Social Security start date

[DrRod]

Lots of advisors will tell you to wait as long as possible to start collecting so that the amount will be higher each month. But they don't take into account the quality of life factor. Easy to say you will get more but they ignore the fact that you are working. Its a personnel preference but it comes down to how much you value time over money. And if you have a stressful job, getting out earlier rather than later can mean a lot in terms of quality and longevity of life.

 

[Kenneth in Texas]

Think she figured take it now while she can walk and be fairly normal. Lots can happen in that 3 year span. Im sure I will do the same when the time comes.

 

[k0ua]

Lots of advisors will tell you to wait as long as possible to start collecting so that the amount will be higher each month. But they don't take into account the quality of life factor. Easy to say you will get more but they ignore the fact that you are working. Its a personnel preference but it comes down to how much you value time over money. And if you have a stressful job, getting out earlier rather than later can mean a lot in terms of quality and longevity of life.

Those are good points, and to add to that, there is the simple fact that many will die before they reach full retirement age, and many will die well before they reach the break even point many years later. Many want to wait because they believe they will have a long life after retirement, and that may be the correct choice for them, but it is not necessarily the correct choice for all. In my work as selling medicare plans, I can tell you I see many people who are very ill at age 65, and have had several clients die in the very short time I have been doing this. On the other hand I see others that are doing very well and seem very healthy at that age.

 

[KennyG]

A question for those in the know; I have been on SS for a 3 years already and get a comfortable amount. My wife plans on starting of SS because her 62nd was last month. Hers will be considerably less because she was a homemaker/housewife for half of her working years.

If she starts collecting for a lesser amount at 62, and then I bite the big one, will she be entitled to any of my larger amount. We have been married for all our adult life if that matters. I heard they can collect half or some other reduced amount.

I believe you are correct but I suggest checking with SS on this particular plan. They have made changes in the last few years on some of the spouse and survivor rules and the old "file and suspend" scenario. If you can get through on the phone you should be able to get a straightforward answer since this is a very common scenario.

 

[Turbys_1700]

I believe you are correct but I suggest checking with SS on this particular plan. They have made changes in the last few years on some of the spouse and survivor rules and the old "file and suspend" scenario. If you can get through on the phone you should be able to get a straightforward answer since this is a very common scenario.

My cousin just passed away couple months ago. His widow told us she would draw half his SS since his was more than hers. Pretty typical since in many marriages most males earnings are more than the wife's. She was aware of this. He contracted cancer. Worked at a company installing insulation and was exposed to asbestos. They did get some money from a settlement.

My wife and I plan to retire at 62. Things may change but that's the plan.

 

[fishheadbob]

There's a ton of variables to factor in but it's safe to say, if one is vague enough, that a widow or widower who is of full retirement age can get the higher of their own or what their late spouse was getting. It almost never works out to the exact dollar because of the variables like who was how old when they originally signed up, and how old they both were when somebody died. Nobody ever remembers to factor the Medicare deductions either. Then there were the beauties like dollar down rounding where we rounded by law to the last dollar.

The crappiest interviews were the bereaved coming in to say they "weren't getting the right amount".
Always had to avoid the temptation to ask "Oh. Are you getting too much?"
In a high percentage of the death cases where both were over full retirement age it was what the computer guys called an auto conversion. No room for human error. It was still very difficult to get someone to believe that SS wasn't out to chisel them out of a few bucks especially considering that their thought process was usually a mess around that time.

 

[KennyG]

My cousin just passed away couple months ago. His widow told us she would draw half his SS since his was more than hers.

I believe that after his death she should be drawing 100% of his benefit if she is at least her full normal retirement age. She should have received half of his benefit while he was still alive if she was at retirement age.

 

[Ken]

There's a ton of variables to factor in but it's safe to say, if one is vague enough, that a widow or widower who is of full retirement age can get the higher of their own or what their late spouse was getting. It almost never works out to the exact dollar because of the variables like who was how old when they originally signed up, and how old they both were when somebody died. Nobody ever remembers to factor the Medicare deductions either. Then there were the beauties like dollar down rounding where we rounded by law to the last dollar.

The crappiest interviews were the bereaved coming in to say they "weren't getting the right amount".
Always had to avoid the temptation to ask "Oh. Are you getting too much?"
In a high percentage of the death cases where both were over full retirement age it was what the computer guys called an auto conversion. No room for human error. It was still very difficult to get someone to believe that SS wasn't out to chisel them out of a few bucks especially considering that their thought process was usually a mess around that time.

Maybe you or someone can answer this.

Back when there were chicken houses and there was "wet backs" now days called undocumented workers. and required a SS card and some where one was supplied then they paid a required portion into the fund knowing never will be allowed to get back. employer also paid his part. then the worker would go to another state or employment. doing the same payments.
Where did this money go which fund. if they paid into your number you would not be notified or credited to this money.
Now be a penny short of giving the required amount. there would be letters and questions .
just curious
ken

 

[California]

Lots of details in this thread but here's one that's easy to remember. (learned while handling parents' estates):

You need to survive the full month to earn payment for that month. Fail that test and SS will take the money right back out of the bank account they credited it to.

 

[California]

Maybe you or someone can answer this.

... undocumented workers. and required a SS card and some where one was supplied then they paid a required portion into the fund knowing never will be allowed to get back.

Where did this money go

Simply for gaining acceptance at the time, SS was called 'insurance' when it started. But many people live long enough to draw more than they put in.

More realistically SS is structured as an entitlement to present retirees, funded by those presently working - including the undocumented workers who will never collect.

SS alleviated horrible poverty when it was begun during the depression. Now given modern politics, as an entitlement, this entitlement is subject to the politics of the day.

 

[RedNeckGeek]

Simply for gaining acceptance at the time, SS was called 'insurance' when it started. But many people live long enough to draw more than they put in.

More realistically SS is structured as an entitlement to present retirees, funded by those presently working - including the undocumented workers who will never collect.

SS alleviated horrible poverty when it was begun during the depression. Now given modern politics, as an entitlement, this entitlement is subject to the politics of the day.

Webster's defines entitlement as follows:


Definition of entitlement
1
a : the state or condition of being entitled : right
b : a right to benefits specified especially by law or contract
2
: a government program providing benefits to members of a specified group; also : funds supporting or distributed by such a program
3
: belief that one is deserving of or entitled to certain privileges

Definitions 1 and 2 seem to apply, but definition 3, in my mind at least, is inappropriate. None of them, however, touches on the central fact that most people pay into Social Security before they collect anything from it. That's what makes definition 3 inappropriate. Many people collect SS benefits without ever paying in, and there's a lot of people out there that don't feel that is appropriate, either. Regardless, that's a big reason that SS is going broke: you can't keep pulling more money out than there are payments going in without something having to give. And the "political solution" most often proposed is to start reducing benefits for those that are already collecting while increasing payments by those that are still working. An equitable solution is to leave benefits alone for those that are already collecting, as they've satisfied their end of the contract during their working life, and it would not be equitable, fair, or moral to reduce the benefit that they've already paid for.:2cents:

 

[fishheadbob]

Maybe you or someone can answer this.

Back when there were chicken houses and there was "wet backs" now days called undocumented workers. and required a SS card and some where one was supplied then they paid a required portion into the fund knowing never will be allowed to get back. employer also paid his part. then the worker would go to another state or employment. doing the same payments.
Where did this money go which fund. if they paid into your number you would not be notified or credited to this money.
Now be a penny short of giving the required amount. there would be letters and questions .
just curious
ken

Back when there were chicken houses and (ahem) undocumented workers the bigger problem was getting any of those guys to pay any SS tax at all. Migrant workers, crew chiefs, penny pinching farmers, and so on were the original rugged individualists who didn't pay a whole lot of taxes if they could avoid it. Catch me if you can applied.
Also, back then a valid SS card was easy to get, unlike now where you are put through a wringer. Back then you could get the form at any post office, hand it in, and a card would show up in a short time. The money went to SS where it was allocated by the prescribed formula, pretty much like now.
If somebody made up a number and gave them yours by chance you would have heard from the I.R.S. about not reporting the wages you earned plucking chickens in Massachusetts. Usually that sort of thing was easy to straighten out.
We're not talking big dollars here; like a zillionth of a percent of what comes in. Less money than the effort to straighten it out unless it really mattered for some reason.

 

[Ken]

Back when there were chicken houses and (ahem) undocumented workers the bigger problem was getting any of those guys to pay any SS tax at all. Migrant workers, crew chiefs, penny pinching farmers, and so on were the original rugged individualists who didn't pay a whole lot of taxes if they could avoid it. Catch me if you can applied.
Also, back then a valid SS card was easy to get, unlike now where you are put through a wringer. Back then you could get the form at any post office, hand it in, and a card would show up in a short time. The money went to SS where it was allocated by the prescribed formula, pretty much like now.
If somebody made up a number and gave them yours by chance you would have heard from the I.R.S. about not reporting the wages you earned plucking chickens in Massachusetts. Usually that sort of thing was easy to straighten out.
We're not talking big dollars here; like a zillionth of a percent of what comes in. Less money than the effort to straighten it out unless it really mattered for some reason.

That is as good of answer that I have received over the years of asking.

Thanks ken