Social Security
Social Security quiz: retirement ages, benefits, and numbers
Social Security payments go out to over 62 million beneficiaries every month. It’s also the single greatest expenditure of the federal government at over $950 million per year. But how well do people understand the basics of this important program? …
Millennials, Social Security, and Retirement
For the 83 million Americans born between 1982 and 2000 (commonly referred to as Millennials), retirement is a ways away. But a big worry looms large for this demographic group, namely that despite all they’re paying into Social Security now, a full 80% state they…
Social Security, Myths, and Midterms: What Voters Need to Know
With the Social Security program expected to spend over $1 trillion next year and the midterm elections now less than two months away, many voters will want to separate fact from fiction, yet still understand the very real financial problems facing…
Questions and Answers about the term “Maximum” when it comes to Social Security
In this question and answer session, Thomas Margineau addresses a number of issues related to the word “maximum” as it relates to Social Security. This includes the current maximum benefit amount of $2,788, the current maximum age of 70 one…
WEP and GPO: How these two provisions affect Social Security recipients
Government workers in 15 states participate in retirement plans that do not include contributions to the Social Security program, which makes them vulnerable to two provisions that can reduce their benefits in retirement. The states are Alaska, California, Colorado, Connecticut, Georgia,…
Why the income cap on Social Security earnings?
Sean Williams of The Motley Fool writes a comprehensive article on a number of Social Security calculations. Briefly, workers pay 6.2% of their incomes (employers pay another 6.2%) in payroll taxes, known as FICA, into the program, but only on the first $128,400…
Rethinking retirement planning: portfolio withdrawals and Social Security
Conventional wisdom as widely published in retirement articles suggests withdrawing 4% of your portfolio each year of retirement (adjusted for inflation) and choosing a Social Security start date after conducting a break-even analysis. This MarketWatch article, however, suggests that this…
Differing life expectancies are changing Social Security’s progressive design
Social Security, by design, is progressive program intended to benefit lower earners most. But according to an issue brief released this week by the Center for Retirement Research at Boston College, improvements in mortality are changing the progressive nature of the…
Yes some Social Security benefits are taxable
Many retirees do get a rude awakening when filing income taxes each year. “I have to pay income tax on my Social Security, many ask.” The answer is “yes, in some cases”. The total due the IRS is dependent on income, but up…
The Social Security Program: Where the Money is Spent
Social Security is the single greatest expenditure item in the entire federal budget, followed by Defense/Military spending. With expenditures of $952.5 million last year, where did all the money go? Sean Williams of The Motley Fool writes a very comprehensive…