Ask Larry
In the present day’s Social Safety column addresses questions on figuring profit charges, taking retirement advantages earlier than later divorced spousal advantages and whether or not the 5.9% COLA applies to all advantages. Larry Kotlikoff is a Professor of Economics at Boston College and the founder and president of Financial Safety Planning, Inc.
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How Can I Decide When My Social Safety Retirement Profit Will Be $2,000?
Hello Larry, I’m 64 and eight months. If I began to gather Social Safety at this time, I might obtain about $1,750. I wish to begin gathering after I get to $2,000. How do I determine at what age that might be? The sliding scale on the SSA website doesn’t embrace the 5.9% enhance at the moment as it’s previous to it going into impact. Thanks, Alice
Hello Alice, I might begin by calculating your main insurance coverage quantity (PIA), which is the quantity you would be paid if you happen to begin drawing at your full retirement age of 66 and 6 months. For every month that you just begin drawing previous to your FRA, your profit price can be 5/9ths of 1% decrease than your PIA. Or for every month you wait previous FRA to begin drawing your profit price can be 2/3rds of 1% greater than your PIA.
The profit calculator in my firm’s software program — Maximize My Social Security or MaxiFi Planner —may do the entire essential math for you, in addition to analyze all your submitting choices in an effort to decide your finest technique for maximizing your advantages. Social Safety calculators offered by different corporations or non-profits could present correct solutions in the event that they had been constructed with excessive care. Greatest, Larry
Can I Take My Personal Advantages At Full Retirement Age And Change To Divorced Spousal Advantages?
Hello Larry, I’m planning on submitting for divorced spousal advantages. Can I take my retirement profit at 67 after which swap to divorced spousal advantages at his full retirement age, which is eighteen months after mine. Thanks, Debby
Hello Debby, Individuals born after 1/1/1954 usually are not allowed to use for spousal, divorced spousal, or their very own Social Safety retirement advantages with out being deemed to have utilized for all of these advantages. So the one approach that you may declare your personal advantages with out claiming your divorced spousal advantages on the similar time is if you happen to aren’t but eligible for divorced spousal advantages if you apply to your personal advantages.
And so long as each you and your ex-husband are at the least 62 and in case your divorce has been ultimate for at the least two years, you then’d be probably eligible for divorced spousal advantages so long as your ex-spouse’s main insurance coverage quantity (PIA) is greater than twice as a lot as your personal PIA.
Moreover, you possibly can’t begin drawing your personal advantages first after which swap to a different sort of profit later. When you declare your personal advantages, if you happen to additionally qualify for an additional sort of profit you would be paid your personal profit plus a partial, or extra, auxiliary (e.g. spousal, divorced spousal) or survivor profit.
Even if you happen to had been allowed to do what you counsel in your query although, it would not be a clever technique. Should you’re eligible for divorced spousal advantages and if you happen to file for them at your full retirement age (FRA) or later then your divorced spousal price would not be decreased for age even when your ex-husband hasn’t but reached FRA. In different phrases, you’d acquire nothing by ready previous your FRA to say any divorced spousal advantages for which you qualify, even when your ex-husband is youthful than you’re. Greatest, Larry
Is There Any Cause For My DWB Profit Not Rising By The Full 5.9% COLA?
Hello Larry, A 5.9% COLA has been utilized to my SSDI however to not my DWB advantages. My DWB profit elevated solely $30 per 30 days (a 3.25% enhance). Is there a cause for this? Thanks, Yvonne
Hello Yvonne, I do not know of any cause why the 5.9% enhance would not apply to each of your advantages. Disabled widow’s advantages (DWB) are decreased for age, however your gross quantity ought to nonetheless go up by roughly 5.9% as soon as the price of dwelling (COLA) enhance is utilized.
The bottom month-to-month Half B Medicare premium price is growing by $21.60 in 2022, however that would not have an effect on the rise your gross profit price. Nonetheless although, when you’ve got Half B premiums deducted out of your advantages then your web profit enhance will quantity to considerably lower than 5.9%. In any case although, if you happen to do not assume that your profit price is right it’s best to most likely name Social Safety to attempt to get an evidence. Greatest, Larry