Question For U.s.a. Expats Who Retired Before 62

[midlifecrisis]

Hi,

According to the letter I receive yearly from the Social Security Administration I have enough credits to qualify for retirement payments at age 62.

I will use ficticious numbers but here is the gist of my last 2 letters

2008: $888 per month starting at age 62

2009: $1000 per month starting at age 62

Again those are not the real amounts. Each year I am worth more at age 62, 66, 70 etc.

But the wording is ambiguous and implies I must keep working until age 62.

I want to retire at age 59, move to Thailand and start collecting at age 62. So I would not work for those 2 1/2 to 3 years.

Do any of you have any experience in this area? I need to call SSA but their line is always busy for long periods and coincides with my work hours.

The answer to this question could affect the timing of my retirement.

Thanks in advance!

Edited September 15, 2009 by midlifecrisis

[retirednavyman]

Hi,

According to the letter I receive yearly from the Social Security Administration I have enough credits to qualify for retirement payments at age 62.

I will use ficticious numbers but here is the gist of my last 2 letters

2008: $888 per month starting at age 62

2009: $1000 per month starting at age 62

Again those are not the real amounts. Each year I am worth more at age 62, 66, 70 etc.

But the wording is ambiguous and implies I must keep working until age 62.

I want to retire at age 59, move to Thailand and start collecting at age 62. So I would not work for those 2 1/2 to 3 years.

Do any of you have any experience in this area? I need to call SSA but their line is always busy for long periods and coincides with my work hours.

The answer to this question could affect the timing of my retirement.

Thanks in advance!

Have you tried their website www.ssa.gov? It's very comprehensive and full of wonderful information that might be able to help you out, give it a try if you have computer access

[Jingthing]

You do NOT need to work until age 62!!!!

If the letter says you have met the minimum credits, you will be eligible.

Now the AMOUNT of the benefit is another matter. It is a complicated formula. Basically if those last years were going to be really high earning years that would usually have helped your benefit, assuming it is under the maximum. That is a very few years of not working. If I were you, I would forget this and not bother even calling them. You have absolutely nothing to worry about, again, assuming the letter says you already have met the minimum credits. BTW, I stopped work at 47 and I have met the minimum credits so I know what I am talking about.

Edited September 15, 2009 by Jingthing

[midlifecrisis]

You do NOT need to work until age 62!!!!

If the letter says you have met the minimum credits, you will be eligible.

Now the AMOUNT of the benefit is another matter. It is a complicated formula. Basically if those last years were going to be really high earning years that would usually have helped your benefit, assuming it is under the maximum. That is a very few years of not working. If I were you, I would forget this and not bother even calling them. You have absolutely nothing to worry about, again, assuming the letter says you already have met the minimum credits. BTW, I stopped work at 47 and I have met the minimum credits so I know what I am talking about.

Jingthing. Yes I agree that I do not have to work until age 62. I am just curious if others have gone through this and what impact that had on the eventual collection of benefits at age 62.

I believe that they are basing the numbers on my continuing to work at my current salary range or higher until age 62 to get the payout they are suggesting.

I have a Social Security benefit number in mind I need for retirement and want to try and understand if I am realistic in my thinking.

There is still 9 months before I will make the permanent move but I am inclined not to dig too deep. That is why I ask for other's experience.

Congratulations, btw, retirement at 47 is quite an accomplishment!

[Stricken]

Hi,

According to the letter I receive yearly from the Social Security Administration I have enough credits to qualify for retirement payments at age 62.

I will use ficticious numbers but here is the gist of my last 2 letters

2008: $888 per month starting at age 62

2009: $1000 per month starting at age 62

Again those are not the real amounts. Each year I am worth more at age 62, 66, 70 etc.

But the wording is ambiguous and implies I must keep working until age 62.

I want to retire at age 59, move to Thailand and start collecting at age 62. So I would not work for those 2 1/2 to 3 years.

Do any of you have any experience in this area? I need to call SSA but their line is always busy for long periods and coincides with my work hours.

The answer to this question could affect the timing of my retirement.

Thanks in advance!

Yes I do-

Started collecting SS benifits at age 62. First you have to contact the overseas branch of SS which is located in Manila, then go from there if you want to start collecting.

[moe666]

What the letter was saying is that you continue to work at your present income level that is the amt. you will recieve each month. Next year it should be higher because of any raises or overtime you may work. The amt. of benefit is based upon the last 3 years of work.

Since you plan on stopping work next year that is the amt. you will recieve at 62.

[nputman]

You do NOT need to work until age 62!!!!

If the letter says you have met the minimum credits, you will be eligible.

Now the AMOUNT of the benefit is another matter. It is a complicated formula. Basically if those last years were going to be really high earning years that would usually have helped your benefit, assuming it is under the maximum. That is a very few years of not working. If I were you, I would forget this and not bother even calling them. You have absolutely nothing to worry about, again, assuming the letter says you already have met the minimum credits. BTW, I stopped work at 47 and I have met the minimum credits so I know what I am talking about.

Jingthing. Yes I agree that I do not have to work until age 62. I am just curious if others have gone through this and what impact that had on the eventual collection of benefits at age 62.

I believe that they are basing the numbers on my continuing to work at my current salary range or higher until age 62 to get the payout they are suggesting.

I have a Social Security benefit number in mind I need for retirement and want to try and understand if I am realistic in my thinking.

There is still 9 months before I will make the permanent move but I am inclined not to dig too deep. That is why I ask for other's experience.

Congratulations, btw, retirement at 47 is quite an accomplishment!

You can't collect benifits until you are 61 1/2 unless you are qualified through disability.

At this age you will recieve the minimum amount per your work credits

The longer you work and the older you get your benifit amount increases.

Most SSA monthly amounts at present exchange rates are not enough to meet the retirement qualifications in Thailand alone.

[moe666]

What you get is based on the last 3 years of work. I retired last year at 61 waited until Nov. to apply at 62 they calculated my retirement based on my 07,06,and 05 earnings. My w2 for 08 was sent in after the first of 09 my amt. of benefit was increased in April with 4 months back payment. Just remember to apply 3 months before age 62 and you can do it all on line and the process is seamless.

I would not bother calling them, there's not much they can do for you at present and you know the amt. of benefit you have earned upon becoming 62.

[midlifecrisis]

ok you guys have realy helped me understand this. So when I retire next year it is based on 2007, 2008 and 2009 earnings upon reaching 62

and apply 3 months early!

thanks so much!

Now, can I apply in Sep. 2012 at the embassy in Bangkok?

I will be dealing with direct deposit to a bank account in the United States.

[walt]

ok you guys have realy helped me understand this. So when I retire next year it is based on 2007, 2008 and 2009 earnings upon reaching 62

and apply 3 months early!

thanks so much!

Now, can I apply in Sep. 2012 at the embassy in Bangkok?

I will be dealing with direct deposit to a bank account in the United States.

Midlifecrisis, Stop! The amount of your social security benefits is determined by your entire earnings history, not just the last three years! Go to http://www.ssa.gov/ for full information, including the earliest date that you can apply in your case. All the information you could want is at that website.

Walt

[Nowhereman60]

I retired at 58 and moved to Thailand. My social security benefits has not gone down but up basis on the cost of living. I have not lost any money from social security or gain anything. In fact my first check should be in my bank today (fingers crossed). Yes of course if you continued to work until 62 you would be getting more money.

[longball53098]

You do not apply for SSA benefits at the Embassy. You can get the needed forms there but the application is filed using the SSA offices in Manila.

Here is some further info from a Military retirees website in Korea but it also applies to us here in LOS. I retired from the USA at 60 and started collecting at 62 using this process.

SSA.pdf

Edited September 16, 2009 by longball53098

[chuckd]

I retired at 58 and moved to Thailand. My social security benefits has not gone down but up basis on the cost of living. I have not lost any money from social security or gain anything. In fact my first check should be in my bank today (fingers crossed). Yes of course if you continued to work until 62 you would be getting more money.

The Obama administration has already announced there will be no annual cost of living increase in 2010.

I believe this will be the first year with no increase in recent history.

[Jingthing]

The statements here that your benefit is determined by your last few years of work are 100 percent false and I have 100 percent confidence I am correct. They take a certain number of years that you worked over your entire working life (I don't know the exact number easy enough to look up) and ALL of those years are used to calculate the benefit. If some or many of those years are ZERO of course that will reduce the benefit, but remember there is always a minimum benefit and also a maximum benefit, and everyone who has earned the minimum amount of credits will be eligible at least for the minimum benefit.

[lannarebirth]

I quit working at the age of 43. My projected SS pension at that time was 1,900/mo at 62 and a few hundred dollars more at 67. In the past 10 years it has dropped to 770/mo benefits due at 62 and 9** due at 67. I try not to think about it anymore and assume they will pay me zero on the 20 years of maximum donations I payed in. YMMV.

[Carmine6]

Amount is based on an average of your 35 highest earning years (indexed in some way). An index chart with the factors is available. So you have to work into your late 50's to knock those part time high school or college jobs out of the average.

http://www.ssa.gov/mystatement/

Go to "Your Benefits" then one of the calculation questions, then scroll down to "Answers others found helpful", then "How are my retirement benefits calculated?"

"Social Security benefits are based on earnings averaged over most of a worker's lifetime. Your actual earnings are first adjusted or "indexed" to account for changes in average wages since the year the earnings were received. Then we calculate your average monthly indexed earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or "primary insurance amount" (PIA). This is the amount you would receive at your full retirement age, for most people, age 65. However, beginning with people born in 1938 or later, that age will gradually increase until it reaches 67 for people born after 1959. For more information, see The Full Retirement Age is Increasing."

Edited September 16, 2009 by Carmine6

[Jingthing]

Correct info, thanks.

Yes if many of those 35 years are zero or low, of course your benefits are going to be on the low end or minimum benefit. However all people on the program are eligible for any future COLAs.

Another point, SS benefit projections are in today's dollars not adjusted for inflation. So if you are 50 now and you project you will get 1000 dollar benefit in today's dollars, the actual dollar number will actually be significantly higher (but the theory is that it will have the same value as 1000 dollars today). People retiring early (or anyone under 62 for that matter) can figure out their estimated benefit by entering zero for all years till 62, there is an online tool or you can even ask SS to figure it out for you. The closer you are to 62 the more accurate the estimate will be. If you are 30 now I wouldn't even bother yet, things are changing ...

Edited September 16, 2009 by Jingthing

[Lancelot]

Amount is based on an average of your 35 highest earning years (indexed in some way). An index chart with the factors is available. So you have to work into your late 50's to knock those part time high school or college jobs out of the average.

http://www.ssa.gov/mystatement/

Go to "Your Benefits" then one of the calculation questions, then scroll down to "Answers others found helpful", then "How are my retirement benefits calculated?"

"Social Security benefits are based on earnings averaged over most of a worker's lifetime. Your actual earnings are first adjusted or "indexed" to account for changes in average wages since the year the earnings were received. Then we calculate your average monthly indexed earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or "primary insurance amount" (PIA). This is the amount you would receive at your full retirement age, for most people, age 65. However, beginning with people born in 1938 or later, that age will gradually increase until it reaches 67 for people born after 1959. For more information, see The Full Retirement Age is Increasing."

I agree with Carmine. SS benifits are based on your most recent 35 years of work history. If you haven't worked for the past five years, you would have five zeros in your personal hostory. If you worked for 45 years, your first 10 years of work history would not be listed on your SS record.

There is a a lot of information online, both on private sites and also the official SS website. You can even down load a few programs that will estimate your monthly SS benifit at different age/wage scenerios.

Its not rocket science, educate yourself

Good Luck!

[TerryLH]

"I believe that they are basing the numbers on my continuing to work at my current salary range or higher until age 62 to get the payout they are suggesting."

Not necessarily. It depends on what info you gave them when you asked the question.

They have a form that you can fill out with your particular details, asking for benefits estimates.

They'll send you back a printout with all sorts of info, including what they estimate your benefits will be based on your work history and the details you gave them.

I think they even suggest you do this every couple of years so you can check to make sure they have everything recorded correctly.

As noted above, the soc sec office at the embassy in Manila is where you'd file from here. Very pleasant experience for me.

I retired when I was 48, and started collecting SS when I turned 62. The estimate they gave me when I quit working turned out to be about 40% of what I actually get. A really nice surprise.

You don't have to file 3 months in advance, but they say that so your payments will start as soon as you are eligible. I filed a couple of weeks before my birthday. The initial was delayed a bit, but they paid from the date I applied. They told me it would take about three months to get my first check, but I got it in a bout 3 weeks.

---------------------------------------------------------------

"The Obama administration has already announced there will be no annual cost of living increase in 2010.

I believe this will be the first year with no increase in recent history."

The last increase was for 5.8%, almost double the normal amount. Hard to complain about that.

-------------------------------------------------------------

A note about the Manila SS office.

Your case will be assigned to a specific worker. They are available for any questions you might have, and will walk you through the process if you get lost or don't understand something.

In my case, there were a few glitches that my worker helped me with. She always answered my e-mails in a timely fashion. She called a couple of times to tell me info I needed.

Overall I was very happy with the service from my worker.

Glitches causing delays don't cost you money. They pay from the date you apply, so any delays just means a bigger first check.

They'll pay by direct deposit or by check. Direct deposit seems the best option.

[Jingthing]

I agree with Carmine. SS benifits are based on your most recent 35 years of work history. If you haven't worked for the past five years, you would have five zeros in your personal hostory. If you worked for 45 years, your first 10 years of work history would not be listed on your SS record.

Again, FALSE information, and Carmine didn't say that. It is NOT most recent 35 years, it is the TOP 35 years of earnings over your working life, whatever the years, whenever they occurred.

Then we calculate your average monthly indexed earnings during the 35 years in which you earned the most.

I guess MYTHS and old wives tales die hard ...

Edited September 16, 2009 by Jingthing

[Jingthing]

With the 35 year figure I can give more specific info to the OP.

Look at your SS letter. It shows all your earning years. If there are at least 35 showing any figure over zero, earning zero in any amount of years until age 62 will have no effect on your benefit. If it is less than 35 earnings years, a few years of no earnings will lower your benefit by some, probably small as it is only a few years, amount. If it is critical that you have a good estimate of how much your benefit will be lowered by the zero years (if they will be counted) again you can figure this out yourself on the website, or request that SS send an estimate based on your zero earnings years projections. Again, I doubt there will be a big effect so I personally wouldn't bother.

A bigger question that impacts many of us is the decision about whether to start benefits at age 62 or wait until later to get the increased benefits.

Edited September 16, 2009 by Jingthing

[midlifecrisis]

Good news and information you all are supplying.

I understand now a few more things.

1. My paperwork (it shows the last 40 years of earnings)

2. It is not through 2009 but 2008 so by the time I quit work in 2010 I will actually have another year and a half of earnings and only 2 and 1/2 years shy of collecting benefits.

3. Based on highest earning years I am already ok.

Thank you all for straightening me out! I will plug in my info into the calculator!

[rogercw]

Let me ask a question that is about social security but a little off the topic. I recently moved and want to change my address. According to the SS website I should phone a number based on the last two digits of my social security number. When I do the phone computer tells me to leave my phone number and someone will call me back by the following day. I have done this three times now and no one has ever called me back. Does anyone have a number I can call and get a live human being?

[PeaceBlondie]

The highest years of earnings are increased by adjusting for inflation, My benefits at age 62 included years I was in high school. I had long periods not covered (ministry; federal CSRS; retirement, etc.).

[midlifecrisis]

Let me ask a question that is about social security but a little off the topic. I recently moved and want to change my address. According to the SS website I should phone a number based on the last two digits of my social security number. When I do the phone computer tells me to leave my phone number and someone will call me back by the following day. I have done this three times now and no one has ever called me back. Does anyone have a number I can call and get a live human being?

I am not sure if this helps. I was trying to call SSA yesterday and I get a long list of computerized options. I was not getting directed to the information I was seeking so I hit "0" and it connected me with a que to a live operator.

[JimGant]

If it is less than 35 earnings years, a few years of no earnings will lower your benefit by some,

As will earning extremely low wages in any of those 35 years.......

If your grand sum includes a few low years -- or years of no earnings -- it still gets divided by 420 (35 years x 12 months).

The best you can do -- in terms of a max dollar Social Security check -- is have at least 35 years of earnings, with each year having maxed the Social Security cap. However, as a semi welfare program, you only get pennies back on that last dollar you paid into Social Security. On the other hand, if you had many zero earning years, giving you the same number as a janitor who worked 45 years, you'll reap the same welfare return (unless you also earned wages in a Social Security exempt job).

[NovaBlue05]

The SSA website does have a calculator where you can enter various scenarios. Basically, you enter the age you want to quit working and it will take your current statement and modify the benefit accordingly.

[Jingthing]

Its a safety net program, not an investment program, or a "welfare" program. You have to qualify with work credits. A huge percentage of older people sadly use their SS check as their only resource, and many would be dead without them. I am offended by the comment that there is something shameful about a janitor getting a minimum benefit. Why does the rich person get a maximum benefit when many don't need a penny of it? Welfare program my arse.

[retirednavyman]

I retired at 58 and moved to Thailand. My social security benefits has not gone down but up basis on the cost of living. I have not lost any money from social security or gain anything. In fact my first check should be in my bank today (fingers crossed). Yes of course if you continued to work until 62 you would be getting more money.

The Obama administration has already announced there will be no annual cost of living increase in 2010.

I believe this will be the first year with no increase in recent history.

Actually, Chuckd, they are working on a one-time $150 dollar payment to beneficiaries of social security, federal employee retirees, military retirees with a VA service connected disability. Got the info from www.federalnewsradio.com under Mike Causey's column

[midlifecrisis]

For what it's worth.

I entered my age of retirement and all my earnings on the SSA webpage online calculator and my benefit came out the same as the paperwork they sent me. One less think to be confident in.

Thank you all very much!