Social Security at 62...

Interesting read,

Snipit…
I took Social Security at 62 and now regret it. Is there a way to increase my Social Security benefit?

Recently I had a conversation with Sue, an acquaintance who started receiving her Social Security benefit at age 62. Sue’s now 63, and she told me that she thinks she might have made a mistake.

The problem is that she has realized that starting Social Security early reduced the benefit significantly, and she’d been wondering if it was possible to increase her benefit. (In case you’re wondering, it was more than 12 months after Sue’s original filing, so she can’t enact the “do-over”. More about that later.)

The rest of the story can be found here…
https://www.marketwatch.com/story/how-can-i-increase-my-soci…

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I took Social Security at 62 and now regret it. Is there a way to increase my Social Security benefit?

If you haven’t reached 70, apparently:

https://www.aarp.org/retirement/social-security/questions-an…

https://www.ssa.gov/benefits/retirement/planner/suspend.html…

Pete

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I believe the current law gives people a “Do Over” if and only if they have not been receiving benefits for 12 months.

Google “Social Security Do Over”

I believe the current law gives people a “Do Over” if and only if they have not been receiving benefits for 12 months.

Google “Social Security Do Over”


I do my best to avoid all things Google, so I suggest doing a DDG “Social Security Do Over”

https://duckduckgo.com/

https://duckduckgo.com/?q=%22Social+Security+Do+Over%22&…

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Recently I had a conversation with Sue, an acquaintance who started receiving her Social Security benefit at age 62. Sue’s now 63, and she told me that she thinks she might have made a mistake.

Let me guess – another garbage article.?
clicks on link to article

The problem is that she has realized that starting Social Security early reduced the benefit significantly, …

… but ignored that she will be getting that benefit for more years. Including now instead of later.

Sue also mentioned that she has an opportunity to take on some part-time work.

Retired means RETIRED, not taking a job.
Maybe Sue should have just stayed at her original job and not “retired”.

But if she has been getting along just fine without the benefit for the better part of those past three years, is there really a need to receive the Social Security benefit at all at this point?

Then her “mistake” wasn’t really a mistake-mistake. It was her just changing her mind.

if it turns out that these additional years on Sue’s earnings record are higher than what she had earned earlier in her career

Um, does it often happen that going back to work PART-TIME after retiring pays better than the full-time job that you quit?

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I do my best to avoid all things Google …

Why is that?

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>>I do my best to avoid all things Google …<<

Why is that? - CNC


There is only one company that exceeds Facebook in the depth and magnitude of harvesting your data, and making your information available to advertisers and others. And that company is Google.

Google is owned by Alphabet which means the ChiComs have your data too.

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The problem is that she has realized that starting Social Security early reduced the benefit significantly, and she’d been wondering if it was possible to increase her benefit. (In case you’re wondering, it was more than 12 months after Sue’s original filing, so she can’t enact the “do-over”. More about that later.)

I find it annoying when people post excerpts like this and don’t bother to give a synopsis of what the result is, especially when the source has a paywall. So for those who are also annoyed by that, here’s what I remember from when I read the article yesterday:

Sue had an opportunity to earn $3k/month doing some type of consulting. That would put her over the earnings limit when taking SS before her FRA ($19,560 for 2022, indexed to inflation each year), so some of the benefit she’s receiving would be clawed back. However, when she reaches her FRA, her benefit would be recalculated, and the years that she earned over the earnings limit would be added to her initial claiming age. That means her benefit would be increased both by a later claiming age and, if her earnings made those years some of her 35 highest earning years, by the increase in earnings.

There were some additional subtleties that had to do with the increase in the earnings limit in the year that you reach your FRA, but I don’t remember the details of those.

AJ

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Um, does it often happen that going back to work PART-TIME after retiring pays better than the full-time job that you quit?

The earnings don’t have to be more than the full-time job that you quit - they just have to be more than the lowest year that was counted in your 35 years of earnings, after indexing for inflation. For many people who take benefits at 62, there could easily be a few low earning years that are being counted.

Personally, even though I’m not yet 62 (so not yet eligible to claim) and I’ve been retired for 4 years, I still have 42 years of earnings in my SS records. Since only 35 years are counted, my 7 lowest earning years (mostly from when I was in high school and undergrad) are dropped off. But that still leaves a couple of years when I was in undergrad and grad school that are counted, and the indexed earnings for those years are less than the $3k/month opportunity that was mentioned in the article. So if picked up part-time work at $3k/month for two years, I could increase my benefit at FRA. Of course, the increase would only be $14/month, so pretty insignificant.

That said, the larger increase for the person in the article was actually the ability to increase their SS benefit by effectively increasing their claiming age by earning in excess of the SS earnings test after they claimed SS at 62. By doing this, it effectively increases their claiming age. By increasing their claiming age by 2 years, they will increase their benefit amount by ~14% For someone earning the average SS benefit of $1543/month, that’s an extra $216/month.

AJ

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So if picked up part-time work at $3k/month for two years, I could increase my benefit at FRA. Of course, the increase would only be $14/month, so pretty insignificant.

BTW, this is why I always laugh at retirement planning articles that say “work longer to increase your SS benefit”. For those who already have 40+ years of earnings recorded, it’s unlikely that working longer will increase your SS benefit significantly. Working longer can help increase the amount of money you will have in retirement, by giving you a larger base to start retirement with, and a shorter time that you will be in retirement. But working longer to increase SS isn’t a high return effort for most people.

AJ

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There is only one company that exceeds Facebook in the depth and magnitude of harvesting your data, and making your information available to advertisers and others. And that company is Google.

Case in point:
I have an Apple Fire tablet that is jailbroke so I can get google play apps on it. This tablet is set to a dummy google account that I never use except for accessing playstore. I have never logged into my real gmail account on it.

Yet suddenly a few weeks ago it started to be getting alerts & notifications for my real gmail/google account.

Somehow they figured how to link this tablet to my real account. Only way I figure they did that was to somehow notice that my computer and the tablet both come from the same ISP/IP address.

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AJ comments BTW, this is why I always laugh at retirement planning articles that say “work longer to increase your SS benefit”. For those who already have 40+ years of earnings recorded, it’s unlikely that working longer will increase your SS benefit significantly.

With a 55 year Social Security work history, the one thing that working longer did was to eliminate all the years where my earnings didn’t exceed Social Security’s insured income cap. An additional wrinkle is how COLA is applied to your benefit after your PIA is calculated when you claim benefits. I retired at 68 but applying COLA resulted in a 15.3% increase in my monthly benefit.

How does this work when someone suspends benefits at FRA?

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How does this work when someone suspends benefits at FRA?

‘This’ being the inflation adjustment? You still get the same inflation adjustments.

AJ

When to start taking Social Security benefits is always a very personal decision, colored by your specific set of facts.

After talking with my wife, we decided to take her benefits at age 62. She died 10 months later. That was the right choice for her set of facts. And (unfortunately) it was foreseeable. The odds of her surviving to 70 were not great. So it was a pretty easy choice.

That won’t be the right choice for everyone.

All I get from the bit of the article posted here is to think a lot before just choosing to quit work at 62 and start your benefits then. This shouldn’t be an impulse decision.

–Peter

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When to start taking Social Security benefits is always a very personal decision, colored by your specific set of facts.

Exactly. As a data point of one, I took Social Security benefits at age 62 because I had been laid off from my prior job, unemployment was running out and I needed the income. When I went back to work, I was working part time, but still making enough that I had to pay back some of the benefits I had received. When I reached SSNRA my benefits were recalculated to include that and my benefits increased slightly. I just turned 80 and feel like I came out ahead taking benefits at 62.

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