Backdating social security retirement benefit dating an amish guy
At the end of this discussion he said, “You know, the folks at Social Security were really nice. So if you went in three months early, they surely treated you as not waiting till 70 in the first place and then, in giving you benefits six months in arrears, they pushed your retirement benefit filing date back another six months. Nine months is three quarters of a year, so you lost three quarters of the 8 percent yearly benefit increase (called the Delayed Retirement Credit). “I wish I had talked with you sooner.” Anonymous: My husband is turning 65 in September. We have a mentally disabled son — age 33 — who lives at home with us.
They even gave me six months of retroactive benefits when I went in to file for my retirement benefit.” “Oh, gee,” I said, “when did you file? This is how you got stuck receiving a 6 percent (three quarters of 8 percent) permanently lower retirement benefit. He is employed part time and collects his own SSDI income. My husband wants to wait until full retirement age before he starts to collect SS.
In other words, the strategy consists of holding off on receiving 6 months of benefits, only to receive the exact same amount later as a lump-sum.
The only effect on you as an investor (relative to just claiming at full retirement age) is that you lose out on a few months of interest that you could have earned if you’d just taken the money earlier in the first place. It gives you a lump-sum of cash, with which you can purchase a product from the advisor.
He happened to mention that he has a 13-year-old son.“Don't make any decisions until you talk to me,” I told him.
(More: 10 ways to maximize Social Security benefits)When he contacted me a few weeks later, I explained that since he had already reached his magic age of 66, he could file and suspend to trigger Social Security benefits for his son, while allowing his own retirement benefits to continue to grow by 8% per year for each year he postponed collecting them beyond his full retirement age up until age 70.
(The backdating cannot, however, be applied to any month prior to full retirement age.) The “lump-sum strategy” discussed in the article consists of: So for example, a person with an FRA of 66 following the strategy could wait until age 66 and 6 months to file for retirement benefits.Boston University economist Larry Kotlikoff has spent every week, for more than two years, answering questions about what is likely your largest financial asset — your Social Security benefits.His Social Security original 34 “secrets,” his additional secrets, his Social Security “mistakes” and his Social Security gotchas have prompted so many of you to write in that we feature “Ask Larry” every Monday. And keep sending us your Social Security questions. This was my fourth visit to see Gene and since he looked to be of age to take Social Security, I thought I should make sure he was getting the most from it.Say you were going to defer benefits past your FRA at age 66, then you had to change your mind at 66 and six months.You could then claim a lump-sum payment equal to those six months of benefits.