Thursday, June 16, 2022

Do I Have Social Security Benefits

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How Much Will I Get From Social Security

How much your Social Security benefits will be if you make $30,000, $35,000 or $40,000

Your retirement benefit is based on your lifetime earnings in work in which you paid Social Security taxes. Higher income translates to a bigger benefit . The amount you are entitled to is modified by other factors, most crucially the age at which you claim benefits.

For reference, the estimated average Social Security retirement benefit in 2022 is $1,657 a month. The maximum benefit the most an individual retiree can get is $3,345 a month for someone who files for Social Security in 2022 at full retirement age , the age at which you qualify for 100 percent of the benefit calculated from your earnings history. FRA is 66 and 2 months for people born in 1955, 66 and 4 months for people born in 1956, and is gradually rising to 67 for those born in 1960 or later.

Youll only know your own amount for sure when you apply, but there are ways to get a sense of it in advance. The quickest and easiest is to use AARPs Social Security Benefits Calculator or check your online My Social Security account. The latter draws on your earnings record on file with the Social Security Administration for the AARP calculator, youll need to provide your average annual income.

Keep in mind

Social Security sets a cap on how much of your income it takes into account in figuring your benefit. In 2022 the cap is $147,000 . Any income above that is not counted in your benefit calculation .

Can I Get A Medicare Supplement Plan Too

Medicare Supplement Insurance, also known as Medigap, helps pay your out-of-pocket costs under Original Medicare. Rather than covering healthcare directly, these plans help pay your share of costs for services covered by Medicare Part A and Part B.

These plans are also offered by private insurance companies. As with the other private Medicare offerings, you can buy these plans if you are eligible for Medicare, even if you dont receive Social Security benefits of any kind.

It is relevant to note that if you want one of these plans, buying it during your Medigap Open Enrollment Period is your best option. Its one of the rare times you have guaranteed issue rights. Your Medigap OEP begins the day youre both age 65 or older AND enrolled in Original Medicare.

When you have guaranteed issue rights, you dont have to deal with medical underwriting. This means that the insurance company cannot deny you coverage or charge you more, even if you have pre-existing medical conditions. Unless you qualify for guaranteed issue rights, Medigap insurers do not have to sell a plan to you.

Medicare Supplement plans are only available to people with Original Medicare. If you have Medicare Advantage, you cannot purchase a Medigap plan.

Which Domestic Laws Relate To The Right To Social Security

A number of existing laws are relevant to the realisation of the right to social security in Australia.

The Health Insurance Act 1973 underpins the Medicare scheme by providing for payments by way of medical benefits and for hospital services.

The National Health Act 1953 makes provision for pharmaceutical, sickness and hospital benefits, and for medical and dental services.

The Social Security Act 1991 and the Social Security Act 1999 govern entitlement to and administration of a number of benefits, including the age pension, disability support pension and child disability assistance, carer payment and allowance, parenting payment, youth allowance, Austudy, Newstart allowance, sickness allowance, special needs pensions, farmers hardship bonus, crisis and disaster recovery payment, concession cards and the student financial supplement scheme. The Social Security Act also makes provision for the Social Security Appeals Tribunal. The Tribunal is the first level of external review of decisions made by Centrelink about social security, family assistance, education or training assistance and parental leave payments.

The Carer Recognition Act 2010 is intended to increase recognition and awareness of carers and to acknowledge the valuable contribution they make to society.

The Aged Care Act 1997 facilitates access to aged care services by those who need them, regardless of race, culture, language, gender, economic circumstance or geographic location.

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Social Security Number Theft

Because Social Security Numbers have become useful in identity theft and other forms of crime, various schemes have been perpetrated to acquire valid Social Security Numbers and related identity information.

In February 2006, the Social Security Administration received several reports of an email message being circulated addressed to “Dear Social Security Number And Card owner” and purporting to be from the Social Security Administration. The message informs the reader “that someone illegally is using your Social Security number and assuming your identity” and directs the reader to a website designed to look like Social Security’s Internet website.

“I am outraged that someone would target an unsuspecting public in this manner,” said Commissioner Jo Anne B. Barnhart. “I have asked the Inspector General to use all the resources at his command to find and prosecute whoever is perpetrating this fraud.”

Once directed to the phony website, the individual is reportedly asked to confirm his or her identity with “Social Security and bank information”. Specific information about the individual’s credit card number, expiration date and is then requested. “Whether on our online website or by phone, Social Security will never ask you for your credit card information or your PIN,” Commissioner Jo Anne B. Barnhart reported.

Demographic And Revenue Projections

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This section’s factual accuracy may be compromised due to out-of-date information. The reason given is: Several of these projected dates have passed, and some language referring to data as ‘current’, ‘latest’, ‘most recent’, etc. is as old as 2005, or undated. Please help update this article to reflect recent events or newly available information.

In 2005, this exhaustion of the OASDI Trust Fund was projected to occur in 2041 by the Social Security Administration or by 2052 by the Congressional Budget Office, CBO. Thereafter, however, the projection for the exhaustion date of this event was moved up slightly after the recession worsened the U.S. economy’s financial picture. The 2011 OASDI Trustees Report stated:

Annual cost exceeded non-interest income in 2010 and is projected to continue to be larger throughout the remainder of the 75-year valuation period. Nevertheless, from 2010 through 2022, total trust fund income, including interest income, is more than is necessary to cover costs, so trust fund assets will continue to grow during that time. Beginning in 2023, trust fund assets will diminish until they become exhausted in 2036. Non-interest income is projected to be sufficient to support expenditures at a level of 77 percent of scheduled benefits after trust fund exhaustion in 2036, and then to decline to 74 percent of scheduled benefits in 2085.

Ways to eliminate the projected shortfall

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If Im Eligible For Social Security Disability Benefits When Does Medicare Kick In

You will typically be automatically enrolled in Original Medicare, Part A and B, after youve received Social Security disability benefits for two straight years. Your Medicare coverage will start 24 months from the month you qualified for disability benefits. In some cases, this could be earlier than the month when you received your first check. You must be either a U.S. citizen or legal permanent resident of at least five continuous years to be eligible for Medicare.

Note that certain conditions may qualify you for Medicare under age 65, but have different enrollment details than those described above.

  • If you have Lou Gehrigs disease , youre enrolled in Medicare automatically the first month you receive disability benefits from Social Security or the Railroad Retirement Board. The life expectancy of someone with ALS averages two to five years from the time of diagnosis, according the ALS Association. If you have ALS, you may not have time to wait two years on Social Security disability.
  • If you have end-stage renal disease , you might qualify for Medicare, but youre not automatically enrolled. End-stage renal disease means kidneys are functioning at 10 to 15 percent of their normal capacity according to the Cleveland Clinic. At that point, the choices are dialysis or a kidney transplant. If youre on dialysis or youve had a kidney transplant, contact Social Security .

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Theres An Annual Social Security Cost

One of the best features of Social Security benefits is that the government adjusts the benefits each year based on inflation. This is called a cost-of-living adjustment, or COLA, and helps your payments keep up with increasing living expenses. The Social Security COLA is quite valuable its the equivalent of buying inflation protection on a private annuity, which can get expensive.

Because the COLA is calculated based on changes in a federal consumer price index, the size of the COLA depends largely on broad inflation levels determined by the government. In 2021, Social Security beneficiaries saw a 1.3% COLA in their monthly Social Security benefits.

The Kiplinger Letter predicted in September that the COLA for 2022 could be 6%, which would be the largest adjustment since 1982. The final COLA for 2022 will be announced on Oct. 13.

Heres what COLAs have been in other recent years:

  • 2009: 5.8%
  • 2021: 1.3%

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How To Receive Federal Benefits

To begin receiving your federal benefits, like Social Security or veterans benefits, you must sign up for electronic payments with direct deposit.

If You Have a Bank or Credit Union Account:

  • Call the Go Direct Helpline at .

If You Don’t have a Bank or Credit Union Account:

Make Changes to an Existing Direct Deposit Account:

Learn how to make changes to an existing direct deposit account. You also may contact the federal agency that pays your benefit for help with your enrollment.

Early Filing Penalties Reduce Your Monthly Income

How Long Do You Have to Work to Get Social Security?

Spousal benefits could be worth up to 50% of your husband or wife’s standard benefit . So if your spouse whose record you are claiming benefits on was eligible for a monthly payment of $1,500, you could receive up to $750 per month in spousal benefits.

The key thing to note, though, is that this is the maximum. You’ll end up with substantially less if you start spousal benefits before your full retirement age. That’s true regardless of how old your mate is. If the primary earner claims benefits at FRA but you start your checks when you’re just 62, early filing penalties could reduce your monthly Social Security check to as little as 32.5% of your partner’s standard benefit — down from 50%.

Before starting your checks early, make certain you’re aware of this major potential downside.

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How Workers Can Get Estimates Of Benefits

The Social Security Administration provides benefit estimates to workers through the Social Security Statement. The Statement can be accessed online by opening an online account with SSA called my Social Security. With that account, workers can also construct “what if” scenarios, helping them to understand the effect on monthly benefits if they work additional years or delay the start of retirement benefits. The my Social Security account also offers other services, allowing individuals to request a replacement Social Security card or check the status of an application.

A printed copy of the Social Security Statement is mailed to workers age 60 or older.

In 2021, SSA began producing Retirement Ready fact sheets, available online and as part of the online Statement, that tailor retirement planning information to different age groups .

SSA also has a Benefits Calculators web page with several stand-alone online calculators that help individuals estimate their benefits and prepare for retirement. These include benefit calculators for spouses, calculators for persons affected by the Windfall Elimination Provision or the Government Pension Offset and calculators to determine a person’s full retirement age or the effect of the earnings test on benefits.

SSA also provides a life expectancy calculator to help with retirement planning.

Office Of Hearings Operations

On August 8, 2017, Acting Commissioner Nancy A. Berryhill informed employees that the Office of Disability Adjudication and Review would be renamed to Office of Hearings Operations . The hearing offices had been known as “ODAR” since 2006, and the Office of Hearings and Appeals before that. OHO administers the ALJ hearings for the Social Security Administration. Administrative Law Judges conduct hearings and issue decisions. After an ALJ decision, the Appeals Council considers requests for review of ALJ decisions, and acts as the final level of administrative review for the Social Security Administration .

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Spouses And Social Security Retirement Benefits

Your spouse can also claim up to 50 percent of your benefit amount if they dont have enough work credits, or if youre the higher earner. This doesnt take away from your benefit amount. For example, say you have a retirement benefit amount of $1,500 and your spouse has never worked. You can receive your monthly $1,500 and your spouse can receive up to $750. This means your household will get $2,250 each month.

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Get Ssa Benefits While Living Overseas

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U.S. citizens can travel to or live in most, but not all, foreign countries and still receive their Social Security benefits. You can find out if you can receive benefits overseas by using the Social Security Administrations payment verification tool. Once you access the tool, pick the country you’re visiting or living in from the drop-down menu options.

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Know Your Social Security Full Retirement Age

First things first:Determine your Social Security full retirement age. For people born between 1943 and 1954, full retirement age is 66. If your birthday falls between 1955 and 1959, it gradually climbs to 67. If you are born in 1960 or later, your full retirement age is 67.

You can claim your Social Security benefits a few years before or after your full retirement age, and your monthly benefit amount will vary as a result. More on that in a moment.

How Your Social Security Benefits Are Earned

To be eligible for Social Security benefits in retirement, you must earn at least 40 “credits” throughout your career. You can earn as many as four credits each year, so it takes 10 years of work to qualify for Social Security.

In 2021, you must earn $1,470 to get one Social Security work credit and $5,880 to get the maximum four credits for the year.

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Doing A Breakeven Analysis And Other Ways To Decide How Soon To Start

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        If youre about to retire, you may be wondering whether you should start claiming your hard-earned Social Security benefits now. Here are a few key factors to consider in making that decision.

        You Can Claim Social Security Benefits Earned By Your Ex

        How To Apply For Social Security Benefits: What You Need To Know

        Just because you’re divorced doesn’t mean you’ve lost the ability to get a Social Security benefit based on your former spouse’s earnings. You can receive a benefit based on his or her record instead of a benefit based on your own work record if you were married at least 10 years, you are 62 or older, and you are single.

        Like a regular spousal benefit, you can get up to 50% of an ex-spouse’s benefit — less if you claim before full retirement age. And the beauty of it is that your ex never needs to know because you apply for the benefit directly through the Social Security Administration. Taking a benefit on your ex-spouse’s record has no effect on his or her benefit or the benefit of your ex’s new spouse. And unlike a regular spousal benefit, if your ex qualifies for benefits but has yet to apply, you can still start collecting Social Security based on the ex’s record, though you must have been divorced for at least two years.

        Note: Ex-spouses can also take a survivor benefit if their ex died after the divorce, and, like any survivor benefit, it will be worth up to 100% of what the ex-spouse received. If you remarry after age 60, you are still eligible for the survivor benefit.

        A claiming strategy if youre divorced: Exes at full retirement age who were born on January 1, 1954, or earlier can apply to restrict their application to a spousal benefit while letting their own benefit grow.

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        Why Is Social Security Important

        Social Security is vital to many retirees and is one of the few social programs that enjoys broad support across the political spectrum. A 2020 AARP survey found that the program was supported by 90% of Democrats, Republicans and independents.

        While Social Security is intended to supplement peoples’ retirement savings, many retirees end up relying on the program’s benefits as their primary source of retirement income. According to the Center on Budget and Policy Priorities, half of seniors get half of their retirement income from Social Security.

        The National Institute on Retirement Security describes retirement income as a ‘three-legged stool’, consisting of Social Security, a pension plan and individual retirement savings through accounts like a 401 or an individual retirement account .

        With only half of private sector employees having a 401 at any time, Social Security is one of the most important aspects of retirement income’s ‘three-legged stool’, says Munnell.

        “The 401 system has worked well for, let’s say the top 40% of workers and is not much help for the bottom 60%,” says Munnell. “A lot of our population has nothing else to rely on other than Social Security, so you really don’t want to have that benefit level cut.”

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