Thursday, April 25, 2019
Saturday, April 20, 2019
Social Security Calculator - When to Take Social Security
Social Security Calculator Since Social Security is an essential program of the government for qualified people, it is also crucial to understand how your benefits are calculated using a Social Security calculator. It helps you know the income you can expect from it and make sure that no disputes may arise when it is time for you to claim it. The organization has a variety of Social Security calculators, and each is based on the benefit that you are eligible to obtain. Once you have determined if you are qualified for the program, you can utilize the retirement age calculator to check the expected payment that you will receive easily. As per provision of 1983 Social Security Amendments, people who were born in 1938 and later can receive the full retirement benefit when they reach 67. On the other hand, the earliest age for you to get the retirement benefits is at 62. In this case, you will receive 80% of the monthly benefit since you will get benefits for an additional 36 months. However, if you found that you are not eligible to gain retirement benefits due to your work record, you may file for a spousal benefit in which the payment is based on your spouse’s work record. Then, list all the earnings you had every year including each year’s taxable maximum. You can get this information from your Social Security statement. You can then use the worksheet of index factors published by the Social Security Administration (SSA). You can also use a Social Security calculator. This document is where your annual income figures were indexed for inflation. Multiply your earnings to the index factor for that specific year you work so that you’ll get the inflation-indexed earnings. You have to do the same process in every year you worked. Take note that the Social Security benefit should come from the 35 years when you earned most. However, if you worked lower than that period, you need to fill in the missing spots with zero. Then, calculate your average indexed monthly earnings, or also called AIME. To do it, add up all 35 of your highest inflation-indexed income figures and divide the sum by 35. The result will give you the annual average, then, divide it again by 12 to get the AIME. You then need to determine your primary insurance amount, also called PIA, using the following formula that was updated in 2018: 90% = first $895 of AIME 32% of AIME above $895; less than or equal to $5,397 15% of AIME greater than $5,397 *The sum that you will get using this formula will be your PIA. It is crucial to take note that individuals who decide to claim their benefit before reaching the actual full retirement age will get a permanently reduced Social Security benefit. On the other hand, the recipients who prefer to claim the benefits beyond the suggested full retirement age can avail a permanently higher benefit. Americans have options to claim the benefits between age 62 through 70, and their choice will certainly affect the expected sum of money that they will receive. Hopefully you will find this Social Security calculator helpful.
Social Security - Full Retirement Age
Social Security Full Retirement Age Every individual who is eligible for Social Security program can choose to avail his retirement benefit at the age of 62 through 70. Take note that it is a critical decision that you have to make while you are planning to claim it. It is essential to understand how it affects the sum of money that you will receive when you retire. Before you jump into the decision-making, make sure to consider the pros and cons of choosing whether you want early or late retirement. It will help you learn the best time for you to start earning your retirement benefits. Generally, the full retirement age is between 66 and 67, but some workers may prefer to start receiving their benefits as early as 62 while the late period is 70. Early Retirement Early retirement means that you choose to receive your benefits before the full retirement age. If you prefer this option, take note that you will receive a reduced benefit as much as 30%. In this case, there will be a deduction of 5/9 of 1% every month up to 36 months before you reach the normal retirement age. On the other hand, if the number of months is more than 36, then the benefit will incur a deduction of 5/12 of 1% every month. Late Retirement Late retirement means that you wish to get your benefits after the normal retirement age, you will receive larger benefits. Also, you are also entitled to get delayed retirement credit which will increase the amount that you will gain. For you to avail the full credit, you must be insured under the Social Security program before the retirement, disability, or survivors benefits are paid to you or your beneficiaries. Take note that the credit will not be provided when you are over 69 years old. If you choose to retire before you reach 70 years old, the delayed retirement credits will be applied in January when you start benefits. If the spouse chooses to claim the retirement benefit, he/she may receive a maximum amount of 50% of the benefit that the worker will get at full retirement age. The deduction will then be applied after the benefit is reduced to 50%. Whether you prefer to receive your benefits before or after the full retirement age, it is critical to consider its effect on your monthly finances since it may be reduced or increased. The length of the period of waiting allows you to collect benefits before deciding to get it back. If you delay your benefits until the full retirement age, then the amount will also be increased due to the additional earnings you can get from the delayed retirement credits. The benefits provided by the Social Security vary in every individual due to some factors affecting its results. It is, therefore, crucial not only to weigh its effects but also to seek a consultation from experts who can guide and help you with your decision. When deciding, it is not only the number of benefits that you will receive each month that matters, you should also take a look at your current situation to see if it can sustain your necessities.
Social Security Benefits
Social Security Benefits Social Security benefits are not limited to cash transfer or financial support given to its target group of people. The service provided depends on the unique situation of the individual. Some factors such as total retirement income, marital status, lifetime earnings, home state taxes, and retirement age affect the amount of the benefits that an eligible individual will receive. The Social Security Number linked to the person’s Social Security hold these details. The Social Security Administration offers the primary programs. Retirement Benefits Generally, a worker will receive full benefits at the age of 66. However, in some situation, beneficiaries can start to claim their benefits at the age of 62, but at a lower amount. Also, the Social Security Administration will increase its amount by 8% every year from age 62 through 70. It is also crucial to take note that the monetary benefit will stop beyond that age. It is also required that people need to work at least ten years for them to avail the benefits. Some factors affect the payment that the recipient receives. One of the bases is the “average indexed monthly earnings.” It shows the record during the 35 years when you earned most. Survivors Benefits Children and widows of the Social Security beneficiaries are also entitled to receive the survivor's benefits. The survivors will get 75% out of 100% amount of the Social Security benefit of the recipient. Generally, the family will be paid at a limited amount of 150% out of 180% of the deceased benefits. Medicare Medicare is a healthcare insurance program provided specifically to elders 65 and above. People with disabilities, Lou Gehrig’s disease, and permanent kidney failure may also receive the same benefit. There are more than 50 million Americans who are covered by this benefit, and 15% - 20% of the fund comes from federal spending. The premiums gained by the recipient increases with the help of the Patient Protection and Affordable Care Act of 2010. The payroll taxes are raised as well since it is used to fund the program. Disability Benefits People who have been disabled for at least five months and has not improved for a more extended period are also entitled to receive the disability benefits. Furthermore, those who have been part of this program for 24 months may also obtain Medicare. There are also other medical conditions that may allow the individual to receive disability benefits. Some of them are musculoskeletal problems like back injuries, senses and speech issues like loss of vision and hearing, cardiovascular conditions like heart failure, respiratory illnesses like asthma, and neurological disorders like Parkinson’s disease. These health problems prevent the person from performing his/her job, enabling him to be entitled to disability benefits. Supplemental Security Income (SSI) Blind or disabled people who are 65 years old and above and have insufficient income can also avail the Supplemental Security Income or commonly called SSI. To prove the individual has a few financial resources, his monthly income must not exceed to $2,000, excluding some financial expenses such as burial plots, car, life insurance, personal residence, and $1,500 dedicated to burial funds.
Social Security - What You Need to Know
Social Security is one of the government systems that helps people who have insufficient or no income by giving them financial support. It also supports the retirees and families of disabled or deceased workers, making it one of the largest programs offered by the government to its society. The benefits produced by this government service has different forms that target the basic needs of the eligible beneficiaries. This federal program commenced in 1935 when the Social Security Act was signed. It was President Franklin D. Roosevelt’s New Deal plan to help the significant groups of people who suffered through the Great Depression. Per the Universal Declaration of Human Rights, Article 22: “Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international cooperation and in accordance with the organization and resources of each State, of the economic, social, and cultural rights indispensable for his dignity and the free development of his personality.” Social Security is in the form of pay-as-you-go-program. In today’s era, the fund used for the program comes from the payroll taxes paid by the employees and companies. It means that current employees and their employers pay for Social Security while the workers still can work. The Social Security Administration will collect the payment and put it in the Social Security Trust Fund. The government, on the other hand, is responsible for managing the money along with the Federal Reserve Board. In the future when the workers retire, or an accident causes them to die or get sick, they will get that money they paid for the program through the form of monthly income that will be given to their beneficiaries. Every individual who has the Social Security will be given a nine-digit Social Security number. It serves as the record of the owner’s history that collects all his or her information about covered wages and other earnings. In the future, the government will use it as a basis when he or she needs to get the benefits. Some programs of the government that help the poor also receive a portion of the revenues from the collected money. It is worth noting that Social security is not just limited to monetary assistance given to people. It was declared that people should receive benefits from the country such as sufficient supply of foods, safe and comfortable shelter, and access to healthcare assistance. It targets the large group of people ranging from children, elderly, unemployed, disabled, and the sick. Social services are organizations or programs that make these services reachable. Furthermore, it may also be given in the form of social insurance, whereas, the benefits that poor people receive should include retirement programs such as disability insurance, pensions, unemployment, unemployment assistance, and survivor benefits. It may also cover the necessities provided to refugees such as money, shelter, food, education, and medical care. The government is also responsible for designating its particular agency to implement these social security provisions.