Social Security Filing Concerns

[AML4232]

I am a year past FRA. I had planned to wait until 70 to file for benefits, however, in light of the current climate, I feel it may be more prudent to file now. My husband is turning 70 and filed. Any thoughts? Is anyone else feeling uncomfortable?

[bombcar]

Making a decision based on "the current climate" is perhaps the opposite of boggling the heads.

Which of you was the higher earner? What's your life expectancy?

Social Security is probably one of the least likely to change programs, so my inclination would be to carry on whatever your plan was before.

[bobn60014]

Uncomfortable about many things, Social Security isn't one of them at the moment.

[yohac]

I get the concern. But I decided to stick to my plan and keep waiting, rather than make a sudden change based on fear of the unknown.

[tibbitts]

I am a year past FRA. I had planned to wait until 70 to file for benefits, however, in light of the current climate, I feel it may be more prudent to file now. My husband is turning 70 and filed. Any thoughts? Is anyone else feeling uncomfortable?

You should have been feeling uncomfortable for a long time now, since the prospects for SS are no different than they've been for many years - and they probably warrant being somewhat uncomfortable. There's been zero change in that situation for years, though, so whatever decision you made 5 or 10 years go shouldn't have changed, unless conditions with you (like your health or other finances) have.

On second thought, you might mean actual filing mechanics concerns, and I can understand you might be slightly more concerned about that now, but I wouldn't change plans on when to take social security based on that. Would you consider it likely that any disruptions now would be worse than during COVID?

[Claudia Whitten]

however, in light of the current climate, I feel it may be more prudent to file now.

Agree. Get it now. If you don't need it for spending money, invest it.

At least once it's in your hands, you can pass it on to your heirs. Once you die, your SS checks stop.

[rockstar]

Worse case right now is social security offices closing and fewer employees, so you’re looking at worse customer service. We’re still years away from dealing with the shortfall.

[yohac]

I get the concern. But I decided to stick to my plan, rather than make a sudden change based solely on fear of the unknown.

[cadreamer2015]

Run the https://opensocialsecurity.com/ calculator. The expected lifetime difference between claiming now and waiting until age 70 may be small, in which case filing now may make you feel more comfortable.

[tibbitts]

Worse case right now is social security offices closing and fewer employees, so you’re looking at worse customer service. We’re still years away from dealing with the shortfall.

But I'm not sure worse than during COVID...? I'm not sure to what extent COVID recovery has actually occurred.

[jebmke]

Run the https://opensocialsecurity.com/ calculator. The expected lifetime difference between claiming now and waiting until age 70 may be small, in which case filing now may make you feel more comfortable.

That was my thought as well. At some point, the curve flattened out quite a bit for one of us; we ended up waiting to "optimal" but the differences were not large in one case. If I had a concern about getting the app through the system, I might consider going ahead.

[stan1]

Login to your SSA account and make sure your earnings record is correct. If it is not correct, I'd start trying to fix it any way you can because it will take a long time. I think its factual at this point that the intent is to have fewer staff at SSA so I'd expect slower response when you have to interact with a person.

Things that are automated should be fine, and hopefully they will be doing more automation in the future. I would try to avoid complex situations people sometimes suggest such as "file and suspend" but I think others will continue to take that risk.

[cadreamer2015]

I would try to avoid complex situations people sometimes suggest such as "file and suspend" but I think others will continue to take that risk.

I think "file and suspend" has not been available since April 30, 2016.

[stan1]

I would try to avoid complex situations people sometimes suggest such as "file and suspend" but I think others will continue to take that risk.

I think "file and suspend" has not been available since April 30, 2016.

Good to know, obviously I'm behind :-).
But my point would be to avoid complexity if possible. We did send up an IRMAA request last week based on 2024 tax return, which I think is manually processed so fingers crossed. It is simplified by using the actual 2024 transcript from IRS so hopefully that will go quicker.

[Jack FFR1846]

If the younger of the couple has a SS benefit of less than 1/2 of the older, would they file for spousal benefit and allow their own to grow until they take it at 70?

[capran]

If the younger of the couple has a SS benefit of less than 1/2 of the older, would they file for spousal benefit and allow their own to grow until they take it at 70?

I'm not sure, but I thought I saw something from the IRS about "taking a spousal benefit is deemed as filing". For example, several years ago spouse 1 taking SS. Thought that if Spouse 2 filed for spousal, they would be deemed to have filed and their benefit would not grow by deferring to 70. Any confirmation links? edit- investopedia had this. Since both OP and Spouse are born after 1954, seems to suggest that letting on benefit grow while taking spousal benefit is not an option.
"Changes to Social Security Law
Some changes to the law in recent years have affected how you can collect spousal benefits. If you were born on or before Jan. 1, 1954, you may still be eligible to use a benefits-claiming strategy known as a "restricted application" to increase your benefits.

Younger recipients won't be able to use this strategy, which was ended by the Bipartisan Budget Act of 2015.

If you reach full retirement age and are eligible for your own benefits as well as spousal benefits, you may choose to collect benefits under your spouse's account now and defer your own benefits until later. To file a restricted application, both you and your spouse must be of full retirement age, and you both must have filed for Social Security benefits.

Filing a restricted application can result in a higher benefit amount when you later file for Social Security under your own account. The reason is you will have accrued delayed retirement credits for each year you deferred retirement, up to age 70, when benefits max out.

However, only one person per couple may collect spousal benefits while earning delayed retirement credits on his or her own account.

And, to repeat, this option is no longer available to anyone who wasn't born on or before Jan. 1, 1954."

also, I PM'ed the OP but not sure they can receive PM.

[bombcar]

One of the reasons to optimize SS filing is that it’s one of the few inflation adjusted annuities directly available to the public at large, and it can be worth the “risk” of early demise (and losing out) to “buy” the larger inflation adjustments.

That’s a decision unrelated to what is going on in the world, so run the numbers.

If the total difference is small, you can “spend” it and not feel bad - especially since “losing out” means you lived long enough to lose!

[Tracker968]

I decided to take SS at age 69. DW was able to claim spousal at the same time. Breakeven was around 85 but after accounting for an extra year of payments and investing it, I wouldn't come out ahead (by waiting to 70) until age 90.

[celia]

I am a year past FRA.

So you're 68 now and made it this far.

Are you aware that for each year you wait after FRA, you collect 8% more because you will be collecting for fewer months. So you would now collect 8% more than when you turned 67. But if you wait until 70, you can collect 24% more!

Where else can you get a guaranteed deal like that? And it lasts as long as you live plus the annual COLA adjustment will be even more than if you had already started it!

Stay healthy and this discomfort will go away eventually.

[Dottie57]

Making a decision based on "the current climate" is perhaps the opposite of boggling the heads.

Which of you was the higher earner? What's your life expectancy?

Social Security is probably one of the least likely to change programs, so my inclination would be to carry on whatever your plan was before.

I am not sure that SS will not be changed on a whim. I’ll be 70 in two years and really want that deposit to start. I’m hoping I am not a fool for waiting.

[sgr000]

I am a year past FRA. I had planned to wait until 70 to file for benefits, however, in light of the current climate, I feel it may be more prudent to file now. My husband is turning 70 and filed. Any thoughts? Is anyone else feeling uncomfortable?

I just turned 70. (Yesterday, in fact.)

My spouse and I applied for benefits last December, for benefits to start this month (when I'm 70) and thus the first deposit to land next month.

Anxiously and uncertainly awaiting the results! Both accounts say the claim was approved but somehow still pending, with the "official" letter to come around March 10.

[celia]

But my point would be to avoid complexity if possible. We did send up an IRMAA request last week based on 2024 tax return, which I think is manually processed so fingers crossed. It is simplified by using the actual 2024 transcript from IRS so hopefully that will go quicker.

How can anyone process your request when the 2024 tax season won't close until Oct. 15, 2025? Then it still has to be processed by the IRS (which might become understaffed).

[Chip Munk]

I would try to avoid complex situations people sometimes suggest such as "file and suspend" but I think others will continue to take that risk.

I think "file and suspend" has not been available since April 30, 2016.

The filing technique that was referred to as "file and suspend" where one spouse files and immediately suspends so the other spouse can collect a spousal benefit is no longer an option. It is still possible for someone to file and later suspend their own benefit. For example, someone who filed early but then has second thoughts about it can suspend their benefit once they reach FRA and collect Delayed Retirement Credits so that they will collect a higher benefit once they resume.

[Buzzman]

I don't really have any concerns other than how to maximize our benefits.

I'm 65 and my wife is 61. Opensocialsecurity.com shows that the optimum solution is for her to claim at 62 and me at 70. The question I've been pondering is whether it's better to delay her SS two or three years to capitalize on Roth Conversions. The extra survivor benefits from me delaying until 70 will be mostly inconsequential for her when I'm gone. I read this Vanguard study yesterday which is making me reconsider waiting to 70. https://corporate.vanguard.com/content/ ... _risks.pdf.

Personally, I'm not going to make a decision from a position of fear of the future. I'm planning to make a decision based on what I consider the highest probability with the best financial return.

[stan1]

But my point would be to avoid complexity if possible. We did send up an IRMAA request last week based on 2024 tax return, which I think is manually processed so fingers crossed. It is simplified by using the actual 2024 transcript from IRS so hopefully that will go quicker.

How can anyone process your request when the 2024 tax season won't close until Oct. 15, 2025? Then it still has to be processed by the IRS (which might become understaffed).

Ah, IRMAA is one of the complications but we sent up stopping work in 2024 (Step 1 Life Changing Event), transcript of filed return for 2024 (Step 2 Reductions already occurred), and estimate for 2025 income (Step 3 Anticipated Reductions). Believe that will adjust the 2025 medicare premium but as I wrote perhaps we don't understand the complications of this fully? We did not send the request up earlier in 2024.

[JayB]

I just turned 70. (Yesterday, in fact.)

My spouse and I applied for benefits last December, for benefits to start this month (when I'm 70) and thus the first deposit to land next month.

Anxiously and uncertainly awaiting the results! Both accounts say the claim was approved but somehow still pending, with the "official" letter to come around March 10.

I went through that long wait after applying and before receiving my benefits. It's perfectly normal to have that pending status after approval until the month that benefits start. Hang in there!

[sgr000]

... Anxiously and uncertainly awaiting the results! Both accounts say the claim was approved but somehow still pending, with the "official" letter to come around March 10.

I went through that long wait after applying and before receiving my benefits. It's perfectly normal to have that pending status after approval until the month that benefits start. Hang in there!

Yes, under normal circumstances that would be my response as well. Nothing is obviously wrong, yet.

Alas, these seem to be not entirely normal circumstances.

On a related issue, my statement says they're reducing my benefit (but not by how much) because I worked for the government.

The problem is:
(a) I never worked for the government, and
(b) I thought the exclusion for that was recently repealed.

So... again, I don't quite know what's going on and they are near-impossible to contact by phone or email.

[Juice3]

the prospects for SS are no different than they've been for many years

Social Security Fairness act is a recent 200B change. Given that is only about 1% of the budget but it is a change.

[mrmass]

So... again, I don't quite know what's going on and they are near-impossible to contact by phone or email.

Workers might be concerned about their jobs; hence productivity could be low.

[telemark]

Maximising my lifetime payout has never been my goal, so calculations on that don't interest me. It remains that SS is both inflation adjusted and my best protection against living too long, so I still intend to wait until 70. I have more than enough money to get me that far.

The current political situation is far too volatile for me to use as a basis for decision making.

[jebmke]

I just turned 70. (Yesterday, in fact.)

My spouse and I applied for benefits last December, for benefits to start this month (when I'm 70) and thus the first deposit to land next month.

Anxiously and uncertainly awaiting the results! Both accounts say the claim was approved but somehow still pending, with the "official" letter to come around March 10.

I went through that long wait after applying and before receiving my benefits. It's perfectly normal to have that pending status after approval until the month that benefits start. Hang in there!

same here; did not receive a determination letter until last minute. Online didn't catch up for a while. When I checked the letter the numbers were wrong so I quickly filed an appeal and they caught up in time for first month of payments. First month was two deposits and then second month was correct with one deposit.

[tibbitts]

the prospects for SS are no different than they've been for many years

Social Security Fairness act is a recent 200B change. Given that is only about 1% of the budget but it is a change.

That's fair; it was enacted in 2025, but as you point out the changed to WEP etc. didn't (and wasn't intended to) materially affect the prospects for the survival of SS or affect current or future benefit levels for the majority of recipients.

[McDougal]

I was going to wait until age 70 to start SS, but I decided to start at 69y1m. I suppose the "current climate" may have had something to do with my decision. But the real reason is my (still working) spouse's allowance for me wasn't high enough!

[Claudia Whitten]

One tip. Once you apply (online), don't just let your application sit there in the cyberspace waiting room. When the application proceeds to Step 2, call or go into a Social Security office and have someone take your case. A human can review your application, approve you on the spot, tell you exactly how much you'll receive and when your first check will arrive. Brings peace of mind rather than waiting for what could be a long time, especially now.

[Padlin]

68 also, waiting to 70, my wife started at 66. I’ve recently been running the numbers using TPAW, OpenSS, and VPM. The difference for us claiming now vs 70 is -2.3% if SS is cut, -3.3% if it is not according to OpenSS. If I plug the numbers into the other 2 calculators to account for the amount of bridging to 70 it’s pretty much a wash. I do wonder how much the loss of the extra inflation adjusting cash, 6k a year in my case, will matter down the road.

So yes, I’ve been thinking about starting before 70, haven’t decided.

[ondarvr]

I have about nine months until I'm 70, my plan works to retire and collect at anytime this year, but will probably wait to 70. I'll apply as early as possible so if they're short handed it will still get processed, but even if it's processed late you still get paid eventually.

[delamer]

What is your specific concern that you think will be eliminated or reduced by filing now?

[AML4232]

Run the https://opensocialsecurity.com/ calculator. The expected lifetime difference between claiming now and waiting until age 70 may be small, in which case filing now may make you feel more comfortable.

Thanks for the tip. I ran the calculator and there is a .7% difference between filing now and waiting until 70.

[capran]

Run the https://opensocialsecurity.com/ calculator. The expected lifetime difference between claiming now and waiting until age 70 may be small, in which case filing now may make you feel more comfortable.

Thanks for the tip. I ran the calculator and there is a .7% difference between filing now and waiting until 70.

We had seen the same thing, a very small difference, but we decided to wait until the full 70 which occurred in January because we had already made a rather large Roth conversion, and since in the past it was almost always recommended to claim at 70, doing so early would have put us over the IRMAA cliff. For some reason her application review occurred over 300 miles away, so couldn't just walk in. And we did call the coast office and were assured all was fine even though they would not be doing the 3rd phase and issue a letter until the month of her 70th birthday. It arrived a week before her birthday and first check before the end of February.

[Katietsu]

I started thinking more about social security claiming decisions over the last few years and we contemplated retirement. I have been surprised that no one seems to discuss what might happen in ten years. I do not expect it to be eliminated but I can see some variation of means testing or some reduction of the monthly amount. For those of us who will turn 70 about that time, it seems that just doing the math based on no changes to the way benefits are calculated and paid could have higher likelihood of being incorrect compared to the same analysis done by our parents.

To the OP, I do not think any decision that you would make is likely to make much of a difference. If you feel better starting now, that may be enough of a reason to go for it.

[PeterA007]

I am a year past FRA.

So you're 68 now and made it this far.

Are you aware that for each year you wait after FRA, you collect 8% more because you will be collecting for fewer months. So you would now collect 8% more than when you turned 67.

But if you die, 8 percent of nothing is nothing.

[chassis]

I am a year past FRA. I had planned to wait until 70 to file for benefits, however, in light of the current climate, I feel it may be more prudent to file now. My husband is turning 70 and filed. Any thoughts? Is anyone else feeling uncomfortable?

It doesn’t matter. Money sooner is better than money later, independent of “climate”. You don’t mean natural weather conditions, do you?

[Dave5280]

They say your delayed retirement credit will increase your benefit a year later, or maybe it’s on the next January 1st, if you file before age 70. Not sure how it is done and if includes all the credits earned or just the last 12 months of credits.

You might call social security. I’ve done it a couple times and they’ve been helpful.

[oldcomputerguy]

Login to your SSA account and make sure your earnings record is correct. If it is not correct, I'd start trying to fix it any way you can because it will take a long time.

This indeed can happen. My wife started her Social Security benefits at age 63. Before she did, I double-checked her earnings data. Turned out that a previous employer of hers had reported no earnings to SSA for her during her time with him. We had her old W-2's still on hand, so we were certain that the withholding had occurred, but he never turned it in. I got that corrected within a few weeks by writing to the SSA and providing copies of her W-2's.

[oldcomputerguy]

They say your delayed retirement credit will increase your benefit a year later, or maybe it’s on the next January 1st, if you file before age 70. Not sure how it is done and if includes all the credits earned or just the last 12 months of credits.

You might call social security. I’ve done it a couple times and they’ve been helpful.

If you've passed FRA but are not yet 70, the SSA calculates your delayed benefit amount in January. If you then file for benefits some months later (but not yet at 70), they'll use the January figure as your benefit amount for that year. Then, the next January, the additional months of credit will be added and your benefit amount bumped.

Social Security Administration: What are delayed retirement credits and how do they increase my old-age benefit amount?

§ 404.313(c) - When is the increase because of delayed retirement credits effective? — (1) Credits earned after entitlement and before the year of attainment of age 70. If you are entitled to benefits, we examine our records after the end of each calendar year to determine whether you have earned delayed retirement credits during the previous year for months when you were at or over full retirement age and you were fully insured and eligible for benefits but did not receive them. Any increase in your benefit amount is effective beginning with January of the year after the year the credits were earned.

[Juice3]

I have been surprised that no one seems to discuss what might happen in ten years. I do not expect it to be eliminated but I can see some variation of means testing or some reduction of the monthly amount.

The reason it is not discussed here is simple and two fold. First discussion of proposed changes is against the board rules. It quickly gets into politics (not allowed) perhaps specifically proposed laws. The second reason is the a more scientific coverage of universe of possibilities is difficult and beyond the effort level random posters here want to put in.

I will offer this. Future possible changes could be broadly categorized as follows:

1. Increased Benefit Age(s)
2. Reduced COLA
3. Benefit Reduction
4. Tax increases
5. Beneficiary means testing
6. Deficit spending

There are different ways to make this breakdown. At a higher level, you have the usual options, increase inflow, decrease outflow, or spend more than receive. The list above is also in this order, with some likely options.

[Padlin]

Something else to toss into the equation, check your taxes. In my situation I save close to $8k a year till RMDs start. If I started SS now I get a couple more years of that.

[delamer]

I started thinking more about social security claiming decisions over the last few years and we contemplated retirement. I have been surprised that no one seems to discuss what might happen in ten years. I do not expect it to be eliminated but I can see some variation of means testing or some reduction of the monthly amount. For those of us who will turn 70 about that time, it seems that just doing the math based on no changes to the way benefits are calculated and paid could have higher likelihood of being incorrect compared to the same analysis done by our parents.

To the OP, I do not think any decision that you would make is likely to make much of a difference. If you feel better starting now, that may be enough of a reason to go for it.

Discussion of potential changes to legislation/regulations aren’t allowed under forum policy, so why you are surprised? Assuming that by “no one” you mean Boglehead posters.

[sgr000]

One tip. Once you apply (online), don't just let your application sit there in the cyberspace waiting room. When the application proceeds to Step 2, call or go into a Social Security office and have someone take your case. A human can review your application, approve you on the spot, tell you exactly how much you'll receive and when your first check will arrive. Brings peace of mind rather than waiting for what could be a long time, especially now.

The last time I tried to contact them, I was on hold for 6 hours. I finally got someone, and while I was explaining my problem, we got cut off and no way to reconnect.

I would love to have the peace of mind from an official ruling about approval and benefit amounts, though.

[jebmke]

Login to your SSA account and make sure your earnings record is correct. If it is not correct, I'd start trying to fix it any way you can because it will take a long time.

This indeed can happen. My wife started her Social Security benefits at age 63. Before she did, I double-checked her earnings data. Turned out that a previous employer of hers had reported no earnings to SSA for her during her time with him. We had her old W-2's still on hand, so we were certain that the withholding had occurred, but he never turned it in. I got that corrected within a few weeks by writing to the SSA and providing copies of her W-2's.

In addition, even if the earnings history is correct, the final calculations by SSA can be wrong. Mine were. The determination letter had an incorrect number and I filed an appeal to get it corrected.