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  #11  
Old 12-12-2018, 01:36 PM
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Originally Posted by Colymbosathon ecplecticos View Post
I have heard anecdotes about people attempting to apply at age 70 and then having the six month backdating applied --- this can result in not getting the full stipend that would be available at 70. Be careful.
Absolutely right. They think that they are doing you a favor. Be careful, as you say!

Bruce
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  #12  
Old 12-12-2018, 01:42 PM
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By the way, I chose to retire at age 70 because of the letter I got from SS saying that the benefit age adjustment stopped at that age. Otherwise, I had been willing to keep working for as long as I was healthy enough to do so.
IIRC the earnings test goes away at NRA, so why did receiving SS affect your decision to work?
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  #13  
Old 12-12-2018, 01:51 PM
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IIRC the earnings test goes away at NRA, so why did receiving SS affect your decision to work?
Maybe it shouldn't have. But I did plan to retire eventually, and that just pushed me to make the decision. Turns out it's just as well I did retire - I still managed to enjoy some healthy years of retirement.
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  #14  
Old 12-12-2018, 02:00 PM
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1. Someone born on August 6, 1949, would be 70 for Social Security purposes on August 1, 2019, and could receive the maximum benefit (for that person) for that month, August. The person would be deemed to be age 70 for the entire month.
That's interesting.

When I was testing my employer's retirement planning software and ensuring that our Social Security estimates matched the SSA's calculations, this wouldn't have been true based on our testing.

First, with one exception, just about everything with Social Security runs from the 2nd of the month to the 1st of the following month. i.e. March 1 is actually in February, January 1, 1950 is actually in 1949, etc.

But my understanding is that you need to be whatever age you say you are for the *entire* month for it to count. So August 1, 1949 turns 70 in August 2019. August 2, 1949 turns 70 in August 2019 because August 2019 is actually August 2 2019 - September 1 2019 and someone whose birthday is August 2 is therefore 70 for the entire "month". But August 3-31 turns 70 in September 2019 because they are not 70 for the entire "month" of August.

At least that's how we tested it, and we had a PIA Calculator that we'd downloaded from the SSA's website to do our testing. Admittedly that was in 2007 so if something's changed since then I might not be aware of it. I don't want to download the calculator on my current work machine to test this out.

It's possible that we were basing our testing off of something that wasn't correct, but the calculator we were comparing to was supplied by SSA, so we were certainly assuming it was correct.

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Of course, Social Security has always paid benefits in arrears, so the benefit for the month of August would actually be paid in September.
Correct, so I think he'd first be 70 in September and receive the first payment in October, based on an August 6 birthdate.

I mean, he can always claim earlier, but then he wouldn't be getting his maximum benefit.
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  #15  
Old 12-12-2018, 02:04 PM
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If you want to download the detailed calculator, it's here: https://www.ssa.gov/oact/anypia/anypia.html

You can just plug in any random amount for your work earnings, since that's not the part that you care about. Then change the date you want to collect, and see when it maxes out. I suspect you will find that with a birth date of August 6, 1949, you will max out by collecting in September 2019 (payable in October 2019) but I would be fascinated to learn if I am wrong about that.

My home internet is on the fritz or I'd check it out at home tonight.
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  #16  
Old 12-12-2018, 02:22 PM
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Originally Posted by Colymbosathon ecplecticos View Post
I have heard anecdotes about people attempting to apply at age 70 and then having the six month backdating applied --- this can result in not getting the full stipend that would be available at 70. Be careful.
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Absolutely right. They think that they are doing you a favor. Be careful, as you say!

Bruce
I don't understand this. Will you please it for me?
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  #17  
Old 12-12-2018, 02:40 PM
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They believe that people want six months of retroactive benefits. But most people who wait until age 70 really want the maximum monthly benefit and don't care that much about getting a big retro check.

Bruce
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  #18  
Old 12-12-2018, 02:47 PM
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Originally Posted by twig93 View Post
That's interesting.

When I was testing my employer's retirement planning software and ensuring that our Social Security estimates matched the SSA's calculations, this wouldn't have been true based on our testing.

First, with one exception, just about everything with Social Security runs from the 2nd of the month to the 1st of the following month. i.e. March 1 is actually in February, January 1, 1950 is actually in 1949, etc.

But my understanding is that you need to be whatever age you say you are for the *entire* month for it to count. So August 1, 1949 turns 70 in August 2019. August 2, 1949 turns 70 in August 2019 because August 2019 is actually August 2 2019 - September 1 2019 and someone whose birthday is August 2 is therefore 70 for the entire "month". But August 3-31 turns 70 in September 2019 because they are not 70 for the entire "month" of August.

At least that's how we tested it, and we had a PIA Calculator that we'd downloaded from the SSA's website to do our testing. Admittedly that was in 2007 so if something's changed since then I might not be aware of it. I don't want to download the calculator on my current work machine to test this out.

It's possible that we were basing our testing off of something that wasn't correct, but the calculator we were comparing to was supplied by SSA, so we were certainly assuming it was correct.

Correct, so I think he'd first be 70 in September and receive the first payment in October, based on an August 6 birthdate.

I mean, he can always claim earlier, but then he wouldn't be getting his maximum benefit.
You're off by a month, essentially. Someone born on August 6, 1949, attains every age on August 5 (the last day of the previous year). So, he would attain age 62 on August 5, 2011, but would not be 62 for the entire month of August and therefore could not receive a benefit for that month. He would be age 62 years and 1 month for the entire month of September 2011 and could receive a benefit for that month, but it would be paid in October, of course, because Social Security pays in arrears.

This same person would attain age 70 on August 5, 2019, and would be eligible for the entire month of August. He could receive the maximum possible benefit for August, and it would be paid in September. The September benefit, paid in October, would be exactly the same. If he applied in September, he could get the August benefit retroactively.

Nothing has changed since 2007. The confusion may relate to the payment date versus the accrued date.

Bruce

Last edited by bdschobel; 12-12-2018 at 02:51 PM..
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  #19  
Old 12-12-2018, 02:49 PM
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Originally Posted by bdschobel View Post
They believe that people want six months of retroactive benefits. But most people who wait until age 70 really want the maximum monthly benefit and don't care that much about getting a big retro check.

Bruce
Ah, got it, thanks.
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  #20  
Old 12-12-2018, 02:57 PM
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Originally Posted by bdschobel View Post
You're off by a month, essentially. Someone born on August 6, 1949, attains every age on August 5 (the last day of the previous year). So, he would attain age 62 on August 5, 2011, but would not be 62 for the entire month of August and therefore could not receive a benefit for that month. He would be age 62 years and 1 month for the entire month of September 2011 and could receive a benefit for that month, but it would be paid in October, of course, because Social Security pays in arrears.
OK, we definitely agree on the bolded. I didn't think the underlined was quite how it worked, but it's possible that I'm remembering wrong. I'm going to have to get my home internet situation dealt with so that I can put this on the computer at home and check it out.
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