Q & A
Can I Return to Work and Keep Disability Benefits?
Full Question: I have been collecting disability benefits for a few years, but I’m getting healthy enough to work again. Can I return to work while getting Social Security disability benefits? Answer: Yes, you can return to work while receiving…
I’ve noticed that when you are talking about reductions in Social Security benefits for early retirement, you always say the reduction will be about one-half percent. Why do you say “about?” Is it one-half percent? Or is it something else?
Answer: It is “something else” all right! I will attempt to explain. You are right that I almost always throw in that word “about.” As in this statement: If you take Social Security benefits before your full retirement age, your benefit will…
I am in my eighth year of retirement. A few years in, I found myself spending a considerable amount on repairs and upkeep on my old house. I also had to replace my car. Luckily, I was able to build up a reserve fund to cover costs so I didn’t have to dip into my investments for these “life happens” events. What is your advice on how much cash a retiree should have on hand to feel secure?
Answer: Of course, everyone should have a cash cushion to handle unexpected expenses, but retirees need a larger cash reserve than people who are still working, says Richard Paul, president of Richard W. Paul and Associates in Novi, Mich. “The stakes…
Do Social Security retirement amounts change based on what state you live in?
Answer: No. Your retirement amount is based on your personal work history over many years and your age when starting benefits, not on where you live. It will not change if you move to a different state. Your best 35 years…
I was married to my first husband for 14 years, until he died. I got married again for another 18 years, until the second husband’s death. A few months before I turned 60 I married for a third time. Now, approaching age 65, I’m wondering if I can get Social Security benefits from any of my husbands.
Answer: Unfortunately, it appears that that you cannot, at least in the case of the first two husbands. If you had remarried after age 60, you would have been entitled to benefits on your prior deceased spouse’s Social Security earnings record. But…
When we start retirement, which asset (or a combination of assets) do we spend down first? I believe filing jointly, we should not have more than $74,000 or so to claim as income each year, otherwise we will no longer be in the 15% tax bracket and most likely be penalized further by Social Security.
Answer: Many people approach this issue from the same angle I think you have. They want to stay in a tax bracket of 15% or less. Because distributions from pretax retirement plans are taxable as ordinary income, long-term capital gains…
I plan to apply for my Social Security benefits in September. When can I expect my first check? And, is direct deposit my only option for receiving my monthly payment?
Answer: Generally, Social Security retirement benefits (as well as disability and survivor benefits) are paid in the month after the month they are due. So, if you apply for your Social Security benefits in September, you will receive your September benefits…
I am in my early 30s. While I certainly hope Social Security is around when I retire, I keep hearing doom and gloom about the program’s future. Do most younger workers feel pessimistic about Social Security?
Answer: It appears there is a general pessimistic opinion about Social Security’s future among today’s younger workers. Consider a recent post by Kathy Stokes, the director of the American Savings Education Council. Recent analysis from the nonpartisan Employee Benefit Research Institute, also…
What does the Social Security Advisory Board do?
Answer: Advise the President, the Congress, and the Commissioner of Social Security on Social Security (OASDI) and Supplemental Security Income (SSI) policy. Read more… Source: Social Security Advisory Board Notice: The “Read more…” link provided above connects readers to the full…
When is a Person Considered Disabled by Social Security Disability?
Answer: Social Security evaluates disability according to a long list of laws and regulations; there is no simple answer. What constitutes disability? For Social Security disability or SSI purposes, to be considered disabled, individuals must have an impairment, either medical, psychological, or psychiatric…