Question about Social Security Benefit Increases

me | 11/13/2015 | Bernard

[Bernard]

Do SS benefits increase based on age breaks? There seems to be a different level of benefit at age 62, age 66, and age 70. So as an example, the monthly benefit at age 62 is $2,000, age 66 is $2,500, and age 70 it becomes $3,000.

When I read the literature from SSA, it sounds to me like once you start collecting retirement benefits, the based amount you collect is "frozen" at that level, and subject only to COLA increases.

I understood that if you start collecting at age 62, your benefit will stay at the $2,000 subject to COLA changes. The person my wife spoke to indicated that if you start at age 62, in addition to the COLA increases, you could expect other increases based on getting to the age milestones.

Does anybody here know what actually happens? Thanks.

[Mears]

What about assets ?

You mentioned property taxes so that implies home ownership.

Can a person get food stamps if they spend down their cash and own a $600,000.00 home?

.

[rolling_stone]

https://www.ssa.gov/pubs/EN-05-10147.pdf

[HotHunt]

Well, if you are still working and making good income, then your question should be, do you want to keep getting up everyday and continue working for someone else? If you like working, then keep working as long as you want to. The SS income and when you decide to draw it shouldn't factor in to that decision.

But at age 62, my wife and I wanted a lifestyle change and to stop working for a boss, before we got too old to enjoy our retirement. So we retired from office-type jobs and moved from the big city in Arizona to the rural country of Florida to a farm to raise beef cattle, a completely different way of life. It's not the money we make from SS that's important but the enjoyment of being away from the large metropolitan city and controlling more of our own destiny before we're too old to do that.

We've got a new home, plenty of income for our lifestyle, no boss, no alarm clock, no worries. Time to do what we want, when we want. What else is there?

But to each his own.

[Go_Raiders]

While there is no increase that occurs for reaching milestones after you start collecting, there are strategies for married or even divorced people to defer collecting their own benefits and instead claiming their share of their spouse’s benefit until they reach a higher payout level on their own Social Security “account”.

Anyone considering collecting Social Security before age 70 should be sure to talk to a qualified financial planner to determine the best payout strategy, especially if you and your spouse have both paid into the system. Many senior advocacy groups at the community and national levels have inexpensive ways to work with a planner.

Whatever person your wife spoke to should not be spoken to again, even if they work at a Social Security office. They don’t have a clue, and listening to them could cost you tens of thousands of dollars over time. Find someone who knows all the ins and outs and work with them.

Cheers...

[SgtHooper]

You become a fool!

[Dawn53Fl]

I knew the answer to your question, but thanks for the thread because it’s brought to the forefront some questions of my own.

I still work full time and I’m 62. I work because it fills up my time, and I enjoy it. I work from home...I have MS and could not work if I had to commute. I’m not expecting a long lifetime...MS is a chronic progressive disease, and progressive diseases progress...so my outlook isn’t “rosy” for a long life.

Anyhow, not trying to be morbid, just facing facts. I had never thought about drawing SS, but this thread has me thinking. My one main question is this: My husband has a great job, we don’t really need my salary. He is younger than I am and we get our insurance through his employer...and it’s great insurance. Do you have to use Medicare once you’re on SS? I have no idea what the timing is when dealing with SS and Medicare.

[ken in texas]

My SS benefits will go up $500 per month by waiting until 65.

I'd sure like to know how you do that. The max SS benefit at full retirement age is $2,663.

[silverleaf]

I believe file suspend rules were changed in October legislation

Need to see if that’s still an option

[neocon1984]

My monthly base (at age 62) is about $2200, because I contributed the max during many quarters. (They take your 40 highest earning/paying quarters to figure your amount).

For each year you wait to take SS, your monthly payment increases by 8%. Full retirement does not mean full SS (IIRC). My monthly SS maxes out at 70, but I can work as much as I want and receive SS without penalty at 67 (full retirement age).

[chesley]

It doesn’t increase further. there is no reason not to take it at 70

[neocon1984]

I am sorry for your situation.

I have had two biopsies due to very high PSA. Luckily, no cancer so far. I am terrified whenever I visit my urologist. He’s still not convinced that when (its a matter of time) I get prostate cancer that it won’t be be the type you have. About 15% of prostate cancer is metastatic.

Your urologist is your best friend, I hope.

- Bears fan :-)

[ken in texas]

Agree. I misunderstood what you wrote. It sounded like you were saying the benefits increased $500 every month by waiting. If so, I’d like to know the trick. ;-)

[SeaHawkFan]

You should go to a major cancer center to be evaluated. If you can swing it, make a trip to MD Anderson in Houston.

You can do a self referral at www.mdanderson.org
Ask to be seen by Dr. John W. Davis.

There are some advanced tools for diagnosing prostate cancer. Make the trip. Your life could depend on it.
Free mail me if you want more info.

[Intolerant in NJ]

So as an example, the monthly benefit at age 62 is $2,000, age 66 is $2,500, and age 70 it becomes $3,000...the different rates depend on when you start actually receiving your benefits - once you start, you stay at that rate - so you will get more on a monthly basis is you delay until 70 to start taking benefits rather than starting at 62 - on the other hand, you will have received benefits every month, albeit not as much, for an additional eight years if you start at 62 instead of waiting until 70 - depends on your needs......

[Graybeard58]

The person my wife spoke to ...................

*************************************************************

Right there’s your problem. S.S. is the same as I.R.S. in one aspect and that is if you ask 20 different reps a question, you will, for absolutely certainty, get at least 20 different answers and it’s entirely possible that every single answer is wrong.

[Graybeard58]

As an example in 2016 no COLA increase but there is an increase in how much they take out for Medicare (65 and older) so your net SS take home is less.

********************************************************************

because there will no Social Security cost of living increase for 2016, about 70 percent of Part B participants will be “held harmless” and their premiums won’t increase next year. Their premium will remain at $104.90 per month.

For the 30 percent not held harmless, the basic premium will rise to $121.80. This includes people who are not receiving Social Security benefits, those who will enroll in Part B for the first time next year.

http://blog.sfgate.com/pender/2015/11/10/medicare-announces-premiums-deductibles-for-2016/

[neocon1984]

Thanks for the info.

[Breto]

“because there will no Social Security cost of living increase for 2016, about 70 percent of Part B participants will be “held harmless” and their premiums won’t increase next year. Their premium will remain at $104.90 per month

Wonder why I got a notice from them that my medicare deduction from SS benefit will be $X which is in fact an increase in withhold over last year and I am over 69?

[Cold Heat]

You are essentially correct.

The idea is to entice you to wait until you have used up a few more remaining years.

[Steve Schulin]

There are reasons not to take it. At the top of my list is that Social Security is an unconstitutional program. Do I want to participate in such things? During the last census period, I recall some people here eloquently describe why folks should not answer questions posed by Census Bureau beyond those reasonably related to the constitutional requirement that a census be conducted to determine how many seats each state has in the U.S. House.

Some folks say Social Security is different than other unconstitutional programs because you pay into it, so it's actually your money. But Congress can change or even end your Social Security benefits, so it's not a binding contractual sort of matter; the tax money you paid in has been spent; and the growing trillions of debt require more taxes. If you're unwilling to participate in unconstitutional aspects of the census, I hope you'll consider being unwilling to sign up to receive Social Security checks.