Social Security Stuff

[W2R]

For those of you who don't get it or take it later than 65, how does Medicare get paid if not deducted from the SSA check?

You just pay it. In my case, I chose to have them deduct it automatically from my checking account, but I could have just sent them a check every month or whatever. IIRC I had to pay the first month's by check while getting the automatic deductions set up.

I decided to wait until age 70 to take my own SS. In addition I am eligible for (and now receiving as of two weeks ago) additional divorced spousal benefits. Like today's young dreamers, I never expected SS to provide me with anything. I remember resenting paying into it back in my 20's, because I was told by the media and by those supposedly in the know, with great certainty, that I would never see a cent from Social Security. HA!! Those who said that were completely wrong.

 

[gayl]

Thanks W2R. Autodeduction is simple enough

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[mpeirce]

...unless the chained CPI idea rears its ugly head again.

Not so ugly really IMHO.

The chained CPI make logical sense (that's my inner engineer speaking).

Unless there isn't ANY change to SS, which seems imprudent, the chained CPI seems like one of the more reasonable proposals. It doesn't have a jarring impact on the program, but rather slowly kicks in over time.

The longer we go without tweaks to SS, the more jarring the eventual "solution" will have to be.

 

[Live And Learn]

I fully expect Social Security to be around when I am eligible. I only include 65% in my calculations not because I think thats what I will get (I expect to get 100% of what they say), but because its a nice little fudge factor that will cover my butt when I have an expense that was not factored into my home grown retirement planning spreadsheet. It is also why I budget to pay the full healthcare OOP maximum of 12,600 / year. Its not that I think that will happen, but it gives me peace of mind.

If I don't pay 12.6k in OOP, and I do get 100% of SSI I'm sure I'll find a way to spend the excess

 

[Lancelot]

If you are single, then you are right, the discounts are calculated to be actuarially equivalent. However, if your are married, then joint mortality applies and it is a whole different ballgame unless both people worked, has similar earnings and are of similar age.

For us, I worked and my earnings were above the limit almost every year since I was 30 and DW only worked part-time here and there. I plan to file and suspend at FRA and start benefits when I am 70. If the financial markets go to hell (like in great depression hell) I would start earlier to preserve my nestegg. I believe it will be there, but haircut what SS tells me we will receive by 10% to recognize that some changes will be made to preserve the system.

Agreed. And yep, I'm single

I'm with you in that I'm treating SS more as 'income' insurance. If the market goes to hell, then I'll take SS earlier to minimize the damage of with drawls from a severely depleted portfolio. The current guarantee of 8% increase for deferring from age 66 to 70 is the attraction for me

 

[gayl]

So I'm wondering. I was married for 17 yrs. If I draw on his SSI (he made less than me) then mine at 70, should work rigyt? Do I draw on his at 65 or 66?

 

[sparkee]

I'll be 64 in August, my wife 54 in December. Her SS will be much less than mine, so I'll wait until 70. Even if I don't live past the break-even point, whenever I go it'll give her a higher payout for the rest of her life. That's the plan, anyway!

 

[W2R]

So I'm wondering. I was married for 17 yrs. If I draw on his SSI (he made less than me) then mine at 70, should work rigyt? Do I draw on his at 65 or 66?

Are you widowed or divorced? I found this link helpful for information on divorced spousal benefits from social security, but it wouldn't apply if you are widowed.

Retirement Planner: If You Are Divorced

 

[gayl]

So it sounds like I can't do it. XH made less than me so my benefit at 66 [$1638 m] would be more than 1/2 his. But I'll see if they'll let me. I get $2138 if I wait until 70 and we live a long time (dad to 88 with 12 heart attacks & 3 strokes, mom to 90)

 

[Finance Dave]

Thought some of you may enjoy this article. Do your own due diligence.

Social Security Q&A: Will Social Security Tell Me If I'm Leaving Benefits On The Table? - Forbes

 

[Tadpole]

For those of you who don't get it or take it later than 65, how does Medicare get paid if not deducted from the SSA check?

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For ex-federal employees, it's simple. You call the local SS office and have them arrange to take it from your pension.

 

[gayl]

Do you know if they can do that with ex-county employees as well? (A few yrs to medicare)

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[Running_Man]

So it sounds like I can't do it. XH made less than me so my benefit at 66 [$1638 m] would be more than 1/2 his. But I'll see if they'll let me. I get $2138 if I wait until 70 and we live a long time (dad to 88 with 12 heart attacks & 3 strokes, mom to 90)

You can claim his 1/2 for you at 66 and then convert to your full SS at age 70. you would get about 800 month at age 66 and then you'll be able to get your 2138

 

[gayl]

That would simplify paying Medicare

 

[Walt34]

You just pay it. In my case, I chose to have them deduct it automatically from my checking account, but I could have just sent them a check every month or whatever.

I thought that's how it would work. I'll be starting Medicare next spring when I turn 65. The main question I have is whether my BCBS premiums will go down enough to make up the premium I pay for Medicare. Since BCBS then becomes secondary I'd think so but it'll be interesting to see how that turns out. The effect is lessened because I pay 30% of the premium.

All that said we fully expect SS to be there in full for the next 10-15 years with perhaps some ah, "adjustment" after that.

 

[W2R]

I thought that's how it would work. I'll be starting Medicare next spring when I turn 65. The main question I have is whether my BCBS premiums will go down enough to make up the premium I pay for Medicare. Since BCBS then becomes secondary I'd think so but it'll be interesting to see how that turns out. The effect is lessened because I pay 30% of the premium.

All that said we fully expect SS to be there in full for the next 10-15 years with perhaps some ah, "adjustment" after that.

I am not sure how your BCBS premiums might be affected. Personally I am a retired federal employee with Medicare as primary and FEHB's BCBS Standard as secondary. I don't know if that is your situation or not. But anyway, the cost of BCBS to me remained exactly the same when I went on Medicare. However, it covers more than it did before, so overall, I'm happy with it. Other than BCBS, Medicare Part B, and my prescription costs, I have not paid one dime for any medical treatment since I turned 65; hard to complain about that.

I have no idea what will happen to Social Security. So far, so good.

 

[adrift]

For those of you worrying about SS, know that fixing SS beyond 2033 (the current "run out of $" date estimate) is relatively easy. It does not take much tinkering to keep the program running and healthy.

This is the latest "tinkering" I've seen:

Lew Supports Funding Change for Disability Program - Washington Wire - WSJ

The Social Security Disability pool is on track to run out of money by the end of 2016. The Treasury Secretary is proposing to raid the funds to pay retiree benefits in order to cover the shortfall in the SS Disability program.

 

[mpeirce]

Does having my DW claim half at FRA (then take her own at 70) work when DW is older than me?

 

[Animorph]

Does having my DW claim half at FRA (then take her own at 70) work when DW is older than me?

You have to have filed, though you can suspend under certain conditions, in order for your DW to claim spousal benefits. I think you can only suspend on or after FRA. So if you filed at 62 and your DW claimed spousal benefits at her FRA that should be fine, if the ages work for that. But you would be stuck with your age 62 SS benefit level.

SS benefits claiming strategy: Social Security Benefits Evaluator - T. Rowe Price

Spousal benefits: Retirement Planner: Benefits For You As A Spouse

 

[mpeirce]

You have to have filed, though you can suspend under certain conditions, in order for your DW to claim spousal benefits. I think you can only suspend on or after FRA. So if you filed at 62 and your DW claimed spousal benefits at her FRA that should be fine, if the ages work for that. But you would be stuck with your age 62 SS benefit level.

SS benefits claiming strategy: Social Security Benefits Evaluator - T. Rowe Price

Spousal benefits: Retirement Planner: Benefits For You As A Spouse

Oh well, she's 9 years older, so apparently this won't work for us.

 

[MRG]

This is the latest "tinkering" I've seen:

Lew Supports Funding Change for Disability Program - Washington Wire - WSJ

The Social Security Disability pool is on track to run out of money by the end of 2016. The Treasury Secretary is proposing to raid the funds to pay retiree benefits in order to cover the shortfall in the SS Disability program.

Yes I've seen this. I was hoping it would start people discussing the issue. IMHO it's all the same pool, just use it. Many people get much needed support from the disability
system.

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[mickeyd]

In 1970 when we were married and I was fresh off of active duty and was beginning my first civilian job (which had pension, thrift savings, medical etc.) I began to do adult stuff like plan for retirement at age 25. I had recently read an article that had me worried about what SS would be in 40 years.

I decided to exclude all hopes of SS from my planning and if SS happened to be there at the end then that would be even better.

After receiving spousal SS for the last 4 years, I will begin receiving SS in December under my SS number as I turn age 70 in November.

My plan worked.

 

[adrift]

This is the latest "tinkering" I've seen:

Lew Supports Funding Change for Disability Program - Washington Wire - WSJ

The Social Security Disability pool is on track to run out of money by the end of 2016. The Treasury Secretary is proposing to raid the funds to pay retiree benefits in order to cover the shortfall in the SS Disability program.

IMHO it's all the same pool, just use it.

Except ... it's not. The pools are legally separate. It's politically problematic to kick the can down the road for the shortfall in the SS Disability pool. The end of the road happens before the end of the current administration. Just maybe, that explains the proposal to drain resources from retiree benefits instead.

Many people get much needed support from the disability system.

There's no doubt this is true. But, there is also rampant fraud in the system. This has increased in the recent economic slowdown. I believe about 5% of the working age population is currently on SS Disability.

 

[Sarpy]

...
There's no doubt this is true. But, there is also rampant fraud in the system. This has increased in the recent economic slowdown. I believe about 5% of the working age population is currently on SS Disability.

++ I see & hear about SS Disability fraud all the time. Like the guy who gets SSDI because of a bad back but is out golfing all the time. Another who just doesn't want to work, so he has a mental problem. (And then his kids under 18 also get benefits.) For entertainment, watch how many show up on Judge Judy, if you can take that.

 

[Senator]

Yes I've seen this. I was hoping it would start people discussing the issue. IMHO it's all the same pool, just use it. Many people get much needed support from the disability system.

As a former Section 8 landlord, I have seen countless abuses of the disability system. I wont go into detail here, because I do not want to get controversial, but there are plenty of physically healthy 20+ year old people on disability just because they cannot hold a job.

Do not for a minute think it's all people who want to work, but cannot.

Much has to do with some limits on Welfare. When a person runs out of welfare benefits, they get a Dr. to put them on Disability. It's a different 'bucket'. There is a lot of documentation and studies on this.