Social Security Rat-holes

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

Social Security Rat-holes

Postby rixer » Wed Jan 30, 2013 2:59 pm

I was reading an article at MW this morning and have a question to ask the members here. The story was about rat-holes in the ss system. Here's is something from the story:

“rat holes.” For those entitled to full Social Security benefits at age 66, one rat hole occurs between ages 62 and 63 and 11 months. The other is between ages 65 and four months and 66 and eight months. For younger savers who will be eligible to receive a full Social Security benefit at age 67, the rat holes occur later — between 62 and 11 months and 65, and between 66 and four months and 67 and eight months."
The system increases your monthly benefit for each month that you wait after age 62, and those individual increases get bigger the longer you wait. But because these increases are not uniform, the calculations create two gaps — the rat holes—where in practice, “you will get no extra benefit for having delayed.”

Is this right? You will get the same benefit from drawing at 65 years 4 months as FRA 66?
rixer
 
Posts: 210
Joined: 11 Sep 2012

Re: Social Security Rat-holes

Postby UpstateNY86 » Wed Jan 30, 2013 3:00 pm

cue sscritic.
UpstateNY86
 
Posts: 71
Joined: 18 Dec 2012

Re: Social Security Rat-holes

Postby sscritic » Wed Jan 30, 2013 3:03 pm

cue previous thread
viewtopic.php?f=2&t=109952
sscritic
 
Posts: 19709
Joined: 6 Sep 2007

Re: Social Security Rat-holes

Postby rixer » Wed Jan 30, 2013 3:10 pm

Thank you sscritic.
rixer
 
Posts: 210
Joined: 11 Sep 2012

Re: Social Security Rat-holes

Postby Alan S. » Wed Jan 30, 2013 7:41 pm

Alan S.
 
Posts: 3107
Joined: 16 May 2011
Location: Prescott, AZ


Return to Investing - Theory, News & General

Who is online

Users browsing this forum: daave, Exabot [Bot], JuanZ, MichaelRpdx and 42 guests