Today’s question comes from Tim. And it has to do with Social Security calculations. Here it is:
Hi Chris, I do have a question that I think may also apply to other people too. My wife and I are planning to stop working when we turn 62, but not collect social security until she is 66, and I am 70. We will live on my pension and savings until we collect social security. My question is this: The charts you use to determine your social security payout amount is based upon working until you actually collect; in our case there will be a gap of 4 or 8 years of not paying into the system, but not collecting either. So I am assuming the numbers on the chart will not be accurate, so how much will the numbers be off? I talked to someone at social security about this, but he couldn’t really give me an accurate estimate. Is there some way to get at least a ball park estimate? I assume many other people will also have this problem, especially if they are waiting until age 70 to collect. Thanks if you can answer this.
The 2015 bipartisan budget deal appears to have taken away some of the Social Security claiming strategies.
It also appears that these changes are with us from now on.
These changes will cost retirees a lot in guaranteed lifetime income. It could cost some people up to $50,000 in lost lifetime benefits.
And before you believe this will only affect the super-rich 1%, think again. This will affect everyone that isn’t grandfathered in under the old rules.
Most articles I read about this always imply that this change took away a “loophole” that primarily benefited the “rich.” Gotta stop the rich and all their loopholes. But that’s not the whole story.… Continue Reading
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