Post by Admin/YBB on Dec 21, 2020 18:53:20 GMT -6
#SocialSecurity RETIREMENT benefit eligibility is from at least 40 WORK-CREDITS from covered employment; a maximum of 4 work-credits per year are possible based on income specified by SSA. Fewer work-credits are needed for DISABILITY & SURVIVOR benefits. The full retirement age [FRA] varies between 65-67. One can start collecting benefits early at 62 with up to 30% penalty or delay benefits up to 70 with up to 32% bonus. Actuarially it doesn’t matter to SSA, but it matters a lot to people getting it as potential/actual payments end on death. Those who start benefits before 65 get signed up for #Medicare at 65 automatically & have their Medicare premiums deducted from Social Security payments. Medicare HOLD-HARMLESS provision will limit Medicare premium increases to Social Security COLA; it is applicable to anyone having Medicare premiums deducted from Social Security payments. There are important SPOUSAL & DEPENDENT benefits. There are strategies for couples with different levels of income; the lower income spouse may start the benefit earlier [to get maximum of own or spousal benefit] & the higher-income spouse may delay the benefit. Rule changes in 2015 eliminated some complex strategies that couples were using. There is annual COLA based on CPI-W [Q3 vs prior Q3].
If you have pension from employment [government or nongovernment] that was not covered by SSA, your SSA benefits will be reduced by up to 50% [WEP]. If you have pension from government employment that was not covered by SSA, then your spousal SSA benefits will be reduced by 2/3rd of that government pension & your net spousal SSA benefit may even become $0 [GPO]; some exceptions apply but just taking lump-sum instead of pension doesn’t eliminate this GPO penalty. Spousal benefit for Medicare [if not eligible on own] is not affected by GPO. Some federal & state employees don’t participate in Social Security due to historical exemptions. Because of all its benefits, it is hard to put an overall value on Social Security benefits for comparison as there is nothing else like it [ignore misleading ideas such as its present-value]; it forms a SOCIAL SUPPORT system & is intended to provide partial income in retirement. REFORMS are needed to put Social Security & Medicare on sound financial footing. #PersonalFinance 12/8/20.
If you have pension from employment [government or nongovernment] that was not covered by SSA, your SSA benefits will be reduced by up to 50% [WEP]. If you have pension from government employment that was not covered by SSA, then your spousal SSA benefits will be reduced by 2/3rd of that government pension & your net spousal SSA benefit may even become $0 [GPO]; some exceptions apply but just taking lump-sum instead of pension doesn’t eliminate this GPO penalty. Spousal benefit for Medicare [if not eligible on own] is not affected by GPO. Some federal & state employees don’t participate in Social Security due to historical exemptions. Because of all its benefits, it is hard to put an overall value on Social Security benefits for comparison as there is nothing else like it [ignore misleading ideas such as its present-value]; it forms a SOCIAL SUPPORT system & is intended to provide partial income in retirement. REFORMS are needed to put Social Security & Medicare on sound financial footing. #PersonalFinance 12/8/20.