You Could Be Jeopardizing Your Benefits And Not Even Know It
Chances are, you’ll rely on Social Security as an important income source after retirement. Most Americans depend on their benefits to help make ends meet, especially if they’ve saved too little and don’t have a guaranteed pension from an employer.
That’s why it’s such a big problem that so many people don’t know basic facts about Social Security — or in some cases, they even harbor inaccurate beliefs.
These three shocking Social Security stats show just how much confusion exists about key aspects of retirement benefits that could affect income for life.
Almost 40% Of Americans Believe Their Benefits Will Go Up Later If They Claim Early
Some people who are aware of early filing penalties may make another big mistake in claiming Social Security. That’s because Fidelity also found that 38% of Americans actually believe their benefits will go back up after they reach their FRA if they started getting a reduced benefit early.
The sad reality is that this isn’t true. The reduction from early filing penalties will affect your income for the rest of your life. You will never get as much monthly money as you would have if you had waited.
The Future Of Social Security
With the aging of the U.S. population, some observers have raised concerns about the viability of a system in which fewer active workers will be supporting greater numbers of retirees.
In its 2021 report, the Social Security Board of Trustees forecasts that the retirement fund reserves will become depleted in 2033 , due in part to the COVID-19 pandemic that led to reduced employment and earnings. At that time, the continuing tax income will be enough to pay 76% of scheduled benefits going forward. The trustees forecast that the disability trust fundthe DI Trust Fundwill dry up in 2057 .
If that prediction holds, Congress will need to find ways to fill the gap, which might mean higher taxes on workers, lower benefits, higher age requirements for retirees, or some combination of these elements.
It’s worth noting that the 2021 report assumes that the pandemic “will have no net effect on the individual long-range ultimate assumptions.” Trustees noted that they will monitor the situation and may update projections in future reports to account for material changes.
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How Do Benefits Work And How Can I Qualify
While you work, you pay Social Security taxes. This tax money goes into a trust fund that pays benefits to:
Those who are currently retired
To people with disabilities
To the surviving spouses and children of workers who have died
Each year you work, youll get credits to help you become eligible for benefits when its time for you to retire. Find all the benefits Social Security Administration offers.
There are four main types of benefits that the SSA offers:
Learn about earning limits if you plan to work while receiving Social Security benefits
Tip : Memorize Your Social Security Number
Knowing your Social Security number by heart can be handy. Its there when you need it. Plus, you probably wont be tempted to carry your Social Security card with you or to jot down the number on a slip of paper.
This might seem like a small thing. But if youre not carrying your card with you, or youre not writing it down on slips of paper, youre far less likely to drop that paper or card on the ground or leave it behind at a local bank or government office. This means its less likely, too, that thieves might get their hands on your number.
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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:
- Direct Express debit card – a pre-paid debit card. Get help by calling the Go Direct Helpline at .
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.
Social Security Number Or Birth Date Changes
- To change your birth date on your account, all you need to do is take a Government-issued photo ID to a T-Mobile store.
- To change your Social Security number, you also need to bring:
- Social Security card
- Proof of address such as utility or bank statement
Full or legal name change
You must take documentation to a retail store.
- Evidence of registered business name with the applicable Secretary of State or name change document from the SOS
- Articles of Incorporation / Business Organization
- Federal tax ID number documents with the current name
- Bank account with the new business name on the account
Change the billing name and federal tax ID number on your account
This requires us to run credit on the new business info. To get started, contact your sales rep or visit a retail store.
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What Could Be Improved About Cold Weather Payments
However, there were some areas that they felt could be improved about the Cold Weather Payment system. A number felt that the payment is not enough to cover additional fuel costs, or argued that the criteria for issuing payments were too strict.
“It is better than nothing but still a miserable pittance.”
“It’s too low and too long a period for to get the payment. Why it was increased from 3 days to 7 days consecutive days is appalling. You could die after the first cold day. The payment should be increased.”
Many said that they would like the criteria for when payments are issued to be reviewed. In particular respondents wanted to see a change to the requirement for seven consecutive days at or below freezing temperature, with suggestions including either a shorter timeframe for consecutive days, or a specified number of days below freezing temperature within a week/month.
Many felt that this current requirement made it very difficult to plan, as it is not possible to know whether the weather will change. This meant that people did not always feel confident to put on their heating even in extremely cold weather.
“You can’t turn up the heating even when its freezing with the payment in mind. You could have 6 days where the weather temperature conditions meet the criterion but if on the seventh day it the temperature rises to above freezing you don’t get the money for the 6 cold below zero days. so you cannot rely on it. Even when its freezing.”
How To Get A Social Security Card
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Tip : Leave Home Without It
There may be times when you need to show your card to someone. But, in general, its a good idea to avoid carrying your card or any documents that display your SSN. Its possible you might lose your wallet or leave your documents behind.
Not all thieves will want your Social Security number, but many will. Leaving your card at home decreases the chances that these scammers will gain access to your Social Security number.
What Is A Social Security Card
Your Social Security card is an important piece of identification. You’ll need one to get a job, collect Social Security, or receive other government benefits.
When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.
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How Do I Change Or Correct My Name On My Social Security Number Card
If you legally change your name because of marriage, divorce, court order or any other reason, you must tell Social Security so you can get a corrected card. You cannot apply for a corrected card online. The same applies once you receive the I-766 card, Employment Authorization Document , from the U.S. Citizenship and Immigration Services . See Defining the legal Name for an SSN.
To get a corrected Social Security card, you will need to:
- Show the required documents. You will need proof of your identity. Sometimes you also may need to prove your current U.S. citizenship or lawful noncitizen status. See Learn What Documents You Need for more information. Under the heading, Type of Card, select Corrected for a list of the documents you need.
Note: If you are a U.S. Citizen, applying for a replacement SSN card, and choose to mail your application to your local office, you may use original or certified copies of secondary proofs of identity such as:
NOTE: U.S. Citizens applying for a replacement SSN card are not required to submit original primary evidence , for mailed applications.
What Do I Need To Know About Advance Designation
You should be aware of another type of representation called Advance Designation. This relates to the Strengthening Protections for Social Security Beneficiaries Act of 2018, which was signed into law on April 13, 2018.
Advance Designation allows capable adult and emancipated minor applicants and beneficiaries of Social Security, Supplemental Security Income, and Special Veterans Benefits to choose one or more individuals to serve as their representative payee in the future, if the need arises.
To help protect whats important to you, we now offer the option to choose a representative payee in advance. In the event that you can no longer make your own decisions, you and your family will have peace of mind knowing you already chose someone you trust to manage your benefits. If you need a representative payee to assist with the management of your benefits, we will first consider your advance designees, but we must still fully evaluate them and determine their suitability at that time.
You can submit your advance designation request when you apply for benefits or after you are already receiving benefits. You may do so through your personal account, by telephone, or in person.
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How Social Security Works
Social Security is an insurance program. Workers pay into the program, typically through payroll withholding where they work. Self-employed workers pay Social Security taxes when they file their federal tax return.
Workers can earn up to four credits each year. In 2021, for every $1,470 earned, one credit is granted until $5,880, or four credits, has been achieved. That money goes into two Social Security trust fundsthe Old-Age and Survivors Insurance Trust Fund for retirees and the Disability Insurance Trust Fund for disability beneficiarieswhere it is used to pay benefits to people currently eligible for them. The money that is not spent remains in the trust funds.
A board of trustees oversees the financial operation of the two Social Security trust funds. Four of the six members are the secretaries of the departments of Treasury, Labor, and Health and Human Services, and the Commissioner of Social Security, while the remaining two members are public representatives appointed by the president and confirmed by the Senate.
Medicare, the federal health insurance program for Americans 65 and older and some people with disabilities, is also supported through payroll withholding, but that money goes into a third trust fund, managed by the Centers for Medicare & Medicaid Services .
Social Security benefits are calculated based on a person’s average indexed monthly earnings during their 35 highest-earning years.
Examples Of Social Security In A Sentence
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These example sentences are selected automatically from various online news sources to reflect current usage of the word ‘social security.’ Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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Cold Weather Payment Letters
Respondents who had received a Cold Weather Payment were asked whether they had received a letter to tell them that they were getting the payment. Two thirds said that they had received this letter.
| Response options | |
|---|---|
| I don’t know | 16 |
Almost all of the 46 respondents who received the letter said that they understood why they were getting it. When asked if there was anything they would change about the letter, a number of respondents said that they felt that it was wasteful to post letters about this as the payment is clearly marked in bank statements. Some suggested email or text notifications as an alternative. It was also suggested that receiving a DWP letter can be a worrying experience for people – one person suggested a different envelope colour for “good news”.
Some respondents also said that they had received the letter after they had received the payment, and that it would be useful to get the letter first. It was suggested that the wording of the letter could be clearer or simpler, and that the format of the letter could be made to be more accessible, for example by having a larger font size.
How To Protect Your Social Security Number: 10 Ssn Tips
If you want to help protect yourself against identity theft, protecting your Social Security number is a good start. Your Social Security number is a high-value target for ID theft. Getting an identity theft protection plan is one step to consider.
Your Social Security number, or SSN, is a key piece of personally identifiable information. In the wrong hands like, in the hands of an identity thief your Social Security number might lead to various types of identity theft or fraud.
What can identity thieves do with your Social Security number? Heres a sample:
- Open bank accounts
- Open new credit cards or lines of credit to make purchases in your name
- File tax returns to obtain your refund
- Open new service accounts in your name, such as utilities or internet service
- Put you in major debt
- Destroy your credit score across all three credit bureaus
The Equifax data breach in 2017, which exposed Social Security numbers and other U.S.-consumer information, raised the risk for identity theft of more than 145 million Americans.
Although you cant do anything about a breach, its a good idea to learn what you can do to protect yourself following a breach, and before a subsequent breach. No matter how big or small, no business or industry is immune to cyberthieves who may have identity theft in mind.
Here are some tips for protecting your Social Security number and identity.
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Tip : Create Strong Passwords
Strong passwords that use a unique combination of numbers, letters, and symbols can help prevent identity thieves from accessing your personal information in online accounts. Heres one password you should never use: your Social Security number. And dont use your SSNs last four digits as a PIN.
Finally, dont use the same passwords repeatedly. Even if its a strong password, and its one that you can easily remember, all a hacker has to do is crack that password once. The thief will then be able to access all your important accounts that are protected by that password, even ones that contain your Social Security number.
Tip : Rarely Share Your Number
You may have to provide your Social Security number to your bank or employer. But theres no reason your pizza delivery guy needs it. If someone asks for your Social Security number, ask questions. Why? How will it be used? What if I refuse to share it?
You may be able to offer an alternative form of identification, such as a drivers license number, student ID, or utility bill.
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Experiences Of Cold Weather Payments
More than half of survey respondents said that they had received a Cold Weather Payment.
| Response options | |
|---|---|
| I don’t know | 8 |
Of these, more than three in five respondents said that their experience of Cold Weather Payment was “good” or “very good”. More than a quarter said their experience was “neither good or bad” and one in ten said that it was “bad” or very bad”.
| Response options | |
|---|---|
| Very bad | 4 |
When asked what was good about the Cold Weather Payment, respondents highlighted the fact that it is paid automatically into their bank account without needing to apply. Others commented that it was paid quickly after the cold spell.
“I got it as scheduled, sometimes when I had forgotten or hadn’t realised it would be coming in.”
“Always got it at least five days after so not too long to wait for it.”
Some also said that the payment eased financial pressures, and allowed them to heat their home without as much worry during cold spells. For example it allowed them to heat their home rather than just a single room, or keep the heating on “for a few hours longer”.
“It helps us out as we have a severely disabled family member and due to fuel costs we only heat his room unless we get a fuel payment then we can heat one more room for a day or two”
Some also highlighted increasing heating costs as an issue and commented that the payment helps towards that.