Social security changes

ButterflyWings

Figuring out what to do about my upcoming “retirement” options given the SS landscape has changed a lot. 

This is my next task, having researched and finally gotten DH’s only VA options in place (VA health care at the appropriate priority 4 level; no VA pension or other benefits due to honorable discharge a few months shy of the cutoff for Vietnam era vets with no service-connected disability, if deployed stateside as he was). But I am glad his meds are now free, no co-pays for most of his needs no matter what happens as he declines, and possible assistance with day help and LTC. Huge relief.

I had planned to work like the dickens until full SS eligibility and then some. Was truthfully looking forward to it at the end of a long grad program (complete with obscene student debt). But looked up from my books and full time job just in time to find myself the sole financial support and caregiver for my beloved, when he was diagnosed with a terminal disease that required his immediate retirement. And line-of-sight supervision. 

Talk about a rude awakening! All our plans up in smoke. As everyone here understands all too well. You all have been part of our journey since that point, and helped so much as I/we handle the sink or swim realities of being a PWD spouse. 

So far what I’ve learned is that I was either born too late, and/or my timing just really stinks.   

• Full retirement has moved from age 65 to 67 and I can’t see any way to work 6.5 to 9 more years, with DH requiring eyes-on (and hands-on) 24/7 attentiveness and redirection. 
• The trouble I’ve had finding home help so I can work fully, is a factor in my thinking. 
• Spousal benefits can no longer be received while pausing ones own eligibility

So, I may need to take my reduced SS benefits at age 62 just to keep us going. And, if/when a reliable aide is located I can still go back to full-time work to fill in the gaps. But if I make over $19-$20k, SS will take half of everything I earn above that amount. (Wow). If I can get hired in this tougher post-lock down climate that is, which does worry me a bit. As a “senior citizen”, especially. 

But retiring per SSA seems like the only smart option right now, really. I can’t even go to the grocery store or post office without it becoming a major operation - getting DH out of the house literally takes hours and he’d still be an elopement risk even if I could get him

to day care. So... is anyone else looking into this or have you made a decision in the last couple of years, Yay or Nay, re your social security retirement options? This decision will be irrevocable so I don’t want to screw it up.

 https://www.ssa.gov/benefits/retirement/learn.html#h3

toolbeltexpert

BFW yes I had to make that same decision, took early retirement at 61, I took my pension from the Umc 6000$ and skimped by for a year. Our house is paid for and we have minimal bills. My wife had also taken early retirement three years b4 me so we had that income as well. Once I turned 62 it put us in the black and no looking back,"so far," the cost of living is reasonable here, which is also one of the reasons we moved here 29 yes ago. I get what your saying about timing I just missed that change. When I was growing up the drinking age went to 18 the year I turned 18 then they changed it back to 21 when I turned 21. That wasn't really I good thing though.

Marie58

ButterflyWings, here's my story about this. I retired at age 60 to care for DH full-time. I don't plan on returning to my career now or after DH passes. I did my research and decided to start collecting SS at 62. My thinking was DH will most likely pass before I reach full retirement age and my spousal benefits from his SS will be more than I'd get of my benefits even if I waited. I figured I may as well collect some than wait and possible never collect any of mine. Of course no one can predict the future, but I doubt DH will live until my full retirement age. I talked to SS people, my financial adviser, a faith-based financial ministry and others and then made my decision. Time will tell if I did the right thing.  Hope others chime in.

Crushed

Everybody Social security benefits requires expertise not a quick internet search

DW got disability benefits at 62.  I got spousal benefits based on her service at 66 took full enhanced benefits at 70 which she will get if I die.    but i was older than the ruel change 

the key are the rules on deemed filing

Exceptions to Deemed Filing

Deemed filing applies to retirement benefits, not survivor’s benefits. If you are a widow or widower, you may start your survivor benefit independently of your retirement benefit.

Deemed filing also does not apply if you receive spouse's benefits and are entitled to disability, or if you are receiving spousal benefits because you are caring for the retired worker’s child.

i cant tell you what to do but get expert help  

Quilting brings calm

I do know that if you took it early, but changed your mind within a year, and paid the money back… it would be as if you’d never taken it.  It sounds like you’ve got a few years before you are 62.  So it is possible that you might be in a position to do that.    Your husband’s situation could change in the next couple years before you are 62.

My spouse is on disability( he is not my PWD),  so he is drawing his railroad version of social security and pension.  I retired in 2020 at age 62 with a small pension, but I have not yet drawn social security.  Our plan was for me to delay social security, and to draw a monthly check from my IRA until my full retirement age( 66 8 months). We have been doing that, but  the stock market has taken a hammer to our investment balances).  So I’m trying to decide if taking my SS early and not drawing from my investments  for a while  would be the better play. 

It’s a lot to decide,  isn’t it? 

Jo C.

Getting professional advice is the best way to go as the approach to this will have long term impact.  Here is an AARP information writing regarding widow/widower benefits when spouse dies:

https://www.aarp.org/retirement/social-security/questions-answers/social-security-spouse-dies.html

Lately, there has been some discussion about whether one should take their social security the first year it can be done, or whether to wait until later to get a higher monthly amount.

If one takes the benefit early, there is a smaller amount; however, if one leads a normal life span, over time one will receive more money overall as one has a longer period of time collecting.  Decisions such as this will be different depending on what is happening in one's life and how badly the benefit is needed.

J.

ButterflyWings

Thanks for all the input received thus far. You have helped kick off my 3+ month research process. I am definitely not the type to rely on a quick internet search FYI, I already met with SSA and have discussed briefly with a financial advisor. 

It is also really helpful for me when making any big (or not so big) decision, to have feedback from people who have either already done what I am considering, or ruled it out. That personal experience is invaluable, I find, even before talking with a professional in the field. It helps me think of additional scenarios, rationale, and questions that may not have occurred to me yet, so I can raise them with the subject matter experts when at that stage, before finalizing my decision.

The experts - sometimes lawyers, sometimes not - will generally recap the most current applicable policies and then help me understand the pros and cons as they pertain to my situation. Then, they will help me implement whatever path I decide on, if needed, to file certain documents for example. But usually, they advise neutrally: e.g. "you could do this or this". Maybe "if I were you I'd do this," but they usually advise strongly that the decision is up to me in the final analysis since I'm the one who has to live with it. (And they're right! That's why we pay them the big bucks!)

I already know what I am leaning toward, because our short term reality actually outweighs the long term potential outcomes. We need to eat now, and the rest of the story...I will cross that bridge when I come to it. Less than 1 year to eligibility and I will probably take my reduced SSA retirement benefits at 62. But, will keep you posted! I really appreciate knowing what other PWD spouse caregivers have considered, who have faced the SSA changes of the last 2 years especially. That's a perspective most of the pros will not have (dementia-informed) and I find it really applicable to the way I think.  THANKS AGAIN!

dayn2nite2

I am also looking at probably taking the reduced benefit at 62 and maybe continuing to work full time or at least 30 hours a week and paying taxes on what I earn over the threshold.  The main reasons are that my family doesn't live long (we have nobody who has lived over age 70 in at least 3 generations on both sides and the fact that I know caregiving has taken and continues to take years off my life.  My full retirement age is also 67 and I know I'm not waiting till then.  

It'll all work itself out somehow.

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Jeff86

There is sophisticated financial software to assist with Social Security claiming strategies—it is very situation-specific.  It is generally geared at maximizing how much a claimant receives from the Social Security system.  The penalty for claiming benefits prior to full retirement age is pretty severe, and the ‘bonus’ for delaying a claim, up to age 70, is a very generous 8% per year.

The main drivers of the decision as to when to claim are life expectancy and the availability of other resources.  The break even point for delayed claiming is around 81-82 years old.  Claiming benefits earlier than full retirement age is advised in two circumstances— where the income need, albeit at a reduced level, is immediate, and where life expectancy is less than average.

You’ll also want to to consider whether you want to work, and how much you might earn.   Even if you need to pay for adult day care while you work and that is a break even economic position, it could be a viable alternative to allow your Social Security benefit to grow and avert to the large haircut.  This would be especially true if you anticipate your longevity.

The idea here is to consider long term consequences even as you look to solve near term cash flow issues.