Social Security
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,…
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…
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…
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…
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…
What delaying Social Security by just a month can mean
With people having to decide between taking Social Security at age 62, where you realize the lowest possible monthly check, to age 70, where the maximum monthly check is realized, what might waiting just one more month mean? Dan Caplinger…
New study: Early claimers see increased incidence of poverty
More people claim their Social Security benefits at age 62 than at any other age. But this could be a terrible mistake. In this Market Watch article, Mark Hulbert cites a new study circulated by the National Bureau of Economic…
Biggest Monthly Benefit Checks Start at Age 70: Why Don’t More People Wait?
The simplest answer to the question why more people don’t wait until age 70 to begin collecting Social Security benefits, when their checks would be the highest monthly amount possible, is this– most cannot afford to wait this long. Christy…