UK state pension and USA social security
#1411
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Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: UK state pension and USA social security
I found this current advice for 2017:
"In 2017, Social Security recipients who earn more than $16,920 will have $1 withheld for every $2 earned above that limit. Recipients who turn their full retirement age this year can earn up to $44,880, but their benefit is reduced by $1 for every $3 earned above this higher limit."
"In 2017, Social Security recipients who earn more than $16,920 will have $1 withheld for every $2 earned above that limit. Recipients who turn their full retirement age this year can earn up to $44,880, but their benefit is reduced by $1 for every $3 earned above this higher limit."
"However, once you turn full retirement age, you can earn any amount without having your benefit withheld, and Social Security payments are recalculated to give you credit for any withheld benefits."
I don't know that exact math, but my reading of this is that the reduction prior to full retirement age is essentially a deferment.
Last edited by Giantaxe; Oct 23rd 2017 at 4:05 pm.
#1412
Re: UK state pension and USA social security
You missed an important bit off that, namely:
"However, once you turn full retirement age, you can earn any amount without having your benefit withheld, and Social Security payments are recalculated to give you credit for any withheld benefits."
I don't know that exact math, but my reading of this is that the reduction is essentially a deferment.
"However, once you turn full retirement age, you can earn any amount without having your benefit withheld, and Social Security payments are recalculated to give you credit for any withheld benefits."
I don't know that exact math, but my reading of this is that the reduction is essentially a deferment.
So are you saying that there's one limit for people who take SS early, higher limit for the year they reach full retirement age, and no limit in subsequent years?
#1413
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Posts: 12,865
Re: UK state pension and USA social security
That is for the year that you reach your full retirement age.
Correct.
Correct.
#1415
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Joined: Jul 2016
Posts: 10,009
Re: UK state pension and USA social security
I find the whole issue of paying a benefit, then taking some back if you work, and all the seemingly arcane calculations, just a complicated mess for which there must be a better solution.
#1417
Re: UK state pension and USA social security
Well making it means-tested would be more honest, because that is what they're trying to move towards, without actually making it means-tested.
#1418
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Re: UK state pension and USA social security
#1419
Re: UK state pension and USA social security
It's also worth noting that if the SSA withholds your benefits and keeps you from double dipping between Social Security income and working wages, you don't lose your benefits forever. Once you cross full retirement age, you'll get them back in the form of a higher monthly payout.
https://www.usatoday.com/story/money...018/106907866/
Working Overseas
If you are under full retirement age, we withhold benefits for every month you work more than 45 hours outside the United States in employment or self-employment (not subject to U.S. Social Security taxes).
It doesn't matter how much you earned or how many hours you worked each day. You will be considered to be working on any day you:
Work as an employee or self-employed person;
Have an agreement to work even if you do not actually work because of sickness, vacation, etc.; or
Are the owner or part owner of a trade or business even if you do not actually work in the trade or business or receive any income from it.
Generally, if your benefits are withheld because of your work, we cannot pay benefits to anyone else receiving benefits on your record for that month. However, the work of others receiving benefits on your record affects only their own benefits.
https://www.ssa.gov/hlp/isba/10/hlp-...arnwg2-for.htm
https://www.ssa.gov/planners/retire/whileworking.html
https://www.usatoday.com/story/money...018/106907866/
Working Overseas
If you are under full retirement age, we withhold benefits for every month you work more than 45 hours outside the United States in employment or self-employment (not subject to U.S. Social Security taxes).
It doesn't matter how much you earned or how many hours you worked each day. You will be considered to be working on any day you:
Work as an employee or self-employed person;
Have an agreement to work even if you do not actually work because of sickness, vacation, etc.; or
Are the owner or part owner of a trade or business even if you do not actually work in the trade or business or receive any income from it.
Generally, if your benefits are withheld because of your work, we cannot pay benefits to anyone else receiving benefits on your record for that month. However, the work of others receiving benefits on your record affects only their own benefits.
https://www.ssa.gov/hlp/isba/10/hlp-...arnwg2-for.htm
https://www.ssa.gov/planners/retire/whileworking.html
Last edited by mrken30; Oct 23rd 2017 at 6:36 pm.
#1420
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: UK state pension and USA social security
It's also worth noting that if the SSA withholds your benefits and keeps you from double dipping between Social Security income and working wages, you don't lose your benefits forever. Once you cross full retirement age, you'll get them back in the form of a higher monthly payout.
#1421
Lost in BE Cyberspace
Joined: Jul 2016
Posts: 10,009
Re: UK state pension and USA social security
It's also worth noting that if the SSA withholds your benefits and keeps you from double dipping between Social Security income and working wages, you don't lose your benefits forever. Once you cross full retirement age, you'll get them back in the form of a higher monthly payout.
https://www.usatoday.com/story/money...018/106907866/
Working Overseas
If you are under full retirement age, we withhold benefits for every month you work more than 45 hours outside the United States in employment or self-employment (not subject to U.S. Social Security taxes).
It doesn't matter how much you earned or how many hours you worked each day. You will be considered to be working on any day you:
Work as an employee or self-employed person;
Have an agreement to work even if you do not actually work because of sickness, vacation, etc.; or
Are the owner or part owner of a trade or business even if you do not actually work in the trade or business or receive any income from it.
Generally, if your benefits are withheld because of your work, we cannot pay benefits to anyone else receiving benefits on your record for that month. However, the work of others receiving benefits on your record affects only their own benefits.
https://www.ssa.gov/hlp/isba/10/hlp-...arnwg2-for.htm
https://www.ssa.gov/planners/retire/whileworking.html
https://www.usatoday.com/story/money...018/106907866/
Working Overseas
If you are under full retirement age, we withhold benefits for every month you work more than 45 hours outside the United States in employment or self-employment (not subject to U.S. Social Security taxes).
It doesn't matter how much you earned or how many hours you worked each day. You will be considered to be working on any day you:
Work as an employee or self-employed person;
Have an agreement to work even if you do not actually work because of sickness, vacation, etc.; or
Are the owner or part owner of a trade or business even if you do not actually work in the trade or business or receive any income from it.
Generally, if your benefits are withheld because of your work, we cannot pay benefits to anyone else receiving benefits on your record for that month. However, the work of others receiving benefits on your record affects only their own benefits.
https://www.ssa.gov/hlp/isba/10/hlp-...arnwg2-for.htm
https://www.ssa.gov/planners/retire/whileworking.html
#1422
Re: UK state pension and USA social security
It's also worth noting that if the SSA withholds your benefits and keeps you from double dipping between Social Security income and working wages, you don't lose your benefits forever. Once you cross full retirement age, you'll get them back in the form of a higher monthly payout.
https://www.usatoday.com/story/money...018/106907866/
Working Overseas
If you are under full retirement age, we withhold benefits for every month you work more than 45 hours outside the United States in employment or self-employment (not subject to U.S. Social Security taxes).
It doesn't matter how much you earned or how many hours you worked each day. You will be considered to be working on any day you:
Work as an employee or self-employed person;
Have an agreement to work even if you do not actually work because of sickness, vacation, etc.; or
Are the owner or part owner of a trade or business even if you do not actually work in the trade or business or receive any income from it.
Generally, if your benefits are withheld because of your work, we cannot pay benefits to anyone else receiving benefits on your record for that month. However, the work of others receiving benefits on your record affects only their own benefits. ....
https://www.usatoday.com/story/money...018/106907866/
Working Overseas
If you are under full retirement age, we withhold benefits for every month you work more than 45 hours outside the United States in employment or self-employment (not subject to U.S. Social Security taxes).
It doesn't matter how much you earned or how many hours you worked each day. You will be considered to be working on any day you:
Work as an employee or self-employed person;
Have an agreement to work even if you do not actually work because of sickness, vacation, etc.; or
Are the owner or part owner of a trade or business even if you do not actually work in the trade or business or receive any income from it.
Generally, if your benefits are withheld because of your work, we cannot pay benefits to anyone else receiving benefits on your record for that month. However, the work of others receiving benefits on your record affects only their own benefits. ....
Frankly I am surprised that the age for early retirement isn't being increased lock-step with the increase in the age for full retirement.
Last edited by Pulaski; Oct 24th 2017 at 1:33 pm.
#1423
Re: UK state pension and USA social security
So it occurred to me, if I am working between 62 and 67, should I claim SSI at age 62? Would the increased deferred payment be more than the 8% if you just defer claiming until age 67. Five years of back payments should amount to a bit.
#1424
Re: UK state pension and USA social security
A lot will depend on how long you expect to live. I heard the other day that if you are healthy at 60 there is a now very good chance you will reach 90. If you don't expect to reach more than 75-80 then drawing early is the optimal decision.
#1425
Re: UK state pension and USA social security
I heard the other day that in 50% of couples, one partner will live to age 92.