Q & A
I’m trying to figure out the best time to retire based on my future earnings. How can I calculate my own retirement benefit estimate?
Answer: We suggest you use our Retirement Estimator at http://www.socialsecurity.gov/estimator. Estimates are based on your actual Social Security earnings record, so it’s a personalized, instant picture of your future estimated benefit. Also, you can use it to test different retirement scenarios based on…
Will a Lower-Paying Job Before Retirement Hurt My Social Security?
Full question: My husband has been working on his job for almost 30 years and is eligible to retire and draw his retirement from them. He will be 58 years and eight months old at time of retirement. He is planning to get…
I plan on retiring at the end of June 2014. I will be 61 years old with 28½ years of service for the Internal Revenue Service under FERS. Am I eligible to receive special retirement supplement until February 2015, when I will be 62 years old? Is the supplement amount equal to what I will receive from Social Security at age 62? Or is it calculated differently? By receiving supplement, will my Social Security amount be affected or lowered compared to if I didn’t receive the supplement?
Answer: You will be entitled to the special retirement supplement until you reach age 62. The SRS will be based solely on the amount of Social Security benefit you earned while a FERS employee. At age 62, you’ll be entitled to…
I am a young working professional making monthly contributions into a 401-K account. My spouse is vested in his company and will have a comfortable pension at the time of retirement. I have been following the debate about the long-term viability of Social Security. Why is this so important? Shouldn’t we all be responsible for our future financial well-being?
Answer: It might be helpful to provide you with background surrounding the original intent when the Social Security Act was signed into act on Aug. 14, 1935 by President Franklin Roosevelt. The Act actually contained provisions to cover a wide range…
I am 59 years old. I receive a CSRS disability annuity from service with the Postal Service. When I turn 62, I will also qualify for a Social Security annuity. Will I still receive my CSRS disability annuity at that point? Will I have the option of postponing taking my Social Security?
Answer: Yes, you will continue to receive your CSRS annuity. And yes, you can postpone the receipt of your Social Security benefit. However, when you do receive it, it will be subject to the windfall elimination provision if you have fewer…
What’s a COLA and why does it matter to you?
Answer: The rising costs of food, gas, electricity and health care can strain anyone’s budget. The situation is even worse if your living expenses increase while your income stays the same, because your purchasing power will steadily decline over time. That’s…
I am a CSRS Offset employee planning to retire at the end of the year. Do you know how much of a percentage (penalty) I’ll have to pay out of my retirement check since I’ll be collecting Social Security? Will I be able to collect on my husband’s Social Security if he dies before me?
Answer: You can estimate the reduction in your CSRS annuity using the following formula: Divide the Social Security benefit amount provided by the Social Security Administration by 40 and multiply the product by your total years of CSRS Offset service rounded…
Can I reduce or eliminate the windfall elimination provision reduction by continuing to work? I am now 62, and about to receive a modest deferred CSRS Offset pension. I also have 24 years of substantial earnings in Social Security. If I continue to accumulate substantial earnings, can I get up to 30 years, at which point the WEP penalty disappears? That is, if I don’t apply for Social Security until I’m 70, will they calculate the WEP based on my earnings record as of age 62? Or will they wait until I apply for Social Security?
Answer: As I understand it, the WEP is based on the number of years of Social Security-covered service you have at age 62, whether or not you apply for a Social Security benefit. Source: Federal Time, August 23, 2013 (http://blogs.federaltimes.com/federal-retirement/2013/08/23/windfall-elimination-provision-30/) …
What are the implications of not changing to my married name on my Social Security record?
Full question text: FIFTY years after Betty Friedan’s “Feminine Mystique” and countless principled-but-unwieldy hyphenated names later, the problem of married versus maiden names should be good and solved. But many women are still caught in an in-between purgatory: why have to…
On last year’s W-2s, Accuwage flagged a Social Security number (SSN) beginning with a nine. We called the Social Security Administration (SSA) and were advised to enter nine zeros for this SSN. We later learned that the SSN was an Individual Taxpayer Identification Number (ITIN). Should we have reported the nine zeros or the ITIN, even though the W-2 instructions say not to accept an ITIN from an employee?
Answer: You only use nine zeros when an employee has applied for an SSN but hasn’t received it. That said, you should report the numbers employees provide you. Even a wrong number, or an ITIN, can help the SSA identify the…