Benefits For A Disabled Child
A child under age 18 may be disabled, but we donât need to consider the childâs disability when deciding if he or she qualifies for benefits as a dependent. The childâs benefits normally stop at age 18 unless he or she is a full-time student in an elementary or high school or is disabled.
Children who were receiving benefits as a minor child on a parents Social Security record may be eligible to continue receiving benefits on that parents record upon reaching age 18 if they are disabled.
Factors That Affect How Much You’ll Get In Retirement
Most retirees rely on Social Security. One in four gets 90% of their retirement income from the program. About half rely on it for 50% of their income.
Although Social Security is only one part of a secure retirement plan, it’s helpful to get a rough idea of how much you can expect. If you’re eligible for Social Security, your monthly benefit is based on two factors:
- How much money you earned during your working career
- The age you choose to start getting payments
Let’s look at how each of these affects your future Social Security income.
Income Tax Law Changes
One of the assumptions Social Security bases their estimates on is that you’ll continue earning your last reported income until you file for your benefit. Depending on your earnings history, income in the years before filing might be high enough to knock earlier lower earning years out of your 35 computation years, even after indexing for inflation. Each year that does so is therefore included in the average of your 35 computation years.
If instead of your projected income continuing at your last reported rate you actually have no income in those years, the 35 years would include the earlier lower earning years and so the average would of course be lower.
You can enter various future income estimates into my company’s software Maximize My Social Security or MaxiFi Planner to fully analyze your options so you can make informed decisions based on accurate calculations of your benefits based on your estimates of any future income. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Can I Get Social Security Retirement Benefits In Addition To My Social Security Disability?
If you apply for Social Security retirement benefits while collecting SSDI, you must choose to receive one or the other benefit. You can’t get both. And if you choose to start drawing retirement benefits at 64 instead of your SSDI, you’ll likely just be taking a roughly 17% cut in your benefit rate.
S For Setting Up Your Account
Once your ready, visit the my Social Security sign-up page and
Click the Create a new account link. If you have an ID.me you can use this one, or you can create your new account using Login.gov. Login.gov is a secure government portal that lets you use one set of credentials to access multiple participating federal agencies.
Near the bottom of the page on the next screen click on Create an account. You will be prompted to enter your email, choose a language preference, confirm your email, and create a strong password over a series of new screens.
Youll now be asked how you want the my Social Security online portal to verify that its you when you use the account. Here you can choose to use two-factor authentication which is recommended given the sensitivity of the information.
Your personal #mySocialSecurity account is an important step in your journey with us. What are you waiting for? Use the link below to open your my Social Security account today!
Next, read and accept the terms of service account. Afterwards, youll be asked to enter your personal information which the SSA can use to identify you, including your name , address, date of birth and Social Security number.
Now, if you wish you can add extra security using financial information before mentioned.
Can You Do Any Other Type Of Work
If you cant do the work you did in the past, we look to see if there is other work you could do despite your medical impairment.
We consider your medical conditions, age, education, past work experience, and any transferable skills you may have. If you cant do other work, well decide you are disabled. If you can do other work, well decide that you dont have a qualifying disability and your claim will be denied.
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Retirement Or Spouses Benefits
You need to be at least 61 years old and 9 months in order to claim these benefits. Another added requirement you also need to want your benefits to start in no more than four months. Applying for retirement benefits is essentially changing your financial status with the IRS and the SSA, which can have monetary ramifications if you change your mind or make changes outside of the allowable timeframes. Make sure to use the online tools to properly align your benefits with your goals. The online application for retirement and spouses benefits can be found here.
How To Check Your Social Security Statement Online
It’s easy to check your Social Security statement online. Everything works exactly as you’d expect and the website security is tight. Here’s how.
From the main page of your account, you have access to all of your basic Social Security info, such as your earning record:
And your estimated benefits:
You can also download your most recent Social Security statement and/or order a replacement card.
There’s not a lot to see in your Social Security account, but that’s fine. Sometimes you simply need to check your estimated benefits or your lifetime earnings. The Social Security website makes that easy and efficient to do.
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Tax Considerations For Social Security Benefits
How do these tax considerations affect when you should apply for Social Security benefits? At todays , they may not have much of an impact on most people. Still, tax rates and income thresholds can change, so its worth remembering that you will lose less of your Social Security to taxes if you are in a lower marginal tax bracket when you begin to collect.
You should also note that if you decide to return to work, even part time, and arent yet at your FRA, then your Social Security benefits may be temporarily reduced. The reduction is $1 for every $2 of earned income over $18,960 . During the year when you reach your FRA, your benefits will be reduced by $1 for every $3 in income over $50,520 until the month when you become fully eligible. That money isnt lost, however. The SSA will credit it to your record when you reach your FRA, resulting in a higher benefit.
Social Security Statement And Estimate Of Your Social Security Benefits
You may also request a Social Security Statement by mail. Fill out Form SSA-7004 to request your statement. Download the form on the SSA website, contact your local SSA field office, or contact Social Securitys general information number at 1-800-772-1213.
A Social Security Statement is a report of earnings or self-employment income SSA has credited to your earnings record. SSA uses the information to estimate future Social Security retirement benefits, current or future Social Security disability insurance, or survivor benefits you may be able to claim.
Review your Social Security Statement regularly. Its your responsibility. If all your earnings dont appear on the statement, contact SSA and inquire how to correct the record. You have a relatively short time period to correct the earnings record according to law:
Social Security Benefits You Can Claim Online
Applying for and obtaining social security benefits can be confusing but these five can be easily claimed online. Before you register for or use any of the online tools for SSA benefits, youll need to register for a my Social Security account online. The process is fairly straightforward, youll simply need to provide some basic identification.
How To Stop Social Security Check Payments
The SSA can not pay benefits for the month of a recipients death. That means if the person died in July, the check received in August must be returned. Find out how to return a check to the SSA.
If the payment is by direct deposit, notify the financial institution as soon as possible so it can return any payments received after death. For more about the requirement to return benefits for the month of a beneficiarys death, see the top of page 11 of this SSA publication.
Family members may be eligible for Social Security survivors benefits when a person getting benefits dies. Visit the SSA’s Survivors Benefits page to learn more.
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Spouses Who Dont Qualify For Their Own Social Security
Spouses who didnt work at a paid job or didnt earn enough credits to qualify for Social Security on their own are eligible to receive benefits starting at age 62 based on their spouses record. As with claiming benefits on your own record, your spousal benefit will be reduced if you take it before reaching your FRA. The highest spousal benefit that you can receive is half of the benefit that your spouse is entitled to at their FRA.
While spouses get a lower benefit if they claim before reaching their own FRA, they will not get a larger spousal benefit by waiting to claim after their FRAsay, at age 70. However, a nonworking or lower-earning spouse may get a larger spousal benefit if the working spouse has some late-career, high-earning years that boost their benefits.
My Social Securitys Four Super Powers
Did you know having a personal my Social Security account is almost like having superpowers? Think about it. It protects you, and you can even look intoyour financial future. Check out these fourfeatures that can empower all working Americans who pay into Social Security.
You may think you need to speak with a SocialSecurity representative to check your application status, set up or changedirect deposit, or request a replacement Social Security card. But you dont! All you have to do is log in or create yourpersonal my Social Securityaccount at www.ssa.gov/myaccount. Take care of your Social Securitybusiness from home or away when its convenient for you.
Your personal information is very important tous. When you create an account, itprevents someone else from possibly creating an account in your name. We use two-step authentication to verify youare the one logging in to your account. Oursecurity measures allows you to access your personal information safely andsecurely using my Social Security.
Plan foryour Future
Retirement planning is essential for a secure future. And your personal my Social Security account makes it easy. You can view your retirement estimates when you enter the age or date when you expect to begin receiving benefits and your estimated future salary amount. You can also view your estimated disability benefit on the Estimate Benefits page.
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Ask Larry: How Will Not Working Again Affect My Social Security Retirement Benefit Rate
Economic Security Planning, Inc.
Today’s Social Security column addresses questions about what effect not working in the years before filing might affect benefit amounts, switching from Social Security disability benefits to retirement benefits and on the process of starting spousal benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc.
Have Social Security questions of your own youd like answered? Ask Larry about Social Security here.
How Will Not Working Again Affect My Social Security Retirement Benefit Rate?
Hi Larry, I’m currently 56 and have paid into Social Security every year since I was 18. My position was particularly vulnerable to the effects of the pandemic and was laid off. I may never work again. How will this affect my benefit amount? Thanks, Jeff
Hi Jeff, Your Social Security retirement benefit amount will be based on an average of your highest 35 years of Social Security covered wage-indexed earnings. Not working again wouldn’t lower your benefit rate. You just wouldn’t be able to increase your rate by replacing past lower earnings years with higher future earnings years.
You’re Planning Your End
Your Social Security benefits stop paying at your death, so if you die prior to collecting benefits, you’ll have missed out on benefits entirely. You need to figure out how to maximize your Social Security income, instead. For example, say you’re planning to wait until age 70 so you can claim the larger monthly benefit. If you die right before your 70th birthday, you won’t receive any benefits. It’s very difficult to predict how long you’ll live, especially if you’re in good health now. However, if you are suffering from a terminal or serious illness, the increased monthly benefit for delaying Social Security might not be worth it.
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How Much Will Your Divorced Spouse Receive
If you have not applied for retirement benefits, but can qualify for them, your ex-spouse can receive benefits on your record if you have been divorced for at least two continuous years.
If your ex-spouse is eligible for retirement benefits on their own record, we will pay that amount first. If the benefit on your record is higher, they will get an additional amount on your record so that the combination of benefits equals that higher amount.
If your ex-spouse was born before January 2, 1954, and has already reached full retirement age, they can choose to receive only the divorced spouses benefit and delay receiving their own retirement benefit until a later date.
If your ex-spouses birthday is January 2, 1954 or later, the option to take only one benefit at full retirement age no longer exists. If your ex-spouse files for one benefit, they will be effectively filing for all retirement or spousal benefits.
How To Verify Your Social Security Benefits
Dear Savvy Senior:
When my neighbor applied for his retirement benefits last year, he found that Social Security had made some mistakes on his earnings record in past years, which caused him to get a monthly benefit check that was lower than it should have been. He never got it straightened out. How can I make sure this doesn’t happen to me?
The best way to keep an eye on your Social Security benefits and avoid any possible mistakes is to carefully review your Social Security statement, which you can now do online.
Just go to ssa.gov/mystatement and answer a few questions to verify your identity, and then print your statement out on paper. If you’re age 60 or older and not yet receiving benefits, your statement will actually be mailed to you about three months before your birthday.
Your Social Security statement lists your earnings record for each year of employment, and estimates the benefits you and your family may receive as a result of those earnings.
Once you get your statement in front of you, take some time to verify its accuracy by comparing the earnings listed on your statement with your own tax records or W-2 statements. And if you spot a discrepancy, follow these steps:
Call your nearest Social Security office to report the error. Some corrections can be made over the phone, or you may need to schedule an appointment and go in with copies of your W-2 forms or tax returns to prove the mistake, or you can mail it in.
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More From Life Changes:
The annual adjustments are based on inflation. So bigger monthly checks mean that consumer prices have also gone up. Consequently, the extra cash may not go as far.
The average monthly retirement benefit will go up by $92 to $1,657 in 2022 from $1,565 in 2021.
But the size of the increase will vary by beneficiary.
“Anybody who is currently in receipt of a benefit should take a look at what their benefit is and imagine what a roughly 5.9% increase will do to that benefit level,” Stephen Goss, chief actuary at the Social Administration, said during a recent webinar hosted by the Bipartisan Policy Center.
However, there is one thing that will offset how large those checks will be: Medicare Part B premiums.
Those payments toward Medicare Part B are often deducted directly from beneficiaries’ monthly checks. However, not everyone has Medicare Part B coverage, particularly if they are still covered under an employer health plan or if they have not yet reached Medicare eligibility age, which is 65.
The standard Medicare Part B premium is projected to be $158.50 per month, up from $148.50 this year. However, the rates for next year have not been officially announced.
If you are not covered by Medicare Part B, you can multiply your monthly benefit amount by 1.059 to approximate your payment for next year, said Joe Elsasser, founder and president of Covisum, a Social Security claiming software company.