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CASA GRANDE, Arizona
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CASA GRANDE, Arizona
United States
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When the student is ready, the teacher will appear
When the student is ready, the teacher will appear
Leaves Of NovemberKNOW THE FACTS . . . BEFORE APPLYING
KNOW THE FACTS . . . BEFORE APPLYING
By Carol Ann
The timing couldn’t have been more perfect. I decided to retire on October 2, 2009. After reading an article “Boost Your Income!” under the Personal Finance section of the September & October, 2009 edition of the AARP Magazine, I realized that many people were missing out on making extra money, by not knowing their rights on how and when to file for Social Security benefits.
According to the article by Lynn Brenner: If you’re married or divorced, these little-known strategies can add thousands of dollars to your Social Security checks. Every year, retirees pass up a whopping $10.1 billion in Social Security benefits—spousal benefits that most people don’t even know they’re entitled to.
I had visited the Social Security office a couple of times. The first time was to escort my hubby to apply for his benefits when he turned 63 years old. The second time was to learn what I would receive, depending on when I retired and my work history and get a print-out for future reference. No one ever mentioned any alternative options to receive the most over the long haul.
Most financial advisers would suggest that an individual take their benefits at age 62, instead of full retirement age (FRA), which for most people is now 66 years or later. I was told that it would take 13 years for a retired person to make more money by waiting until they were FRA. Of course, if you are independently wealthy, this wouldn’t be an issue for you.
I am in excellent health for someone my age and my primary physician keeps telling me, “You know you are going to live a very long time,” after listening to my heart, and checking me out.
I was concerned that if I took early retirement benefits with Social Security, I would be short-changing myself in the years to come. The cost of living raises (when they give them) are based on your current payments. If I took a discounted benefit, my increases would be less for my remaining years too.
The article in the AARP Magazine explained another option that no one, not even the employees at the Social Security Center told me about. It described different financial situations and the best way the couples should file to make the most money.
It informed me that I could file for S.S. benefits now at 63 yrs. and 11 months, at one half of my spouse’s benefit; and when I turn 66 years or FRA, I could re-file under my own number and not be penalized for early retirement. My husband’s benefits allowed me to start receiving payments that would only be $200 a month less than if I filed under my own number now. When I reach FRA, I will receive the full amount of my benefits and it would be $300 a month more for life. Plus my cost-of-living increases would be based on the new higher amount.
When my hubby asked the employee that was working on my case, “What do you think is the best thing to do?”
She responded, “Oh sir, we aren’t allowed to advise any one; just give you the numbers. Everyone’s financial situation is different and we can’t say.”
Thankfully I have a pension from another job that I had for 12 years, but I did need some added funds to pay for my COBRA, or continued medical coverage from my former employer, for 13 months, until I reach 65 years and am eligible for Medicare.
This was the perfect solution. I now will receive monthly S.S. payments that will more than cover my COBRA, and I will still be able to receive my FRA benefits too without being penalized. I might even consider waiting more than my FRA to get a larger monthly income. I will have to see what the financial environment is at the time.
Prior to reading this article, the only way I knew to be able to receive the full amount after you already filed and started to receive payments, was to pay back every penny you received. Since most people spend what they receive, paying back thousands of dollars wasn’t a viable option.
I am so-o-o-o thankful that I read the article to Know the Facts . . . Before Applying. I am going to receive enough money to cover my new COBRA, or medical expenses, until I reach age 66 when I will receive my FRA benefits too.
* * *
jc2gether63 says:
Thanks Patricia,
I have talked to numerous people about this option that would be advantageous for them and they didn't know this was an option was available.
Have a Great Day!
Carol :-)
Posted: November 12, 2009 3:27PM EST
RockyMountainGirl says:
I saw this not long after you posted it, about the time things got busy in my world. I didn't have the time then but I do now so I'll tell you that I think this is a very helpful journal! I know there are so many people out here who are just feeling their way through all this and first hand experiences like yours can be extremely helpful. Thanks, so much for passing this information on!
Posted: November 12, 2009 10:29AM EST
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Added: Oct 22, 2009
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Views: 60
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