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Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
I retired 60 and my wife did too. Both of us are collecting Social Security at 62. I’m taking home 2300. She’s taken home the same. I have a condo in Florida a house in Maryland, if I need equity, I can sell those to be put in an assisted living. We use our Social Security plus VA , pension, plus Navy retirement, plus a small VA disability to travel the world and enjoy life debt-free.
I think your guys are making good decision now when body still young enough to enjoy traveling,social activities.At 70 our health will be demented with 😊many problems,poor eating ,sleeping and worse will be cancer that a double ssa benefits at this time won’t be worth as much as in the early days of sixty.
I am an old guy. I gained 32% improvement on my PIA at age 70 vs 66. Sweet! Can darn near live on my Social Security alone. But I have to live a while to gain back what I lost.
Very well explained. Thanks. The one element often not discussed is how are retirees between 62-70 yet to take Social Security funding their retirements during those years. If they're heavily withdrawing from 401Ks, then they need to balance the loss in funds that would grow if they remained fully invested. That's a problem because just as we don't know how long we'll live, we don't know how future markets will perform. I suspect most Americans don't have the luxury to wait until they're 70.
Exactly! If you are spending down your retirement plan to get to your SS, there is an opportunity cost there. Often SS is looked at in a vacuum without considering all of the funds available and quality of life while waiting to reach 70.
This is a debt owed the retired. That the Federal Government has used it to subsidize their deficit spending doesn’t change the fact that it is owed. Instead of using the surplus to hide the true size of debts they should have invested it in the stock market.
Another important stat that is rarely discussed is for every year that you wait to draw SS after you are eligible could be another year that you are in the ground not receiving anything while other people are living it up on your contributions.
Rarely discussed? That's discussed all the time, in every single TH-cam video or article about Social Security. In fact, that's often the only thing discussed... the break-even point, and when one should file and the pros and cons of filing early vs filing late, since filing late might result in "leaving money on the table" if you are no longer around to collect it. Note that filing early, for the _average_ 62-year-old male, will also result in leaving money on the table. That average 62-year-old male will live to be 81 years old, according to the Actuarial Life Tables. (By comparison, the average 62-year-old female has a lifespan of 84 years.) Thus, since the break-even age from 62 vs 67 is only age 78 and 8 months, the average person collecting at 62 will live past the break-even point and also be leaving money on the table.
My social security is low because I got hit by the Windfall Elimination Provision (WEP) because I worked for my professional career outside the US (part time work in school). The years I worked in the US were low income years. I did work enough years to qualify for a benefit but WEP reduced my benefit by almost 55%.
By law, WEP cannot reduce your SSA at your Full Retirement age by more than half of your pension. However, I do think that the WEP ought to be changed so that the SSA can evaluate if your Social Security is already low income before any WEP reduction is applied. If the Social Security formula doesn’t actually provide Social Security retirement benefits that are enough income to sustain you, and if your pension is also low, I believe it doesn’t make sense to reduce your earned retirement benefits further. Social Security was created during the Depression and was meant to help working people avoid poverty.
@@dmulvany Half of my non-covered pensions is more than the maximum FRA benefit from social security. Personally, for people in my situation the WEP makes no sense at all. I was hit by the WEP because I worked outside the US. I also had several years when I worked in the US with no social security withheld, but did not earn any pension for that work. I earned social security benefits for work before and after my time outside the US. Consequently I resent the WEP reduction in my social security rather a lot.
Sounds like you're overall getting retirement income that's only a small amount larger than your pension. For me, I received a very small pension for over five years of noncovered employment, but I put 25% of my earnings into a tax deferred account and also bought savings bonds. Hope you were able to save some money separately, too.
@@dmulvany I have a modest pension from non-covered foreign work. I never worked at a place that offered any kind of savings other than the pension. I do have a small amount (
@@todddunn945, at least we are getting Medicare. That's valuable in itself. I had wound up paying over $1100 a month for health insurance previously (up from $170 a month in 2005), so Medicare is saving me a great deal. Part A is free to us, too.
Thank you marvin for Shareing this info it was so helpful . my husband refuses to watch this with me. He said he wants no part of this because it has nothing to do within him, but everything to do within me. I am 65 but I do not want to go on Social Security just yet. After watching your video I wanted to wait until I am 67 then it will put me at my full Retirement age.
IMO women on Survivor benefits will never receive SS on their own earnings which we paid FICA on while working and my FICA payments will be paid out to someone who may not have paid into the system. Somehow it just doesn't seem fair, like when SS went into effect, old people who never paid into FICA while they worked received SS payments paid for by people who had to pay into FICA.
All I know before watching this 33:03 minute long video is that if you retire earlier, you get less ! And if you wait longer you get more Duh! Retire earlier and start living life. Retire at 67, and you missed out on 5 years of collecting your money. It's about living life, or be a slave until you are 67
The break even point was explained well. My FRA is in October 2024 and i am still working and in pretty good shape. The only thing i wonder is should i wait till April to start and get the retro back 6 months pay in one lump sum since ibam still working till then. 🤔
Would like to see a retirement video on Social Security dealing with state workers. I example paid into PRS for 34 years retired working part-time for many years being told my Social Security check is going to be a third of what it’s supposed to be because I have a state retirement check, and my wife is in the same boat. Also she has worked for the school system and going to be retiring and also worked private industry paid in Social Security and is also going to be affected in her check as well. Seems like no one wants to talk about this. Would love to see a video on it, thank you
Thank you for the show. Always enjoy your clear calculation. If I delay my benefit until age 70, and stop working from age 67, will my benefit still increase 8% a year for 3 years when I collect it at age 70?
Why & WHEN did they cut the amount that people and their employers pay in? Or does it just look that way because they did not used to break out the Medicare part from the Social Security part? We've been hearing for years that the money available to pay out was insufficient
I have questions. I’m currently 69. Up until October of last year, I qualified for Medicaid through one of the Medicare Savings Program. Then in October I was told I no longer qualified and, as a matter of fact, I became unqualified a couple months earlier. So in October, about $490 was deducted from my SS check to pay back Part B premiums. I have paid for Part B since then. In January, I signed up for a Kaiser Advantage Plan. A couple of weeks ago, I received a letter from DHS stating that I DID qualify for Medicaid and payment of my Part B and it was backdated to last October. A new Medicaid card was sent to me. In July, my Part B should be paid for. So these are my questions: 1) Should I be getting paid back for the Part B premiums I paid from October - June since I’m told I qualified all during that time? 2) If so, would they do that as a direct deposit? 3) Now that I have Medicaid coverage back, should I not go to see any Kaiser doctors? 4) Finally, should I contact Kaiser about this and have them deactivate my coverage with them? Thank you. Signed: Confused Grandma.
You will surely want to contact Medicaid about that. They will be able to determine how you'll be reimbursed. I'd imagine it would come from Medicare or Medicaid. But unclear if it would be direct deposit or a check.
You are missing the time value of money, tax considerations, and the effect on a spouse if someone is married and they do not have the same social security benefits.
A lot of pros and cons when deciding when to draw SS. If you look at your family's medical history, life expectancy, and medical conditions, you will find that this often makes people retire at 62. With this in mind, since SS is the main source of income for retirees many will defer this payment and wait until 65. It's a tough decision, but if you can afford it, this will also help with taxes.
Thanks for doing your awesome videos- just wondering about your figures compared at the end- difference between collecting SS at FRA of 67 vs 70- would you have to live 12 years from 78, or until age 90 to “break even”?
I am 72 still working full time- next year my promotion will make me more money than I’ve ever earned. Because I only worked 30 years not 35 , social security is still filling in my years. Am I right?
Yes, as long as your earnings contribute to social security deductions and your employer matches what your W-2 deduction shows, you are still contributing towards your 35 years max. But, if you calculate your current social security benefit with the last 4 or 5 years as 0 (zero) you may want to consider takng social security benefits now. Afterall, you still get the 8% a year increase in social security for deferring till FE 70, yet you are two years past that, and it stops increasing the 8% increase. If I were you, stop by the SS Administration office and see what they calculate, vs what your next 4 or 5 years earnings contributions to be. Might not be worth delaying anymore.
2dodger2, keep in mind that you’ll need to take RMDs next year if you have a tax deferred retirement account or you’ll have to pay a penalty of 25% (though it can be reduced to a 10% penalty if you do pay it the following year). At any rate, you may have more income than you know what to do with!
@@lostinmyspace4910 I agree, your increasing benefits stop at age 70, and all you are getting after age 70 are COLAs. You can get your benefits, and still work as much as you want to improve your 35 years earnings.
Have you done a video on the Windfall Elimination Provision and how it affects your SS earning if you have another pension? Also have you discussed what SS considers a “substantial year” when calculating WEP. In my case I have 28 substantial SS years and will have 20 years in the Texas Teacher Retirement year at the end of this year and I will be 60 in Oct. If I take early SS retirement in 2026 (born in 1964) and I am drawing Teacher Retirement, I would be docked about $100 a month. If so keep working and add 2 more years in Teacher Retirement and retire around the time I can start drawing early SS retirement, my TRS would be $400 a month higher while I lose $100 in SS. If I have 30 substantial SS years WEP would not apply.
I like your break even analysis. I did that before to see retire 70 benefits. However retire 62 there is a penalty if you are still working. Retire 70 you better plan and wish longevity. There is an opportunity cost in there you did not calculate. For people retire 67 if they are still working and can pay the bills, the 140K is going to grow for them, not just only face value of present day money till 70.
I love you channel because your knowledge and clarity. Nobody can do true future calculations but you give us a good views of possibility 🙏 I found no other comparable channels that can present at your level.
People who never work don’t get Social Security unless they qualify through a spouse or former spouse or are disabled. Or do you mean benefits outside of SS? This video is about SS.
Can you talk about maximum family benefits? We have three of us that would be on my husband’s record. Half of his record is more than what my record brings in, but at the same time we have a fully disabled adult child who can switch from ssi to ssdi on his record. I was thinking that I can’t take my spousal benefits because I want to leave it for our disabled adult child.
Yes, the break even point is important to know. What is more important, is if you have a younger spouse, who earned less than you, making you the higher wage earner. So as the higher earner if you wait until age 70, that would give your lower wage spouse the maximum benefit amount if that spouse waited for their FRA.
Spousal benefit only applies if the lower earning spouse's own benefit was less than half of your benefit. Where it really matters is when the lower earning spouse gets a survivor's benefit. The higher your benefit the higher the survivor benefit will be.
@@todddunn945 thank you, I should have been more specific, the higher income spouse can make sure the lower income spouse will be able to get the highest benefits, if its planned properly.
The last part of the video may not be accurate for some people. For those who don't need the money at age 62, they should still take the money and invest it. That could move the break even point out far more than eleven years depending on how skilled the person is at investing.
My husband is retired at 62. I want to retire at 65 which is February of next year 2025. Do I have to keep working if I want to wait for FRA to collect SSA benifits? Or can I have a wage earning gap between age 65 and 67 and then collect. I have covered him on my insurance and will do so until age 65 when I quit my job. so we will go on Medicare him at age 68 because because my medical insurance will end Do I have to collect Social Security when I get on Medicare?
We retired some years ago and still do not take social security yet. (But we do have traditional Medicare plus supplemental or medigap insurance for each of us.) Your SS amount will continue to grow until the time you apply (up to age 70). If one of you takes SS at FRA and one waits until age 70, that can also be done. Medicare is taken at age 65 unless both of you have good insurance through an employer of one of you. You can waive it until you are no longer employed (if you notify Medicare of the reason so you do not get charged a penalty for signing up late).
I do the math with your numbers and it seems that My SS Id has more money for my retirement than after I do the math with the numbers you use, 35 years of earnings divided by 420, etc... Could the My SS ID website be in error or is it just an estimate that is usually overstated?
Question, if one takes early retirement and then reaches full retirement SS age, can you then earn as much as you want and not be docked $1 of every dollar over $23k?
I'm going to collect my social security at age 62. I will get 2k a month. No mesicare. At age 55, will retire early, collect union pension plus social security. Will be living in se Asia. It's better to take ss benefits as soon as possible, live in a cheap country, and enjoy retirement. Not work into mid to late 60s to collect full benefits
Whats the sense of not taking SSI at 62, unless you really love to work, but those that have very physical jobs and have been exposed to chemicals should have sometime to enjoy the freedom of not working yourself to death. You should be able to take SSI and continue to generate income it helps the economy and the state. Whats the downside, none.
Okay I'm 57 my retirement age doesn't go into effect until December 2034 when social security is schedualed to be reduced or have run-out supposedly ( get that money printer ready!) it's payouts to social security participants any idea how much my monthly social security check will be at 67 at the end of 2034?
Worst SS benefit is zero dollars per month! You work for many years at 2 jobs. One of them is pension job and the other one is regular job where you contribute towards SS. Because of windfall elimination provision and because your SS job did not earn enough to qualify as 'substantial' income you get no social security. $0.00 per month from Social security.
@@dmulvany…why should a person be penalized for having worked in two different sectors for the economy? The majority, if not all, of the people impacted by WEP worked in a public sector job, ie police, firefighter, teachers, civil employees. It’s not like they make a fantastic salary in that situation and often work second jobs, jobs that withhold SS to make ends meet. Then when they retire, they are hit with a penalty and cannot receive the full benefit earned. In addition, most hit with WEP are not eligible for survivor benefits, so when their spouse dies, they will not receive any benefits. This is known as the triple whammy effect. Lower pay while working, second job needed to survive, then reduced benefits when retired and loss of benefits when spouse dies. The exemption to the WEP for public sector employees is members of Congress. They can receive full SS, full retirement from public sector, and cash out their campaign funds if there is anything left in that chest.
NOT COMPLETELY TRUE,,,,,,,, ONE MIGHT WAIT TILL 70 FOR THE LARGER AMOUNT SO ONE CAN COVER THEEIR BILLS , EVEN IF U DIE EARLY U WERE ABLE TO LIVE BETTER,, AND BETTER IS WHAT ITS ALL ABOUT
@penelope5500 I read that since it's pass through income and we file jointly, it's considered household income, and her SSI would be subject to the earnings test.
@@michaelbreeland8823 Well, I guess SS will have the final say on that. Never heard of such a thing, but I don't think her benefits will be affected (but I am not trying to present myself as some kind of a SS expert).
If you have already started Medicare Part A and B you can get a supplement plan. It's a lot to determine if you can do that at this time. Please contact our office so we can better assist at 1-800-864-8890
@@FiestaIsland It's the top 35 years of earnings. Earnings are only indexed through age 59, then at age 60 they are not. It is possible to work from age 60 and beyond and replace your indexed earning years if they are higher. You should check your earning hx on Your Social Security Statement to make sure it is correct.
It will never be 0, as long as there are people working, and paying FICA taxes you will get benefits. The benefit cuts being spoken about many say you would receive only 84 % of your benefits. But that is if they do nothing until then, so many things can happen until that predication. Whenever I get to that point, I am not going to base when I take my SS benefits on fears of reduced or no benefits.
No way Im waiting till 67 or 70 to retire. But why dont professionals like you stress that EACH YEAR past 62 your benefit goes up. I just learned this, will probably work till 63 to get the bump in money.
It’s not hard for me at all… original Medicare and a supplement policy ie medigap. I want to go to the best hospital or doctor anywhere in the country. Not be told where I have to go. I chose AARP’s backed which is United Healthcare for drugs and also for supplemental. The last thing I want to do is be spending all my money on copays, deductibles, coinsurances etc. is it a little expensive yes but if you have health issues - just one month of copays not to mention going to ER Or having to go in hospital and you have covered months of premiums. And you know it’s one flat premium per month. With a Medicare advantage the company can charge you whatever they want. They say zero premium but believe me they will get their money back. Thank you it’s original and supplemental policy. Also the republicans wants us to go with Medicare supplemental and when there is enough on these plans, then there won’t be Medicare anymore …. It will be all private insurance ie Medicare advantage and the government won’t have any responsibility at all. Except possibly those of us who are possibly grandfathered in ie already on original Medicare. Medicare advantage you still have the part b premium it’s $170+ each year. Not to mention these high specialists , ER, Hospital, etc. copays. I I feel like they ie Medicare advantage lie to people. I called several plans - and if I hadn’t pushed they wouldn’t have even told me about those.
I totally agree. We are planning our retirement on getting the best care as possible, and that means a supplement plan. My spouse had cancer treatments recently, and just the chemo treatments alone was over 16K. They wanted to charge over 55K, but the insurance company only allowed a certain amount for each session of treatment. Every test the oncologist ordered, and other tests we pressed for was done, to determine the best treatment plan. Very expensive testing, and very expensive bloodwork all approved, and quickly performed. Thank goodness, they caught it early with a high 96% cure rate. My spouse could have slacked on treatment since it was in the early stages, but having 2 excellent oncologists in 2 different states, we decided to fight hard with the best possible treatments they offered, while my spouse was overall physically healthy for the treatments. One day you are perfectly healthy, the next you are not. Everything, after manageable deductibles was covered 100% Excellent employer insurance. We researched and got the best oncologists. The importance of being able to pick your doctor is such a critical step in keeping your health in the later years of your life.
Have you done a video on the Windfall Elimination Provision and how it affects your SS earning if you have another pension? Also have you discussed what SS considers a “substantial year” when calculating WEP. In my case I have 28 substantial SS years and will have 20 years in the Texas Teacher Retirement year at the end of this year and I will be 60 in Oct. If I take early SS retirement in 2026 (born in 1964) and I am drawing Teacher Retirement, I would be docked about $100 a month. If so keep working and add 2 more years in Teacher Retirement and retire around the time I can start drawing early SS retirement, my TRS would be $400 a month higher while I lose $100 in SS. If I have 30 substantial SS years WEP would not apply.
✅ Watch the internet's #1 Online Medicare Educational Workshop for FREE: medicareschool.com/master-medicare/?
✅ To get 1 on 1 Help from our Team, Schedule a Call Here: medicareschool.com/talk-to-a-guide/?
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Mr. Musick has a strong command over social security fundamentals- very simply and clearly explained. Great job!
Thank you!
I retired 60 and my wife did too. Both of us are collecting Social Security at 62. I’m taking home 2300. She’s taken home the same. I have a condo in Florida a house in Maryland, if I need equity, I can sell those to be put in an assisted living. We use our Social Security plus VA , pension, plus Navy retirement, plus a small VA disability to travel the world and enjoy life debt-free.
Lucky you!! You are an extremely fortunate couple. Good for you!!
Quad dipper plus wife. Lol
My dad got. Military Retirement, Fed Retirement, SS, VA, and state. State was based upon $400/mo small town city council.
I think your guys are making good decision now when body still young enough to enjoy traveling,social activities.At 70 our health will be demented with 😊many problems,poor eating ,sleeping and worse will be cancer that a double ssa benefits at this time won’t be worth as much as in the early days of sixty.
@@luba5726 it's called planning your life at 27, working hard, and making sacrifices!
More hard work than luck @@lorenzonewhouse6552
I am an old guy. I gained 32% improvement on my PIA at age 70 vs 66. Sweet! Can darn near live on my Social Security alone. But I have to live a while to gain back what I lost.
It's not intended to be a welfare benefit you get what you are entitled to.
No you don’t
Very well explained. Thanks. The one element often not discussed is how are retirees between 62-70 yet to take Social Security funding their retirements during those years. If they're heavily withdrawing from 401Ks, then they need to balance the loss in funds that would grow if they remained fully invested. That's a problem because just as we don't know how long we'll live, we don't know how future markets will perform. I suspect most Americans don't have the luxury to wait until they're 70.
Exactly! If you are spending down your retirement plan to get to your SS, there is an opportunity cost there. Often SS is looked at in a vacuum without considering all of the funds available and quality of life while waiting to reach 70.
Please do a video on collecting early SS and working 1099 income for someone else’s business that you don’t own.
Filed when I turned 66. My social security benefit is $3192 after subtracting the IRMMA bracket Part-B premium.
What if in 8-10 years SS becomes insolvent? Better take it early.
Very true,but i have to believe they will do something through congress to fix this problem.
This is a debt owed the retired. That the Federal Government has used it to subsidize their deficit spending doesn’t change the fact that it is owed. Instead of using the surplus to hide the true size of debts they should have invested it in the stock market.
Another important stat that is rarely discussed is for every year that you wait to draw SS after you are eligible could be another year that you are in the ground not receiving anything while other people are living it up on your contributions.
Rarely discussed?
That's discussed all the time, in every single TH-cam video or article about Social Security. In fact, that's often the only thing discussed... the break-even point, and when one should file and the pros and cons of filing early vs filing late, since filing late might result in "leaving money on the table" if you are no longer around to collect it.
Note that filing early, for the _average_ 62-year-old male, will also result in leaving money on the table. That average 62-year-old male will live to be 81 years old, according to the Actuarial Life Tables. (By comparison, the average 62-year-old female has a lifespan of 84 years.) Thus, since the break-even age from 62 vs 67 is only age 78 and 8 months, the average person collecting at 62 will live past the break-even point and also be leaving money on the table.
You do a great job in explaining things
Great job explaining this
Sadly my dad passed away at 54 in 1994, the government got to keep his S.S money. He paid in and got nothing back.
Sorry for your dad but losing SS pales in comparison to living only half of ones full age.
That is why it is called Social Security Insurance. Some people get it without paying much in some pay in and don’t ever claim a benefit.
You are an amazing teacher. Thank you.
If you have any other questions you can contact us at 1-800-864-8890.
My social security is low because I got hit by the Windfall Elimination Provision (WEP) because I worked for my professional career outside the US (part time work in school). The years I worked in the US were low income years. I did work enough years to qualify for a benefit but WEP reduced my benefit by almost 55%.
By law, WEP cannot reduce your SSA at your Full Retirement age by more than half of your pension.
However, I do think that the WEP ought to be changed so that the SSA can evaluate if your Social Security is already low income before any WEP reduction is applied. If the Social Security formula doesn’t actually provide Social Security retirement benefits that are enough income to sustain you, and if your pension is also low, I believe it doesn’t make sense to reduce your earned retirement benefits further. Social Security was created during the Depression and was meant to help working people avoid poverty.
@@dmulvany Half of my non-covered pensions is more than the maximum FRA benefit from social security. Personally, for people in my situation the WEP makes no sense at all. I was hit by the WEP because I worked outside the US. I also had several years when I worked in the US with no social security withheld, but did not earn any pension for that work. I earned social security benefits for work before and after my time outside the US. Consequently I resent the WEP reduction in my social security rather a lot.
Sounds like you're overall getting retirement income that's only a small amount larger than your pension.
For me, I received a very small pension for over five years of noncovered employment, but I put 25% of my earnings into a tax deferred account and also bought savings bonds. Hope you were able to save some money separately, too.
@@dmulvany I have a modest pension from non-covered foreign work. I never worked at a place that offered any kind of savings other than the pension. I do have a small amount (
@@todddunn945, at least we are getting Medicare. That's valuable in itself. I had wound up paying over $1100 a month for health insurance previously (up from $170 a month in 2005), so Medicare is saving me a great deal. Part A is free to us, too.
Fabulous information, and very clearly explained 👏.
Glad it was helpful! If you have any other questions, you can give us a call at 1-800-864-8890!
Thank you marvin for Shareing this info it was so helpful . my husband refuses to watch this with me. He said he wants no part of this because it has nothing to do within him, but everything to do within me. I am 65 but I do not want to go on Social Security just yet. After watching your video I wanted to wait until I am 67 then it will put me at my full Retirement age.
Glad it was helpful! If you have any questions or need assistance we are here to help. You can reach us at 1-800-864-8890.
Thanks again sir and have a great day.
IMO women on Survivor benefits will never receive SS on their own earnings which we paid FICA on while working and my FICA payments will be paid out to someone who may not have paid into the system. Somehow it just doesn't seem fair, like when SS went into effect, old people who never paid into FICA while they worked received SS payments paid for by people who had to pay into FICA.
SS is a safety net for older folks who have no other support. You are paying to help others. Dont be a dick.
Always great info thats straight forward!!
Medicare School Thanks for the information.
Happy we can help, if you have any questions just give us a call 1-800-864-8890.
All I know before watching this 33:03 minute long video is that if you retire earlier, you get less ! And if you wait longer you get more Duh! Retire earlier and start living life. Retire at 67, and you missed out on 5 years of collecting your money. It's about living life, or be a slave until you are 67
T R U T H !!!
So it's basically a guessing game. Because you never know when you're going to die.
Nice summary. Most eyes glazed over halfway through. But still a great summary to study and understand how the system works.
The break even point was explained well. My FRA is in October 2024 and i am still working and in pretty good shape. The only thing i wonder is should i wait till April to start and get the retro back 6 months pay in one lump sum since ibam still working till then. 🤔
life time earning up to the capped wage amount, not anything over that, correct?
Another factor besides your life expectancy, is your spouse's. If I go first, I want to make sure my wife won't have any money issues.
Would like to see a retirement video on Social Security dealing with state workers. I example paid into PRS for 34 years retired working part-time for many years being told my Social Security check is going to be a third of what it’s supposed to be because I have a state retirement check, and my wife is in the same boat. Also she has worked for the school system and going to be retiring and also worked private industry paid in Social Security and is also going to be affected in her check as well. Seems like no one wants to talk about this. Would love to see a video on it, thank you
Fantastic Videos
Thank You So Much!!!
Glad you like them!
Thank you for the show. Always enjoy your clear calculation. If I delay my benefit until age 70, and stop working from age 67, will my benefit still increase 8% a year for 3 years when I collect it at age 70?
Yes it will.
Thank you.
Why & WHEN did they cut the amount that people and their employers pay in? Or does it just look that way because they did not used to break out the Medicare part from the Social Security part? We've been hearing for years that the money available to pay out was insufficient
They haven’t reduced it. He’s just showing us the percentages as they are paid.
I have questions. I’m currently 69. Up until October of last year, I qualified for Medicaid through one of the Medicare Savings Program. Then in October I was told I no longer qualified and, as a matter of fact, I became unqualified a couple months earlier. So in October, about $490 was deducted from my SS check to pay back Part B premiums. I have paid for Part B since then. In January, I signed up for a Kaiser Advantage Plan.
A couple of weeks ago, I received a letter from DHS stating that I DID qualify for Medicaid and payment of my Part B and it was backdated to last October. A new Medicaid card was sent to me. In July, my Part B should be paid for.
So these are my questions:
1) Should I be getting paid back for the Part B premiums I paid from October - June since I’m told I qualified all during that time?
2) If so, would they do that as a direct deposit?
3) Now that I have Medicaid coverage back, should I not go to see any Kaiser doctors?
4) Finally, should I contact Kaiser about this and have them deactivate my coverage with them?
Thank you.
Signed: Confused Grandma.
You will surely want to contact Medicaid about that. They will be able to determine how you'll be reimbursed. I'd imagine it would come from Medicare or Medicaid. But unclear if it would be direct deposit or a check.
You are missing the time value of money, tax considerations, and the effect on a spouse if someone is married and they do not have the same social security benefits.
A lot of pros and cons when deciding when to draw SS. If you look at your family's medical history, life expectancy, and medical conditions, you will find that this often makes people retire at 62. With this in mind, since SS is the main source of income for retirees many will defer this payment and wait until 65. It's a tough decision, but if you can afford it, this will also help with taxes.
Thanks for doing your awesome videos- just wondering about your figures compared at the end- difference between collecting SS at FRA of 67 vs 70- would you have to live 12 years from 78, or until age 90 to “break even”?
What if you are beyond full retirement age and make 200,000 in the stock market in one year do you pay no taxes?
I am 72 still working full time- next year my promotion will make me more money than I’ve ever earned. Because I only worked 30 years not 35 , social security is still filling in my years. Am I right?
I'd say yes.... but I'm not the expert here! I'm just watching this like you!
Yes, as long as your earnings contribute to social security deductions and your employer matches what your W-2 deduction shows, you are still contributing towards your 35 years max. But, if you calculate your current social security benefit with the last 4 or 5 years as 0 (zero) you may want to consider takng social security benefits now. Afterall, you still get the 8% a year increase in social security for deferring till FE 70, yet you are two years past that, and it stops increasing the 8% increase. If I were you, stop by the SS Administration office and see what they calculate, vs what your next 4 or 5 years earnings contributions to be. Might not be worth delaying anymore.
2dodger2, keep in mind that you’ll need to take RMDs next year if you have a tax deferred retirement account or you’ll have to pay a penalty of 25% (though it can be reduced to a 10% penalty if you do pay it the following year). At any rate, you may have more income than you know what to do with!
@@lostinmyspace4910 I agree, your increasing benefits stop at age 70, and all you are getting after age 70 are COLAs. You can get your benefits, and still work as much as you want to improve your 35 years earnings.
Have you done a video on the Windfall Elimination Provision and how it affects your SS earning if you have another pension? Also have you discussed what SS considers a “substantial year” when calculating WEP. In my case I have 28 substantial SS years and will have 20 years in the Texas Teacher Retirement year at the end of this year and I will be 60 in Oct. If I take early SS retirement in 2026 (born in 1964) and I am drawing Teacher Retirement, I would be docked about $100 a month. If so keep working and add 2 more years in Teacher Retirement and retire around the time I can start drawing early SS retirement, my TRS would be $400 a month higher while I lose $100 in SS. If I have 30 substantial SS years WEP would not apply.
I like your break even analysis. I did that before to see retire 70 benefits. However retire 62 there is a penalty if you are still working. Retire 70 you better plan and wish longevity. There is an opportunity cost in there you did not calculate. For people retire 67 if they are still working and can pay the bills, the 140K is going to grow for them, not just only face value of present day money till 70.
I love you channel because your knowledge and clarity. Nobody can do true future calculations but you give us a good views of possibility 🙏 I found no other comparable channels that can present at your level.
We're happy we can help in any way possible!
People who never work get a lot help is that Fair😮😮😮
People who never work don’t get Social Security unless they qualify through a spouse or former spouse or are disabled. Or do you mean benefits outside of SS? This video is about SS.
Can you talk about maximum family benefits? We have three of us that would be on my husband’s record. Half of his record is more than what my record brings in, but at the same time we have a fully disabled adult child who can switch from ssi to ssdi on his record. I was thinking that I can’t take my spousal benefits because I want to leave it for our disabled adult child.
Yes, the break even point is important to know. What is more important, is if you have a younger spouse, who earned less than you, making you the higher wage earner. So as the higher earner if you wait until age 70, that would give your lower wage spouse the maximum benefit amount if that spouse waited for their FRA.
Spousal benefit only applies if the lower earning spouse's own benefit was less than half of your benefit. Where it really matters is when the lower earning spouse gets a survivor's benefit. The higher your benefit the higher the survivor benefit will be.
@@todddunn945 thanks, that's what I really was typing about, survivors benefits
@@todddunn945 thank you, I should have been more specific, the higher income spouse can make sure the lower income spouse will be able to get the highest benefits, if its planned properly.
Thank you
You're welcome
cool info..
The last part of the video may not be accurate for some people. For those who don't need the money at age 62, they should still take the money and invest it. That could move the break even point out far more than eleven years depending on how skilled the person is at investing.
Yes, it certainly depends on the situation as SS is based on individual situations! Thank you for sharing!
My husband is retired at 62. I want to retire at 65 which is February of next year 2025. Do I have to keep working if I want to wait for FRA to collect SSA benifits? Or can I have a wage earning gap between age 65 and 67 and then collect. I have covered him on my insurance and will do so until age 65 when I quit my job. so we will go on Medicare him at age 68 because because my medical insurance will end Do I have to collect Social Security when I get on Medicare?
We retired some years ago and still do not take social security yet. (But we do have traditional Medicare plus supplemental or medigap insurance for each of us.) Your SS amount will continue to grow until the time you apply (up to age 70). If one of you takes SS at FRA and one waits until age 70, that can also be done. Medicare is taken at age 65 unless both of you have good insurance through an employer of one of you. You can waive it until you are no longer employed (if you notify Medicare of the reason so you do not get charged a penalty for signing up late).
You don't have to be on Medicare to collect SS. If you want to hold off longer you certainly can.
Is there a way for Disable people on Soc Sec and tradional TX Medicare/Medicaid to get State covered Dental coverage.
I do the math with your numbers and it seems that My SS Id has more money for my retirement than after I do the math with the numbers you use, 35 years of earnings divided by 420, etc... Could the My SS ID website be in error or is it just an estimate that is usually overstated?
Question, if one takes early retirement and then reaches full retirement SS age, can you then earn as much as you want and not be docked $1 of every dollar over $23k?
That is correct once you've met FRA.
I'm going to collect my social security at age 62. I will get 2k a month. No mesicare. At age 55, will retire early, collect union pension plus social security. Will be living in se Asia. It's better to take ss benefits as soon as possible, live in a cheap country, and enjoy retirement. Not work into mid to late 60s to collect full benefits
Go to Philippines. You'll live like a king
Hi does social security count your pension too when you retire and want to work part time? or just social security only?
No, if you retire early (before your FRA) they only count earned wage income.
@@threeftr3349 ok thank you
Whats the sense of not taking SSI at 62, unless you really love to work, but those that have very physical jobs and have been exposed to chemicals should have sometime to enjoy the freedom of not working yourself to death. You should be able to take SSI and continue to generate income it helps the economy and the state. Whats the downside, none.
You do not have to keep working in order to delay taking your SS.
Okay I'm 57 my retirement age doesn't go into effect until December 2034 when social security is schedualed to be reduced or have run-out supposedly ( get that money printer ready!) it's payouts to social security participants any idea how much my monthly social security check will be at 67 at the end of 2034?
Like 1,000 dollars when all is said and done at that time because are not working like the old heads to contribute and also cash people working
Worst SS benefit is zero dollars per month! You work for many years at 2 jobs. One of them is pension job and the other one is regular job where you contribute towards SS. Because of windfall elimination provision and because your SS job did not earn enough to qualify as 'substantial' income you get no social security. $0.00 per month from Social security.
By law, WEP cannot reduce your social security benefit by more than half of the pension. If you never earned more than SGA, WEP was not a factor.
@@dmulvany…why should a person be penalized for having worked in two different sectors for the economy? The majority, if not all, of the people impacted by WEP worked in a public sector job, ie police, firefighter, teachers, civil employees. It’s not like they make a fantastic salary in that situation and often work second jobs, jobs that withhold SS to make ends meet. Then when they retire, they are hit with a penalty and cannot receive the full benefit earned. In addition, most hit with WEP are not eligible for survivor benefits, so when their spouse dies, they will not receive any benefits. This is known as the triple whammy effect. Lower pay while working, second job needed to survive, then reduced benefits when retired and loss of benefits when spouse dies. The exemption to the WEP for public sector employees is members of Congress. They can receive full SS, full retirement from public sector, and cash out their campaign funds if there is anything left in that chest.
I would forfeit everything I've paid in 25 years of working just to opt out. Compared to any decent investment, S.S. is a pittance.
NOT COMPLETELY TRUE,,,,,,,, ONE MIGHT WAIT TILL 70 FOR THE LARGER AMOUNT SO ONE CAN COVER THEEIR BILLS , EVEN IF U DIE EARLY U WERE ABLE TO LIVE BETTER,, AND BETTER IS WHAT ITS ALL ABOUT
People should not be forced to work till 67 to get money that was illegally taken from them. Give people their money back.
Take it at 62. Problem fixed. You are welcome.
My wife and I are the same age. She doesn't work now, but I'm self employed with a LLC. Is my wife's SSI subject to the earnings test?
No, of course not. HER SS is not affected if SHE is not working.
@penelope5500 I read that since it's pass through income and we file jointly, it's considered household income, and her SSI would be subject to the earnings test.
@@michaelbreeland8823 Well, I guess SS will have the final say on that. Never heard of such a thing, but I don't think her benefits will be affected (but I am not trying to present myself as some kind of a SS expert).
No, it wouldn't conflict with her earnings test. They are only considering her income at that time.
I’m collecting SS can I be enrolled in plan G plus dentist now if my birthday is 12-23-56?
If you have already started Medicare Part A and B you can get a supplement plan. It's a lot to determine if you can do that at this time. Please contact our office so we can better assist at 1-800-864-8890
Do the 35 years in the Benefit Formula only include years if substantial earnings?
It's the top 35 years of indexed income.
@@FiestaIsland It's the top 35 years of earnings. Earnings are only indexed through age 59, then at age 60 they are not. It is possible to work from age 60 and beyond and replace your indexed earning years if they are higher.
You should check your earning hx on Your Social Security Statement to make sure it is correct.
Consider by 2035 SS will be insolvent... they will REDUCE benefits to retirees.
Some will pay in but get nothing eventually. Get what you can early.
It will never be 0, as long as there are people working, and paying FICA taxes you will get benefits. The benefit cuts being spoken about many say you would receive only 84 % of your benefits. But that is if they do nothing until then, so many things can happen until that predication. Whenever I get to that point, I am not going to base when I take my SS benefits on fears of reduced or no benefits.
No way Im waiting till 67 or 70 to retire. But why dont professionals like you stress that EACH YEAR past 62 your benefit goes up. I just learned this, will probably work till 63 to get the bump in money.
We do discuss this is just about every SS video we have.
I doubt this will even exist in 36 years from now. And I can't even make ends meet now. 😢
It’s not hard for me at all… original Medicare and a supplement policy ie medigap. I want to go to the best hospital or doctor anywhere in the country. Not be told where I have to go. I chose AARP’s backed which is United Healthcare for drugs and also for supplemental. The last thing I want to do is be spending all my money on copays, deductibles, coinsurances etc. is it a little expensive yes but if you have health issues - just one month of copays not to mention going to ER
Or having to go in hospital and you have covered months of premiums. And you know it’s one flat premium per month. With a Medicare advantage the company can charge you whatever they want. They say zero premium but believe me they will get their money back. Thank you it’s original and supplemental policy.
Also the republicans wants us to go with Medicare supplemental and when there is enough on these plans, then there won’t be Medicare anymore …. It will be all private insurance ie Medicare advantage and the government won’t have any responsibility at all. Except possibly those of us who are possibly grandfathered in ie already on original Medicare.
Medicare advantage you still have the part b premium it’s $170+ each year. Not to mention these high specialists , ER, Hospital, etc. copays. I I feel like they ie Medicare advantage lie to people. I called several plans - and if I hadn’t pushed they wouldn’t have even told me about those.
I totally agree. We are planning our retirement on getting the best care as possible, and that means a supplement plan. My spouse had cancer treatments recently, and just the chemo treatments alone was over 16K. They wanted to charge over 55K, but the insurance company only allowed a certain amount for each session of treatment.
Every test the oncologist ordered, and other tests we pressed for was done, to determine the best treatment plan. Very expensive testing, and very expensive bloodwork all approved, and quickly performed.
Thank goodness, they caught it early with a high 96% cure rate. My spouse could have slacked on treatment since it was in the early stages, but having 2 excellent oncologists in 2 different states, we decided to fight hard with the best possible treatments they offered, while my spouse was overall physically healthy for the treatments.
One day you are perfectly healthy, the next you are not. Everything, after manageable deductibles was covered 100% Excellent employer insurance. We researched and got the best oncologists. The importance of being able to pick your doctor is such a critical step in keeping your health in the later years of your life.
Have you done a video on the Windfall Elimination Provision and how it affects your SS earning if you have another pension? Also have you discussed what SS considers a “substantial year” when calculating WEP. In my case I have 28 substantial SS years and will have 20 years in the Texas Teacher Retirement year at the end of this year and I will be 60 in Oct. If I take early SS retirement in 2026 (born in 1964) and I am drawing Teacher Retirement, I would be docked about $100 a month. If so keep working and add 2 more years in Teacher Retirement and retire around the time I can start drawing early SS retirement, my TRS would be $400 a month higher while I lose $100 in SS. If I have 30 substantial SS years WEP would not apply.