I'm not 100% sure, but I think that the amount on your SS statement at full retirement age PRESUMES that you actually work until full retirement age. If you're retiring before then, your $$$ will be much less than what the estimate would be at FRA. It's hard to get a definitive answer on this, but I've asked one of our retirement seminar providers and a recent retiree who postponed claiming a few years after retirement and they both seem to say that it does no good to wait to claim SS after you actually retire as the $$$ doesn't go up very much at all (a little, but not much)
-
The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com
-
Please read our AutoTracker policy on the IFT deadline and remaining active. Thanks!
-
$ - Premium Service Content (Info) | AutoTracker Monthly Winners | Is Gmail et al, Blocking Our emails?
Find us on: Facebook & X | Posting Copyrighted Material
-
Join the TSP Talk AutoTracker: How to Get Started | Login | Main AutoTracker Page
-
The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com ...
Or you can now use TapaTalk again!
Pension
- Thread starter gibsonman
- Start date
I'm not 100% sure, but I think that the amount on your SS statement at full retirement age PRESUMES that you actually work until full retirement age. If you're retiring before then, your $$$ will be much less than what the estimate would be at FRA. It's hard to get a definitive answer on this, but I've asked one of our retirement seminar providers and a recent retiree who postponed claiming a few years after retirement and they both seem to say that it does no good to wait to claim SS after you actually retire as the $$$ doesn't go up very much at all (a little, but not much)
James48843
Well-known member
What your video fails to note, and it is VERY important- is that if you take reduced Social Security at age 62, you are limited to the earned income you can earn without that social security being reduced.
If you wait until your full retirement age, you can have unlimited earnings, and still collect SS. After age 67, they don't reduce your SS by your earnings.
If you are planning on taking SS the moment you turn age 62, and then you decide you need to work to supplement your income, it is possible to completely wipe away all of your social security inclme very easily. SS is reduced by $1 for every $2 in earnings that you have. With a $50,000 income from another job, you end up collecting nothing from SS, and it is permanently reduced.
That's why it MAY be a better plan to live off other income in that key 62-67 time frame. I plan to use TSP savings tp help me through there, although it is possible my side business will provide enough income that I won't need to dip into TSP just yet.
And, since I can't travel Europe anytime soon - (thanks, Covid), I might as well just enjoy and save money for now.
ravensfan
Well-known member
Also minus Federal taxes and if you aren't blessed to live in one of those states that doesn't require it, state and local taxes.
Suddenly that great pension is getting smaller and smaller...:nuts:
ALRetiree
Member
This is the presumption I get as well from the SS website. There is a calculator I ran on there where I put in 56 years old as the age when I stopped working and made zero dollars after that and it decreased my amount at 62 on my statement by 10%. It wouldn't change the numbers for 67 and 70 and the calculator assumed I would make my current income until those ages. That makes it difficult to know what it would be if I held out until later. It says it goes up by 8% a year but if they assume you're working and not sitting on your butt collecting your pension, the numbers would drop, but by how much?
If you are CSRS you get penalized on your SS because of your pension. FERS no penalty.
In my opinion if you are still working it is best to wait until you reach FRA then collect SS. If you wait until 70 it could take 7-10 years to make up the difference if you started collecting at FRA. Then again if you live to be 100 you loose money.
In my opinion if you are still working it is best to wait until you reach FRA then collect SS. If you wait until 70 it could take 7-10 years to make up the difference if you started collecting at FRA. Then again if you live to be 100 you loose money.
bmneveu
Well-known member
I'm 33yo so who the hell knows. What I do know is my pension will be wildly different if I retire at 20 years at E-7, or keep promoting, stay in, and eventually retire as an E-9 with 30. The difference is absolutely massive. But, less years on the back end to enjoy it. And more years my family has to deal with military life.
Frixxxx
Moderator
Financially, when you go over 20 years your base pay is 1/2. If you do the math, since you may work after retirement, it would be better to get a job then and invest your military retirement check. I'll look for the site I used to go to do that math.
Weather
Member
I did the math on SS. The tables show that if you make it to 80, it doesn't matter if you take it when you are first eligible or wait until FRA. You'll draw the same total amount. I'm taking at 62. That way my wife can draw off my SA account.
nnuut
Moderator | TSP Legend
I started mine at 64 and am glad I did.
I waited for three reasons 1) was the CSRS penalty 2) I failed retirement and I'm still working full time and 3) I didn't want the SS penalty.
So why take it now? I did the math and it's better to get it now then at 70.5, 1) is less of a penalty, 3) isn't in the mix anymore and in 2021 I'm planning for retirement 2.0.
So why take it now? I did the math and it's better to get it now then at 70.5, 1) is less of a penalty, 3) isn't in the mix anymore and in 2021 I'm planning for retirement 2.0.
uscfanhawaii
Active member
Good Plan!
Supplement is good to 62.
SS starts at 62. (If you want it, otherwise whenever you decide to take it. I’m sure you’ve seen all the discussion lately on when is best to start taking SS.)
Not only dose the supplement stop when you reach age 62, you need to be aware that the supplement is also subject to an earnings test. That is, your supplement will be reduced if you have earned income exceeding $18,240 (2020 number). I retired at 57 and have had to keep an eye on my earnings the past 3 years to keep the full supplement amount in play. I may actually work full time again once the supplement goes away when I reach 62 as I don't plan to start drawing SS until I reach my FRA at 67.
bmneveu
Well-known member
Every year after 20 adds 2.5%, capping out at 30 years / 75%. I'd also be making a pretty decent annual salary while still in at that point.
fisherhouse
Member
Yep. Considering you'd likely be E-9 to make it 30 years, the difference in retirement pay is nearly double what you'd get for retiring as a E-8 at 20 years. Although there are trade-offs such as having to move every few years to a new location. At one time I thought about staying 30 years, but life happens and think my family and I would be happier if I bowed out around 20-22 years.
Stoplight
Active member
Frixxxx,
As others have noted...supplement goes away at 62, regardless if you take SS or not...and supplement subject to earnings test ! They send you a questionnaire each year ! :smile:
Fascinating thread !!! Mind-blowing, all the permutations of military/Guard/civilian (CSRS vs FERS) retirement pension, TSP balance/withdrawals, survivor benefits, SS (age taken), post retirement work income plan, health care, life insurance...
Then factor in the Wife's numbers (if applicable !)...all the similar options out there, that affect your calcs !!!
What's the "Best Plan" ? Who the hell knows !!! All I know is : School Teacher Wife retired in 2009 ; me in 2012 (FERS)...so far, we're ahead of expenses !!! :smile:
It's all enough to give this retired Engineer a headache !!!
Stoplight...
PessOptimist
Well-known member
Hi Stop. Yes it was/is a complicated business. No “one plan fits all”. We all try to help even if our posts are non sequitur.As others have noted...supplement goes away at 62, regardless if you take SS or not...and supplement subject to earnings test ! They send you a questionnaire each year ! :smile:
Fascinating thread !!! Mind-blowing, all the permutations of military/Guard/civilian (CSRS vs FERS) retirement pension, TSP balance/withdrawals, survivor benefits, SS (age taken), post retirement work income plan, health care, life insurance...
Then factor in the Wife's numbers (if applicable !)...all the similar options out there, that affect your calcs !!!
What's the "Best Plan" ? Who the hell knows !!! All I know is : School Teacher Wife retired in 2009 ; me in 2012 (FERS)...so far, we're ahead of expenses !!! :smile:
It's all enough to give this retired Engineer a headache !!!
Stoplight...
Glad to hear you are ahead of expenses. Me too, so much so that I have brought up the subject of stopping the TSP annual withdrawal. That discussion gave me a bigger headache than meetings with engineers did while I was working.
PO
Stoplight
Active member
Hi Stop. Yes it was/is a complicated business. No “one plan fits all”. We all try to help even if our posts are non sequitur.
Glad to hear you are ahead of expenses. Me too, so much so that I have brought up the subject of stopping the TSP annual withdrawal. That discussion gave me a bigger headache than meetings with engineers did while I was working.
PO
LOL !!! Ain't THAT the truth !!!
I set up a monthly withdrawal from TSP from the time I retired until the time the supplement went away (and I could claim SS ; at age 62 ; which I did). The rest of the TSP, I rolled over into a self-directed Brokerage IRA with USAA....withdrawal as needed. Rolled the Wife's 403(b) retirement into a similar account.
We've tapped our accounts a few times, like for our bucket list trip to Australia and New Zealand, but haven't withdrawn anything in 2019 or YTD 2020... New Bucket list trips have been kinda' screwed by Corona...and we're not getting any younger !!!
Now I gotta start looking at the impact of the required minimum distribution calcs...Wife hits that age first...
Talk about a headache !!!
Sorry, Gibsonman, for hijacking your thread ! :worried:
Stoplight...
Similar threads
