Відео

IF you are the pensioner your spousal benefit will be reduced by 2/3 of your pension amount.

If you want to schedule a call I can walk your thought some potential outcomes. go to www.bowmanfinancialstrategies.com if you'd like to schedule a call.

@@bowmanfinancialstrategies5830 Thank you, I will!

If SS were not progressive, that is, if lower earning persons did not get a higher replacement rate than higher earning person, you would be right. But SS is progressive. The issue is that folks that do not pay FICA for all there were and take a pension in lieu of that appear to be lower earners than they are and are therefore their benefit is adjusted.

This was a bipartisan decision.

Im one of those gpo guys and have 40 quarters. Still to young to collect ssi- and i know it ain't gonna be much. Here's my 2 cents if anyone wants to hear it: don't count on ssi or anything from the government. They are not here to help. Invest in a roth, private stocks and real estate. The government is there to meet an obligation and take your money to utilize it for their use.

They never reduce your pension

But they will take away your ss that you paid for!

Thanks for the feedback.

First, thank you for your service. Second, you asked, but it does get a bit mathematical. You worked paying SS and not paying SS. During the time you were not paying SS, you were working on a pension in lieu of SS. Note the state you were in was too cheap to pay it's half of FICA and you were able to pocket your half. So many folks would love that opportunity. The SS benefit is calculated using the top indexed 35 years, divided by 420 to get your AIME (Avg Indexed Monthly Earnings). That sum is applied to the bend-points; two points, therefore 3 segments. This is where SS is progressive; lower earners get a larger replacement rate. You likely have a bunch of zeros in your AIME sum, so you appear as a lower earner than you are. WEP simply adjusts the replacement rate in that first earnings segment. This year the first point is $1174. Normally you get 90% of that, but worst case you will get 40%. You mention $1,000, implying earnings of $1,111, so you should get $444. If you had been on SS in your gmvt job and taken extra and second jobs for the same earning, it would fall into the second segment and you would only get a 32% replacement rate on these earnings.

in essence yes, although COLAs will apply. She won't get half of what you get now,

as accurate as the data inputs from what I can tell.

forever

that is true.

If 20 to 30 of those years had substantial earnings, then you will reduce the adjustment. Normally the first segment replacement rate is 90%. WEP adjust that to 40% for each year above 20 of substantial earning will increase the replacement rate 5%; 30 years will give you 10 5%, so you are back to 90%.

Armor officer. Trained by a marine gunny sgt tho.

@@bowmanfinancialstrategies5830 I knew you were a tanker

no no need

Only WEP applies since no Spousal benefit is available. So no GPO unless you were previously married and can get a spousal benefit from an ex.

if you pay ss taxes, wep does not apply

@@bowmanfinancialstrategies5830 I thought it applied if your earnings were not at or above the substantial earnings for each year.

@@gdruilhet WEP is waived if you have over 30 yrs of substantial earnings in which you paid SS payroll tax

There are 15 states too cheap to pay SS, the other 35 pay SS. There are also some local gmvts that do not pay SS. It is the cheap ones that precipitate the problem. And so many of their retirement organizations imbue a victim mentality, when they actually get a better replacement rate than the rest of us.

​@@bowmanfinancialstrategies5830 What's the difference in a WEP or OFFSET plan? I plan on retiring in a few more years. I work for a private company, will have 34 years of service when i retire at 55. I have a defined pension, will have paid into SSI for 40 plus years. I was told that when i retire i have a choice of when i want to recieve SSI (62 or 65). When i recieve my SSI my pension will be reduced by the amount of my SSI benefit. So if i draw $3,000 per month pension. Then when i start SSI $2,000 per month at 62, my pension will be reduced $2,000. Instead of recieving $5,000 per month. I will only recieve $3,000 due to my pension being reduced by my SSI beneft. I feel like i'm getting shafted.😢

that assumes you have no other income sources. Other ordinary income will reduce the amount in the 0% cap gains bracket

Thank you for taking the time to reply. Best.

it actually can be calculated ahead of time. I've seen it hundreds of times.

They get you one way or another it seems. That is municipal bond interest.

HI, Most likely it is because you would have to subtract a number equal to 2/3 of your non-covered pension from any potential spousal benefit. If 2/3 of your pension is greater than the spousal benefit then you would get no SS. Is your husband still alive? That matters, Thanks

Can you give an example for a single person who worked 20 Yeats paying ssi

correct

it can occur even if you did pay ss tax on some Earnings, however the earned income due to a state pension with no ss taxes withheld will impact your benefit if you earned one prior to or after your state employment.

For a FRA of 67 (mine), my benefit at 62 is 70% of my FRA, spousal benefit is 32.5% of my FRA benefit. So for my wife, it would be more like $986. Devin Carroll on UA-cam is good about covering social security benefits and related material.

because people in non-covered pensions don't pay SS payroll tax on their working year's earnings and therefore must apply WEP and GPO

@@bowmanfinancialstrategies5830 - I think he means mentioning it is because non-covered pension folks appear to be lower earners than they are and as SS is progressive, WEP adjust for this.

There are some good cases made for drawing down retirement accounts that have RMDs either consumption or conversion to Roth (tax free) and delaying SS till the tax consequences are minimized. This assumes you have enough in IRAs to be an issue.

In the end they end up the same. You're making a semantic point.

oh, its a reduction!

@@bowmanfinancialstrategies5830 - I like the term "adjustment".

you are correct, however she can apply for her own benefit (small as it may be) and then when you turn yours on at 70 she will get the bump up to full spousal. be careful of taking benefits early just to get a spousal if you don't have to for expense reasons. Remember your larger amount at age 70 now becomes her survivor benefit should you die first. If you file early, her widow benefit would be reduced equivalent to your filing age amount. Make sense? If you want calculations done let me know,

@@bowmanfinancialstrategies5830 Thanks. I already mentioned she doesn't have her own benefits (i.e. no work record). Does she need to wait for filing until both of us reach 70 (i.e. she is not getting any spousal benefit between 67 and 69) just to get her bigger survivor benefits? I am not sure if she can forgo the spousal benefit between 67 and 69 until we, both, reach 70. If she waits until 70 and I die first, she will get more survivor benefit. But, by doing that, she loses spousal benefits between 67 and 69 :-\

@@jacobkowski7705 calculations using our software are needed to confirm the best solution at this point. WE look to maximize benefits across the household, not just for one spouse.