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Waiting Until 70 For SS

Ally6770
  |     |   4,307 posts since 2010

I have read several articles lately about those who have waited to collect SS until 70. If they are not working they have to sign up for Medicare.  They are shocked because their premiums have gone up because their premiums are not collecting SS as yet. So if your plans are to wait until 70 make sure you check all angles. 

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Inflation_Hawk
  |     |   107 posts since 2016
Your right.  The reason for this is if you pay for Medicare directly from Social Security, Medicare can't raise Medicare Part B premiums if the COLA percentage for Social Security is zero.

Since it was zero last year, the government is allowed to make-up the shortfall from people paying for Medicare directly out of pocket (people waiting until 70 to collect SS and a few other lucky souls).  It was supposed to be around $50 per month but Congress kicked-in some cash and it ended-up only being about half of that. 

If the COLA's kick back in then the those paying for Medicare from Social Security will see an increase in Medicare Part B - while those who "overpaid" will have their Medicare payments lowered.  Eventually, this will result in everyone paying the same amount for Medicare.

That being said, paying $300 more a year for Medicare isn't going to dissuade me from waiting until 70 to take Social Security (assuming that actually happens).   The whole point to waiting is so that my wife will have a larger SS benefit once I die.  

 
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highrate
  |     |   46 posts since 2016
you yourself will have a significantly greater SS check if you wait until age 70 which is the big benefit of waiting unless you expect to die at an early age
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Bozo
  |     |   1,375 posts since 2011
The trick is to keep working until 70 WITH private insurance.
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Ally6770
  |     |   4,307 posts since 2010
And not spend your savings waiting until 70 if you cannot work, and not get sick and die, and  live long enough to get as much as you would have if you had collected earlier. 
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Frank Walker
  |     |   83 posts since 2016
When to begin collecting SS is a deeply personal decision.  For me it was, as well, a very difficult decision.  I will not attempt to offer specific advice on this.  But I can reveal a factor that was one part of my own thinking:

Do not ignore the possibility that at some time in the future SS could become means tested.  That's not a forecast.  But neither should the likelihood of means testing be cast aside as impossible, especially not in today's political and economic climate.  If you wait to collect until age 70 (or whatever), and should means testing be introduced at some point thereafter, you could be hard hit because the big reward for which you waited might not be there for you.

There is no means testing of SS right now.  Is a bird in the hand worth two in the bush?  This you must decide for yourself.
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pearlbrown
  |     |   2,298 posts since 2010
I agree with your thinking.  My current plan is to wait until FRA (full retirement age), when I will receive 100% of benefits vs postponing to 70 to receive an increased amount. 
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Bozo
  |     |   1,375 posts since 2011
My wife and I chose to go the 62=>spousal benefit=>70 route. Until it was repealed, the "spousal" was the last free lunch in town.
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Ally6770
  |     |   4,307 posts since 2010
Also when waiting until 70 if your taxable SS, pension, RMD, Roth conversions, interest and non taxable income is over $85,000 if single $170,000 if married your Medicare premium will be higher.  These changes made in 2003 are so complicated. The $85,000 income does not go up with inflation as other tax brackets do. I believe these figures are fixed until at least 2019 when they may or may not be changed. Waiting until 70 can make a big difference for some people and not always the best choice. The biggest problem is that the people that need the income are not always the people that 
have the health or savings to wait until 70 to collect their SS.  
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Anon456
  |     |   249 posts since 2011
If I understand it correctly, the issue here is NOT whether to take SS at 70 or not.  If you are 65 and NOT WORKING, you MUST sign up for medicare and pay that monthly fee.  It comes out of your pocket if not taking SS, else it will get deducted from your SS before they pay you.  So delay or not, the cost is still there.  FYI - you get hit with a hefty penalty FOR LIFE if you do not sign up for medicare at 65 unless you are working with health insurance coverage.  If you quit working, you must then sign up at that time.
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