The rules are straightforward and spelled out clearly on Social Security's website, but here's the short course:
If you are between 62 and 66, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit, which in 2011 is $14,160.
The year you turn 66, the cap is higher. In 2011, you can earn a total of $37,680 with Social Security deducting $1 for every $3 you earn above that.
Pay attention to the rules because payback can be tough. If you work and collect simultaneously, Social Security will continue to pay you while you work, then after you've filed your income taxes in April of the next year, it will send you a letter saying you made too much money and it is taking back what it overpaid based on the earnings limit.
People who have had this retirement planning scenario happen to them warn that this can put you in a real bind if you spent the money you earned as well as the money you simultaneously collected from Social Security. Both you and your spouse -- if that person is getting benefits based on yours -- could go for several months without getting a Social Security check.
Does it make sense to take a job if you're younger than full retirement age and already taking Social Security? Yes, because if Social Security suspends your benefit, it will recalculate it as if you hadn't claimed. So when you quit work or reach full retirement age, you'll get a payment that reflects the age at which you're currently claiming (minus the time for which you already received benefits) -- and that can raise your payment substantially.
Showing posts with label retirement benefits. Show all posts
Showing posts with label retirement benefits. Show all posts
Tuesday, March 20, 2012
Tuesday, November 22, 2011
Social Security Launches New Spanish Online Services
Michael J. Astrue, Commissioner of Social Security, announced that the agency’s most popular online services, the applications for retirement and Medicare and for Extra Help with Medicare prescription drug costs, are now available in Spanish. The new online services are available at www.segurosocial.gov, the robust Spanish version of Social Security’s award winning website,www.socialsecurity.gov.
“The Spanish online applications for retirement, Medicare, and Extra Help with Medicare prescription drug costs are so easy and can be completed in as little as 15 minutes,” said Commissioner Astrue. “I’m proud that Social Security is a leader in the Federal government in providing service in Spanish, and I thank Don Francisco for volunteering his time to help spread the word about these new online services.”
In addition to the new applications, Social Security has also recently made online estimates of retirement benefits available in Spanish. People interested in planning for retirement can get an immediate, personalized estimate of their Social Security benefit by using the Retirement Estimator at www.segurosocial.gov/calculador. Using people’s actual wages from their Social Security record, the Estimator gives a good idea of what to expect in retirement. Workers can enter in different dates and future wage projections to get estimates for different retirement scenarios, which is why this service is one of the most highly rated electronic services in the public or private sector.
Don Francisco, who will appear in several new public service announcements for Social Security, said, “I have good news to share with the millions of Americans who prefer to conduct business in Spanish. You can now apply online for Social Security retirement and Medicare benefits in Spanish, as well as take advantage of other online services offered in Spanish at www.segurosocial.gov. ¡Es tan fácil!”
Once people complete the online application and “sign” it with the click of a mouse, the application is complete and, in most cases, there are no documents to submit or additional paperwork to fill out. It’s the easiest way to apply, and now it’s available in Spanish.
“The Spanish online applications for retirement, Medicare, and Extra Help with Medicare prescription drug costs are so easy and can be completed in as little as 15 minutes,” said Commissioner Astrue. “I’m proud that Social Security is a leader in the Federal government in providing service in Spanish, and I thank Don Francisco for volunteering his time to help spread the word about these new online services.”
In addition to the new applications, Social Security has also recently made online estimates of retirement benefits available in Spanish. People interested in planning for retirement can get an immediate, personalized estimate of their Social Security benefit by using the Retirement Estimator at www.segurosocial.gov/calculador. Using people’s actual wages from their Social Security record, the Estimator gives a good idea of what to expect in retirement. Workers can enter in different dates and future wage projections to get estimates for different retirement scenarios, which is why this service is one of the most highly rated electronic services in the public or private sector.
Don Francisco, who will appear in several new public service announcements for Social Security, said, “I have good news to share with the millions of Americans who prefer to conduct business in Spanish. You can now apply online for Social Security retirement and Medicare benefits in Spanish, as well as take advantage of other online services offered in Spanish at www.segurosocial.gov. ¡Es tan fácil!”
Once people complete the online application and “sign” it with the click of a mouse, the application is complete and, in most cases, there are no documents to submit or additional paperwork to fill out. It’s the easiest way to apply, and now it’s available in Spanish.
Friday, October 21, 2011
Finally, a raise in social security.
Social Security retirement benefits for nearly 55 million people will rise 3.6% in 2012, the first cost of living increase since 2009 said the U.S. Social Security Administration on Wednesday.
Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
“Over the past two years, costs for food, utilities and health care have continued to increase while Social Security benefits have not,” said Nancy LeaMond, AARP Executive Vice President. “This first increase in three years will provide much-needed relief to millions, and underscores the importance of Social Security as the only guaranteed, lifelong, and inflation-adjusted source of retirement income for most Americans.”
Monthly Social Security payments average $1,082, or about $13,000 a year. A 3.5 percent increase would amount to an additional $38 a month, or about $455 a year.
Most retirees rely on Social Security for a majority of their income, according to the Social Security Administration. Many rely on it for more than 90 percent of their income.
Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
“Over the past two years, costs for food, utilities and health care have continued to increase while Social Security benefits have not,” said Nancy LeaMond, AARP Executive Vice President. “This first increase in three years will provide much-needed relief to millions, and underscores the importance of Social Security as the only guaranteed, lifelong, and inflation-adjusted source of retirement income for most Americans.”
Monthly Social Security payments average $1,082, or about $13,000 a year. A 3.5 percent increase would amount to an additional $38 a month, or about $455 a year.
Most retirees rely on Social Security for a majority of their income, according to the Social Security Administration. Many rely on it for more than 90 percent of their income.
Subscribe to:
Posts (Atom)