Answers to Your Pre-Retirement Questions, Section 3

This time the focus of Inbox Questions is on Social Security benefits.

Q. I was told that since I am single and have no dependents, I would declare Social Security at age 62. Is this a good idea?

Sadly, since this is with maximum escape selection, the solution is not so straightforward. First, if you plan to work at 62, there is an earnings limit that reduces your Social Security benefit by $1 for every $2 over the limit until you reach your full departure month (in 2024. The limit is $22,320). The accumulation of views that you receive Social Security benefits is reduced by the selection of months you reported before your FRA. If your FRA is 67, your benefits received will be reduced by 30% when you report for benefits at age 62. If you report at 63, the relief is 25%, and if you report for benefits at 63 ½ it is only 22.5%. , For example, if your benefit on Generation 67 is $3,000/minute, it may be reduced to $2,100 on Generation 62 and increased to $3,720/minute when you claim Generation 70. It is a permanent, lifelong relief. This may be a matter of receiving a smaller fee for additional years or a larger fee for fewer years, keep in mind that the final weeks will not be optional depending on how you apply for benefits.

A significant benefit of delaying your Social Security withdrawal to age 67 or early retirement is that you will receive a larger benefit for the remainder of your life with annual rate of return changes. This will provide adequate coverage against lack of financial confidence for your later years, known as longevity potential! There is no incentive to delay depositing your benefits in Next Generation 70 because there is no cap on timely credit deposits during this period.

Whether or not you choose to receive your benefits at age 62 depends on your immediate desire for this additional source of revenue, your desire for a past source of revenue and your situation, with the option to keep up with inflation. components or not. You will be providing financial security for dependents.

You may also want to take a look at the YouTube webinar presented by the Bipartisan Policy Center:

Q. I don’t understand the break-even age for claiming Social Security. Are you able to walk on it? Thank you!

The break-even age is intended to be the moment when you are going to receive the same overall cumulative source of revenue from Social Security whether you filed at age 62, 67 or age 70 (or any two ages you are evaluating). Have done. , For example, when you file for an IRA at age 67, you will receive benefits for three additional years than if you file for an IRA at age 70. On the other hand, if you would have received benefits in an IRA at age 70 when you started, you would have received 3 benefits plus the age 8% year with no time to avoid the credit, so your received benefit at age 67 would have been 24% more than the benefit you would have received. Will be. So, let’s say you got 3 additional years of benefits by depositing at IRA 67, the big benefit you would get through preparation for IRA 70, with IRA 67 roughly matching the benefits you would get through IRA 82. Will meet. In other words, Generation 82 will have all the benefits you received if you started in Generation 67 and will probably be equal to all the benefits you received if you started in Generation 70.

Let’s say you get a $2,500 gain on an IRA at age 67. Through Age 82, you could receive $2,500/moment or $30,000/moment for 15 years for a total benefit of $450,000. If you wait until age 70, the amount of benefits you receive per 30 days will increase to $3,100 or $37,200/age. The moment you receive Generation 82 benefits, you will have received a total benefit of $37,200 or $446,400 for 12 years.

There are also variables such as changes in the annual cost of living, as well as how long you propose to work and the type of income you want this source of income to be provided by Social Security. It’s extra noteworthy to decide that you need a source of revenue from Social Security more than just how long you have to live to “break-even.” Needless to say, you won’t need cash when you die early, but when you live a long time, you definitely don’t want to be short on cash. This solution is more versatile, but more complex when a married couple is deciding when to declare their earned benefits or the amount of benefits to their spouse.

Q. My husband and I are both retired, he has CSRS, I have a private sector pension. Will he be entitled to spousal or widow’s benefits from my Social Security? Will I be entitled to CSRS survivor benefits if I receive my own Social Security benefits?

It is important that a survivor enjoys his or her CSRS escape, if he or she has chosen to escape, in the context of your right to receive your private sector pension benefits or social security escape benefits. If you predecease him, the executive pension offset will reduce his entitlement to Social Security widow’s and spousal benefits through 2/3 of his CSRS escape. This will likely void his entitlement to any Social Security benefits you might otherwise have earned for him.

Let us hope that this onerous provision will be eliminated through a congressional effort and supported by active and retired federal employee union contributors and advocacy sections nationwide. NARFE reported that during a recent Senate subcommittee hearing, Senator Sherrod Brown, D-Ohio, who is the executive sponsor of S. 597, aims to restore full Social Security benefits to approximately 3 million American citizens with HR 82. , shared: “These public servants dedicate their lives to keeping us safe, educating our children, and serving our communities, and they pay into Social Security just like everyone else… Social Security is middle class. is the cornerstone of U.S. retirement security and should be available to everyone, including those who serve our communities…they should not be penalized for their service.”