Will you lose your Social Security benefits if you work and earn money? That depends on how much money you earn.
Special rules make it possible for people receiving Social Security disability benefits to work and still receive monthly payments. See their explanation on Social Security Online.
We would love to here first hand examples. Do you work and receive Social Security?
It is almost inevitable that Medicare and Social Security will see significant changes. Retirement age will likely be moved up yet again. Medicare will become a means tested program. And co-payments will be extended to cover services that do not have any co-payments. One such example is home health. $150 for each episode of home health coverage. Which, your supplemental plan should be able to cover. What do you think?
Ever wonder what you will have paid into the Social Security and Medicare pot by the time you are done (or what you have paid into the pot if you are already retired?) And whether you will get it all back? Here is a report that gives you some answers.
Do we really want social security to be privatized? Agreed that for responsible seniors privatizing social security COULD (not would) be a good move, but are we a very responsible group as a whole? And if the bottom falls off, how will we deal with the unprepared? Particularly, when we (now) know that the largest group of individuals hurt would be women? Find out more »
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The real problem in America is not the Government – it is us. Why? We are the ones who want the government to cut the deficit without touching Social Security, Medicare or taxes. Who is kidding who? We need to get real. When commentators speak of American ingenuity and resilience they speak of the capacity to intelligently make decisions even in the face of personal sacrifice (I think!). Neither of our two political parties is being honest about the solutions – but we (the voters) can do better. The politicians have their finger in the wind to navigate their actions. If we the voters would be honest and reach out to our legislators with honest opinions they too would change.
Deficit Reduction Proposals being considered and what it should mean to you. There is much being done by bi-partisan commissions and task forces to come up with realistic solutions to address the very real problem that our nation faces. In the words of one study: We believe that America is facing two huge challenges that can only be surmounted if both political parties work together: recovery from the recession and restraining the soaring federal debt. It goes on to say that this alarming prospect was created by the actions of both political parties over many years, with strong public approval. Read the Commission Report that everyone is talking about.
It’s official: No Social Security Increase in 2011. Officially there is no inflation. So why does your insurance premium, price of gas, price of food and other bills keep going up?
Brand name drug prices skyrocketing. What is the difference between government bureaucracy and corporate bureaucracy? Little. But it costs seniors dearly.
Changes in Advantage Plans will mean higher cost for some seniors. Advantage plans no longer receive the subsidy they once did. For many companies offering these plans, this cuts into their profits. And one way to make up the disappeared revenues is to increase premiums or shave off benefits. For some retirees with such plans it means but one thing – their costs will be going up.
Aging Health costs challenging US future – Bernanke. This should not come as a surprise. More retirees than workers who contribute to Social Security and Medicare add up to deficits. The moral of this tale is clear – expect changes and likely cuts to the programs. Unless you are proactive in planning for your retirement years, uncovered medical and long term care costs may prove to be a hurdle that you will not be able to overcome.
Top concern of caregivers of ALZ patients:
A little-known feature of the Social Security system is that in addition to paying retirement benefits for the retired worker, it may provide benefits to the worker’s spouse, an ex-spouse if the marriage lasted at least 10 years, and dependent children and grandchildren, depending on the circumstances. Moreover, these benefits can be paid all at the same time.
Spousal benefits: Your spouse is entitled to an amount equal to one-half of your full PIA. In order to receive this benefit, your spouse must be at least 62 years old or caring for your child who is under age 16. Also, you must have filed for Social Security benefits (though you do not need to be receiving benefits) in order for your spouse to receive them as well.
It may be that your spouse could receive more from Social Security based on her own earnings record than through your spousal benefit. If this is the case, the Social Security Administration automatically provides your spouse the larger benefit.
If you retire early, your spouse will still receive benefits based on one-half of the PIA you would have received had you waited until full retirement age to retire. But in order to receive a full half of your PIA, your spouse must wait to begin receiving the retirement benefits at her full retirement age. If she opts to receive benefits before that time, she will be penalized according to a formula similar to that used to compute the reduced benefits of workers who retire early.
Children’s benefits: Children and even grandchildren who are unmarried and dependent upon you (the retired worker) for their support are eligible for benefits. To be eligible, the child must be under age 18, under age 19 but still in elementary school or high school, or over age 18 but have become mentally or physically disabled prior to age 22.
Children generally receive an amount equal to one-half of your PIA, up to a “family maximum” benefit. The family maximum is calculated when you reach age 62, and is determined by a formula similar to that used to determine the PIA. The family maximum depends on the amount of your benefit and the number of family members who also qualify on your work record. The total varies, but it is generally equal to about 150 to 180 percent of your retirement benefit. The family maximum benefit rises annually with the cost of living.
Because of the maximum, the more dependants you have, the less each of their individual benefits will be, although your own benefit will not be reduced. For example, let’s say Henry’s PIA is $1,500 and his family maximum is $2,300. Henry would receive his $1,500 a month, and his wife, Beatrice, and their dependent child, Barbara, would split the remaining $800 a month ($2,300 – $1,500). If Henry and Beatrice had two children who qualified for benefits, the remaining $800 after Henry’s benefit would be evenly divided three ways. Upon the worker’s death, dependent children receive 75 percent of the worker’s PIA, up to the family maximum, until they outgrow their eligibility.
Divorced spouse;s benefits: If you are the retired worker, your divorced spouse is eligible to receive an amount equal to one-half of your PIA, provided the marriage lasted at least 10 years. The rules are similar to those for spousal benefits described above, with two notable exceptions. First, your divorced spouse can begin receiving benefits even before you have begun receiving benefits yourself. The SSA does require, however, that you be at least 62 years old and that the divorce have been final for at least two years if you have not yet reached full retirement age. Second, your divorced spouse’s benefits are not counted in your “family maximum” benefit described above, and they do not affect that maximum.
Divorced spouses who had more than one marriage that lasted at least 10 years do not receive multiple benefit checks, one for each marriage. But the SSA does automatically choose the former marriage that will yield the largest benefit to the ex-spouse. Divorced spouses generally cannot collect benefits on their former spouse’s record unless their later marriage ends (whether by death, divorce, or annulment).
Survivor’s benefits: If you die and your spouse has by that time reached full retirement age, your spouse begins receiving your actual benefits. This is true even if you and your spouse have divorced, so long as you had been married for at least 10 years. If your surviving spouse has not yet reached full retirement age but is at least age 60, she receives an actuarially reduced percentage of your benefits. At age 60, for example, she will receive 71.5 percent of your actual benefits. This percentage increases each year until she reaches full retirement age herself, at which point she begins receiving 100 percent of your actual benefits. Spouses younger than 60 may be able to receive benefits in limited circumstances, such as cases of disability or if they are caring for a disabled child.
Finally, the widow (if not divorced) of a deceased worker or his children under age 18 are entitled to a lump sum death benefit of $255.
When a beneficiary dies
Social Security payments are made on the third day of each month as payment for the previous month. Thus, a Social Security recipient must have survived the entire month to be entitled to the payment. For example, if a recipient dies on June 24, the payment made on July 3 will have to be returned. Consequently, in most cases the estates of decedents must pay back the SSA for the last payment received.
The executor, administrator, or next-of-kin should notify the SSA by calling the 800 number for the state in which the deceased resided. (Often funeral homes provide this service.) If the recipient had her Social Security deposited directly into her bank account, the SSA will arrange to withdraw the payment electronically. The bank account must remain open for at least 45 days following notification to the SSA of the death. If the payments were mailed rather than direct-deposited, the SSA will send a letter requesting reimbursement.