Social Security & You: Reduced benefits explained

like including too much math in my column because I’ve learned over the years that putting lots of numbers in a column just confuses so many of my readers and turns them off. But alas, I’ve got to get into messy math to explain today’s topic: how Social Security benefits are reduced if taken before full retirement age.

People are also reading… Part of the problem is that there are different reduction rates for different kinds of Social Security benefits. Let’s start with retirement benefits. If you take those benefits before you reach full retirement age, your Social Security checks will be reduced five-ninths of 1% for the first 36 months and five-twelfths of 1% for any remaining months.

Let’s use the same numbers as in Wilma’s case above. So, if Betty took benefits at 62, her normal spousal rate of $1,500 would be reduced by 35% giving her a $975 monthly benefit. The SSA rep was telling her that she was going to get 32.5% of her husband’s full retirement benefit. And 32.5% of $3,000 equals $975.

To go to the other end of the benefit start date spectrum, let’s say Fred waited until age 70 to begin his benefits. That means he’ll get a 32% bonus added to his monthly benefits. In other words, he is actually getting $3,960 per month. But again, Wilma’s spousal rate is based on Fred’s FRA benefit, or $3,000, not on his augmented benefit of $3,960.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Social Security update: Boosted direct $914 Supplemental Security Income check to be sent out this monthRecipients of Supplemental Security Income are set to receive their second December payment by the end of the month, with the final payment of the year to be slightly higher than the rest.
Source: dcexaminer - 🏆 6. / 94 Read more »

Social Security update: Direct payments worth $1,631 to be sent out to millions in 11 daysPeople who receive Social Security benefits will get their next monthly retirement payments, which are worth an average of $1,631 per check, in 11 days. And they only cost us an additional 2k each I keep seeing ads on Google for social security but you apply through a third party? What is going on with the government?
Source: dcexaminer - 🏆 6. / 94 Read more »

Missouri man reportedly admits to cashing his dead mother’s Social Security checks for 26 yearsThe man is facing up to 10 years in prison and a fine of $250,000 when he is sentenced in March. Who cares it’s not the government’s money it belongs to her family. Social Security is a fucking scam!
Source: KIRO7Seattle - 🏆 271. / 63 Read more »

Hive Social Shuts Down App Due To Security Issues After Rise in Sign-upsHive Social, the app touted as an alternative to Instagram and Twitter, has completely shut down its servers to address security issues. ShrtCrctYT 😂
Source: petapixel - 🏆 527. / 51 Read more »

Social Security update: Direct payments worth $1,631 to be sent out to millions in 12 daysMillions of Social Security recipients are set to get their next monthly retirement payments, worth an average of $1,631 per check, in 12 days.
Source: dcexaminer - 🏆 6. / 94 Read more »

Man pleads guilty to cashing dead mother’s Social Security checks for 20-plus yearsA Missouri man has pleaded guilty to cashing Social Security checks that were being sent for his deceased mother.
Source: AKNewsNow - 🏆 460. / 53 Read more »