Social Security

[vantexan]

Was talking with an old FedEx friend who is about to get his pension at 55. He's decided to take the Social Security Leveling Option, which will give him more money up front but will reduce his pension when his full Social Security starts at 67. At 67 between SS and the leveling option he'll get approximately the same as the increased early payments, thus the "leveling" aspect of it.

What I'm wondering is do you have to wait until 67 to take SS or can you take it early at 62 and later have your traditional pension reduced at 67? Anyone know? He said they used to have leveling options for 62 and 65 years but have eliminated them.

 

[UpstateNYUPSer(Ret)]

You are confusing two entirely different options. The SSLO your friend spoke of is meant to supplement a realtively low pension payment by allowing you to "borrow" from future pension payments by collecting a reduced SS payment as early as age 55. When you turn 62 your pension payment will be adjusted by the amount of the reduced SS payment.

If you can afford to do so the better option would be to wait until your are 67 to collect your full SS payment; however, if this is not an option, you can start to collect a reduced SS payment when you turn 62. Waiting until 62 will not reduce your pension payment and may be the better option for you.

Click on the link above. You will need your annual SS statement of earnings (the green letter) to help you make the calculations as to which option is best for your particular financial situation.

My financial advisor and I will be reviewing my financial situation to see which is the best course of action for me (and his commission).

 

[vantexan]

You are confusing two entirely different options. The SSLO your friend spoke of is meant to supplement a realtively low pension payment by allowing you to "borrow" from future pension payments by collecting a reduced SS payment as early as age 55. When you turn 62 your pension payment will be adjusted by the amount of the reduced SS payment.

If you can afford to do so the better option would be to wait until your are 67 to collect your full SS payment; however, if this is not an option, you can start to collect a reduced SS payment when you turn 62. Waiting until 62 will not reduce your pension payment and may be the better option for you.

Click on the link above. You will need your annual SS statement of earnings (the green letter) to help you make the calculations as to which option is best for your particular financial situation.

My financial advisor and I will be reviewing my financial situation to see which is the best course of action for me (and his commission).

Well actually I'm not confusing anything. He discussed the various options for receiving his pension on Friday. They told him the Social Security Leveling Option, as they call it, will give him a little over $600 a month more than he would have gotten with a reduced pension at 55, and when he turned 67 his traditional pension would be reduced to $305 a month. That plus his full SS will give him approximately the same monthly amount he was receiving. My question is can he take SS at 62, the reduced early retirement amount, and then when he turns 67 his traditional pension will still be reduced to $305 a month? In other words can they make him wait until 67 to take SS in order to take the leveling option at 55?

 

[vantexan]

You are confusing two entirely different options. The SSLO your friend spoke of is meant to supplement a realtively low pension payment by allowing you to "borrow" from future pension payments by collecting a reduced SS payment as early as age 55. When you turn 62 your pension payment will be adjusted by the amount of the reduced SS payment.

If you can afford to do so the better option would be to wait until your are 67 to collect your full SS payment; however, if this is not an option, you can start to collect a reduced SS payment when you turn 62. Waiting until 62 will not reduce your pension payment and may be the better option for you.

Click on the link above. You will need your annual SS statement of earnings (the green letter) to help you make the calculations as to which option is best for your particular financial situation.

My financial advisor and I will be reviewing my financial situation to see which is the best course of action for me (and his commission).

That website you cited is a pension plan for the Presbyterian Church. FedEx no longer allows taking a leveling option that reduces your pension at 62. 67 only for FedEx. And by the way it's your pension benefit you are borrowing against, not your SS. SS retirement absolutely doesn't start before 62, and that's a reduced amount. The only way your pension can affect anything about your SS is between the two you may be receiving enough to pay taxes on your SS.

 

[UpstateNYUPSer(Ret)]

You asked how SSLO worked. I didn't know so I Googled it and the link that I provided in my post was the first one that I clicked on. You never said that FedEx did not allow SSLO until you turned 67, which defeats the purpose of taking the SSLO. I did state that you are borrowing against future pension payments when you opt for SSLO and that SS doesn't start until you turn 62 (reduced amount). It sounds as though you need to speak to your HR person.

 

[55+]

answer is yes.You can take social security as early as 62

 

[vantexan]

You asked how SSLO worked. I didn't know so I Googled it and the link that I provided in my post was the first one that I clicked on. You never said that FedEx did not allow SSLO until you turned 67, which defeats the purpose of taking the SSLO. I did state that you are borrowing against future pension payments when you opt for SSLO and that SS doesn't start until you turn 62 (reduced amount). It sounds as though you need to speak to your HR person.

I'm really not interested in arguing with you but if you read the last sentence of my original paragraph then yes, I did say that they did away with the 62 and 65 options. They only offer it with the 67. You brought up the confused business, using a plan that doesn't apply, and saying I can get SS as early as 55, which isn't so. All I was hoping for was a simple yes, you can still take SS at 62 even though you chose a leveling option that gives you more on your pension from 55 to 67, then greatly reduces your pension. If so, where I'll be living I can get by decently on $600-$700 a month. Thus if I have the extra coming in I could really sock away some savings. Especially from age 62 to 67. And if so I can definitely retire early. This is the best news I could have hoped for today.

 

[vantexan]

answer is yes.You can take social security as early as 62

Thanks!

 

[55+]

ur welcome

 

[brown bomber]

answer is yes.You can take social security as early as 62

I would take as much as I can AS EARLY AS POSSIBLE...I'm speaking as a retired UPS driver....alot retire early, and then meet an untimely demise....some are waiting to max out the benefit (cheap bastards)..and making a major gamble...when they could have started collecting as soon as possible.....if you have to delay payments for a few hundred bucks/ month....you've got major financial issues

 

[vantexan]

I would take as much as I can AS EARLY AS POSSIBLE...I'm speaking as a retired UPS driver....alot retire early, and then meet an untimely demise....some are waiting to max out the benefit (cheap bastards)..and making a major gamble...when they could have started collecting as soon as possible.....if you have to delay payments for a few hundred bucks/ month....you've got major financial issues

By taking the pension leveling option and then SS at 62 I should be able to put the entire SS check into savings from 62 to 67. And have a big enough check at 55 to quit early. 2 years, and 59 Dano I hope you'll never be in a position to point out I didn't leave.

 

[Goldilocks]

Please correct me if I'm wrong, I thought you could take SS with a penalty at 62. I also thought it had nothing to do with your pension. Your pension is seperate. I plan on taking my SS when I am 62 because who knows if I will make it to 67.

 

[UpstateNYUPSer(Ret)]

Please correct me if I'm wrong, I thought you could take SS with a penalty at 62. I also thought it had nothing to do with your pension. Your pension is seperate. I plan on taking my SS when I am 62 because who knows if I will make it to 67.

Yes, you can take your SS at 62--it will be reduced actuarially and will not affect your pension. That was not the original question. vantexan wanted to know what effect taking the SSLO would have on your pension when you turn 67.

 

[vantexan]

Please correct me if I'm wrong, I thought you could take SS with a penalty at 62. I also thought it had nothing to do with your pension. Your pension is seperate. I plan on taking my SS when I am 62 because who knows if I will make it to 67.

You are right, it is separate. I was wondering if FedEx was requiring us to wait until full retirement at 67 if we wanted to choose the Social Security leveling option for our pension choice. But no, we are free to take SS at 62 if we like. Called the FedEx Retirement Center and found out that with the leveling option my pension bumps up about $570 a month. That's a huge difference. My former coworker is getting $620 more. The bigger the pension, the more you get, but that's only good if you don't mind the pension dropping considerably at 67. In my case I'll only be getting $229 at 67. Plus SS. But with some health issues I'll take the chance.

 

[Goldilocks]

You are right, it is separate. I was wondering if FedEx was requiring us to wait until full retirement at 67 if we wanted to choose the Social Security leveling option for our pension choice. But no, we are free to take SS at 62 if we like. Called the FedEx Retirement Center and found out that with the leveling option my pension bumps up about $570 a month. That's a huge difference. My former coworker is getting $620 more. The bigger the pension, the more you get, but that's only good if you don't mind the pension dropping considerably at 67. In my case I'll only be getting $229 at 67. Plus SS. But with some health issues I'll take the chance.

I hope so, I really feel bad what happened to you with Fedex.

 

[Rhoderunner]

You are right, it is separate. I was wondering if FedEx was requiring us to wait until full retirement at 67 if we wanted to choose the Social Security leveling option for our pension choice. But no, we are free to take SS at 62 if we like.

If you choose this leveling option does it start at 55 if you choose to retire then?

 

[55+]

Yes..starts @ 55

 

[vantexan]

If you choose this leveling option does it start at 55 if you choose to retire then?

Yes, starting at 55 I'll get $1701 a month for 12 years, then drops to $229 at 67. What I really like is where I'll be living I can save money, and save all my Social Security check between 62 and 67. So even though my pension drops considerably at 67 I'll be ok. Before finding this out it looked like things would be pretty tight between 55 and 62 until SS starts.

Hope y'all don't mind me sharing all this. Just wanted to point out inspite of FedEx's actions it's not a total loss.

 

[MrFedEx]

Yes, starting at 55 I'll get $1701 a month for 12 years, then drops to $229 at 67. What I really like is where I'll be living I can save money, and save all my Social Security check between 62 and 67. So even though my pension drops considerably at 67 I'll be ok. Before finding this out it looked like things would be pretty tight between 55 and 62 until SS starts.

Hope y'all don't mind me sharing all this. Just wanted to point out inspite of FedEx's actions it's not a total loss.

I wouldn't exactly be thanking Fred for anything.

 

[Rhoderunner]

Hope y'all don't mind me sharing all this. Just wanted to point out inspite of FedEx's actions it's not a total loss.

Never heard of it till now. Thanks for sharing. Is the big drop off at 67 typical?