| | | Speeeeeeeeakking of SS... just got an email from maximizemysocialsecurity that they'd updated their software to reflect the changes in SS (mostly file and suspend rules for people like me born after 1/1/54)... so I logged in and re-ran my numbers.... WOW! The changes they made are going to decrease our lifetime benefits by roughly $150,000 over 25-28 yrs (assuming I live that long)... and it basically eliminates any tangible benefit for me to wait until 66 or later to file -- the difference over 25 yrs., between me filing at 62 vs. their "maximized" strategy -- to wait until 65 now -- is only $15,000 total over that 25 yr. period...
Prior to these changes, they had recommended I file at 65, collect for a year (with my wife starting spousal benefits that same year), and then I would suspend collecting until age 70... $150,000 dollar difference over 25 years...
I can understand wanting to close that sort of loophole, but at my age, this is a rather significant change in future income with very little warning -- I turn 62 next year... I'm sure it will add years to SS solvency... another, effective way to do that seems to be toxic: eliminating the max amount of income subject to SS... I'd never even known there was a cap on earnings subject to SS taxes until I maxed out in the late 1980s -- the cap has gone up with inflation, but it is still only $118,000/yr... eliminate that cap and SS would probably stay solvent for many decades.
I am truly upset... not by the changes in file and suspend, per se, but by the relative lack of warning -- not much I can do at this point to make up for the decreased income... I've been planning my retirement income strategy for at least 30 years and now, as I am almost ready to "retire" and collect SS, they cut my monthly income from SS 13%... that basically throws my entire retirement "budget" out the window.
(normally, I'd post a /rant here, but I have a feeling I'm not done ranting yet) |
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