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Upon reaching full retirement I received a Social Security surprise

Posted on 7/12/24 at 12:25 pm
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
47034 posts
Posted on 7/12/24 at 12:25 pm
I was unaware, but a benefit (for some), is that children under the age of 18, or between 18-19 and still in high school) can receive a SS monthly payment equal to 50% of the SS payment made to the retiree, provided that the retiree does not apply for SS payments until reaching the "full retirement" age.

In my son's case, he just received his last check, and in total, Uncle Sam sent him over $40k. The money is required to be used for his expenses. We were already spending at least that amount on him every month (car, insurance, private tutoring, music lessons, club dues, food, clothing, utilities, housing, etc..), so we accounted for everything (have to report it) and spent the SS income, but then we matched every penny from the government and it went straight into his 529 college plan.

In addition, when we went to do his taxes, we used the IRS website and were notified that his payments were not taxable. I was expecting to have to outlay a sizeable payment for his taxes, but was spared that. It seemed strange, so then I tried to use TurboTax, and it gave me the same response that his payments were non-taxable.

Now, $40k isn't a huge sum, but with investing we have that up to a little more than $45k. It's about enough to cover 4 years of tuition here in Texas. Not with all other expenses (room/board/books/fees), but this certainly helps.

Just letting you guys who, like me, had children late in life, that this is an additional benefit available if you wait until full retirement to apply. It might help you decide when to retire.
Posted by boosiebadazz
Member since Feb 2008
81285 posts
Posted on 7/12/24 at 12:27 pm to
What’s full retirement age? 67?
Posted by FLTech
the A
Member since Sep 2017
17327 posts
Posted on 7/12/24 at 12:27 pm to
That's called Socialism. Ain't it great!?
Posted by imjustafatkid
Alabama
Member since Dec 2011
53962 posts
Posted on 7/12/24 at 12:28 pm to
quote:

That's called Socialism. Ain't it great!?


No, it isn't great. He'd have a lot more money if it had been invested instead of gone into Social Security.
Posted by Lynxrufus2012
Central Kentucky
Member since Mar 2020
13702 posts
Posted on 7/12/24 at 12:29 pm to
Better your son than some illegal immigrant.
Posted by tigersownall
Thibodaux
Member since Sep 2011
15781 posts
Posted on 7/12/24 at 12:29 pm to
Wait. Explain this to me like I’m 5 years old.
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
47034 posts
Posted on 7/12/24 at 12:32 pm to
quote:

What’s full retirement age? 67?
Depends on your year of birth. 1956 for me, so it was at age 66 and 4 months.
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
47034 posts
Posted on 7/12/24 at 12:33 pm to
quote:

No, it isn't great. He'd have a lot more money if it had been invested instead of gone into Social Security.
100% true.
Posted by East Coast Band
Member since Nov 2010
64383 posts
Posted on 7/12/24 at 12:33 pm to
quote:

What’s full retirement age? 67?

It's moving to 67 and 0 months.
Check your birthdate
Posted by Cool Hand Luke
Member since Oct 2008
1870 posts
Posted on 7/12/24 at 12:35 pm to
It's the same for me, only it is through the Railroad Retirement system. But I retired at 60.
Posted by Zach
Gizmonic Institute
Member since May 2005
114026 posts
Posted on 7/12/24 at 12:36 pm to
quote:

He'd have a lot more money if it had been invested instead of gone into Social Security.


True. I saw one study that showed how today's SS deductions the average person has in 40 years could have been invested in the most common blue chip stocks, and if The Great Depression had hit in the middle 15 years of your career, you would still be earning 3x the benefits after age 67 than currently with SS.
Posted by Cool Hand Luke
Member since Oct 2008
1870 posts
Posted on 7/12/24 at 12:39 pm to
But the average person wouldn't invest it and be shite out of luck come retirement age.
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
47034 posts
Posted on 7/12/24 at 12:42 pm to
quote:

But the average person wouldn't invest it and be shite out of luck come retirement age.
Especially blacks. They can't figure out how to use a computer or get an ID according to some Democrats.
Posted by CaLSUTigerFan
California Bay Area
Member since Sep 2008
1204 posts
Posted on 7/12/24 at 12:43 pm to
So basically you would have to have your children when you're in your late 40's for this to apply. Or am I misunderstanding.
Posted by ItNeverRains
Offugeaux
Member since Oct 2007
27482 posts
Posted on 7/12/24 at 12:45 pm to
quote:

True. I saw one study that showed how today's SS deductions the average person has in 40 years could have been invested in the most common blue chip stocks, and if The Great Depression had hit in the middle 15 years of your career, you would still be earning 3x the benefits after age 67 than currently with SS.


Correct. Everything the government touches turns to shite.
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
47034 posts
Posted on 7/12/24 at 12:45 pm to
quote:

So basically you would have to have your children when you're in your late 40's for this to apply. Or am I misunderstanding.
Early 50's or later.
Posted by boosiebadazz
Member since Feb 2008
81285 posts
Posted on 7/12/24 at 12:46 pm to
quote:

Early 50's or later.


Compensation for them having to wipe your old arse while they’re home from college.
This post was edited on 7/12/24 at 12:47 pm
Posted by RoyalWe
Prairieville, LA
Member since Mar 2018
3350 posts
Posted on 7/12/24 at 12:53 pm to
Does this benefit have a specific name so I can look up details?

EDIT: Found it: Benefits for Children (SSA)
This post was edited on 7/12/24 at 12:55 pm
Posted by PsychTiger
Member since Jul 2004
101727 posts
Posted on 7/12/24 at 12:57 pm to
quote:

Especially blacks. They can't figure out how to use a computer or get an ID according to some Democrats.


An easy solution for that is for them to vote for Trump, then they aren’t black.
Posted by RoyalWe
Prairieville, LA
Member since Mar 2018
3350 posts
Posted on 7/12/24 at 1:02 pm to
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