Retirement Thread

[scho63]

I believe the income threshold becomes unlimited at 67, full retirement age.

[BigRedChief]

Originally Posted by scho63

I believe the income threshold becomes unlimited at 67, full retirement age.

true and not. The true is full retirement age. A persons FRA age varies.

For most born after 1960 it’s 67 years and 10 months.

After you reach FRA, you can make as much as you want without a penalty.

[Mosbonian]

Originally Posted by BigRedChief

true and not. The true is full retirement age. A persons FRA age varies.

For most born after 1960 it’s 67 years and 10 months.

After you reach FRA, you can make as much as you want without a penalty.

Sorry....I didn't read all the way through.

My bad.

For me, my full retirement age was 66 years and 3 months. I worked up until March of this year and drew Social Security for the time that I reached FRA until this year. My advisor and I computed it and taking the amount early vs. waiting to draw was insignificant in comparison.

That may not be the case for everyone so make sure you work with your tax advisor.

[excessive]

Originally Posted by Mosbonian

Sorry....I didn't read all the way through.

My advisor and I computed it and taking the amount early vs. waiting to draw was insignificant in comparison.

That may not be the case for everyone so make sure you work with your tax advisor.

How I've always understood it:

Your work history determines your payout, which is a fixed amount. You will receive that amount from date of retirement to age 80. How much you receive each month is determined by how many months of payout are within that time period, from the retirement date to age 80. The amount is fixed, and the rate of payout you receive is determined by the number of months the payout is spread over.

The benefit becomes when you begin to receive payments after age 80. If you take retirement early, the smaller check remains the same throughout your life. The longer you delay, the larger your check will become (fewer months to divide the fixed amount by), and that amount will continue after age 80. It's the extra money from the larger payout received after age 80 which makes a difference.

This is why if you do not anticipate living past 80 years, due to illness, family history, or whatever, you should start taking the benefit as soon as possible. If you figure you will live past 80, and can afford to live without the benefit, delaying to receive the benefit will give you more payout over your lifetime.

[Mosbonian]

Originally Posted by scho63

I believe the income threshold becomes unlimited at 67, full retirement age.

That is correct...