Category: Social Security
"See Presidential Positions (below)".
August 15, 2024 -- Thanks to everyone who voted in last week's poll on the best way to fix Social Security. The good news is that you seem willing to make some sacrifices to make it happen, not just throw the burden onto someone else. Even if very few people in government are willing to suggest possible solutions (promising to save it without the way to do it is not a solution), you are! Here is a link to take the poll and see the many interesting Comments it provoked.
Poll Results
The #1 thing that the 170+ people who took our poll want is to expand the earned income that is taxable for Social Security. In 2024 that limit is $168,600. Over 51% of you voted to increase that so taxes are paid on all earnings over $400,000. That option would mean people earning from $168,600 to $400,000 would not pay more FICA taxes, but people over that would pay it on everything they earn. Although presumably not too many members of the Topretirements voters would be affected, the vote does reflect a common opinion, one that would provide a substantial amount (but not all) of the funds needed to avoid benefit cuts expected in 2035. See Reader Responses,
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Published on August 14, 2024
Comments 7
Category: Social Security
August 6, 2024 — In case you haven’t been paying attention, a real crisis is brewing for Social Security. According to its Trustees, its reserves will be exhausted by 2035 (just 11 years away), at which time the only money available will be from taxes paid by current workers. Only…
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Published on August 5, 2024
Comments 13
Category: Social Security
July 31, 2024 -- Ordinarily Social Security or the IRS will not contact you by email or phone - unless it is from the mail, consider it spam or some kind of ripoff. But if you got an email recently from the Social Security Administration titled "Important Changes to Access Your Social Security Account!" it is legit. The reason is that soon you will no longer be able to sign in to your online Social Security account using your Social Security username and password. To access Social Security online services, including my Social Security, you will need to create a Login.gov or ID.me account.
This change aligns with federal authentication standards such as Login.gov while providing safe and secure access to their online services. If you are one of the millions of account holders who already use Login.gov or ID.me account to sign in, you do not need to take any action. For example, if you have a Global Entry account you already have a Login.gov username and password.
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Published on July 31, 2024
Comments 0
Category: Social Security
May 23, 2024 -- Thanks to all for taking last week's poll on your Social Security income. There was a good response with over 200 folks answering the question. The results were not unexpected for the Topretirements community, which is probably doing better than the general population. About two-thirds are comfortable enough to get less than 50% of our income from Social Security. An unlucky 11% derive close to 100% of what they have to spend from Social Security, and 19% rely on it to get more than half of their income (see chart below).
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Published on May 22, 2024
Comments 7
Category: Social Security
May 12, 2024 — We just saw a forecast that said the Social Security COLA adjustment for 2025 might be 2.6%, slightly below what as it was in 2024 – 3.2%. The forecast also said that the 2024 adjustment was worth about $58 per month for the average enrollee, whereas…
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Published on May 12, 2024
Comments 0
Category: Medicare
May 8, 2024 -- There is some rare good news for both Social Security and Medicare - their trust funds will run out of money later rather than sooner. The date when the Medicare funds will be exhausted has been pushed out 5 years, to 2036. Social Security got a 1 year reprieve, and its trust fund will now run out of money in 2035. The news comes from the just published annual reports of the funds' Trustees.
The main reason cited for the improvement in the Trust funds is an improved economy and labor market. More people are working and contributing taxes into the programs. Medicare has also made some technical improvements that have reduced expected expenses.
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Published on May 7, 2024
Comments 1
Category: Social Security
March 25, 2024 — As the Presidential and congressional campaign races enter their final months, clarity is emerging on at least one issue. The influential Republican Study Group, which has more than 170 House GOP lawmakers including Speaker of the House Mike Johnson, is advocating raising the age that people…
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Published on March 24, 2024
Comments 3
Category: Financial and taxes in retirement
March 12, 2024 — The vast majority of people for whom Social Security is their only source of income generally won’t pay any taxes on their benefits. But it might come as a surprise to others that their Social Security benefits could count as taxable income. People with enough revenue from pensions, savings, Required Minimum Distributions, etc., might have to pay income taxes on up to 85% of their benefits.
How are Social Security benefits taxed?
The law was changed in 1983 to help improve the stability of Social Security. After that, lower earners continued to get a break on their taxes, but higher earners now had to pay some taxes on their benefits. Over time the brackets have not expanded along with inflation, so an estimated 50% of people now pay some tax on their benefits. SS uses an adjusted gross income formula (earnings, investment income, retirement saving withdrawals and other taxable income, non taxable interest, and one half of Social Security benefits to determine what taxes might have to be paid.
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Published on March 11, 2024
Comments 1
Category: Social Security
February 11, 2024 -- The File and Suspend gambit is finished, and now the Restricted Benefit (Deemed Filing) is gone too. So what are the best Social Security Spousal Claiming Strategies that remain? Are any legal claiming approaches left that allow couples to maximize their Social Security benefits? The good news is there is still some room to maneuver.
Different situations. Every couple has a different set of circumstances. Perhaps one person has a much higher earning record than the other. The ages of the couple might be very far apart. They might have accrued very high retirement savings, or there is a sizable pension. On the other hand, they might have been forced into retirement early, and do not have much saved. All of these difference situations can mean different Social Security claiming strategies.
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Published on February 9, 2024
Comments 5
Category: Financial and taxes in retirement
January 9, 2024 - People contemplating retirement often wonder what is the Maximum Social Security Benefit is 2024. That is the benefit received by high earners who have maximized their FICA payments for 35 years, and who waited until age 70 to collect. The answer is pretty impressive - the maximum Social Security benefit in 2024 is $4,873 per month!
Others with less fortunate earning records, or who claimed as early as age 62, are more likely to receive something around the average 2024 Social Security benefit. That figure is a relatively paltry $1,907 per month in 2024, up from $1,848 in 2023.
Waiting until Age 70 Helps with the Maximum Social Security Benefit
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Published on January 9, 2024
Comments 23
