Author Topic: social security eligility for early retires???  (Read 8074 times)

junebug1965

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social security eligility for early retires???
« on: June 06, 2013, 12:57:42 PM »

 hello everyone,
this is my first post on this wonderful site, I am sure I am in wrong category, but thats ok, maybe some one will pont me the correct direction.
 my question is this....I retired from my job at age 47 ( sept 2012), I worked full time for 18years with this company based in ohio,  will I be able to claim SS when I am 62??? I read that you need 10 years full time working with 40 credits to be able to apply for SS.(not sure if this information is necessary but I was earning on average $60,000 per year)
I also worked 7 years in canada and 2 years in UK...I dont think that is going to make any impact on mu USA ss.
I was just thinking about this today, not too sure what the rules are, but I am thinking I have paid into SS for 18years,hopefully I will recieve something, even if its a small amount later on down the road...just curious???
I love this site, and have enjoyed reading the tips .
I am loving my new life, I saved very,very hard for almost 27 years, I feel so blessed, my husband is still working he is 49, he plans on retiring at age 55, thanks you for any information.

FlorenceMcGillicutty

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Re: social security eligility for early retires???
« Reply #1 on: June 06, 2013, 01:05:47 PM »
Yes, you'll be eligible for SS. You should have gotten statements with estimates of your payments. Try logging into the SSA website to figure out what you'll get. You can delay collection until up to age 70 and your amount per month will increase. Good luck!

KingMe

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Re: social security eligility for early retires???
« Reply #2 on: June 06, 2013, 01:53:14 PM »
Getting an online estimate from the IRS website is super easy. With minimal information about yourself, you can get a personalized estimate. I had no idea how easy it was until I did it last week.

junebug1965

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Re: social security eligility for early retires???
« Reply #3 on: June 06, 2013, 02:52:27 PM »
 thanks for the information,
I just wanted to make  sure that I was eligible, it will be long time before I start collecting, hopefully it will be still avaaible when the time come!!!

Eric

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Re: social security eligility for early retires???
« Reply #4 on: June 06, 2013, 02:52:50 PM »
You can determine the exact amount you're eligible for here:

http://www.ssa.gov/estimator/

(although it should be noted that it automatically assumes that you'll start taking payments at age 62, which of course are the lowest monthly amount.)

Random

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Re: social security eligility for early retires???
« Reply #5 on: June 06, 2013, 03:06:40 PM »
does anyone have a good rule of thumb or more precise way to estimate monthly SS payout at 62 vs 67 vs 70 (assuming early retirement)?

matchewed

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Re: social security eligility for early retires???
« Reply #6 on: June 06, 2013, 04:12:24 PM »
does anyone have a good rule of thumb or more precise way to estimate monthly SS payout at 62 vs 67 vs 70 (assuming early retirement)?

Run the estimator. And pay attention to the rules the closer you get to eligibility.

Jamesqf

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Re: social security eligility for early retires???
« Reply #7 on: June 06, 2013, 05:24:08 PM »
I also worked 7 years in canada and 2 years in UK...I dont think that is going to make any impact on mu USA ss.

I'm not an expert, but have worked abroad and was told that many countries have reciprocal agreements with the US, so that work there counts towards SS in the US (and vice versa for citizens of those countries working in the US).  Here's a link for more info: http://www.ssa.gov/international/agreements_overview.html

binkley

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Re: social security eligility for early retires???
« Reply #8 on: June 06, 2013, 06:18:04 PM »
Most of the online calculators I've seen assume that you will work right up to the time you begin to collect benefits -- so they would give an over-estimate if you retire early.

Undecided

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Re: social security eligility for early retires???
« Reply #9 on: June 06, 2013, 06:36:02 PM »
You can determine the exact amount you're eligible for here:

http://www.ssa.gov/estimator/

(although it should be noted that it automatically assumes that you'll start taking payments at age 62, which of course are the lowest monthly amount.)

Is it safe to assume that effect on stopping work before 62 has the same proportionate effect on the amount one will receive regardless of when one starts to collect? E.g., if I stop working at 44, the estimator projects $1,423/month at age 62 vs. $1,855 if I worked (at the same pay) until 62 and started collecting then. So if I worked until only 44 rather than 62, I would collect about 77% as much as if I worked until 62. If I continued to work at the same pay until 67 and started collecting then, the estimator says I would collect $2,682/month then. So (limitations of estimating 30 years in advance aside), can I assume that I'd collect approximately 77% of $2,682 at age 67 if my contributions stop at age 44?

Random

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Re: social security eligility for early retires???
« Reply #10 on: June 07, 2013, 10:41:23 AM »
You can determine the exact amount you're eligible for here:

http://www.ssa.gov/estimator/

(although it should be noted that it automatically assumes that you'll start taking payments at age 62, which of course are the lowest monthly amount.)

Is it safe to assume that effect on stopping work before 62 has the same proportionate effect on the amount one will receive regardless of when one starts to collect? E.g., if I stop working at 44, the estimator projects $1,423/month at age 62 vs. $1,855 if I worked (at the same pay) until 62 and started collecting then. So if I worked until only 44 rather than 62, I would collect about 77% as much as if I worked until 62. If I continued to work at the same pay until 67 and started collecting then, the estimator says I would collect $2,682/month then. So (limitations of estimating 30 years in advance aside), can I assume that I'd collect approximately 77% of $2,682 at age 67 if my contributions stop at age 44?

I don't have any idea if this is the case or not.  In the spirit of conservative planning, I think I will run various scenarios in firecalc, etc. Just using my projected distribution at 62 years old and plug that number in for 67 and 70 to see what it does to my projections.

RewardTraveler

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Re: social security eligility for early retires???
« Reply #11 on: June 07, 2013, 10:55:58 AM »

Is it safe to assume that effect on stopping work before 62 has the same proportionate effect on the amount one will receive regardless of when one starts to collect? E.g., if I stop working at 44, the estimator projects $1,423/month at age 62 vs. $1,855 if I worked (at the same pay) until 62 and started collecting then. So if I worked until only 44 rather than 62, I would collect about 77% as much as if I worked until 62. If I continued to work at the same pay until 67 and started collecting then, the estimator says I would collect $2,682/month then. So (limitations of estimating 30 years in advance aside), can I assume that I'd collect approximately 77% of $2,682 at age 67 if my contributions stop at age 44?

Yeah, I think you're right.  I believe SS bases claiming early/late off of your retirement benefit assuming you retire at your full retirement age.

If you really want to calculate your benefit you can use the formula in the following story to get your full retirement benefit (remember to inflation-adjust past earnings and put in 0s to get a full 35-year history).

http://money.usnews.com/money/blogs/On-Retirement/2012/08/02/early-retirement-will-impact-your-social-security-benefit

After you have this, you can adjust it to account for the date in which you plan on retiring base on the information here.

http://www.ssa.gov/oact/quickcalc/early_late.html

Dee18

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Re: social security eligility for early retires???
« Reply #12 on: June 07, 2013, 11:34:02 AM »
When I ran the calculations for myself, I found it interesting that stopping work 10 years before my designated age of 66 barely affected the monthly amount I would receive, but receiving payments 4 years early decreased the amount by about 25%. 

matchewed

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Re: social security eligility for early retires???
« Reply #13 on: June 07, 2013, 12:12:35 PM »
The calculation for your base amount to be received is over a 30 year time frame. Then they adjust that amount relative to the age you start receiving benefits. So if you work less than 30 years it is a bit of a penalty.

At least that is my understanding. This is not my best area as I do not factor in SS into my calcs.

Random

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Re: social security eligility for early retires???
« Reply #14 on: June 07, 2013, 03:17:32 PM »
This calculator was helpful for me: 

http://www.aarp.org/work/social-security/social-security-benefits-calculator/?intcmp=AE-QKTK-TOOL-SSCALC

Also from that site:
The earliest age at which you can start collecting Social Security is 62. However, that would mean a cut in benefits of about 25 percent. For instance, if you're entitled to $1,000 a month if you start at 66, you would receive only $750 at 62.  But the longer you wait, the higher your monthly check will be. If you started at full retirement age, you would get 100 percent of your full benefit. Here's a list of the early retirement cuts if your full retirement age is 66 starting at:
    Age 62 brings a cut of 25 percent
    Age 63, 20 percent
    Age 64, 13.3 percent
    Age 65, 6.7 percent
For people born in 1960 or later, the full retirement age will be 67 and the early-claim reductions will generally rise starting at:
    Age 62 will bring a cut of 30 percent
    Age 63, 25 percent
    Age 64, 20 percent
    Age 65, 13.3 percent
    Age 66, 6.7 percent
Someone who can wait beyond full retirement age to start benefits can get more than 100 percent of the full benefit, through what's known as delayed retirement credits. They top out at age 70.
However, in this example, waiting until age 70 to claim Social Security would result in a monthly benefit of $1,320.

from my data:  $1,575 payment at 62 (calculated in the SSA site) ramps up to $2,200 at 67, and $2,786 at 70

Random

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Re: social security eligility for early retires???
« Reply #15 on: June 07, 2013, 03:18:37 PM »
When I ran the calculations for myself, I found it interesting that stopping work 10 years before my designated age of 66 barely affected the monthly amount I would receive, but receiving payments 4 years early decreased the amount by about 25%.

Same pattern with me.  I decided athat at this point (55 yo), not worth putting in the extra time solely for the SS benefit

footenote

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Re: social security eligility for early retires???
« Reply #16 on: June 07, 2013, 03:28:57 PM »
The calculation for your base amount to be received is over a 30 year time frame. Then they adjust that amount relative to the age you start receiving benefits. So if you work less than 30 years it is a bit of a penalty.

At least that is my understanding. This is not my best area as I do not factor in SS into my calcs.

Correct - your benefit is based on your highest 30 earning years. So if you worked only 20 years, it will depress your benefit. (Note that no income above the annual FICA limit on which you contribute counts. So having a $1,000,000 income year adds nothing more than a FICA-limit earnings year to your benefits. Fair, of course, because you did not contribute to SS on the income past the FICA limit.)

RewardTraveler

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Re: social security eligility for early retires???
« Reply #17 on: June 13, 2013, 01:07:14 PM »
I'm pretty sure it is 35 years, not 30.  The SS website refers to up to 35 years, any sources quoting the 30-year earning history?

footenote

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Re: social security eligility for early retires???
« Reply #18 on: June 13, 2013, 01:29:22 PM »
My error - you are correct, RewardTraveler. It is based on your highest 35 years' income.