Social Security- take early or later?

[tvguy]

Only problem is that it is a “look back” surcharge so not based on current income but previous income. For many there is a substantial difference… if true, it will be self limiting moving forward, since it’s recalculated every year.

I was very lucky that I never had to deal with Cobra but have known many who did and I think the costs are just criminal! The Medicare surcharge is just something I think most are not aware of… and depending on your situation is a another piece of the financial information to consider.

COBRA was expensive, but half the cost of the "Affordable Healthcare Act" market place policies since we did not qualify for a susbidy.

 

[Sheree]

Prior to age 19? Where is that stated?

in order to have the amount over the community me limit excluded for medicaid

 

[Sheree]

a dac can have a work history, just not currently earning in excess of sga, and they can work while on it and are encouraged to so with some income disregard programs. in fact, in the insanely rare situation where a dac actually acquired enough quarters to qualify for ssd (vs. ssi) under their own work record then an application can be made and social security has to look and see if they will qualify for more under their parent's work record.

dac IS subject to maximum family benefits amounts but in our case dh and i both draw from our own individual records so that means ds draws on the higher of the two and it's considerably more than ssi (and he's not held to the ssi income/assett restrictions but the more generous dac).

i agree-financial planning in this situation is key. we were fortunate to have an estate attorney who was very educated in both elder and disability law so coordinating dac, life insurance, trusts, an able account...was paramount in everyone's mind.

no, prior ssi receipt is not required for consideration what so ever, in fact many young adults in receipt of DAC would not have been eligible for ssi b/c until age 18 their parent's income and assets would have made them financially ineligible. if the parent does not pass away or begin receiving social security until AFTER the child turned 18 then it's possible they may have applied for and received ssi but it is not required. the eligibility for DAC under a parent's record is (copy and pasted from social security website)-

An adult who has a disability that began before age 22 may be eligible for benefits if their parent is deceased or starts receiving retirement or disability benefits. We consider this a "child's" benefit because it is paid on a parent's Social Security earnings record.

The Disabled Adult Child (DAC) — who may be an adopted child, or, in some cases, a stepchild, grandchild, or step grandchild — must be unmarried, age 18 or older, have a qualified disability that started before age 22, and meet the definition of disability for adults.

I'm referring to being able to qualify for Medicaid as a dac for thee exclusion of the amount over the ssi limit because they're collecting on the parent's ss

 

[kathyk2]

Isn't the DAC program only for disabled adult children who have never worked and paid any SS tax? That was my understanding. Certainly a good program to know about, but many disabled adult children are capable of doing *some* work and will likely be disqualified from this benefit if they ever work, even if they stay under the threshold for SGA.

DAC is also subject to maximum family benefit amounts, so it's not as generous as it sounds, especially with more than one disabled child. Life insurance should still be part of the picture.

I was on SSI and worked part time. When my dad retired I received part of his Social Security plus my own SSDI that I earned by working part time.

 

[barkley]

I'm referring to being able to qualify for Medicaid as a dac for thee exclusion of the amount over the ssi limit because they're collecting on the parent's ss

medicaid is an entirely different program separate and apart from social security and medicare with a different application process (i supervised a medicaid unit). a dac would need to apply for medicaid separately from their dac application (which would be the smart thing to do because there's a 2 year wait for medicare from the time dac is approved just like with ssdi). in my son's case we did the medicaid application as he approached medicare eligibility because he qualifies for a program called SLMB (special low income medicare beneficiary) it pays for his medicare premiums along with the extra for his advantage plan so long as his assets and income (from all sources) fall at or below the medicaid limit.

 

[midwestdee]

Since no one has pointed this out, I wanted to add that while standard A & B is $164.90, if the income you filed on your taxes is above a certain amount you will pay a surcharge:

For those single filers in the MAGI (modified adjusted gross income) range of over $91,000 to $114,000, that means your Part B premium is $238.10. For those in the over $114,000 to $142,000 bracket, the premium is $340.20.

There is a formula they use. I got hit this year since it is figured on my last tax return when I was working full time. Since it’s reassessed yearly, it should drop off… but it wasn’t something I was aware of before… bad planning on my part!

There an appeal form you can fill out. Sometimes people worked an unusual amount of overtime which is not remotely typical. You can ask that they examine the previous years tax form. I had to that because our joint income barely topped the limit for the year. It got straightened out pretty quick.

 

[Debbie Jean]

There an appeal form you can fill out. Sometimes people worked an unusual amount of overtime which is not remotely typical. You can ask that they examine the previous years tax form. I had to that because our joint income barely topped the limit for the year. It got straightened out pretty quick.

That definitely helps if you have extenuating circumstances. Not the case for me, however. My income topped the limit for several years before I retired… one if the reasons I continued working until 70.

 

[kathyk2]

I was on SSI and worked part time. When my dad retired I received part of his Social Security plus my own SSDI that I earned by working part time.

I thought I wouldn't be eligible for for my Dad's SS because I was working at the time. When my dad applied for Social Security he was asked if he had a disabled child. I had to go with him to be interviewed along with my birth certificate.

 

[Anna131517]

Generally speaking, if you expect to live 10 more years after taking it then delaying makes financial sense. That all depends on your individual health and family history. SS is inflation-protected whereas 401k savings and many pension plans are not. So you want to maximize the SS amount by delaying receipt when possible.

 

[bgda24]

I’m no where close to having to make a decision on this but just heard some people talking about it. If you take it early, you get less. But if you wait, will you get it at all??? So, do you make a spreadsheet trying to calculate where the breakeven point is? I’m just curious what you think.

As many on this thread have said, It is truly an individual decision base on each persons particular situation. That being said, here are my two-cents.
I've done the math for myself. If I retire early at 62, I receive approximately $750 less per month. That means I would earn approx $105,000 during that 60 month period between 62-67. Sounds great, right? However, since I plan on working until I am 67, I understand that my SS benefits could be further reduced since I will not be at full retirement age.
So waiting until full retirement at 67 works best for me. Then I will be earning the extra $750 per month going forward. I will not wait until 70, although it would bump my monthly check by $600, since that would mean losing out on approximately $90,000 in payments between 67-70. To break even, taking it at 70 for the extra $600, means it would take 12.5 years.

 

[tvguy]

As many on this thread have said, It is truly an individual decision base on each persons particular situation. That being said, here are my two-cents.
I've done the math for myself. If I retire early at 62, I receive approximately $750 less per month. That means I would earn approx $105,000 during that 60 month period between 62-67. Sounds great, right? However, since I plan on working until I am 67, I understand that my SS benefits could be further reduced since I will not be at full retirement age.
So waiting until full retirement at 67 works best for me. Then I will be earning the extra $750 per month going forward. I will not wait until 70, although it would bump my monthly check by $600, since that would mean losing out on approximately $90,000 in payments between 67-70. To break even, taking it at 70 for the extra $600, means it would take 12.5 years.

My game plan is simple:
1) To have enough money to live my life the way I want
2) Pay the least tax possible.

And while I listed pay the least tax possible as number 2, it is only a hair less important that having enough money.

 

[piccolopat]

Since no one has pointed this out, I wanted to add that while standard A & B is $164.90, if the income you filed on your taxes is above a certain amount you will pay a surcharge:

For those single filers in the MAGI (modified adjusted gross income) range of over $91,000 to $114,000, that means your Part B premium is $238.10. For those in the over $114,000 to $142,000 bracket, the premium is $340.20.

There is a formula they use. I got hit this year since it is figured on my last tax return when I was working full time. Since it’s reassessed yearly, it should drop off… but it wasn’t something I was aware of before… bad planning on my part!

There is a form that you can file to eliminate the IRMAA in cases like yours.

 

[mikehn]

Im a simple guy. Im gonna retire, find some spot on the beach and stick my toes in the sand for a few years. If the rules haven't changed by then, I'll take SS at 62, even if only 70%. Coupled with my pension, I should be good for awhile. If needed, I'll dip into my 401ks later in life. Some people wanna take the money and run. Some people prefer to leave money on the table in 'hopes' of a better payout later. I get it.

 

[tasha99]

Statistically, it's all the same since it's calculated so the average person will get the same lifetime payout depending on when they start. I know my mom and my grandma weren't long lived (72 and 61 respectively) so I'm taking it at 62.

 

[PatMcDuck]

We decided to split the difference, and I took my SS early and my husband is waiting for full retirement age 66 1/2. I worked only PT after staying home with the 4 kids for 6 years. So the difference for ME between early and full retirement age wasn't that much. Husband is still working (he just turned 66),