Social Security - How much at age 70?

[travelover]

So, I'm collecting spousal SS on my wife's account right now. I will turn 70 this year and want to do some tax planning. But once you are collecting, the SS site no longer displays your projected benefits. I have some old SS statements from before I started collecting spousal benefits that I can use as a rough guide, but was hoping I could get a better idea to do my planning.

Any tips?

 

[rothlev]

So, I'm collecting spousal SS on my wife's account right now. I will turn 70 this year and want to do some tax planning. But once you are collecting, the SS site no longer displays your projected benefits. I have some old SS statements from before I started collecting spousal benefits that I can use as a rough guide, but was hoping I could get a better idea to do my planning.

Any tips?

https://ssa.tools/calculator.html

copy and paste from SSA.gov

 

[travelover]

https://ssa.tools/calculator.html

copy and paste from SSA.gov

Thanks. Perfect. More than I thought.

 

[athena53]

I recommend that calculator, too, although I think it understated what I'll be getting. I'm in your situation except that I decided to file at 69- the first check on my record arrives next month. Just to set expectations...

I filed electronically on 11/2/2021, the earliest date they'd accept it (turned 69 on 2/1/2022). The boilerplate said they'd make a decision in 2-4 weeks. Nope. I called in January and they said they don't make one till the month before. On 2/2 I finally got an approval. I kept going back to the site to check for the amount and it showed as $0.00. Yesterday I FINALLY got an amount. I was expecting a $1,400 bump and it's closer to $1,700. It's possible they're showing the new amount before deductions for Medicare but that seems unlikely since previous amounts are net of Medicare premiums.

Anyway- if you fil early, don't hold your breath!

 

[VanWinkle]

You could call Social Security office near you and get the exact figure.

 

[athena53]

You could call Social Security office near you and get the exact figure.

When I called 8 weeks after I'd filed, I asked if he could tell me the amount. He couldn't. Worth a try for the OP, though.

 

[VanWinkle]

I went from survivor benefit to my own benefit and they gave me the exact amount before I made the claim for my own benefit.

 

[stevemac]

How good is the estimate for starting at 70 when you're 62 now and have retired, i.e., no future income is planned? I thought I'd read once (but now can't find, of course) that the estimates for FRA, aged 70, are based on a continuing income flow -- is that accurate? Or can I rely on my current estimate (subject to CPI or other adjustments)? Thanks.

 

[jim584672]

The annual income amount history is adjusted every year based on the "index factors". This is a bit different than the CPI. Once you hit I think age 60 they lock in and then the CPI is used.

 

[stevemac]

The annual income amount history is adjusted every year based on the "index factors". This is a bit different than the CPI. Once you hit I think age 60 they lock in and then the CPI is used.

That would be good to know, and once I find something official to support that I can rest easier. Thanks for the response.

 

[travelover]

............Anyway- if you file early, don't hold your breath!

Thanks, that is good to know.

 

[statsman]

So, I'm collecting spousal SS on my wife's account right now. I will turn 70 this year ...

Side question. Is this the benefit that was removed a few year back and is grandfathered for those born before a certain date?

 

[Dtail]

The annual income amount history is adjusted every year based on the "index factors". This is a bit different than the CPI. Once you hit I think age 60 they lock in and then the CPI is used.

How good is the estimate for starting at 70 when you're 62 now and have retired, i.e., no future income is planned? I thought I'd read once (but now can't find, of course) that the estimates for FRA, aged 70, are based on a continuing income flow -- is that accurate? Or can I rely on my current estimate (subject to CPI or other adjustments)? Thanks.

Your SS estimate is adjusted by the Average Wage Index through your year 62 based on the index from 2 years ago. Going forward, it is then adjusted by the CPI.
As for the estimates for 70 y.o., you can adjust the input in the SS site to state that you will earn zero income until 70 years old and this result will be more accurate.

 

[MissMolly]

Side question. Is this the benefit that was removed a few year back and is grandfathered for those born before a certain date?

Yes. You had to be born on or before 01/01/1954

 

[athena53]

Yes. You had to be born on or before 01/01/1954

No, I believe the feature the OP described is different and still in effect. The one they got rid of was "File and Suspend". Let's say the husband was the higher wage earner. He reaches FRA, files for SS and his wife files for Spousal in his record. He then suspends his, so he doesn't receive payments and lets his benefit grow till he claims them at age 70. If the wife is entitled to higher benefits on her own record at age 70, she can file for them at that age but in the meantime she can collect Spousal on her husband's record.

Here's the link from which I borrowed the explanation.
https://www.aarp.org/retirement/social-security/questions-answers/ss-couples-file-and-suspend.html

Some economist wrote a book about it, every clickbait personal finance site picked up on it and the government shut it down for people born after 1/1/1954.

What the OP and I are doing is different. You may still collect Survivor benefits when a spouse dies before you reach age 70 (I was 63 and not collecting on my own record yet). If SS based on your own record is higher you may claim it at any later time. I decided to wait to age 69 and it's been approved.

 

[MissMolly]

No, I believe the feature the OP described is different and still in effect. The one they got rid of was "File and Suspend". Let's say the husband was the higher wage earner. He reaches FRA, files for SS and his wife files for Spousal in his record. He then suspends his, so he doesn't receive payments and lets his benefit grow till he claims them at age 70. If the wife is entitled to higher benefits on her own record at age 70, she can file for them at that age but in the meantime she can collect Spousal on her husband's record.

Here's the link from which I borrowed the explanation.
https://www.aarp.org/retirement/social-security/questions-answers/ss-couples-file-and-suspend.html

Some economist write a book about it, every clickbait personal finance site picked up on it and the government shut it down for people born after 1/1/1954.

What the OP and I are doing is different. You may still collect Survivor benefits when a spouse dies before you reach age 70 (I was 63 and not collecting on my own record yet). If SS based on your own record is higher you may claim it at any later time. I decided to wait to age 69 and it's been approved.

Oh, sorry. I completely missed that it was survivor benefit being discussed. I thought it was spousal which is no longer applicable since it is now deemed filing and you no longer get a choice.

 

[travelover]

Oh, sorry. I completely missed that it was survivor benefit being discussed. I thought it was spousal which is no longer applicable since it is now deemed filing and you no longer get a choice.

OP here. It was / is spousal. When I was 66 and eligible for full benefits, my DW was 62 and eligible to start early SS on her own record. I filed for spousal at the same time. I was able to do this because of when I was born- before the cutoff date. Now that I'm turning 70, I can switch from spousal to my own record with no reduction in benefits. It was a loophole that I just squeezed through.

 

[MissMolly]

OP here. It was / is spousal. When I was 66 and eligible for full benefits, my DW was 62 and eligible to start early SS on her own record. I filed for spousal at the same time. I was able to do this because of when I was born- before the cutoff date. Now that I'm turning 70, I can switch from spousal to my own record with no reduction in benefits. It was a loophole that I just squeezed through.

Gotcha. And I too just squeezed through even closer than you. My birthday was Nov 1953. I have been collecting spousal since I turned 66 and finally filed for my own just last month.

 

[Momcpa]

My husband is claiming on 50% of mine currently. He turns 70 this Fall. The Soc Sec office near us is not open to 'clients' until April. We took a chance of calling and were surprised that the call was answered promptly. After verifying his identity, they gave us the exact number that he should expect in October. Instructed us to file for it in September to be started in October. Very easy/pleasant phone call. Hope you are as pleased with them.

 

[athena53]

OP here. It was / is spousal. When I was 66 and eligible for full benefits, my DW was 62 and eligible to start early SS on her own record. I filed for spousal at the same time. I was able to do this because of when I was born- before the cutoff date. Now that I'm turning 70, I can switch from spousal to my own record with no reduction in benefits. It was a loophole that I just squeezed through.

Oops- my mistake on the first part. Glad you were able to take advantage of the File and Suspend provision before they phased it out.

Like the others, I've also had good results from phone calls to SS other than the guy who couldn't tell me what my new benefit would be- and maybe he really couldn't. I'm just happy to have an answer now.

 

[HarryHawk]

OP here. It was / is spousal. When I was 66 and eligible for full benefits, my DW was 62 and eligible to start early SS on her own record. I filed for spousal at the same time. I was able to do this because of when I was born- before the cutoff date. Now that I'm turning 70, I can switch from spousal to my own record with no reduction in benefits. It was a loophole that I just squeezed through.

Me too, when I turned 66 my wife started her SS and I filed for spousal at the same time. I'm turning 70 this year, so I'll be switching as well.

The loophole worked out well for us.

 

[Timeisprecious]

How good is the estimate for starting at 70 when you're 62 now and have retired, i.e., no future income is planned? I thought I'd read once (but now can't find, of course) that the estimates for FRA, aged 70, are based on a continuing income flow -- is that accurate? Or can I rely on my current estimate (subject to CPI or other adjustments)? Thanks.

Yes, that's correct - estimates for the future are based on a continuing income flow. I personally retired at the end of January, 2020 and my estimates for FRA and aged 70 were lower in 2021 than in 2020. 2021 was the first year for which I had no work income the entire year, so perhaps I may be able to provide a better answer after receiving my updated estimates. I don't think the estimates dip all that much lower year to year, but they do decrease by more than a few dollars.