Yes, the maximum PIA reduction is currently $587 but if your Full Retirement Age (FRA) is <67 your reduction will be less because your bend point #1 will be less. For example, if born in 1958 your BP#1 is $960 so the maximum reduction is $480.
But that's the reduction in PIA: the amount you would receive if you start benefits at your FRA, calculated when you first became eligible at age 62. So yes, the maximum reduction at age 70 would be larger, by (assuming a 1958 b'day) the product of the COLA adjustments since you first became eligible (1.203) and the 1.267 multiple for deferring until age 70. 1.203 * 1.267 * $480 = $732.
So instead of a $1700/mo benefit it would be $968/mo at age 70.
At least, that's how I understand it and how the "toolbox" mentioned previously calculates it. Do you know that you have 20 or fewer years of "WEP substantial earnings"?
But that's the reduction in PIA: the amount you would receive if you start benefits at your FRA, calculated when you first became eligible at age 62. So yes, the maximum reduction at age 70 would be larger, by (assuming a 1958 b'day) the product of the COLA adjustments since you first became eligible (1.203) and the 1.267 multiple for deferring until age 70. 1.203 * 1.267 * $480 = $732.
So instead of a $1700/mo benefit it would be $968/mo at age 70.
At least, that's how I understand it and how the "toolbox" mentioned previously calculates it. Do you know that you have 20 or fewer years of "WEP substantial earnings"?
Statistics: Posted by FiveK — Thu Sep 05, 2024 12:28 am — Replies 6 — Views 651
