Wednesday, September 28, 2022

How To Figure Out Social Security Disability Benefits

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How Social Security Disability is Calculated

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.

How Can The Social Security Disability Programs Be Improved To Increase Economic Security And Work Opportunities For Beneficiaries

Disability Insurance and Supplemental Security increase economic security for millions of disabled workers. For beneficiaries whose conditions improve, the programs also provide important incentives and supports for returning to work. Still, the programs could be further strengthened to increase disabled workers economic security and provide a more seamless transition for those who are able to return to work.

Modernize Supplemental Security

The value of Supplemental Security benefits has eroded considerably since the programs inception in 1972, as the programs income exclusions and asset limits have not kept pace with inflation and living standards. The current maximum benefit is equivalent to just three-quarters of the also-outdated federal poverty line for a single person. The general income exclusion and earned income exclusion have never been increased. To address this erosion, H.R. 1601, the Supplemental Security Restoration Act, sponsored by Rep. Raul Grijalva and introduced in Congress in April 2013, would increase the monthly maximum benefit to $937, which is 100 percent of the current federal poverty line, and would increase the general income disregard to $110 per month and the earned income disregard to $357 a month. Increasing the income exclusions and indexing them to inflation going forward would restore the monthly benefit amount to its intended value and significantly increase beneficiaries economic security.

Continuing Benefits & Deductions

Health Coverage

If you’re currently a member of the CalPERS Health Program, you must meet specific requirements to continue your health insurance coverage into retirement, or maintain the right to re-enroll in the future after retirement.

To continue your CalPERS health benefit coverage after retirement, you must meet both of the criteria below:

  • Be enrolled in a CalPERS health plan upon separation from employment, either in your own name or as a dependent
  • Retire within 120 days of your separation from employment

If you don’t meet both requirements before you retire, you’ll lose all future rights to be in the CalPERS Health Program. If your family members are included in your CalPERS health plan at the time of your death, their enrollment will continue automatically if they’re eligible for and receive a monthly allowance.

Public Agency or School Members

If your employer doesn’t contract with CalPERS for health benefits, contact your employer to determine if your benefits will continue.

Dental Coverage

To continue dental coverage into retirement, you must:

  • Be enrolled in a state-sponsored dental plan on the date of your separation from employment
  • Retire within 120 days of your separation

Long-Term Care

If you’re enrolled in CalPERS Long-Term Care and have premiums deducted from your paycheck, you’ll need to call 982-1775 before you retire to find out how to continue your premium deductions.

Other Deduction Payments

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Benefits For Disabled Widows Or Widowers

If something happens to a worker, benefits may be payable to their widow, widower, or surviving divorced spouse with a disability if the following conditions are met:

  • The widow, widower, or surviving divorced spouse is between ages 50 and 60.
  • The widow, widower, or surviving divorced spouse has a medical condition that meets the definition of disability for adults and the disability started before or within seven years of the worker’s death.

Widows, widowers, and surviving divorced spouses cannot apply online for survivors benefits. However, if they want to apply for these benefits, they should contact Social Security immediately at 1-800-772-1213 to request an appointment

To speed up the application process, complete an Adult Disability Report and have it available at the time of your appointment.

We use the same definition of disability for widows and widowers as we do for workers.

How Much Your Social Security Check May Increase In 2022 Explained

Social Security Benefits  The Kid Picked Last for Dodgeball
  • 12:10 ET, Aug 23 2021

TENS of millions of Americans could be set for a monthly boost to their social security checks worth nearly $100 in 2022.

That comes because of an anticipated 6.2% cost-of-living adjustment for those receiving social security benefits, the latest estimates from The Senior Citizens League show.

Once you turn 62, you can start receiving social security benefits. However, youll receive less money if you claim before your full retirement age.

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Benefits For A Disabled Child

A child under age 18 may be disabled, but we don’t need to consider the child’s disability when deciding if he or she qualifies for benefits as a dependent. The child’s 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.

How Does The United States Compare With Other Countries

According to a recent analysis by the Organisation for Economic Co-operation and Development, or OECD, the United States has the least generous disability-benefit system of all OECD member countries except Korea. The OECD describes the U.S. disability-benefit system, along with those of Korea, Japan, and Canada, as having the most stringent eligibility criteria for a full disability benefit, including the most rigid reference to all jobs available in the labor market and the shortest sickness benefit payment duration. In addition, the United States spends less as a share of its economy on incapacity-related benefits than other nations. In 2009 public expenditures on incapacity-related benefits comprised just 1.5 percent of U.S. gross domestic product, or GDP, compared to an average of 2.4 percent for all OECD nations.

Proponents of cutting disability benefits in the United States sometimes point to particular elements of disability program reforms in Europeparticularly in Germany, the Netherlands, and the United Kingdomas potential models for changes to the Social Security disability programs. In general, however, such proposals fail to take into account that these nations have much more generous disability systems, less rigorous disability standards, higher levels of social expendituresnot just on incapacity benefits but on social assistance generallyand more regulated labor markets than the United States.

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Spousal Benefit Reduction Due To Early Entitlement

If you file for a spousal benefit prior to your full retirement age, that spousal benefit will be reduced due to early filing. The reduction is 25/36 of 1% for each month early, up to 36 months. For each month in excess of 36 months, the reduction is 5/12 of 1%.

Example : Bobs full retirement age is 67. Bob files for his retirement and spousal benefits at age 65 . As a result, his spousal benefit will be reduced by or 16.67%.

The final calculation of Bobs spousal benefit will be 83.33% x . And to that, we would add Bobs own retirement benefit to find the total amount of his monthly benefit.

Full Retirement Age Calculation

How Social Security Disability Benefits Are Calculated: The Good Law Group

Once you have figured out your AIME, the calculation and formula to figure out your Social Security benefits is pretty easy. The baseline for figuring out your Social Security benefits is for people that retire at their full retirement age, which is anywhere from 66 to 67 years in age, depending on the year in which you were born. Generally speaking, the lower your AIME is, the higher percentage of your income you will recapture each year in your benefit.

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Adjust Your Primary Insurance Amount If You Claim Benefits Before Or After Full Retirement Age

All the above calculations determine the primary insurance amount if you claim benefits at full retirement age but you may decide to claim benefits before or after FRA. You can claim benefits as early as age 62. But if you claim benefits before FRA, your benefits are decreased by:

  • 5/9 of 1% per month for each month prior to FRA for the first 36 months
  • 5/12 of 1% per month for each additional month if you claim more than 36 months before FRA

If you claim benefits after FRA, benefits are increased by 2/3 of 1% for each month you wait up until age 70.

The table below shows FRA depending on your birth year:

If You Were Born inYour FRA Is

Table source: Social Security Administration.

Depending when your FRA is, youd apply the benefits reduction or increase to your primary insurance amount. For example:

  • If FRA is 67 and you claim benefits at 66, thats 12 months early. Multiply the per month-reduction *.01) times 12 months to see that benefits are reduced by around 6.7%.
  • If FRA is 66 and you claim benefits at 62, thats 48 months early. Multiply the per month-reduction for the first 36-months *.01) times 36 months + the additional reduction of *.01) times 12 months. This gives you 0.20 + 0.05, which amounts to a 25% reduction in your primary insurance amount.
  • If FRA is 67 and you claim benefits at 69, thats 24 months late. Multiply the per-month increase *.01) times 24 months to see benefits are increased by 16%.

How To Qualify For The Highest Possible Social Security Benefit

Editors Note: This story originally appeared on NewRetirement.

Maximizing your retirement paycheck and getting the most out of Social Security is a goal for many retirees.

For 2021, the highest possible Social Security benefit is $3,895 a month.

Following you will learn what you would have needed to do to qualify for this amount.

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If Your Spouse Also Worked Under Social Security

If your spouse is eligible for retirement benefits on their own record, we will always pay that amount first. But, if the spouses benefit that is payable on your record is a higher amount, they will get a combination of the two benefits that equals the higher amount.

If your spouse will also receive a pension based on work not covered by Social Security, such as government or foreign work, their Social Security benefit on your record may be affected.

How To Get A Social Security Card

Calculating Taxable Social Security Benefits
  • Gather your documents. Learn what documents you’ll need to get a card. Select your situation:
  • Adult or child
  • Original, replacement, or corrected card
  • U.S. born citizen, foreign born U.S. citizen, or noncitizen
  • Apply online for a replacement card. Apply online if youre not changing anything on your card and you are eligible. This option is available in most states. You will need to make a my Social Security account first. Or complete an application. If you can not apply online, fill out an application and return it to the SSA. Find out where to take it in person or mail it.
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    Medicare Coverage If You’re Disabled

    We automatically enroll you in Original Medicare after you get disability benefits for two years. However, if your disability results from ALS, Medicare coverage begins sooner, generally the first month you are eligible for disability benefits.

    • Medicare Part A helps pay for inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. The taxes you paid while you were working financed this coverage. Its provided at no cost to you.
    • Medicare Part B helps pay doctors’ services, outpatient care, some medical supplies, and other preventive services. You will need to pay a monthly premium for this coverage if you want it.

    Most people have both parts of Medicare. If you have questions about this coverage, you can contact Medicare toll-free at 1-800-MEDICARE to speak to a Medicare Customer Service Representative. TTY users should call 1-877-486-2048.

    What Things Have Zero Impact On Your Social Securitydisability Amount

    Some people believe worse health problems deserve more disability money. However, the federal government doesnt see things that way. Many people ask us about possible reasons to raise their Social Security disability pay amount, such as:

    • Additional health issues that may also qualify as a disability
    • Turning a certain age
    • Not having enough money for monthly bills

    If you believe the SSA made a mistake calculating your payments, talk to a disability lawyer today for free. Attorneys can give you free legal advice over the phone about your claim, and youre not obligated to do anything else after your call.

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    How Much Work Do You Need

    In addition to meeting our definition of disability, you must have worked long enough and recently enough under Social Security to qualify for disability benefits.

    Social Security work credits are based on your total yearly wages or self-employment income. You can earn up to four credits each year.

    The amount needed for a work credit changes from year to year. In 2021, for example, you earn one credit for each $1,470 in wages or self-employment income. When you’ve earned $5,880, you’ve earned your four credits for the year.

    The number of work credits you need to qualify for disability benefits depends on your age when you become disabled. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year you become disabled. However, younger workers may qualify with fewer credits.

    For more information on whether you qualify, refer to How You Earn Credits.

    Social Security Disability Benefits Pay Chart For Dependents

    Calculating Retroactive Benefits for SSD

    Whether you are in the process of applying for Social Security disability benefits or already are receiving them, you want to know how much you and your dependents can anticipate receiving each month in 2021 and 2022. Whatever you currently receive through the Supplemental Security Income or Social Security Disability Insurance programs will change as of the first of the year.

    Disability benefits through Social Security are subject to change each year depending on how the economy happens to be doing. Annual cost-of-living adjustments apply to retirement benefits as well as SSD benefits payable through the SSA.

    Because of the rate of inflation, the SSA announced that Social Security benefits will experience an increase of 5.9% effective for the 2022 benefit year starting in January. To help you understand how the COLA increase affects your monthly SSD benefits, the Social Security disability lawyers at the Clauson Law Firm put together the most currently available information and an SSD benefits pay chart. Use them to determine how your monthly benefit changes in 2022, but do not hesitate to contact the Clauson Law Firm for answers to any questions you may have or for help with applications and with appeals of adverse determinations.

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    Whats Full Retirement Age

    Full retirement age is when youre eligible to receive full Social Security benefits. Your full retirement age depends on your birth year: Under current law, if you were born in 1951 or later, your full retirement age is now some point after age 65all the way up to age 67 for those born after 1959. If you were born before 1951, youve already reached age 66 and full retirement age.

    Retirement ages for full Social Security benefits

    If you were born in

    Your full retirement age is

    1950 or earlier

    Calculate My Social Security Income

    These days thereâs a lot of doom and gloom about Social Securityâs solvency or lack thereof. And regardless of whether you think Social Securityâs future is secure, the fact remains that you shouldnât plan on living exclusively off your Social Security benefits. After all, Social Security wasnât designed to make up a retireeâs entire income.

    Still, many people do find themselves in the position of having to live off their Social Security checks. And even if you have other income sources in retirement, Social Security can make up a significant part of your retirement income plan. Thats why itâs important to know all the rules surrounding eligibility, benefit amounts, taxation and more.

    Do you need help managing your retirement savings? To find a financial advisor near you, try our free online matching tool.

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