Well, what the heck, I may as well chime in here because I know a little bit about this. I turned 65 in January. I had my first open heart surgery at 43 and refused Social Security because I didn't feel I was disabled. If I had been off another two weeks I would have received the full amount as if I had retired at 67. After my 3rd open heart surgery and my 3rd heart attack, I decided to apply for Social Security. I am a retired Journeyman Machinist and also retired military, as well as having a total disability from VA totaling 210% for everything that they found wrong with me.
When I finally decided to apply for SS the representative told me because of the pay scale I had that I would receive the maximum amount. The Social Security is calculated by the highest 10 years of your pay, not 5. I just got a 3.6% increase and it went up to around $2100 per month after the medicare part B is deducted. There is a difference between SSI and SS. They made me apply for SSI first but I made too much money from my retirement pension, so then it reverted to SS. SSI is a state plan where SS is federal. You can be a 30 year old drug addict that has never worked in your life and get SSI (that sucks, doesn't it?).
At early retirement, at age 62-1/2, you will receive 30% less than you would if you retired at age 65-1/2 (dependent on your birth date) as it would have if I had taken normal retirement. If you can hold out to age 67, there is an additional percentage that is added to it, I am not in that age group so I can't say for sure how much more. I remember reading it at one time. Now, if you happen to have to go on SS Disability, you will receive the total amount as if you retired at age 67. If you continue working, for every dollar you make past a certain amount (it was $800 per month when I retired, but I think it is close to $900 now) per month, you have to pay back fifty cents on the dollar. Actually, they take it from your pay because they don't trust you to pay it back.
I have had a lot of conversations with people trying to decide whether to take retirement at age 62-1/2 or wait until regular retirement age. Guy's, let me tell you a little about the facts of life... at one time, I never in my life thought my health would go to crap. It can happen at any time without warning. If you take early retirement at age 62-1/5, granted, you will receive 30% less. However, you will receive it. If you wait until age 65+, your health can go to crap. That is three years that you could enjoy life in good health even though you are getting less money. Don't get the misconception that you will revert to regular SS when you reach regular retirement age. That is the drawback, it stays at the 30% reduced rate. However, you will get it for a longer period of time.
I don't claim to be an expert, but I have seen many people wait until their regular retirement age and then something happen and they don't get to enjoy it. Another thing a lot of people don't know, if you are trying to get disability, and have been turned down, you can apply for early retirement at age 62-1/2 and still keep your claim open for the disability. Then, if you get the disability, you will get the full amount retroactive to the initial application date, but you have to make sure the claim is active. After a certain amount of time without follow-ups, it becomes dormant.
I mentioned that I am a totally disabled Veteran. This is a result of my service in Viet Nam and exposure to Agent Orange causing heart problems. It was also due to the fact that I was shot, run over by a truck, crushed abdomen during combat maneuvers and several other things. I mention this because I have been working with a Viet Nam Marine that had major heart problems. He was awarded only 70% of what should have been 100% disability and could not understand why. I explained to him that it was because he was still trying to work. As long as you are working part-time or full time, you won't get the full amount. The same goes for SS Disability, you have to be off from work for a full six months before you can receive one dime.
There will be those of you that are going to ask why I am putting all of this on here? At sometime or another, someone will stumble across it that is in need of this information and I am hoping that it will help them in some way.
I now have had three open heart surgeries, three heart attacks, two strokes, have had 18 heart catherizations, have 11 stents and am on my 2nd pacemaker/defibrillator. I have to go to the Cardiologist tomorrow because the leads on the device are not making good contact and I am dreading it, but I will take anything that comes along because I have no choice. God has watched over me through all of this and I am hoping he will continue to do so. God is GREAT!
Sorry to have hijacked the thread but I hope someone will get some information out of it.
I thought I was finished, but wanted to add something else. I can't believe that I have never came across anyone else that remembers this. I specifically remember when I was a younger man. It had to be somewhere around 1969-1970 because I had a new 1969 Camaro SS 396 / 375 HP, and I only had it for a year before I flipped it 5 times end-for-end drag racing. I told you God has been watching over me.
I remember hearing it on the news that Congress was in need for a lot of money and didn't know where to get it from. They decided to get it from Social Security. I remember hearing one of the Congressmen say that there was no way possible that Social Security would EVER need as much money as was in the funds. They took an amazing amount of the money out of what was available and never put it back. At the time it didn't make a flying fig of difference to me because of my age. I am sure that most of you were young at one time and know young people don't care about retirement. Any of you ever remember hearing it?