WHEN TO START COLLECTING SOCIAL SECURITY

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Apr 30, 2005
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Southern Cal
I am currently 65.
My FRA (Full Retirement Age) is 66 and 2 months.
I was born in the third week of April so my FRA is the third week of June.
If I were to start right now they would penalize me on income over 47k which would not be worth it for me.
I was thinking about starting in January 2021. I would take a little bit of a hit in my benefit for life but at the same time my wife would be able to collect off my benefit instead of hers. She didn't work that much so it would be a big boost for her.
What I don't know is if that 47k is based monthly or yearly. If it's monthly it's not worth it to start in January.
If it's based yearly, I would not earn 47k by June 2021, and then after June I'm at FRA so no penalty.
I would appreciate any advice if you have gone through this.
Everything on the internet is confusing and contradictory.
 
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I would assume earnings are based on your last year's tax filing. Call your accountant to max out your benefits.
That's correct.
It will be the same for this year.
Am trying to contact the accountant.
They are in the process of moving from California to Texas.
They will still do my taxes. I just can't reach them right now.
 
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I did the "freedom 55" thing, so can't really help you too much. But a good accountant will save you money, if you file incorrectly at first, it will be a hassle to change it later.
 
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I did the "freedom 55" thing, so can't really help you too much. But a good accountant will save you money, if you file incorrectly at first, it will be a hassle to change it later.
Yes I know.
I think they cancelled that Oops! clause where you could cancel after a year as long as you pay back all they paid you.
 
Joined
Mar 16, 2005
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Alaska
One question, have you started Medicare? For me, section B costs $135/month, and that is taken out of my social security. I also have supplemental insurance, which comes out of a checking account Then there is Part D, which for me is $17/month also taken out of SS. Each state has different charges and different Part D plans.
 
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I took early retirement way back in 2003 when I was only 61.5. I started SS immediately because by my calculation it would take 18 years to recoup the losses from not collecting while waiting for FRA. I wasn't sure I would live that long.

You could do a similar calculation but you are much closer to FRA so I think it would probably pay you to wait.
 
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One question, have you started Medicare? For me, section B costs $135/month, and that is taken out of my social security. I also have supplemental insurance, which comes out of a checking account Then there is Part D, which for me is $17/month also taken out of SS. Each state has different charges and different Part D plans.
Yes Steve I did.
Medicare bills me quarterly and I send them a check.
Once I start collecting they will deduct that from my benefit.
I have a supplemental as well.
My out of pocket is just about zero.
 
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I took early retirement way back in 2003 when I was only 61.5. I started SS immediately because by my calculation it would take 18 years to recoup the losses from not collecting while waiting for FRA. I wasn't sure I would live that long.

You could do a similar calculation but you are much closer to FRA so I think it would probably pay you to wait.
If I wasn't still working I would have started a while ago.
But for what I make they would take almost all of it back.
Just wasn't worth it.
My wife is the one at a disadvantage here.
Her check is very minimal with her work history. (Stay at home Mom)
Once I start collecting she can convert to mine and it will be a big boost for her benefit.
 
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Dave, as soon as I started Medicare I had a total knee replacement. I did not pay anything for the surgery or the 8 weeks of therapy, the required pre-surgery tests, and doctor's appointments pre and post surgery.
 
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Dave, as soon as I started Medicare I had a total knee replacement. I did not pay anything for the surgery or the 8 weeks of therapy, the required pre-surgery tests, and doctor's appointments pre and post surgery.
I think Medicare is GREAT!!
Before Medicare I was paying over $1000/mo for my healthcare and still had copays.
Once medicare kicked in I pay 100 something for medicare plus 120 a month for my supplemental. 220 vs 1000+/month
I'm all for it
 
Joined
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I took early retirement way back in 2003 when I was only 61.5. I started SS immediately because by my calculation it would take 18 years to recoup the losses from not collecting while waiting for FRA. I wasn't sure I would live that long.

You could do a similar calculation but you are much closer to FRA so I think it would probably pay you to wait.
That's exactally what I did. Only it would have taken me ONLY 15 yrs to recoup from waiting for FRA.
 
Joined
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MN, USA
I thought the general rule was that starting collection before FRA would result in significant penalties but checking with an accountant is always a good idea.

OTOH, determining when to start collecting social security is easy. All you need to know is the date you are going to die . . . :)
 
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Mitch,
You are a good one to know here.
This question was a little different in that I'm considering filing 6 months earlier than my FRA.
If I can file and take a small hit in my benefit I'm OK with filing as long as they only consider my 47k is based on annual. If they consider it monthly they will take back whatever they give.
If that's the case I'm better off waiting until 66 and 2 months.
 
Joined
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I started ss at 65 and bought a supplemental policy for part a and b
My medical bills hsve topped $1m every year since and my cost was $0
Medicare is the best insurance I’ve ever had and I had a Cadillac BCBS. Policy for 37 years while working,
I started ss ASAP because I didn’t wanna bet on my life expectancy
 
Joined
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I remembered that thread, but I thought the question this time was a little bit different. Nevertheless, I didn't need to repeat the answer I gave back then.
Thanks Jim,
The timing is very different.
I'm thinking about filing in January rather than June because my earnings will not exceed their limit.
What I do not Know and am trying to find out is if that limit is based annually or monthly or annually.
 

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