This tracks. This is basically enforcing the important "milestones" of retirement. As a Claims Rep with years of RSHI experience, I would say the two most common filings are age 62 and FRA, followed by people who start at 65 when they can just start their medicare and RIB at the same time. Next would be a small amount of age 70 "maximizers." The age 70's are a tricky bunch though, as (at least right now) they are still excluded from the "deemed filing" rule and often take a spousal while they delay their own until 70. It will be interesting to see how this may shift as that rule is slowly coming to an end and, in all likelihood, is really going to phase out coming in 2024/2025 when rule is really bound to everyone going forward and the age rule doesn't apply except for very rare cases.
We're seven years out from them closing the deemed filing loophole. Early next year will be when the last of the people eligible for file-and-suspend hit 70; we may see a brief blip there, but it's been rare enough that I've had to remind T2 trainees of how to handle those that weren't subject to deemed filing.
If they finally got rid of the early retirement earnings cap, you'd see this chart far more evenly distributed. I have to counsel a ton of 63/64 year olds who want to collect Social Security on their annual earnings test. If they could work and draw without penalty, they would.
I dont think 62 will be an option when it is my time to retire. I expect it will be 65 for early, somewhere between 67 and 70 for Medicare and delayed credits will just go away. I expect to get much less out of this program than those before me, if it even makes it to my retirement age.
You may not have a strong grasp on how Social Security is funded. Even if the trust funds exhaust (as the RSHI one did in the early 1980s, so not an unprecedented event), the program will continue to be able to payout benefits at an 80% rate through the rest of the 21st century without any changes to the current retirement options. That's because the program is funded on a PAYGO basis by FICA tax dollars and therefore can never go "bankrupt."
Do you really think Congress is going to abolish the FICA tax and eventually eliminate the program? Really? The same party that might push for those changes wasted over a decade (and countless taxpayer dollars) on an idiotic crusade to "repeal and replace" Obamacare, a program not nearly as popular and important to the health of the American economy as Social Security, before giving up.
Fear not, the program will make it to your retirement age. After nearly 90 years, it is here to stay.
This tracks. This is basically enforcing the important "milestones" of retirement. As a Claims Rep with years of RSHI experience, I would say the two most common filings are age 62 and FRA, followed by people who start at 65 when they can just start their medicare and RIB at the same time. Next would be a small amount of age 70 "maximizers." The age 70's are a tricky bunch though, as (at least right now) they are still excluded from the "deemed filing" rule and often take a spousal while they delay their own until 70. It will be interesting to see how this may shift as that rule is slowly coming to an end and, in all likelihood, is really going to phase out coming in 2024/2025 when rule is really bound to everyone going forward and the age rule doesn't apply except for very rare cases.
ReplyDeleteWe're seven years out from them closing the deemed filing loophole. Early next year will be when the last of the people eligible for file-and-suspend hit 70; we may see a brief blip there, but it's been rare enough that I've had to remind T2 trainees of how to handle those that weren't subject to deemed filing.
ReplyDeleteIf they finally got rid of the early retirement earnings cap, you'd see this chart far more evenly distributed. I have to counsel a ton of 63/64 year olds who want to collect Social Security on their annual earnings test. If they could work and draw without penalty, they would.
I dont think 62 will be an option when it is my time to retire. I expect it will be 65 for early, somewhere between 67 and 70 for Medicare and delayed credits will just go away. I expect to get much less out of this program than those before me, if it even makes it to my retirement age.
ReplyDeleteYou may not have a strong grasp on how Social Security is funded. Even if the trust funds exhaust (as the RSHI one did in the early 1980s, so not an unprecedented event), the program will continue to be able to payout benefits at an 80% rate through the rest of the 21st century without any changes to the current retirement options. That's because the program is funded on a PAYGO basis by FICA tax dollars and therefore can never go "bankrupt."
DeleteDo you really think Congress is going to abolish the FICA tax and eventually eliminate the program? Really? The same party that might push for those changes wasted over a decade (and countless taxpayer dollars) on an idiotic crusade to "repeal and replace" Obamacare, a program not nearly as popular and important to the health of the American economy as Social Security, before giving up.
Fear not, the program will make it to your retirement age. After nearly 90 years, it is here to stay.