Displaying 5 Forum Posts 
  • Feb 24, 2015 06:58 PM
    Last: 2yr
    25k

    Yes, average life expectancy has increased, but its an individual choice. If you are in good health, waiting may make sense if you have the resources to do so. But if you are in poor health or just want to retire and need the money, taking the benefits as soon as possible may be best for you.

    The early discount and delayed factors are "actuarially" determined. That means it has the same equivalent value based on the average mortality and interest rates at the time. Because these rates have been determined some time ago when interest rates were higher and mortality was greater, the discounts for early retirement are excessive and the delayed credits are generous. So on average, that is, if you are in average health, you should be better off waiting if you are financially able to do so.

  • Nov 05, 2015 12:31 PM
    Last: 2yr
    21k
    If you are computer savvy, you can download the "Any PIA" software from SSA.gov and it will show you exactly how the benefit is calculated. You will need to input your complete salary. If you do not have that already, you can get it by creating an online account. Generally speaking, benefits are weighted heavily to lower income based on a 35 year indexed career average. There are 2 "bend points", where your indexed average compensation is split into three pieces. The PIA, which is the benefit at full retirement before an early retirement discount or delayed credits, is determined by taking 90% of average compensation up to the first bend point, 32% above the first bend point up to the second bend point, and 15% over the second bend point. The current software for 2015 has the bend points at $826 and $4980. These amounts are indexed, I think for national average wages. You are likely already above the second bend point and are not getting much for your additional earnings. Hope this helps.
  • Apr 15, 2015 03:58 PM
    Last: 1yr
    83k
    I don't think the tax is 50% to 85%. I think 50% to 85% of the benefits you receive is taxable.
  • Jan 24, 2016 04:30 PM
    Last: 2yr
    30k
    I called the SSA help line. They told me the $500 was reduced even though it didn't start until my wife was well past her full retirement age when the spouse benefit started. The early reduction factor applied would be based on her age 62 original commencement, i.e., 70%. This seems really unfair to early discount a benefit she couldn't get until I filed.
  • Jan 24, 2016 04:30 PM
    Last: 2yr
    30k

    I'm too young to take advantage of file and suspend as well. But there is something I can't seem to get an answer, perhaps someone can help on this forum. My wife was 62 this past year and has stopped working and we are trying to decide if she should apply and start benefits based on her earnings. Then when I retire several years from now she would be eligible for my spouse benefit and get bumped up to 50% of my PIA. Obviously, if she commences her benefit early there would be a reduction, let say 25% for sake of argument. But when I retire, she will be past 66 so the question is this, will the spouse supplement also be subject to an early retirement reduction even though that portion (spouse supplement) was not received early? The Q&A's on SSA.gov seem to say that.

    Example:

    Her PIA = $1000, Benefit at 62 = 75% times $1000 = $750

    My PIA = $3000, Spouse benefit = 50% times $3000 = $1500, Spouse supplement = $1500 - $1000 = $500

    When I retire she will be over 66. So will her spouse benefit when I retire be $1250 ($750 + $500) or will the $500 also be reduced because she commenced her benefit based on her earnings early?