UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Next Thread
Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: social security Date: 2/2/2012 11:28 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I happened to talk with a neighbor who has just put in for s.s at 63. He claims that if you have not contributed to social security for 4 years and one day that they remove your last 4 years of earnings and that this could cause a cut of almost 3 thousand dollars when you begin collecting -- he went back to work for one year to break the4 year hiatus - hehad gone out at 55 because of a back injury from his former job. he claims that if he had not (lucky that he could find something!), his earning would be 15,000 rather than the 18,ooo he isnow collecting.
Anybody ever hear of this rule???And if so,how many quarters would it take to break this rule ??
Print the post Back To Top
Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70089 of 74759
Subject: Re: social security Date: 2/2/2012 11:38 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
I happened to talk with a neighbor who has just put in for s.s at 63. He claims that if you have not contributed to social security for 4 years and one day that they remove your last 4 years of earnings and that this could cause a cut of almost 3 thousand dollars when you begin collecting -- he went back to work for one year to break the4 year hiatus - hehad gone out at 55 because of a back injury from his former job. he claims that if he had not (lucky that he could find something!), his earning would be 15,000 rather than the 18,ooo he isnow collecting.
Anybody ever hear of this rule???And if so,how many quarters would it take to break this rule ??


Neighbors come up with all kind of stuff. It seems most of the time it isn't true. SSA uses your top 35 years of earnings to calculate your benefit.
http://www.socialsecurity.gov/pubs/10070.html

Print the post Back To Top
Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70090 of 74759
Subject: Re: social security Date: 2/2/2012 11:52 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I retired at 54 1/2. Haven't worked since except managing my own investments (no salary but the hours are great). I took SS at 62. I was not docked for not working during that time. I got annual statements from SS and every year the amount of future benefit increased due to the COLA. Your neighbor has been smoking something.

Print the post Back To Top
Author: Incomeonly Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70095 of 74759
Subject: Re: social security Date: 2/2/2012 12:38 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I think your neighbor is a bit confused.

As mentioned, the SS Administration takes the average of the TOP 35 years of wage inflation adjusted wages and uses this (called the Average Indexed Monthly Earnings or AIME) as the base for calculating the monthly benefit you'd receive if you began benefits the month following the month you attain your full retirement age....age 66 and 0 months for those born between 1943 and 1954.

What your neighbor might be thinking of is what happens if you quit work (have no compensation income subject to SS Tax) when you have less than 35 years of wages. In this situation, you'd have zeros for those years that would be part of the total of 35 years used in the computation of AIME.

Or your neighbor might be confused with the MINIMUM number of work years required to be eligible for a SS benefit under his work history. Current rules require the SS worker to have at least 40 quarters during which he earned the minimum salary for it to be a 'countable quarter' (sometimes also referred to as 'credits'). For 2012, the minimum quarterly earnings is $1,130.

BruceM

Print the post Back To Top
Author: ResNullius Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70096 of 74759
Subject: Re: social security Date: 2/2/2012 12:39 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I retired at 54 1/2. Haven't worked since except managing my own investments (no salary but the hours are great). I took SS at 62. I was not docked for not working during that time. I got annual statements from SS and every year the amount of future benefit increased due to the COLA. Your neighbor has been smoking something.

I think this answer is the right answer. I had a similar issue, although I stopped entirely a little later due to disability.

Print the post Back To Top
Author: TwoCybers Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70097 of 74759
Subject: Re: social security Date: 2/2/2012 12:54 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
You neighbor is one of those people who dreams up any excuse to take money now, when they know full well if they wait until later they will get more total money -- assuming they live to age 80. In the event you neighbor did not make this up, he just chose to believe what he wanted to here instead of checking for facts.

Gordon
Atlanta

Print the post Back To Top
Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70098 of 74759
Subject: Re: social security Date: 2/2/2012 3:29 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I am soo glad that you are saying this as I wanted to wait as long as I could to begin collecting but was concerned about his statements - he claims he talked to 3 social security people and they did not tell him this but when he called about applying--- this is the information he received so he began taking it rightaway even though he wanted to wait till 67.
This was just recently (according to him) and I was wondering have anybody on the boards just recently (within the year) taken s.s and have NOT worked (contributing nothing to s.s.inover 4 years?)

Print the post Back To Top
Author: StockGoddess Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70105 of 74759
Subject: Re: social security Date: 2/4/2012 2:00 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
yep, top 35 years. I'm approaching 29 years in the workforce, so another few years and all my zeros should be gone.

Firned of mine explained this to me how she decided not to take a job overseas - one of her reasons was how those "zeros" would affect her SS in the long run.

Print the post Back To Top
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70106 of 74759
Subject: Re: social security Date: 2/4/2012 2:46 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
StockGoddess writes,

Firned of mine explained this to me how she decided not to take a job overseas - one of her reasons was how those "zeros" would affect her SS in the long run.

That's odd. Most overseas posts come with a salary increase far in excess of a zero on your SS earnings record. Here's an analysis of how much you'll lose by retiring early and having "zeros" in your record.

http://retireearlyhomepage.com/soc_security.html

For example, for someone paying the maximum FICA for his whole career. Retiring with 35 years of earnings gives him a benefit of $1,964/month. If he retires 5 years earlier and had 5 zeros in his earnings record, it only reduced the benefit to $1,888. That's a $76 month reduction for 5 years worth of zeros. A 60-year-old could buy an inflation-adjusted annuity with a $76/month benefit for about $24,000.

intercst


Print the post Back To Top
Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70124 of 74759
Subject: Re: social security Date: 2/8/2012 3:16 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
ltangel:

I sigh whenever I hear someone write or say "My friend or neighbor told me x..."

Do NOT depend on a neighbor or friend! No matter how smart or well-informed your friend or neighbor may seem, he or she can NOT give you all the straight facts as they apply to YOU.

Contact Social Security directly and get the straight skinny from them!

Good luck.

Vermonter

Print the post Back To Top
Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70136 of 74759
Subject: Re: social security Date: 2/15/2012 6:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
YOU are correct!! Called them and they said that I would NOT lose any money if I did not contribute the 4 years and 1 day prior to my (at this time --projected time of collecting ) only that it would not INCREASE as usually incomes goes up usually right before retirement -- thanks!!!::))

Print the post Back To Top
Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70138 of 74759
Subject: Re: social security Date: 2/15/2012 7:37 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
ltangel:

Happy it worked out for you.

I cannot say it enough:

If people need information about SocialSecurity, they MUST call Social Security DIRECTLY! Listening to neighbors, friends or others is useless and can even be dangerous.

Vermonter

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Next Thread
Advertisement