I retired from the military after 20 years of service in 1992. I turn 66 on August 31, 2020 my wife turns 66 on April 22, 2021. I am still working and do not know when I will stop. We both pay for Medicare Part B because it is a requirement for Tri-Care for Life. As I am still working, the company & SS still takes out of my check for SS and Medicare. I wish to enroll for my FRA SS but not sure when I should do it. My wife will apply for the 50% rate at her FRA off my SS due to not having enough credit of her own. So, my question is what do I do as far as still working, drawing SS at FRA and still having to pay into SS and Medicare, how does this effect my SS payments and how do I know if I am or will receive the extra credits for my 20 years of military service 1971-1992?

Hi,

If you were born on August 31 1954, you'll receive your full retirement age rate if you claim your benefits effective with August 2020. That's the payment that Social Security normally pays in September.

If you continue working after you start drawing benefits, you must still pay any required Social Security and Medicare taxes. Your earnings in years after you start drawing benefits can be used to recalculate your benefit rate, but they'll only increase your rate if your earnings are higher than at least one of your highest 35 years of wage-indexed earnings that are currently being used to compute your benefit rate.

Social Security started crediting deemed military wages (DMW) automatically in 1968, so you won't need to do anything to receive the credits. DMWs are extra wage credits added to actual active duty military wages paid in the years 1957 to 2001 (https://www.ssa.gov/OP_Home/handbook/handbook.09/handbook-0953.html). The credits amount to $100 per month, or $300 per calendar quarter, so for years that you were on active duty for a full year the amount of earnings posted to your Social Security earnings history for that year should be $1200 more than the gross wages shown on your W-2 from the military. So, if you still have your military W-2s you could compare them to the amounts shown on your Social Security statement.

I processed Social Security claims for more than 30 years, and in my experience DMWs earned after 1967 were virtually always credited accurately. So, I don't believe you need to worry about receiving the proper credits for your time in the military.

Before filing for your benefits, you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore and compare your various options so that you can choose the best possible strategy for maximizing your benefits.

Best, Jerry