Social Security confusion: 8% delay credits, self-employment earnings, and spousal benefits after FRA

I can answer most of these based on my experience: 1. Yes, it's exactly 8% per year (or 2/3% per month) that you delay after your FRA up until age 70. That's called the Delayed Retirement Credit. 2. Once you reach your FRA, there is NO earnings limit. You can earn as much as you want without any SS benefit reduction. This applies whether you're W-2 or self-employed. 3. Absolutely - you'll get ALL COLA increases even during your delay period. They're built into your base benefit amount. 4. Your wife claiming early has zero effect on your claiming decision. Your benefits are separate. 5. Yes, if you die first, your wife would receive the higher of either her own benefit or your benefit as a survivor benefit. This is a major reason many financial advisors suggest the higher earner delay claiming. Hope this helps!

my uncle did exactly this waited till 70 and got like 40% more than his friends who took it at 62!!! his check is MASSIVE compared to everyone else at his senior living place. but waiting those years was hard on him financially just warning u

Your wife definitely has to APPLY for survivor benefits!!!! The SSA doesn't automatically switch her over - they won't even know you died unless someone tells them!! My sister's husband passed last year and she almost missed out on 3 months of higher payments because nobody told her she needed to call and apply for the survivor benefit. The SSA doesn't backdate these things forever!!

I see you have several questions about Social Security claiming strategies - all great questions! Let me add a bit more detail: The 8% per year delayed retirement credit is simple interest, not compound. So delaying from FRA to 70 would give you approximately 26.7% more (3⅓ years × 8%). Regarding self-employment: After FRA, you can earn unlimited income without any benefit reduction. However, keep in mind that 85% of your SS benefits could become taxable if your combined income exceeds certain thresholds. For the survivor benefit question: Yes, your wife would receive your higher benefit as a survivor benefit, but she must apply for it - it's not automatic. The survivor benefit would completely replace her own benefit (she doesn't get both). One thing to consider in your planning: the survivor benefit strategy is one of the strongest reasons for the higher earner to delay claiming. By waiting until 70, you're essentially buying your spouse a higher income insurance policy for her lifetime after you're gone.

FRA? PIA? COLA? Why does social security have to be so complicated with all these weird terms??? I'm 64 and I still don't understand half of what people are talking about with this stuff.

To answer your tax question: Yes, Social Security benefits can be taxable depending on your "combined income" (adjusted gross income + nontaxable interest + ½ of Social Security benefits). The thresholds are: - Up to 50% of benefits taxable when combined income is $25,000-$34,000 (single) or $32,000-$44,000 (married filing jointly) - Up to 85% of benefits taxable when combined income exceeds $34,000 (single) or $44,000 (married filing jointly) Since you're self-employed and plan to keep working, you'll likely exceed these thresholds, meaning up to 85% of your SS benefits would be included in your taxable income. Not the end of the world, just something to plan for.

Here's something else to consider: If you're planning to delay until 70 but your wife claims early, you might want to look into whether she qualifies for spousal benefits once you file. If her benefit is less than half of yours, she might get a "top-up" amount. This gets complicated though, especially if she already claimed her own benefits early (there are reduction factors applied). It's sometimes worth getting professional advice for these decisions, especially with self-employment income in the mix. The Social Security claiming decision can mean a difference of tens or even hundreds of thousands of dollars over your lifetime.

Has anyone here actually tried calling the SSA to get answers to these kinds of questions? I spent THREE HOURS on hold last month and then got disconnected. Then tried again and waited another two hours before giving up. The online information is so general and doesn't address specific situations like yours.

my brother said something about file and suspend but i think they got rid of that????? anyone know

Thank you all for the helpful information! I think I understand my options much better now. Just to summarize what I've learned: 1. The 8% delayed retirement credit is real, and it's simple interest (not compound) 2. After FRA, I can earn unlimited income from self-employment without benefit reductions 3. I'll get all COLA increases even while delaying 4. My wife's claiming decision doesn't affect my benefits 5. If I die first, my wife can switch to my higher benefit as a survivor, but she must APPLY for it (not automatic) 6. I need to consider taxation if I work while collecting I think I'm leaning toward delaying to 70 now, especially since it provides that "insurance policy" of a higher survivor benefit for my wife if I die first. I'll use that Claimyr service to get through to SSA and confirm these details for my specific situation. Really appreciate everyone's input!