How to Undo an Early Claim on Social Security Benefits

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Barron's 10 October, 2021 - 07:57pm 4 views

What day of the month do I get my Social Security checks?

The Sun 09 October, 2021 - 08:09am

THE arrival of your monthly Social Security check can be key to keeping your finances under control.

When you'll be paid varies depending on when your birthday is, although there are exceptions. Below we explain what you need to know.

Either way, keep in mind that your monthly Social Security retirement or disability benefit will be paid at the same time each month.

To see your next payment date, you can create or log on to your Social Security account online and go to the "benefits and claimants" section.

Generally, you'll be paid on the second Wednesday of the month if you were born on the first through the 10th of the month.

If you were born on the 11th through the 20th, you'll instead be paid on the third Wednesday of the month.

For dates after the 20th, you'll be paid on the fourth Wednesday of the month.

For example, children and spouses who receive benefits on someone else's work record will be paid on the same day as the primary beneficiary.

For others, the Social Security Administration (SSA) may issue your payments on the third of each month if any of the below applies.

Meanwhile, individuals who receive SSI payments due to disability, age, or blindness receive those payments on the first of each month.

If your payment date falls on a federal holiday or weekend, you can expect to receive that month’s payment on the weekday immediately prior.

We also round up four upcoming Social Security changes that could affect benefits including tax hikes.

It comes as a debt ceiling battle in Congress has put Social Security on the agenda, with fears payments could be delayed unless a solution is found.

Plus, we reveal five ways to boost your Social Security checks at any age.

Do you have a story for The US Sun team?

Email us at exclusive@the-sun.com or call 212 416 4552.

Like us on Facebook at www.facebook.com/TheSunUS and follow us from our main Twitter account at @TheSunUS

What day of the month do I get my Social Security checks?

The Motley Fool 09 October, 2021 - 08:09am

THE arrival of your monthly Social Security check can be key to keeping your finances under control.

When you'll be paid varies depending on when your birthday is, although there are exceptions. Below we explain what you need to know.

Either way, keep in mind that your monthly Social Security retirement or disability benefit will be paid at the same time each month.

To see your next payment date, you can create or log on to your Social Security account online and go to the "benefits and claimants" section.

Generally, you'll be paid on the second Wednesday of the month if you were born on the first through the 10th of the month.

If you were born on the 11th through the 20th, you'll instead be paid on the third Wednesday of the month.

For dates after the 20th, you'll be paid on the fourth Wednesday of the month.

For example, children and spouses who receive benefits on someone else's work record will be paid on the same day as the primary beneficiary.

For others, the Social Security Administration (SSA) may issue your payments on the third of each month if any of the below applies.

Meanwhile, individuals who receive SSI payments due to disability, age, or blindness receive those payments on the first of each month.

If your payment date falls on a federal holiday or weekend, you can expect to receive that month’s payment on the weekday immediately prior.

We also round up four upcoming Social Security changes that could affect benefits including tax hikes.

It comes as a debt ceiling battle in Congress has put Social Security on the agenda, with fears payments could be delayed unless a solution is found.

Plus, we reveal five ways to boost your Social Security checks at any age.

Do you have a story for The US Sun team?

Email us at exclusive@the-sun.com or call 212 416 4552.

Like us on Facebook at www.facebook.com/TheSunUS and follow us from our main Twitter account at @TheSunUS

This Social Security Move Could Help You Avoid a 30% Reduction in Benefits | The Motley Fool

The Motley Fool 09 October, 2021 - 05:36am

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Millions of seniors routinely rely on Social Security to cover many of their retirement expenses. Ideally, you'll be kicking off your golden years with money outside of Social Security -- perhaps a pension, or a nest egg housed in an IRA or 401(k) plan.

But either way, your goal may be to get as much money out of Social Security as possible. And one key move on your part could prevent you from slashing your benefits by 30% on a permanent basis.

Many seniors rush to claim Social Security at age 62 because that's the earliest age to sign up for benefits. But if you file the moment you're able to, your benefits will take a serious hit -- for life.

See, you're not entitled to your full Social Security benefit until you reach what's known as full retirement age, or FRA. FRA hinges on your year of birth, as follows:

If you file for Social Security at age 62 with a FRA of 67, your monthly benefit will shrink by 30%. And unless you manage to undo your filing (a tricky process that involves repaying all the money you received in Social Security within 12 months of your initial claim), you'll be stuck with that lower benefit for life.

Here's how that might play out. Say you're entitled to $1,559 a month in Social Security, which is what the average beneficiary receives today. If you're eligible for that $1,559 at age 67 but you claim benefits at 62, you'll receive $1,091 a month instead.

That reduction may not be a big deal if, say, you're sitting on a $2 million nest egg and have the option to take large withdrawals from it. But if Social Security is your primary source of retirement income, then cutting your monthly benefit by $468 is probably something you don't want to do. On an annual basis, that means reducing your income by $5,616.

Of course, some people have no choice but to file for Social Security as early as possible. If you lose your job in your early 60s, claiming benefits at 62 may be your only option for paying your bills. Similarly, if health issues push you out of the workforce, taking benefits at 62 could become essential, whether you want to file early or not.

But if you have the ability to avoid claiming your benefits early, it could really pay to wait until FRA to file. Doing so could lead to a lot more financial security for many years.

In fact, in some cases, it could pay to delay your filing beyond FRA. For each year you hold off, your benefit will grow 8%.

There's no sense in delaying your filing past age 70, because at that point, you can't raise your benefit any more. But if you've landed in a situation where you'll depend heavily on Social Security, then it pays to not only avoid a 30% reduction in benefits, but also to set yourself up for as large an increase as possible.

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3 Unexpected Ways to Get More From Your Social Security Benefits | The Motley Fool

The Motley Fool 09 October, 2021 - 04:00am

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

If you're like most Americans, Social Security benefits will likely make up a significant portion of your income in retirement. In fact, around 37% of men and 42% of women depend on their benefits for at least half of their retirement income, according to data from the Social Security Administration.

Regardless of how much you expect to rely on your monthly checks in retirement, it never hurts to take steps to boost your benefit amount.

While there are many ways to earn larger checks (such as working longer or increasing your income) and keep more of them, these three options are often overlooked. By taking advantage of any of these strategies, you could get more than you think from Social Security.

While your Social Security benefits are subject to taxes, each state has its own laws and regulations surrounding Social Security tax.

Some states have no income tax at all, while other states exclude Social Security benefits from income taxes. In total, there are 37 states that don't tax Social Security benefits. The only 13 states that do tax benefits are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.

If you currently live in one of those states, you could keep more of your benefits by moving. That said, it's important to consider all the costs of moving to a different state before you pack your bags. While you might end up with larger Social Security checks, you could also face other expenses such as a higher cost of living, higher property taxes, or higher sales taxes.

Regardless of where you live in retirement, your Social Security benefits are still subject to federal taxes. But you can reduce or potentially even eliminate these taxes by keeping more of your retirement savings in a Roth IRA.

How much of your benefits will be subject to federal taxes depends on your combined income, which is half of your annual Social Security benefit plus all other sources of income, such as retirement account withdrawals. If your combined income is higher than $25,000 per year (or $32,000 per year for married couples filing jointly), you'll owe federal taxes on at least a portion of your benefits.

Roth IRA withdrawals do not count toward your combined income, however. The more of your savings that are in a Roth IRA, the more you can reduce your combined income -- and potentially avoid paying federal taxes on your benefits altogether.

Most workers are entitled to retirement benefits, but depending on your situation, you could be eligible to collect spousal, divorce, or survivors benefits as well.

Spousal benefits are available to those who are married to someone eligible for Social Security benefits. The most you can collect is 50% of the amount your spouse is entitled to at full retirement age. If you can receive more than that based on your own work record, you don't qualify for spousal benefits.

Divorce benefits are similar, except you cannot currently be married, and your previous marriage must have lasted for at least 10 years. If your ex-spouse has remarried, that will not affect how much you can receive in divorce benefits.

If a family member passes away, you could also be entitled to survivors benefits. These benefits are generally available to widows and widowers, but sometimes parents, children, ex-spouses, and other family members are also eligible. How much you can receive will depend on many factors, so it's best to contact the Social Security Administration to see if you qualify for survivors benefits.

Social Security benefits can make a significant impact on your quality of life in retirement, so it's smart to make the most of them. With a little creativity, you can boost your benefits and enjoy your senior years more comfortably.

Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Stock Advisor list price is $199 per year.

Stock Advisor launched in February of 2002. Returns as of 10/09/2021.

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