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PDtax, CPA firm owner
Category: Social Security
Satisfied Customers: 4475
Experience:  35 years tax and professional advice in all matters money
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I will be 64 in October and thinking of retiring early next

Customer Question

I will be 64 in October and thinking of retiring early next year. If possible, I want to take social security then and delay my RR retirement until I reach FRA at 66.
1. Is this possible and will by RR retirement continue to increase 8% a year?
2. Or will this freeze my RR Tier 1 at present rate?
3. What are the drawbacks?
Submitted: 10 months ago.
Category: Social Security
Customer: replied 10 months ago.
I have 12 years working for railroad and my FRA income would be about $700 more a month than social security.
Expert:  PDtax replied 10 months ago.

Hi from just answer. I'mCustomer I'll try to assist, but my understanding of SS and tier I is different than yours.

Expert:  PDtax replied 10 months ago.

I thought the two benefits were integrated, that you could only collect one, not both. I'm going to read up on the subject and get back to you tomorrow.

Customer: replied 10 months ago.
I can collect only one but I was wondering if I could collect SS first, then switch to RR retirement when I reach FRA.
Expert:  PDtax replied 10 months ago.

Sorry, my first response never registered.

You can't collect SS early, then expect RRB Tier I at a sizable benefit. Your benefits will be consolidated in one retirement that has combined years and wage base.

If you could split benefits, you could get an early SS benefit, but your RRB Tier I benefit would only be based on 12 years work. The low benefit would not be enough to justify your strategy. Consolidated benefits will be much better for you.

Thanks again for asking at just answer. Positive feedback is appreciated. I'mCustomer