ss questions

[GaryT58030]

1)     are the reports we receive in the mail accurarate?  or should we rely on that calculator    2) retired govt employee  40 yrs on job paid ss each year just turned 65 in nov. but want to receive benefits on march 1  my date is 66 yrs and 2 months leaving me short on that front  i know it will affect my payout  but i hope someone out there have spme answers   btw the calculator posted me 800 dollars a month less  ouch  thank you

[GailL1]

WOW, @GaryT58030 , that's a lot of difference. 

Try setting up a "my social security" account and use the calculator there.

Social Security.gov - Plan for Your Future with Your MY Social Security Account 

The paper statements are an estimate of future earnings -  it projects

According to SSA

The Statement emphasizes that the actual benefit a worker will receive may differ from the estimated benefit because of a number of factors. In the Statement's own wording (see Appendix A),

The actual benefit amount…may differ from the estimates…because:

1. Your earnings may increase or decrease in the future.
2. After you start receiving benefits, they will be adjusted for cost-of-living increases.
3. Your estimated benefits are based on current law. The law governing benefit amounts may change.
4. Your benefit amount may be affected by military service, railroad employment or pensions earned through work on which you did not pay Social Security tax.

So you will have a reduction because you are filing for benefits a little early - that's not much.

In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months.

But do double check on that SS participation in the early to mid-80's and after.  It wasn't until January 1984 when SOME government employees were offered participation.  But if you have about 30 -years of covered earnings - that should not make any difference either.

[GaryT58030]

Thanks Gail I was hoping you would answer this you are very well versed. another questuon if i wait till March I am 2 mos, into my year how much more does ss increase the payout from my birthday in nov.

[GailL1]

You actually compute it based on your PIA (Primary Insurance Amount) - that's at FRA and if you get it earlier than FRA, you deduct from that amount. 

In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months.

Looks like it will be about a 4 - 5% reduction in your PIA for getting it 8 - 9 months earlier than your FRA of 66 +2 months.

Go here and you can compute the effects of early retirement with your actual dates:

Social Security.gov - Early Retirement Effects  (about midways down the page)