Good news — sort of. If you’re retired or just about to retire, next year’s Social Security checks are likely to see one of the biggest bumps on record as a result of surging consumer prices. The average beneficiary may be in line to get as much as $180 more a month starting next January, […]
Read MoreFew things are certain, yet Social Security retirement benefits are among the safest sources of retirement income: Inflation-adjusted monthly benefits backed by the federal government for as long as you live. Sounds good, doesn’t it? Yet, the majority of Americans claim their lifetime benefit before it reaches its highest amount, while just 5% to 6% […]
Read MoreSocial Security had another disastrous financial year in 2022 even as it hurtles toward insolvency. America’s main pension plan saw its investments badly trail the booming markets, competitors, and even inflation, yet again thanks to a rigid investment policy that hasn’t been changed since 1935. The trust fund earned just 2.5% on every dollar invested […]
Read MoreSome lawmakers have predicted bankruptcy for Social Security, pushing cuts in benefits or even privatization of the program to ensure its survival. What’s more, the latest (2021) annual report from the Social Security Board of Trustees suggests things have weakened with Social Security since the start of the COVID-19 pandemic. However, there might be some […]
Read MoreWhen it comes to preparing for the inevitable, it’s quite possible that couples might not contemplate the Social Security benefit a surviving spouse might receive. But they should. And they should do so far in advance of claiming benefits based on their own record. What married couples should know about survivor benefits – while both […]
Read MorePension vs. Social Security: An Overview There are many different types of income that retired folks draw on, depending on what their life was like during their working days. Two of the most widely-known income streams today include pensions and Social Security, two programs funded and structured in totally different ways. Pensions are typically workplace retirement plans, in […]
Read MoreSocial Security is a federal benefits program in the United States that was founded in 1935. While the program also includes disability income, it is most commonly associated with monthly retirement benefits paid out until death. The Social Security system is funded through payroll taxes. The Federal Insurance Contributions Act (FICA) mandates a 12.4% levy […]
Read MoreDoes everyone get Social Security? No. Still, American workers who will not qualify for Social Security retirement benefits are relatively rare. If you are one of them, it’s important to know, so you can secure other sources of income or determine whether it’s possible for you to become eligible. What follows are the eight most […]
Read MoreIf you’re about to retire, you may be wondering whether you should start claiming your hard-earned Social Security benefits now. Here are a few key factors to consider in making that decision. Key Takeaways You can collect Social Security as early as age 62, but your benefits will be permanently reduced. The longer you can […]
Read MoreMedicare’s open enrollment period is Oct. 15 to Dec. 7 — and it’s an important deadline for beneficiaries to remember. Open enrollment is the time in which current Medicare beneficiaries can make any changes to their coverage, such as adding or dropping a plan. It’s a time when people can also switch to Medicare Advantage, […]
Read MoreThe Old-Age, Survivors and Disability Insurance program (OASDI) tax—more commonly called the Social Security tax—is calculated by taking a set percentage of your income from each paycheck. Social Security tax rates are determined by law each year and apply to both employees and employers. For both 2021 and 2022, the Social Security tax rate for […]
Read MoreThe U.S. Social Security Administration said Wednesday that it will boost the cost-of-living adjustment for benefits in 2022 by 5.9% — the most in nearly four decades, as rising inflation puts a big dent in the purchasing power of those on fixed incomes. Some 64 million Social Security beneficiaries and 8 million Supplemental Security Income […]
Read MoreThe income you receive from your 401(k) or other qualified retirement plan does not affect the amount of Social Security retirement benefits you receive each month. However, you may be required to pay taxes on some or all of your benefits if your annual income exceeds a certain threshold—and your 401(k) distributions can cause it […]
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