"Tricks And Tips For Getting The Most From Social Security" (PBS)

"Tricks And Tips For Getting The Most From Social Security" (PBS)

http://www.pbs.org/newshour/bb/tricks-tips-getting-social-security/?google_editors_picks=true

Alan: It is hard to get a "general sense" of one's monthly benefit without plugging actual numbers into a Social Security "calculator." 

Social Security Retirement Benefit Calculator

http://www.ssa.gov/retire2/estimator.htm

However, the above graph (published in 2011) gives particular numbers for a man named "Bob" who "currently" earns $80,000.00 a year and is pondering retirement at different ages.

The expanded article pasted below cites the monthly benefit for his wife who currently earns $40,000 a year.

An Illustration of Social Security Deferral

BY GENWORTH FINANCIAL HOME EQUITY ACCESS, INC.

Social Security monthly benefits payments are based on a lifetime benefit amount. The later one claims Social Security, the higher the monthly benefit received. Credit union members can use a reverse mortgage to defer claiming benefits and potentially double future monthly payments. The following illustration shows one possibility:

Bob and Mary — a 62-year-old married couple — decide to retire, work part time, and enjoy a new phase in their lives. Bob currently earns $80,000 a year; Mary earns $40,000. Their home, purchased in 1974 for $70,000 and paid off, is valued at $600,000.

Bob and Mary use an online calculator to determine Mary’s Social Security benefits ($1,124 a month; $13,484 per year) and decide she should claim her benefits. Bob uses the same calculator to determine his benefits, but he isn’t so sure he’s ready to claim them. Because of Bob’s income, he is entitled to a larger benefit amount. In fact, he could receive $1,645 a month — $19,743 per year — if he claims at age 62. Assuming annual COLA increases by the time Bob reaches 70, he would receive maximum benefits of $1,927.38 per month at age 70 ($23,128 per year).

Bob and Mary realize deferring Bob’s benefits until he reaches 70 would nearly double his annual Social Security income, taking it from $23,128 (at age 70, if claim started at age 62) to $40,712 (by claiming at age 70). Even if they wait until Bob is 66 to claim, they’d still increase his lifetime max benefits to $28,493 per year.