Social Security Leveling - ProTeacher Community





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Social Security Leveling
Old 11-20-2011, 05:09 PM
 
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Did anyone choose social security leveling as an option when they retired?


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Please explain
Old 11-20-2011, 05:11 PM
 
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I don't know what that is. A brief explanation would help. TIA
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Old 11-20-2011, 05:38 PM
 
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In North Carolina, this option provides an inflated monthly retirement benefit until you become eligible for Social Security at age 62. At that time your retirement benefit will be reduced by the amount of your estimated age 62 Social Security retirement benefit.
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Accelerated Option
Old 11-21-2011, 07:40 PM
 
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Is what we call it in Wisconsin. At 1st I didn't elect it but then realized I would be paying my own health insurance so needed the extra cash. I had 60 or 90 days to change my mind after receiving my first payment. I was told the change wouldn't take effect for about 6 months. But anyway, I used the accelerated payment cost calculator on the website and saw that I would be 72 yrs. old when the difference between taking it and not taking it would start to show a loss. By then I would make up that difference by drawing on my other retirement money from my 403B, plus, I have the regular social security money that has been coming in, if I choose at 62 or I could wait and have it come at 65, 67. I will see what I need at that time. I spoke with friends who all took it, accelerated, because people tend to be more active now than later and we don't always have a guarantee that there will be a later. But, if you don't need the cushion now, then, for you, it would make sense to wait and not take it.
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recent NC retiree
Old 11-26-2011, 11:06 AM
 
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I just retired last July and did not take the leveling option. The younger you are, I was 60, the more years you are likely to have with reduced or 0 income for social security purposes. The estimate you get from social security ASSUMES you will work until 62 or 66 or whatever estimate at that age they are giving you. Since you don't have several years of your highest income, your social security will not be as high as the estimate NC uses to calculate your leveling option. The result is you will have somewhat less money (depends on how young you were when you retired and how much other income you might have from a post retirement job) after the leveling stops and social security makes up the difference.

I am a divorced woman so I don't have income from a spouse. That might make a difference for you. My children are grown and self-supporting so that might make a difference if you still have kids at home or in college.

I can live happily on my pension (I took the full amount) but there's not much left over at the end of the month. I have savings for emergencies but am choosing not to tap into that for living expenses. In 18 months, I can begin getting SS if I choose. My estimate was close to 1400 but I'm waiting to see what the actual check will be without those two years of highest income added in. Don't forget that much of your social security as well as most of your pension is taxable. NC pensions are not taxed by the state if you were hired before 1985 but they are taxed by the federal govt.


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California teachers
Old 11-27-2011, 09:33 PM
 
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dont pay into or get Social Security. I am not allowed to get my spouses SS either. Welcome to California....land of misguided laws and rules.......
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I'm from CA also
Old 11-27-2011, 10:37 PM
 
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and I'm wondering why this is the case here and not elsewhere. What is the rationale--especially about the "late" husband's SS.
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