How are Social Security Benefits Calculated?
Written by kristine
First, please note that you receive a Social Security retirement benefit estimate each year in the mail, usually around your birth date. There are also several calculators available on the Social Security website to help you estimate how much your retirement benefits will be, so you don’t need to know how to calculate the benefit yourself.
It’s still helpful to know how Social Security is calculated, however, so here are the basics:
Basically, your top 35 years of earnings are indexed for inflation, then averaged to determine the basis for your monthly benefit. If you worked less than 35 years, the missing years will be calculated as zero for purposes of determining your benefit amount.
Social Security Death Benefits
Written by kristine
The loss of a family member can be devastating, both emotionally and financially. Social Security is meant to be a survivor program as well as a retirement program. Most people are aware of Social Security retirement benefits, and many may even be aware that Social Security has disability benefits, but are you aware that there are Social Security death benefits as well? In this article we will discuss the one-time lump sum death benefit, monthly survivor benefits, who qualifies for survivor benefits, and how to apply for benefits when a family member dies.
One-Time Death Benefit:
You may receive a one time payment of $255 when a family member dies, depending on your relationship to them and how long they have worked. Generally, only surviving spouses and children of deceased workers qualify for the one-time death benefit. In addition, the deceased family member must have worked long enough to be insured under Social Security, but it doesn’t matter if they were already collecting Social Security or not.
The death benefit payment is made to the surviving spouse living with the deceased person at the time he/she passed, or if there is no surviving spouse, the payment is made to a child of the deceased person. Spouses who are not living together when one spouse dies may still receive the death benefit if they were eligible for benefits on the deceased spouse’s earnings in the month the spouse passed. If there is no surviving spouse or child who qualifies for the payment, then no payment will be made.
This is a one-time, lump sum benefit; however some survivors may qualify for a monthly benefit in addition to the one-time death benefit. You must apply for the lump-sum death benefit within two years of the family member’s death.
Continue reading Social Security Death Benefits…
Spousal Benefits: Applying for Social Security Benefits
Written by kristine
Q: Can a spouse collect on her husband’s social security if she reaches retirement age before her husband?
A: No. In order for a wife to collect Social Security benefits on her husband’s earnings, the following requirements must be met:
- The wife must be at least age 62
- The husband must be eligible for benefits, so he must also be at least age 62. In addition, the husband must actually apply for Social Security retirement benefits in order for his wife to collect based on his earnings. The husband can then choose to delay collecting benefits. This strategy is referred to as “file and suspend”.
To give you an example, if the wife is 62 and the husband is 58, the wife can start collecting benefits based on her own earnings, but she can not collect based on her husband’s earnings until he turns 62 and applies for benefits.
How to Apply For Social Security
Written by kristine
You’re getting ready to retire and you’ve made the decision to start collecting your Social Security retirement benefits. What’s the next step? You need to actually apply for your benefits (they aren’t automatic).
Probably one of the most common Social Security questions is how to apply for Social Security benefits. There are three ways to apply for Social Security:
1. You can apply online at www.SocialSecurity.gov. However, at this time you can not apply for Social Security survivor benefits online.
2. You can call 800-772-1213 to apply for benefits.
3. Or you can visit an office in person if you want to talk to an employee face to face. To find the closest office, visit the website at SocialSecurity.gov.
You will need to provide several pieces of information in order for your application to be processed:
Don’t Underestimate Social Security When Planning For Retirement
Written by kristine
Most people underestimate the impact that Social Security will have on their retirement. They either assume it won’t be there for them, or that it won’t be enough to make a difference.
The truth is that Social Security will be there for you (although I suspect it will be revised several times to help improve the financial outlook of the system), and it could play a big part in your retirement years, depending on how much other income and assets you have available.
Social Security has several unique features that you won’t see in most financial products available today: