Barrons: Social Security’s COLA Is No Bonus

[Chuckanut]

Not yet, correct.
But two points:
1) as the years roll on, with additional COLAs, the time will come when SS by itself will begin to have a nonzero federal income tax due, slowly at first.

2) I suspect that very few people who are living on SS alone were able to wait until age 70 to claim AND had anything close to the maximum benefit. It just doesn't work out that way, for the most part...

IIRC, only about 6% of SS recipients delay SS to 70.

 

[TheWizard]

IIRC, only about 6% of SS recipients delay SS to 70.

Most likely correct.
And you have to assume that almost all of them are wealthy ba****ds like myself who delay to allow higher Roth conversions in their 60s...

 

[Chuckanut]

Most likely correct.
And you have to assume that almost all of them are wealthy ba****ds like myself who delay to allow higher Roth conversions in their 60s...

Actually, I delayed to use it as a form of long life insurance. Today, with the stock market down and inflation raging, it's nice to get that SS increase on top of the extra 32% I get from waiting. Since I don't count myself among the wealthy ba****ds of the world, that helps me sleep at night.

 

[ncbill]

If she is past the look back period, 60 months in most states, for giving her assets away.
Otherwise she will be in the penalty period and be ineligible.

One of the Medicaid transfer exemptions is for a child who took care of a parent for at least the previous two years.

Wish I had known about the above before I sold mom's house.

I could have instead paid it off with part of mom's assets & transferred it to my younger sibling who was already living there.

 

[Finance Dave]

Just read in the March 2022 issue of the AARP bulletin that 12% of men and 15% of women rely on SS for more than 90% of their income.

This goes to some earlier discussions about wondering how many people live pretty much on ONLY SS.

 

[bclover]

You go to a medicaid facility.

Sadly, easier said then done. I can only speak to my next of the woods, Philadelphia pa. My mil is one of those trying to survive on limited funds. She was a stay at home wife for much if her life, and my father is law, her husband wasn't worth the spit it took to lick a stamp so basically when he died she was left broke. Unbeknownst to her he had taken out 2nd and 3rd loans on the house etc etc.

Now she has advanced Parkinson and early dementia. Finding a nursing home facility that takes medicaid is tough. The ones that do are usually packed with waiting list and if they don't have a waiting list it's usually because they are horrible.

In PA medicaid does not cover the cost of assistant living

 

[camfused]

^^^ Since she is in PA, make sure you check out PACE for help with prescription costs.

 

[rothlev]

Sadly, easier said then done. I can only speak to my next of the woods, Philadelphia pa. My mil is one of those trying to survive on limited funds. She was a stay at home wife for much if her life, and my father is law, her husband wasn't worth the spit it took to lick a stamp so basically when he died she was left broke. Unbeknownst to her he had taken out 2nd and 3rd loans on the house etc etc.

Now she has advanced Parkinson and early dementia. Finding a nursing home facility that takes medicaid is tough. The ones that do are usually packed with waiting list and if they don't have a waiting list it's usually because they are horrible.

In PA medicaid does not cover the cost of assistant living

yes, this is the problem. Often the medicaid facilities with beds are not places you want someone to live. assisted living ( supported living in Illinois ). for medicaid is extremely difficult to get into. if you are in the hospital the social worker will find you a bed somewhere. might not be close to your loved ones. generally , if you have some funds, a nursing home that is relatively decent will take you, and then put you on medicaid when you run out of money. However they will not put you straight on Medicaid , ( you have to have a year or 2 worth of private pay ) same is true for the supported living program. they will not take medicaid until after you have lived there for a set period of time.

 

[bclover]

^^^ Since she is in PA, make sure you check out PACE for help with prescription costs.

Thank you

 

[bclover]

Awesome ���� thank you for the information. We're new to this game, jeez talk about what you don't know

 

[rothlev]

Sadly, easier said then done. I can only speak to my next of the woods, Philadelphia pa. My mil is one of those trying to survive on limited funds. She was a stay at home wife for much if her life, and my father is law, her husband wasn't worth the spit it took to lick a stamp so basically when he died she was left broke. Unbeknownst to her he had taken out 2nd and 3rd loans on the house etc etc.

Now she has advanced Parkinson and early dementia. Finding a nursing home facility that takes medicaid is tough. The ones that do are usually packed with waiting list and if they don't have a waiting list it's usually because they are horrible.

In PA medicaid does not cover the cost of assistant living

you might find a personal care home at a lower cost if the medical needs are not great. that is a way better option than a nursing home. then use your heath insurance benefits to get some nursing assistance . the other option is to get dr. script for nursing help in her home, and apply for charity care to get a certain number of hours per day of care ( Catholic charities provide this , but will vary by area )

 

[jldavid47]

Just read in the March 2022 issue of the AARP bulletin that 12% of men and 15% of women rely on SS for more than 90% of their income.

I'm actually surprised the numbers are that low.

 

[braumeister]

A different number from Soc Sec, reported in Forbes:

a 2017 study by researchers at the Social Security Administration, also using the SIPP, found that only 19.6% of Americans 65 and over received at least 90% of their total incomes from Social Security.