February 15, 2020

By: John Zeltmann

Recently I received a very helpful email from Social Security, filled with tips on how to avoid scams related to my Social Security account.  It was almost as though it was explicitly designed to put me at ease, inviting me into thinking whoever wrote the email had my best intentions in mind.

That’s because it was.

By John Zeltmann

Put away your calculators and W2 earnings statements.  This is not a math lesson - thank goodness - because the math behind the calculation of your Social Security retirement benefit can be pretty complicated.  That said, if you want to know the general calculations behind your Social Security retirement benefit, read on.

By John Zeltmann

If you were born after 1929, have 40 credits of earnings history (e.g. 10 years’ of work), and are at least 62 years of age, you are eligible to collect Social Security retirement benefits. (Note that I didn't include being a U.S. citizen as being a requirement...because it isn't one.) 

By John Zeltmann

You know you're entitled to a retirement benefit from Social Security, but there seem to be a lot of rules regarding when you can actually collect it. To understand some of those rules, let’s assume we’re talking about an individual at Full Retirement Age of 66 with a Primary Insurance Amount of $2,500 per month.

By John Zeltmann

While a Social Security recipient can collect her retirement benefit any time between 62 and 70, that doesn’t mean she has completely unfettered access with no strings attached. In fact, the Social Security earnings limit might prevent someone from collecting their full retirement benefit if they have employment earnings.  

By John Zeltmann

The Social Security system is filled with complexity - questions ranging from when should I claim to isn't the Social Security system bankrupt to when can I collect my Social Security retirement benefit are kicked around on a regular basis.

So what if you're divorced?  Thankfully, many rules and strategies remain the same regardless of whether you're married or divorced, albeit with a few caveats.  The requirements that need to be satisfied in order to collect off of an ex-spouse's record are as follows:

By John Zeltmann

"I just turned 62 and am now eligible to collect my Social Security retirement benefit.  Why wouldn't I take the money and run?"

- Overwhelming majority of Americans

Reviewing recent reports on Social Security collections, approximately 90% of people claim at or before Full Retirement Age, and the majority of those folks are collecting at 62¹.  And possibly with good reason.  For example, would I ever recommend someone go into credit card debt to purchase groceries all in the name of delaying collection of their Social Security?  Of course not!  However, if there are other assets you can tap to meet everyday living needs, it's at least worth considering what value you might be leaving on the table by collecting upon eligibility as opposed to waiting a few more years.

By John Zeltmann

I was speaking with everyone's favorite skeptic, Billy Know-It-All, recently (you know, the one who claims that Social Security is bankrupt?), and he was up to his old antics again.  We were discussing the optimal time for him to claim Social Security, and inevitably life expectancy comes up.

By John Zeltmann

We've all been there before, a perfectly pleasant and enjoyable evening at a cocktail party is progressing swimmingly.  The kids are tucked in, the dishes are cleaned and put away, and the conversation is engaging.  Enter wise guy, stage left.  We all know who he is; the friend/relative/neighbor/co-worker who knows it all.

By John Zeltmann

With concern about the Social Security trust fund's solvency and speculation rampant that the system is bankrupt (which it actually isn't), many people wonder whether potential future changes will be directed at their retirement benefits.