Friday, May 20, 2022

When Do You Get Your First Social Security Check

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Contrast With Private Pensions

Do people on social security get a check? What about stay at-at-home parents?

Although Social Security is sometimes compared to private pensions, the two systems are different in a number of respects. It has been argued that Social Security is an insurance plan as opposed to a retirement plan. Unlike a pension, for example, Social Security pays disability benefits. A private pension fund accumulates the money paid into it, eventually using those reserves to pay pensions to the workers who contributed to the fund and a private system is not universal. Social Security cannot “prefund” by investing in marketable assets such as equities, because federal law prohibits it from investing in assets other than those backed by the U.S. government. As a result, its investments to date have been limited to special non-negotiable securities issued by the U.S. Treasury, although some argue that debt issued by the Federal National Mortgage Association and other quasi-governmental organizations could meet legal standards. Social Security cannot by law invest in private equities, although some other countries and some states permit their pension funds to invest in private equities. As a universal system, Social Security generally operates as a pipeline, through which current tax receipts from workers are used to pay current benefits to retirees, survivors, and the disabled. When there is an excess of taxes withheld over benefits paid, by law this excess is invested in Treasury securities as described above.

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You May Be Able To Apply For A Replacement Card Online

You can use a to apply for a replacement Social Security card online if you:

  • Are a U.S. citizen age 18 or older with a U.S. mailing address
  • Are not requesting a name change or any other change to your card and
  • Have a drivers license or state-issued identification card from one of the many participating states or the District of Columbia.

Note:

If your drivers license or state-issued identification card was issued by one of the states listed below, this service is not yet available. If your state appears on this list, please check back. We are working to make this service available to additional states.

  • Alaska
  • Oklahoma
  • West Virginia

This service is also not yet available if your drivers license or identification card was issued by a U.S. territory .

If you are a U.S. citizen, and have not gotten a replacement Social Security card or name change recently, you may not be eligible to use the online replacement card application inmySocial Security.

If you dont have a mySocial Security account, you can create one today. To set up your account, go to:

If you do not qualify to apply online for a card, please follow the instructions in the next section.

Also Check: Social Security Infomation

Coronavirus Stimulus Checks And Social Security

On April 3, 2020, the federal government began sending eligible Americans stimulus checks as part of a relief package to help workers and the economy during the COVID-19 pandemic. Senior citizens and retirees who receive Social Security benefits are eligible for coronavirus stimulus checks as long as they meet the basic eligibility requirements.

The maximum stimulus payment is $1,200 for eligible adults who file separately and $2,400 for eligible married couples who file jointly. There is also an additional $500 payment per qualifying child.

In December 2020, an additional $600 stimulus check was sent out to every eligible adult and child.

Everyone who has a Social Security number and filed a tax return in the last two years generally qualified for both stimulus checks if their income falls within the governmentâs limits. Income is based on your 2019 federal tax return.

However, if you receive Social Security benefits and donât usually need to file a tax return, donât worry â you donât have to start now. You should still receive the stimulus payment, if you havenât already the government will use the information on file with the Social Security Administration to send you your payment. You can expect to receive the stimulus check the same way you get your Social security payment.

Beneficiaries of Supplemental Security Income can now check the status of their payment on the IRS website.

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What If The Social Security Administration Finds That My Disability Has Ceased But Im Still Not Able To Work

34 Social Security Secrets You Need to Know Now

The notice, which you will receive from the Social Security Administration following a continuing disability review, will explain your appeal rights. Read this notice carefully. If you appeal within ten days of the date you receive the notice your benefits will continue during your appeal. So be sure to act quickly.

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Total Benefits Paid By Year

Year

Workers in Social Security covered employment pay FICA or SECA taxes and earn quarters of coverage if earnings are above minimum amounts specified in the law. Workers with 40 quarters of coverage are “fully insured” and eligible for retirement benefits. Retirement benefit amounts depend upon the average of the person’s highest 35 years of “adjusted” or “indexed” earnings. A person’s payroll-taxable earnings from earlier years are adjusted for economy-wide wage growth, using the national average wage index , and then averaged. If the worker has fewer than 35 years of covered earnings these non-contributory years are assigned zero earnings. The sum of the highest 35 years of adjusted or indexed earnings divided by 420 produces a person’s Average Indexed Monthly Earnings or AIME.

The AIME is then used to calculate the Primary Insurance Amount or PIA. For workers who turn 62 in 2021, the PIA computation formula is:

90 percent of the first $996 of average indexed monthly earnings, plus

32 percent of average indexed monthly earnings between $996 and $6,002, plus

15 percent of average indexed monthly earnings over $6,002

Monthly benefit amounts are based on the PIA. Once the PIA is computed, it is indexed for price inflation over time. Thus, Social Security monthly benefit amounts retain their purchasing power throughout a person’s retirement years.

When You Should Expect To Receive Your Check Every Month

When your initial application is approved, it could take a few months for you to receive your first payment, especially if you are also receiving back pay. The SSA sends out monthly payments on a schedule based on your date of birth. Here is their current schedule of payments:

  • Your payment will be on the second Wednesday of the month if you were born on the 1st through the 10th.
  • Your payment will be on the third Wednesday of the month if you were born on the 11th through the 20th.
  • Your payment will be on the fourth Wednesday of the month if you were born on the 21st through the 31st.

There are exceptions to these rules. If you started receiving disability payments before 1997, you should receive your payment on the 3rd of the month. If your payment date falls on a holiday, your payment would be made the day before the holiday.

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Use Your Social Security Checks To Cover Healthcare Expenses

After budgeting to cover your basic needs, you should next pay for your medical expenses. Let’s assume that you’ll spend close to the national healthcare cost average for Americans 65 and older, which the BLS estimates at $6,833 per year. If you spend close to this amount, it’s wise to dedicate the remainder of your check toward this expense. But it’s also important to plan for rising healthcare costs that your Social Security checks likely won’t cover.

The 2019 Retirement Health Care Costs Report by HealthView Insights recently reported that the average 65-year-old couple who retired last year can expect to spend $12,052 per year on Medicare for parts B and D as well as supplemental insurance. That cost rises as you get older. The average 70-year-old pair will spend $16,068 per year on these items, the average 75-year-old couple will spend $21,706, and the average 80-year-old couple will spend $28,552.

Put What You Have Left In Your Savings

When and how you get your first disability check

After you’ve paid for necessities and healthcare, you might only be left with a few hundred dollars a year if you get the average retirement benefit. So what should you do with that leftover cash?

Edwin Cruz, owner of Prosperity Financial Group, tells his clients to set aside 10% to 20% of their Social Security checks to cover the unexpected. He also recommends adjusting this amount over time until the retiree has six to nine months of living expenses built up.

Following this strategy — and assuming you get the average retirement benefit — you should aim to save at least $1,825.91 each year until you reach your six to nine months’ worth of emergency savings. But since you’ve already used your Social Security checks to cover other high-priority expenses, you’ll likely need to tap into other income sources to build an emergency fund.

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Will I Receive A Notice From The Social Security Administration Explaining My Benefits

Yes. That notice is usually called a Notice of Award. This notice will show the date of entitlement and the amounts of benefits for all months of back benefits. It will show the total amount of benefits to be paid to you. It will show the amount of benefits withheld for direct payment of attorneys fees. It may also give you information about your Medicare eligibility and monthly Medicare premium. It may also give you some information about when to expect a continuing disability review.

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Do I Have To Do Anything Such As Visit The Social Security Office Or Complete Some Forms In Order To Get Paid My Social Security Disability Benefits

No. The Social Security Administration will process your claim and send you your benefits automatically. But if you have children who were under age 18 at any time after your date of entitlement, it will be necessary to put in an application for them to receive benefits but your own benefits will still be processed automatically.

Report The Death Of A Social Security Or Medicare Beneficiary

The First Thing You Should Do With Your Social Security ...

You must report the death of a family member receiving Social Security or Medicare benefits. The Social Security Administration processes death reports for both. Find out how you can report a death and how to cancel benefit payments. In addition to canceling SSA and Medicare benefits, find out what other benefits and accounts you should cancel.

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Special Rule As You Approach Full Retirement Age

If you are already receiving your retirement benefits, a special higher earnings limit applies in the calendar year you turn your full retirement age . If you will reach full retirement age in 2021, you can earn up to $4,210 per month without losing any of your benefits, up until the month you turn 66. But for every $3 you earn over that amount in any month, you will lose $1 in Social Security benefits. Beginning in the month you reach full retirement age, you become eligible to earn any amount without penalty.

If you are self-employed, you may receive full benefits for any month during this first year in which you did not perform what Social Security considers “substantial services.” The usual test for whether you worked substantial services is whether you worked in your business more than 45 hours during the month . In other words, if you work in your business more than 45 hours in a month, Social Security may reduce your benefit.

Demographic And Revenue Projections

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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Will I Be Eligible For Medicare

Medicare eligibility begins after you have received 24 months of Social Security disability benefits. Note that to receive Part B of Medicare , you pay a premium that will be deducted from your Social Security disability monthly check.

Disabled people with relatively low income and assets may be eligible for other programs that pay for medical expenses not covered by Medicare and/or pay the Medicare premium for you. To find out if you are eligible for any such programs, you need to check with your county welfare department.

If you have health insurance coverage already, you need to figure out how Medicare works with your health insurance. Many health insurance policies state that Medicare is to provide the primary coverage with your present health insurance paying only for what Medicare doesnt cover. You need to check with your health insurance company when you get your Medicare card.

You Can Receive Benefits Before Your Full Retirement Age

How long after receiving my first monthly check, will I get my Social Security Disability back pay?

You can start receiving your Social Security retirement benefits as early as age 62, but the benefit amount will be lower than your full retirement benefit amount.

If you start receiving your benefits before your full retirement age, we will reduce your benefits based on the number of months you receive benefits before you reach your full retirement age.

If you wait until age 70 to start your benefits, your benefit amount will be higher because you will receive delayed retirement credits for each month you delay filing for benefits. There is no additional benefit increase after you reach age 70, even if you continue to delay starting benefits.

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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.

When Should You Start Collecting Social Security Benefits

To determine when you should start taking your benefits, its important to understand how much your check is affected by when you claim your benefit. As mentioned before, you can claim your benefit as early as age 62, but reaching full retirement age can secure your full benefit.

So when exactly is full retirement age? That depends on when you were born.

Year of birth
65 + 2 months for each year past 1937
1943-1954
66 + 2 months for each year past 1954
1960 and later67

While the full retirement age used to be 65, changes to the program have increased that age. For example, those born in 1955 now have to wait an extra two months beyond age 66 to claim their full benefit. Someone born in 1959, for example, would have to wait until age 66 and 10 months to get the full benefit. Anyone born in 1960 or later, receives their full benefit at 67.

But some retirees choose to wait even longer. You may wait until as late as age 70 to claim your benefit, but then you must take it. Youll receive a bigger check for doing so.

So what is the upside to delaying your Social Security benefit after age 62? Your check wont get hit by a serious benefit reduction. Heres how much a $1,000 monthly check will become if you claim your benefit as soon as youre eligible at age 62.

Year of birthIf you file at 62, benefit reduced by:A $1,000 check becomes
$700

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