue receiving other benefits (such as spousal benefits) on another person’s record.
There are some exceptions. If you are a divorced spouse, you can continue receiving a divorced spousal benefit even if your ex-spouse voluntarily suspends his or her retirement benefit." ....
odds are pretty good i will file at 65 anyway. it is a good balance for us between market risk and longevity risk .
The increase is for the rest of your life.
If you live long enough, it's clearly an increase overall.
The math takes that into account, unless, of course, suspending changes one's lifespan.
I'm not sure which math you are referring to here.
If you are talking about Social Security's math, it was last revised in a time when longevity was lower and interest rates were higher. So today's reality isn't taken into account by that math. For most people, waiting until 70 to begin benefits is a good deal, math-wise these days.