Retirees Won’t Receive an Increase In Social Security Benefits Next Year
Written by kristine
Earlier this year, retirees on Social Security saw one of the largest COLA increases they’ve seen in years – since the 1980s to be exact. Unfortunately, the Social Security COLA is expected to be zero for the next few years.
If you’ve been receiving Social Security for a while, you know that your benefits are adjusted each year for inflation. This is known as a cost of living adjustment, or COLA.
The COLA is announced in October of each year and is based on the CPI-W (the Consumer Price Index for Urban Wage Earners and Clerical Workers) from the 3rd quarter of the previous year to the 3rd quarter of the current year. Changes announced in October go into effect in January of the next year.
Social Security Eligibility: How to Qualify for Social Security Retirement Benefits
Written by kristine
While millions of Americans rely on Social Security in their retirement years, not everyone qualifies.
Here are some general guidelines regarding Social Security eligibility:
How Long Do You Have To Work To Qualify For Benefits?
To qualify for Social Security retirement benefits, you must work in a Social Security covered job for at least 10 years. More specifically, you must earn 40 credits (you can earn 4 credits per year) to qualify.
A credit is earned when you earn a minimum dollar amount; in 2009 the minimum amount you needed to earn in order to earn a credit is $1,090. You can earn up to four credits per year, so someone who earns at least $4,360 in 2009 will earn four credits.
Getting the Maximum Social Security Benefits
Written by kristine
Now that you understand a little more about how Social Security works, and how important this income stream can be to your retirement, here are some tips to help you get the maximum Social Security benefit you are entitled to:
Maximize Your Social Security Earnings
Your retirement benefit is based on your top 35 years of earnings so it’s important to get as many “high earning” years in as possible. If you’re at the top of your career as far as income goes, working just one year longer in a high paying job could make a big difference in your retirement benefit.
Delay Taking Your Social Security Benefits
Under the current Social Security Act, you are penalized for every month you take your Social Security before you reach your full retirement age, with the maximum penalty being 25%.
Common Social Security Retirement Questions
Written by kristine
As Baby Boomers are getting closer and closer to retirement, they have many questions about Social Security, such as…
Will Social Security be there for me when it’s my time to retire?
We’ve heard for years that Social Security is going broke. Millions of Americans rely on Social Security to fund all or part of their retirement, so this is a huge concern in our country. So, just how true are the rumors that Social Security is going broke?
According to the 2009 Social Security Trustees Report, Social Security benefits paid out will exceed revenues starting in 2016, and the trust fund could be exhausted by the year 2037. Once the trust fund is exhausted, benefits will still be paid out, but the taxes collected from workers will only be enough to cover 76% of the benefits promised.
While these numbers are definitely alarming, the chances that Social Security is allowed to fail are minimal. Most likely we will see reforms such as raising the full retirement age, raising the income limit that Social Security taxes are paid on, and reduced benefits for future recipients (it’s less likely that people already receiving benefits will see their benefits reduced).
What is Social Security? A Brief History…
Written by kristine
Social security programs first appeared in Europe in response to families moving from farming to working for others as the world became industrialized. Germany established the first social security program way back in 1889.
In the United States, the Great Depression triggered an economic crisis that caused millions of seniors to become impoverished. President Franklin D. Roosevelt passed the Social Security Act in 1935 in an attempt to provide economic security for the elderly.
Under the original Social Security retirement program, only workers received benefits , and only retirement benefits (there were no survivor or disbility benefits under the original Social Security program). In 1939, the act was amended to provide benefits to spouses and children for both retired and deceased workers.
The monthly retirement benefit didn’t begin until 1940, and the first recipient was Ida May Fuller, a retired legal secretary. Ida May continued to receive benefits until she died at age 100.