Showing posts with label Social Security Benefits. Show all posts
Showing posts with label Social Security Benefits. Show all posts

Monday, July 12, 2021

Will Social Security Provide You With Enough Money To Retire On

Can Social Security alone help you in your later years, or might you find yourself encountering major monetary problems? There are three factors that Social Security benefits themselves won't be adequate as your source of finances as a retired person.

1. Regular benefits are just not enough

The average Social Security check-in 2021 is $1,553.68 a month. If you collect something like this amount and your only income source is Social Security, you'll have an annual income of only $18,644.16. 

Chances are you will not have the ability to cover necessities such as housing, medical, food, and also transportation with that quantity. Even if your check is more than standard, it's not likely to be enough. 

Many people need to replace 80% to 90% of their pre-retirement income when they leave the labor force. Social Security is only supposed to replace 40% of your income, so you'll have a big revenue gap if you count on benefits alone.

2. You may need to retire before you need to apply for Social Security

For lots of people, it's optimal to claim Social Security benefits at age 70. Beginning checks at 70 gives you more money to survive monthly and allows you to optimize this inflation-protected, surefire revenue source. 

It's the best chance of optimizing lifetime benefits, enabling you to grow the amount of cash available to your making through your spouse if you were the greater income earner in your household. Yet most individuals need to retire before age 70-- or they wish to. 

If you're intending on Social Security being your only revenue resource, you would certainly have to claim your benefits soon after leaving your work. If you have savings to survive on, you can delay starting your retirement and enjoy the bonus that comes with waiting.

3. The buying power of benefits is falling

Social Security benefits are inadequate to support in your first year of retirement. And also, as you age, their buying power is most likely to fall. That's because benefits are safeguarded against the rising cost of living, given that the system uses figures and gives you periodic increases to your Social Security checks.

Cost of living adjustments (COLAs) are intended to guarantee benefits don't lose value and are calculated based on just how rates change.

Since this demographic team spends in different ways than elders, COLAS do not account for the bills retired people incur. The result has been a 30% reduction in the purchasing power of benefits over the past few years. This weakening in purchasing power will likely proceed.

There are additionally a couple of other problems that could reduce the value of benefits. First, the threshold at which Social Security benefits start to be taxed by the Internal Revenue Service isn't indexed to inflation. 

Hence, an expanding number of retirees end up losing a few of their benefits to the federal government annually. Unless legislators act, an automatic benefit cut of as high as 24% could enter into effect as soon as 2035. Changes to stop this benefit cut, such as boosting the full retirement age, might also cause a lowered benefit.

There are many reasons that Social Security can not be your sole revenue source, so do not depend on it for that. By beginning to spend for your future today, you can have higher economic security as a retiree.

Saturday, July 10, 2021

How to Navigate Applying for Social Security Disability Benefits

Contrary to popular belief, social security benefits are not only for senior citizens. If you are an American citizen and have recently become disabled and thus cannot earn a living, you may be eligible for social security disability benefits. 

Understandably, the process can be a little daunting and quite complex. The following includes a quick guide to applying for social security disability benefits.

Waiting Period

One of the most important things a person must know is that there is a waiting period before receiving funds. The social security department sets this at five months. Therefore, it is highly recommended to begin applying for benefits as soon as possible.

Filling Out your Application

When you are ready to contact the social security department, you may do so by calling their toll-free number at 1-800-772-1213. If you wish to make the process that much quicker, you may also fill out your application through the social security department website

If you have a disability that does not allow you to hear properly nor use a computer, representatives are ready to help you navigate your application. These special representatives can be reached at 1-800-325-0778. 

It must be noted that if you have a question or concern regarding your claims, you may contact a staff member through the number listed above.

The Disability Starter Kit

Unfortunately, many people in the nation seek to take advantage of the benefits provided by the social security department. This is why an interview is scheduled with the person applying for benefits to determine their eligibility. 

During your call to a social security representative, you will be offered a disability starter kit. This kit will have all the information you need to get ready for your interview. 

This includes everything from the documents you will need to bring to the interview and any other information that may be requested later down the road. 

In addition, it must be noted that you will have access to an interpreter if you need one. Lastly, your kit will consist of detailed information about the options you will have if you are approved for disability benefits.

Use a Lawyer

Many claims don’t get approved the first or even second time, and much of that can be avoided when you have someone who knows the system well enough to understand what the government is looking for. 

A social security lawyer can help you navigate the process and even advocate for you should your claim be rejected. Those who specialize in social security disability claims will often know people who work in the claims department of social security and have an inside perspective on exactly what your application needs to be accepted.

The process of obtaining social security disability benefits may be a long and daunting one but one that is well worth the work. The information above can be used to begin your application process but researching and speaking further with a representative is highly recommended to expire the process.

Thursday, November 1, 2018

How Older Adults Can Access Their Social Security Benefits

If you work until the age of 66, you will be able to claim your full Social Security benefit for retirement. This age is subject to change, however. Individuals who were born in 1956 will need to wait until they are 66 and four months to claim their full benefit. The retirement age will continue to increase until it reaches 67 for everyone born in 1960 or later.

What Are Your Options if You Need to Claim Early?

If you start collecting social security benefits before the age to receive full benefits, you get a smaller payment. Currently, you receive 25 percent less than if you wait until full retirement age to begin collecting benefits. For most people, it makes sense to wait until you reach the full retirement age to begin collecting social security.

What if You Need to Retire Early?

It is estimated that one in every four workers will become disabled before reaching retirement age. In cases where this happens, you may qualify for disability payments. To qualify for social security disability, you must have a medical condition that will prevent you from working for at least a year, or that will result in your death. 

If you have a partial disability or a short-term health condition, you do not qualify for this benefit. You must meet the definition of disability as it is spelled out by the social security administration and be younger than the full retirement age. Certain family members of the disabled may also be able to collect disability payments.

What is the Process for Applying for Social Security Disability?

If you believe that you or a family member qualifies for social security disability, you can fill out an application online. The process to collect disability from the social security administration can be lengthy and complicated. 

It often makes sense to contact one of many social security lawyers to speed the process along. It is not uncommon to initially be rejected for disability, but for the payments to be granted on appeal.

What Happens When You Reach Full Retirement Age?

If you are still receiving disability payments when you reach full retirement age, your payments will convert to retirement benefits. When most workers retire, their social security is based on their previous 35 years earnings. 

To prevent years spent collecting disability from lowering your retirement benefit amounts, the Social Security Administration ignores the years spent collecting disability when determining your benefits.

The process of applying for social security benefits can be overwhelming and intimidating, particularly if it is happening at a time when you are already facing a health crisis. 

Having someone to help walk you through the process can provide emotional support at this critical time. Someone familiar with the process can also make sure you have the paperwork necessary to get your claim submitted properly.

Tuesday, February 16, 2016

What Baby Boomers Need to Know About Social Security Benefits

Social security benefits are a valuable asset for every Baby Boomer. When combined with retirement savings, social security makes it possible to pay for medical expenses, housing, food and other essentials. It also allows recipients to travel, enjoy family time and generally make the most of their retirement. 

Unfortunately, the Social Security Administration does not exactly make it easy for people to figure out the best ways to access and use their benefits. The administration has established nearly 3000 rules to govern the system, which makes knowledge of these facts crucial to understanding your benefits .

Full Retirement Age Is Flexible

Boomers born between 1943 and 1954 can claim full benefits at age 66. However, boomers born between 1955 and 1959 must wait until they are at least 66 and then an additional two months for each year beyond 1954. Sixty-seven is the full retirement age for anyone born 1960 or later. 

You Can Start, Stop and Start Benefits

A person who is at or over full retirement age and is receiving benefits can choose to suspend these benefits for a time. It means foregoing checks for the suspension period, but it means being able to collect much heftier benefits from the time the benefits resume until the individual's death. 

Grow Your Benefits By Working In Your Sixties

Delaying your retirement is a fantastic way to ensure that you maximize your benefits. If you continue working into your sixties, you may also ensure bigger payments for your spouse or qualifying child. 

The Social Security Administration does not impose a limit on how much of your income can factor into your benefits. However, it's important to be aware that there may be income tax implications and a reduction of benefits if you continue to work and are taking Social Security benefits. If you will be working, it may make sense to delay taking benefits.

Disability Retirement

If your disability has been documented and your employer has tried all reasonable attempts to employ you in a productive capacity, you may want to consider applying for disability retirement.
If you choose to do so, it is important that you seek legal--counsel for your application and any subsequent appeals. According to Watertown Social Security Lawyer Donald Chewning , Social Security disability hearings can be very dynamic, involving interaction the between the attorney , client, and judge. For this reason, you should have an experienced attorney on your side to provide you counsel during this complex process.

Your Children May Be Eligible for Benefits

People who have children later in life are sometimes surprised to learn that their children are eligible for Social Security benefits. Children are eligible for benefits through the age of 17, or 19 in certain circumstances, as long as one of their parents is receiving retirement benefits.

Social security benefits are an important part of the financial strategy of any baby boomer as they make it possible to maintain your lifestyle. The more you understand about your eligibility and benefits, the better prepared you'll be to actually enjoy your retirement years.

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