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Claiming Decision
I. Life Expectancy
Life Expectancy.
78 years and 9 1/2 months.
Additional 17.8 years to age 82.8.
Additional 20.3 years to age 85.3.
II. Decision Consideration
Once someone has claimed and started collecting, that is the benefit amount someone will collect for the rest of his/her life, with a few exceptions.
41% for men and 46% for women.
The decision can lock in the lowest possible monthly payment for life.
On December 8, 2010.
The ruling sets a 1-year time limit on fixing or re-doing income election if someone feels that he/she made a mistake. There was no limit on the time prior to the ruling and someone could withdraw his or her application, re-pay his or her benefits, and re-file later.
III. PIA Reductions And Credits
100% of PIA.
7% per year and is calculated on a monthly basis depending on the actual starting date.
Note: The percentage reduction is 5/9 of 1% per month for the first 36 months and 5/12 of 1% for each additional month.
132% of PIA.
8% per year.
An increase of approximately 76%.
IV. The Earning Test
For someone below FRA, collecting social security benefits and also earning income.
Retirement Earnings Test Exempt Amounts.
Two different exempt amounts.
The lowest exempt amount is $17,040 for 2018.
The highest exempt amount is $45,360 for 2018.
$1 for every $2 the retiree earns over the lower exempt amount.
$1 withheld for every $3 the retiree earns over the highest exempt amount.
Upon reaching FRA, the monthly benefit will be increased permanently to account for the months in which benefits were withheld.
Note: This will allow retirees to recover from those lost benefits over an approximate period of 20 years.
Social Security can pay retirees full benefits for any whole month considered retired.
