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Re: UK state pension and USA social security
Originally Posted by Pulaski
(Post 12367513)
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.
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Re: UK state pension and USA social security
Originally Posted by mrken30
(Post 12367508)
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.
Not sure I really understand your question - what does "more than the 8% if you just defer claiming until age 67" mean? If you take SS early, it's reduced - for your entire life - by 5% per year you take it early. So if your full retirement age is 67 (true of anyone born post 1960 iirc), taking it at 62 will reduce your payments by 30%. If you delay taking SS past your full retirement age, your payment is increased by 8% per year of deferral. |
Re: UK state pension and USA social security
Originally Posted by morpeth
(Post 12367216)
Thanks , that is what I read was referring too. Pretty outrageous I think- so if I wanted to take early social security, I couldn't work over 45 hours a month, or own a business.
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Re: UK state pension and USA social security
Originally Posted by Pulaski
(Post 12367498)
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.
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Re: UK state pension and USA social security
Originally Posted by Giantaxe
(Post 12367794)
I presume it's a discouragement to those living abroad from claiming before their full retirement age. After all, for non-resident aliens, the SSA has no way of verifying your income and reducing your SS benefits if you're over the earnings threshold. Of course, people could equally lie as to the number of hours they are working overseas...
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Re: UK state pension and USA social security
Originally Posted by dunroving
(Post 9636948)
Doesn't the Windfall Provision only apply to people below a certain level of SS contributions? I thoght if you had something like 30 years of SS contributions, the Windfall Provision didn't apply? Maybe I dreamt that? :confused:
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Re: UK state pension and USA social security
Originally Posted by Alexamck
(Post 12407483)
I am 68 and have done the calculation assuming 15 years further on this planet and using three scenarios: take US Social Security now + 50% of UK state pension (being a reduction to the US Social Security payments); as above, but deferring taking UK pension for five years; as above, but with 10 year deferral. Assumptions: UK deferral increases pension by 10% annually (note - for younger people this is less may be less generous). My conclusion: it works out more or less the same (variance in total payments over lifetime <£1,000). If anyone wants it, I can attach spreadsheet so you can enter with your own numbers. Regards:p
You don't indicate how many years of US SS contributions you have. |
Re: UK state pension and USA social security
Originally Posted by Alexamck
(Post 12407483)
I am 68 and have done the calculation assuming 15 years further on this planet and using three scenarios: take US Social Security now + 50% of UK state pension (being a reduction to the US Social Security payments); as above, but deferring taking UK pension for five years; as above, but with 10 year deferral. Assumptions: UK deferral increases pension by 10% annually (note - for younger people this is less may be less generous). My conclusion: it works out more or less the same (variance in total payments over lifetime <£1,000). If anyone wants it, I can attach spreadsheet so you can enter with your own numbers. Regards:p
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Re: UK state pension and USA social security
Originally Posted by lansbury
(Post 12204837)
It isn't quite like that as the WEP only applies to the major part of how the benefit is calculated. If you are a high salary earner then it is not all reduced.
The basic benefit will be 15% less then you would have got it WEP didn't apply. 5% less for each year less then 30 years. There is an online WEP calculator on the SSA web site. https://www.ssa.gov/planners/retire/anyPiaWepjs04.html |
Re: UK state pension and USA social security
Originally Posted by Giantaxe
(Post 12367794)
I presume it's a discouragement to those living abroad from claiming before their full retirement age. After all, for non-resident aliens, the SSA has no way of verifying your income and reducing your SS benefits if you're over the earnings threshold. Of course, people could equally lie as to the number of hours they are working overseas...
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Re: UK state pension and USA social security
Originally Posted by morpeth
(Post 12407564)
Is WEP classified only for Class 1, 2 or 4 contributions, or doe sit count Class 3 voluntary contributions ?
My comment related to SS. When it is calculated your average earnings are split into three amounts and then a formula is used on each amount to calculate your SS. The first amount is multiplied by 90% except when WEP applies when the 90% is reduced by 5% per year for each year between 20 and 30 years SS contributions. The other two amounts are subject to the normal formula and not reduced by WEP. I take it that has cleared up any confusion. :lol: |
Re: UK state pension and USA social security
Originally Posted by lansbury
(Post 12407607)
All UK State pension, except that derived from voluntary contributions, counts towards WEP, if WEP is applied.
My comment related to SS. When it is calculated your average earnings are split into three amounts and then a formula is used on each amount to calculate your SS. The first amount is multiplied by 90% except when WEP applies when the 90% is reduced by 5% per year for each year between 20 and 30 years SS contributions. The other two amounts are subject to the normal formula and not reduced by WEP. I take it that has cleared up any confusion. :lol: |
Re: UK state pension and USA social security
Originally Posted by morpeth
(Post 12407612)
Reason is I was offered some work in UK + I have a few years to catch up n Class 3 contributions- if US social security reduced by amount of UK pension, don't know if worth catching up on voluntary contributions if working n UK for a few years has effect of reducing my USA pension as well.
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Re: UK state pension and USA social security
Originally Posted by robin1234
(Post 12407560)
I'm 67, and I haven't starting taking my British State Pension yet. I'd planned on starting to take it next year or the year after - can one continue to defer it beyond age 70? If that's the case, I didn't realise it .... And is it the case, as you suggest, that folks in our age bracket are grandfathered in with the 10% annual increase on deferral?
https://www.gov.uk/deferring-state-pension/what-you-get At ages 67 & 68 it's possible you and Alexamck fall either side of that date. |
Re: UK state pension and USA social security
Originally Posted by rebs
(Post 12407831)
I don't think there is any grandfathering in of the 10% - the amount of uplift will depend on whether you hit state pension age before or after April 2016.
https://www.gov.uk/deferring-state-pension/what-you-get At ages 67 & 68 it's possible you and Alexamck fall either side of that date. Edit; The link confirms that the pension amount will continue to increase by 1% every five weeks, or 10.4% a year, if deferred. I don't see a mention of whether there's a limit as to an upper age beyond which you can't defer... |
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