quote:

Originally posted by honestlou:
Thanks for all the replies, especially 6guns and Fed161. I did a search before I posted but didn’t see the earlier thread- maybe I didn’t go back far enough.

My conclusions are as follows:
a) if you’re going to continue working past 62 earning more than the threshold ($26k?),then wait to start collecting because you get royally screwed on the additional income;
b) for me, and I think the majority of people (from my research), the math works out to about a 10 year breakeven point past your full retirement age. If I start collecting at 62 instead of 67, I’d be 77 before the amounts even out, at which point I’d be better off if I had waited- EXCEPT that doesn’t take into account inflation, the present value of money versus future value, or the ability to earn any return on the money taken during those five years.

Considering inflation and the present value of money, I am inclined to start taking it at 62. Fortunately, my work situation as a business owner is such that I can just pay myself rent instead of salary, and that is not earned income that would reduce my benefits. At least that is my understanding- rental income, capital gains, interest, dividends, etc, do not trigger that reduction in benefits.

quote:

Originally posted by old rugged cross:
is their some provision in SS code that a spouse can collect another spouse's benefit if they are both alive.
Someone here mentioned that in a previous post. They probably were talking about something different.

quote:

Originally posted by Rey HRH:

quote:

Originally posted by old rugged cross:
is their some provision in SS code that a spouse can collect another spouse's benefit if they are both alive.
Someone here mentioned that in a previous post. They probably were talking about something different.

It's called spousal benefits. You're entitled to one half of your spouse's benefits. But, if you're still married to your spouse, they need to have applied for benefits already. And if they applied past their Full Retirement Age and getting more than their FRA benefit, you get only half of their FRA amount.

The exception is if you're divorced from your spouse then you don't have to wait until they apply for SS. You can apply and get 1/2 of their FRA benefit.

You would only apply for spousal benefits if your own benefits are smaller than 1/2 of your spousal benefits. When you do apply, they determine which is higher and give you that. This prevents people from applying for spousal benefits and delaying their own until age 70.

quote:

Originally posted by Fed161:

quote:

Originally posted by Rey HRH:

It's called spousal benefits. You're entitled to one half of your spouse's benefits. But, if you're still married to your spouse, they need to have applied for benefits already. And if they applied past their Full Retirement Age and getting more than their FRA benefit, you get only half of their FRA amount.

The exception is if you're divorced from your spouse then you don't have to wait until they apply for SS. You can apply and get 1/2 of their FRA benefit.

You would only apply for spousal benefits if your own benefits are smaller than 1/2 of your spousal benefits. When you do apply, they determine which is higher and give you that. This prevents people from applying for spousal benefits and delaying their own until age 70.

Outstanding and 100% accurate summary. You summarized everything very succintly. Very well done. I would love to have had you as an employee when I ran an SSA District Office.