I occasionally find useful nuggets regarding Social Security, which is coming up for all of us soon, and thought it would justify a new topic here for some Q&A for our classmates.  Please post any useful information regarding Social Security here.

Major points so far:

• Sign up online.  It is easy, but a 3-4 page form.  Tell them you want Medicare so they sign you up for that too. 
  
• Have a blank check ready so they can use the routing number and account number to arrange for direct deposit.  Direct is the only way to go!

Social Security Q&A:

Q:How much is Social Security reduced if you take it early instead of at age 66?

A:  the amount you get varies depending on earned inclome, but the % reduction (or increase) for me calculated out as this, and yours is probably very similar:  

        Age 64, 91.6% (as of 12/31/09.  I turn 65 2/24/2010)

        Age 66, full SS, 100%

        Age 70, SS plus, or 133% of full SS.

To calculate your own options, use the Social Security calculator at

https://secure.ssa.gov/acu/ACU_KBA/main.jsp?URL=/apps8z/ARPI/Controller&LVL=4

  (Click on "I Agree", and fill in information)

With so many people unemployed, this question may be pertinent as well:

Q:  Will any state's unemployment benefits be reduced if I take early Social Security?

A:  Not in Ohio.  Now, only four states—Colorado, Illinois, Louisiana and Utah—retain such laws, offsetting benefits by 50 cents on the dollar.  REFERENCE:  AARP Bulletin http://bulletin.aarp.org/yourmoney/work/articles/a_few_states_hold.html

Q: How much can I earn in wages if I am on Social Security?

A:  There is no limit if you have reached full retirement age of 66.  If you take it early, and you are under full retirement age for the full year, then they deduct $1.00 from your payments for every $2.00 you earn above the annual limit.  For 2009 and 2010, the limit is $14,160.00.

REFERENCE:  http://www.socialsecurity.gov/retire2/whileworking.htm

Nice job Al. I started withdrawing at age 64, but I suffered a little more than you quoted since I was under Civil Service. There is a "Windfall Exemption" placed on government workers who retire under the Civil Service Retirement System. When old Ronnie nailed us he excluded the Administration, Federal Judges, and Congress, yet they can withdraw too!! Fortunately I offset that with a TSP (Government version of a 401K) and did well especially during the Clinton years where I doubled my investments twice. But like you I studied the law well, figured my benefits, and added a few prayers.

GOOD JOB THOUGH - You deserve Kudos

John

When applying for Social Security take a routing slip from your bank for direct deposit. If the Post office looses your check its a minnium of three weeks before they cut you a new check. With direct deposit they can correct it right away. If your wife has worked during any time she will also be able to collect off your Social Security. Its not a lot but everything helps. They won't work the other way, I tried and I can't collect off my wifes. Check with the Social Security Site before you go to fill out the paper work so you know what to take with you.

To Double Dip?  Still have higher benefit by waiting, on your own Sopcial Security, but receiving the "spousal benefit" or 1/2 of your spouses Social security in the meantime?

According to

http://moneyover55.about.com/od/socialsecuritybenefits/a/socialsecurityspousebenefit.htm

As a spouse, you can claim a social security benefit based on your own earnings record, or you can collect a spousal benefit that will provide you 50% of the amount of your spouse’s social security benefit. 

You are automatically entitled to receive the benefit that provides you the higher monthly amount; either a benefit based on your own earnings, or the spousal benefit, and prior to reaching full retirement age, social security makes this determination for you.

After you reach full retirement age, you can choose to receive only the spouse’s benefit, and delay receiving your retirement benefits until a later date, allowing you to receive a higher benefit later based on the effect of delayed retirement credits.

You must be age 62 to qualify for either type of social security benefit.
You cannot collect a spousal benefit until your spouse files for their own benefit.

Randy,

I filled mine out on-line and yes, I too selected Direct Deposit. That was so easy, not leaving the house and waiting for hours at the agency; I would recommend this to anyone, especially if you have some knowledge of the system. That isn't necessary though since they also have a phone in help service.

John

This website continues to blow me away.

How awesome.

How fun!

How appreciative I am of this newest thread.

Social Security.

Egads.

But still, very informative and helpful.

Thanks, Alan, John, Randy.

Sally

Sally,

I'm glad these threads are doing some good!  This stuff can get really complicated, and since we ALL have to go through it very soon, why not have a resource here?  We want RRHS grads to get all the retirement benefits they deserve, whether they deserve it or not!  LOL

I just actually signed up for Social security, and it was 100% online, including the direct deposit thing, and I got my first check 4 days later!  (Drinks are on me, guys!).  I also found out that when I said yes, I intended to take Medicare, they automatically signed me up. 

Social Security is easy.  Sign up early, get less.  Sign up at 66, get the full boat.  Until 66, there is an earning limit of $14,000.  After 66, no limit. 

Medicare Part A is free, and Part B cost around $100 per month (taken from your Social Security if you have it, and paid separately if you don't).  If you elect Medicare Advantage you pay more but get drug coverage too, although all of this has co-pays and edeuctables.  The "gap" health insurance availavle from AARP, Aetna, and others, will cover all or part of that co-pay or deductable, depending on the plan.  See out links in the Medicare thread for these details. 

If anyone has unanswered questions, I'l sure someone will jump in to answer then.  Meanwhile thanks for the encouragement!

I really don't know where to post this, but I have just experienced a great solution to the Medicare supplement and Rx dilema.  If you contact Mary Jean Lindgren at Longevity Alliance, Inc. she will explain EVERYTHING about Medicare and supplement plans and will search for the best/cheapest plan for you.  She will also find the best Rx plan using your meds. to figure this out.  She was amazing!  Can't believe how much money Ed and I are saving by doing this "smart".  If you are interested, call her at 800-713-6610, ext. 225 or email at mjlindgren@laihealth.com.

Sue Jacobsen

Susan Gammel Jacobsen wrote:

Sue,

Thank you for this post as I have several decisions to make before my 65th birthday in October. I have several ideas on my mind and would like to speak with an experienced professional regarding my approach to the health care provisions available including my current health provider.

John Dawson

I thought I had a "deal" with retirement healthcare benefits.  Then I found out that it would be 2X the cost of the coverage I chose - which happens to be from Mutual of Omaha for the healthcare supplement and AARP for the drug coverage.  Good luck!

Susan Gammel Jacobsen wrote:

The bad news is its going to cost more each year. I understand that health coverage is like auto insurance just more money. Keep shopping. My health insurance cost 8% of my income last year, that includes coverage for my wife. The health insurance companies don't like one person policies.

Good luck

In shopping around for Medicare supplement insurance, I saved $40/month from the plan I thought I was going to get  -  same Plan F coverage, different provider.  Same with the drug plan.  After researching cost per month and cost of drugs, I found that paying a little more/month for the insurance saves me almost $40/month on the drugs themselves from a plan that was only $3 cheaper/per month.  You've just got to have the patience to take time to do the research.  I am very happy to be collecting SS now and participating in Medicare March 1.

Susan Gammel Jacobsen wrote:

Medicare supplement health insurance can be changed by month if you want.  Drug coverage can be changed only during open enrollment once/year.  I do recommend calling the person I referred to in my first posting, as she has all the info.  My husband has BCBS supplement health ins. and pays $171.  He is changing to Mutual of Omaha when I start that plan on March 1 and will only pay about $140 and for better coverage, moving from Pan D to Plan F.  I only pay $112 (age difference) and we both get a 7% discount on top of this because we are both signing up.  He has Aenta drug coverage and can't change that until next year during open enrollment.  I was going to sign up for that, but putting my drugs in the system I found that for me and the few drugs I take, AARP is a better deal.  At least for this year.  Will re-evaluate for next year.

John, my birthday is in June and I really don't know what I should be doing.  I'm in the middle of tax filing season now (busy, busy) so my time is really limited.  Have you started your review and due diligence to help you to make your decisions?  I think I will contact Sue Jacobsen's recommended consultant, just to get more background.  Thanks, Larry Gilbert.

Larry Gilbert wrote:

Larry,

I did talk to my insurance company and from what I understood is the following.

My coverage will continue to be the same cost since my wife is 2 years younger and therefore the family option has to be selected ($400./mo plus my A and B costs))(What a crock of you know what!!) but once she turns 65 I can continue with them (reduced per month family supplemental, plus A and B costs), but unlike Humana, there are no year deductables. Since the deductables are (for 2 people) $600.00, then you must consider how often you may have to use the insurance. Man that is a catchall!!! I am betting I will become very sick and I save or I do not get sick and They get my excess $$$'s.

It is better to have some sort of supplemental insurance. Humana I would pay approx. $280/month plus A and B costs but there are yearly deductables. Either way we become bulls-eye targets!!!

Like Al said, just trying to follow all these rules gives a normal person a migraine!!!!!!!!!!

John

Be sure to look around.  You can do better.  Call my person!  She'll give you an unbiased evaluation.  She doesn't work for an insurance company.

Sue