Will marriage change my Social Security?

Q: Will marriage change my Social Security benefits?

A: Remember that these articles provide general information and the answer to such a broad question varies with the type of Social Security benefits received. To learn about your actual benefits, contact Social Security and have a representative check your record.

Marriage will not change Social Security retirement or disability benefits from your own work record because they are based largely on your personal work history over many years and age when starting retirement or becoming disabled. Amounts received by husband or wife through their personal work records do not affect what the other receives.

Do you receive Social Security benefits as a divorced spouse? If a divorced spouse remarries, he or she generally cannot collect benefits on the record of the former spouse unless the later marriage ends.

If you receive Social Security survivors benefits as a widow or widower, your age at remarriage makes a difference in the answer. Widow or widowers of many ages receive Social Security survivor benefits. In general, if you remarry after you reach age 60 (age 50 if disabled), remarriage will not affect your eligibility for survivors benefits. For example, remarriage could end Social Security survivors benefits to a widow at age 40 but not to the same person at age 61. Social Security benefits to a surviving divorced spouse follow this age difference too.

Children can receive Social Security benefits through the work record of a parent. With rare exception, these Social Security benefits end if the child marries.

In addition to Social Security retirement, survivors and disability benefits, the Social Security Administration is also responsible for the very different, need based, Supplemental Security Income (SSI) program. Since household income is used to compute SSI amounts, marriage could change monthly amounts.

No one knows about a 2016 COLA yet

Articles guessing about a Social Security cost-of-living adjustment (COLA) for next year are starting to appear.

No matter what you read or hear, no one knows 2016 COLA information yet and no one will know until approximately mid-October. Last year, Social Security announced 2015 COLA details on October 22, 2014.

COLAs for Social Security benefits are based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year.

The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor. By law, it is the official measure used by the Social Security Administration to calculate COLAs.

The third quarter of the year ends September 30. Until CPI-W information is available, any cost-of-living adjustment (COLA) amount mentioned for next year is a guess.

 

 

 

Bad things only happen to other people

Of course you have heard the saying “Bad things only happen to other people.” However, we are all “other people” to everyone else.

This brings me to the reminder that Social Security is much more than retirement. Nationally, about 10 percent of SSA monthly benefits go to survivors of all ages due to a death in the family and about 19 percent go to disabled workers and their families.

You can obtain both survivor and disability estimates on your record by creating a personal, pin and password protected, my Social Security account at www.socialsecurity.gov/myaccount/ and viewing your Social Security Statement.

Hoping that you never need this information is different from planning in case you, or your family, do.

Learn more about Social Security disability and survivors benefits now. Make that information part of your family financial planning.

Then you can tell other people about them.

Social Security benefits by state and county

The annual publication “OASDI Beneficiaries by State and County” was recently released with information as of December 2014. OASDI is the Social Security retirement, survivors and disability benefits.

From the preface:

This annual publication focuses on the Social Security beneficiary population—people receiving Old-Age, Survivors, and Disability Insurance (OASDI) benefits—at the local level. It presents basic program data on the number and type of beneficiaries and the amount of benefits paid in each state and county. It also shows the numbers of men and women aged 65 or older receiving benefits. … “ 

As of December 2014, approximately 18.5 percent of the United States population received a monthly Social Security benefit with about 91 percent of people aged 65 or older receiving benefits.

How many people receive Social Security benefits in your state?

In your county?

How much money does that involve?

Find out here. For a specific state and county as of December 2014, click on the state information. Then scroll down to Table 4 to seen the number of beneficiaries in that state, with individual county data. Scroll down to Table 5 for the amount of benefits involved. Note that amounts are shown in thousands of dollars. 2014-SSA-state&county

The start of Social Security disability benefits

The original Social Security disability benefits did not provide monthly payments.

As signed into law by President Dwight D. Eisenhower in the Social Security Amendments of 1954, originally disability benefits provided for a “freeze” to a person’s record during the years when they were unable to work. This was to help prevent periods of disability from reducing or wiping out retirement and survivor benefits due to reduced earnings.

On August 1, 1956, the Social Security Act was amended to provide monthly cash benefits to permanently and totally disabled workers aged 50-64 and to pay child’s benefits to disabled children aged 18 or over of retired or deceased workers, if their disability began before age 18.

More changes came later.

Learn about today’s Social Security disability program here.

 

 

Annual Trustees Report for 2015

Yesterday the Social Security Board of Trustees released its annual report for 2015 with the following news release.

The full 2015 Trustees Report is at http://www.socialsecurity.gov/OACT/TR/2015/

###

Wednesday, July 22, 2015 – For Immediate Release

Social Security Board of Trustees: Trust Fund Reserve Gains One Year for Projected Depletion Date 

The Social Security Board of Trustees today released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, one year later than projected last year, with 79 percent of benefits payable at that time. The DI Trust Fund will become depleted in 2016, unchanged from last year’s estimate, with 81 percent of benefits still payable.

In the 2015 Annual Report to Congress, the Trustees announced:

  • The combined trust fund reserves are still growing and will continue to do so through 2019. Beginning with 2020, the cost of the program is projected to exceed income.
  • The projected point at which the combined trust fund reserves will become depleted, if Congress does not act before then, comes in 2034 – one year later than projected last year. At that time, there will be sufficient income coming in to pay 79 percent of scheduled benefits.
  • The projected actuarial deficit over the 75-year long-range period is 2.68 percent of taxable payroll — 0.20 percentage point smaller than in last year’s report.

While the projected depletion date of the combined OASDI trust funds gained a year, the Disability Insurance Trust Fund’s projected depletion year remains 2016. I agree with President Obama, we have to keep Social Security strong, protecting its future solvency. President Obama’s FY 2016 budget proposes to address this near-term Disability Insurance Trust Fund’s reserve depletion. By reallocating a portion of payroll taxes from Old Age Survivors to the Disability Trust Fund – as has been done many times in the past – would have no adverse effect on the solvency of the overall Social Security program,” said Carolyn W. Colvin, Acting Commissioner of Social Security.

We believe that Congress must take action to reallocate a portion of the payroll tax rate between the trust funds to avoid deep and abrupt cuts or delays in benefits for individuals with disabilities who paid into the system while they worked and now need the benefits they earned to support themselves and their families,” Colvin said.

Other highlights of the Trustees Report include:

  • Income including interest to the combined OASDI Trust Funds amounted to $884 billion in 2014. ($756 billion in net contributions, $30 billion from taxation of benefits, $98 billion in interest, and less than $1 billion in reimbursements from the General Fund of the Treasury—almost exclusively resulting from the 2012 payroll tax legislation)
  • Total expenditures from the combined OASDI Trust Funds amounted to $859 billion in 2014.
  • Non-interest income fell below program costs in 2010 for the first time since 1983. Program costs are projected to exceed non-interest income throughout the remainder of the 75-year period.
  • The asset reserves of the combined OASDI Trust Funds increased by $25 billion in 2014 to a total of $2.79 trillion.
  • During 2014, an estimated 166 million people had earnings covered by Social Security and paid payroll taxes.
  • Social Security paid benefits of $848 billion in calendar year 2014. There were about 59 million beneficiaries at the end of the calendar year.
  • The cost of $6.1 billion to administer the program in 2014 was a very low 0.7 percent of total expenditures.
  • The combined Trust Fund asset reserves earned interest at an effective annual rate of 3.6 percent in 2014.

The Board of Trustees comprises six members. Four serve by virtue of their positions with the federal government: Jacob J. Lew, Secretary of the Treasury and Managing Trustee; Carolyn W. Colvin, Acting Commissioner of Social Security; Sylvia M. Burwell, Secretary of Health and Human Services; and Thomas E. Perez, Secretary of Labor. The two public trustees are Charles P. Blahous, III and Robert D. Reischauer.

View the 2015 Trustees Report at www.socialsecurity.gov/OACT/TR/2015/.

###

 

 

Same-sex marriage update

On June 26, 2015, the Supreme Court issued a decision in Obergefell v. Hodges, holding that same-sex couples have a constitutional right to marry in all states. As a result, more same-sex couples will be recognized as married for purposes of determining entitlement to Social Security benefits or eligibility for Supplemental Security Income (SSI) payments.

The Social Security Administration is working with the Department of Justice to analyze the decision and provide instructions for processing claims. Local offices are receiving updated instructions for different states on a flow basis.

Information for same-sex couples is on the Social Security website at http://www.socialsecurity.gov/people/same-sexcouples/.

A  direct link to this section is at the bottom of the SSA website homepagesame-sex website

What is a typical Social Security disability amount?

Q: What is a typical Social Security disability amount?

A: As of May 2015, the average monthly Social Security disability amount to a disabled worker was $1,165. This does not include benefits paid to eligible family members.

Also as of May, the average monthly amount paid to the eligible spouse of a disabled worker was $316 and the average amount to an eligible child was $350.

These and other amounts are in Table 2 shown here.

Rather than using a national average, a more accurate and personal estimate is on your Social Security Statement. In the “Your Estimated Benefits” section is “If you become disabled right now, your payment would be about $XXX a month.”

This estimate is based on your actual work record, which is included on the Statement so that you can check it for accuracy.

Obtain your personal Statement online at any time by creating your personal, pin and password controlled, my Social Security account.

The Statement is also mailed on a limited basis. In September 2014, the Social Security Administration began mailing Statements to workers attaining ages 25, 30, 35, 40, 45, 50, 55, and 60 and over, who are not receiving Social Security benefits and do not yet have a my Social Security account. Statements are mailed three months prior to your birthday.

Are SSA amounts based on where you live?

Q: Do Social Security retirement amounts change based on what state you live in?

A: No. Your retirement amount is based on your personal work history over many years and your age when starting benefits, not on where you live. It will not change if you move to a different state.

Your best 35 years of work are key when your retirement benefit is computed. These best 35 years, often including years immediately before retirement but selected from your full work history, are weighted for inflation and used to compute your Social Security retirement amount as if you were full retirement age (FRA). If you do not have 35 years of work, zeros are added in to reach 35 years.

When your full retirement age amount is known, the specific amount for the month you are starting Social Security is determined by reducing or increasing the FRA amount, depending on if you are younger or older than FRA for the month when benefits start. Go to the SSA Retirement Planner section to estimate your own Social Security retirement amount.

Once receiving Social Security benefits, any cost-of-living increase is computed nationally based on changes in a consumer price index from one year to the next, not where you live.

In a related manner, benefits to you if disabled or survivors benefits to your family if you die are also based on your personal work history and not where you live.

Your Social Security work record is based on employer W-2 reports or your Schedule SE tax return if self-employed. Check it for accuracy by creating a personal my Social Security account at http://www.socialsecurity.gov/myaccount/ and viewing your SSA Statement.

Earnings for 2014 will not show on your record until approximately October 2015. It is very important for your future benefits that your work record be accurate. If it has an error, contact your local office to correct it.

Anniversary of Social Security payment date change

Payment Schedule 2015Today is the anniversary of the change to having several different Social Security payment dates throughout the month. All Social Security payments were issued on the third of the month until 1997. On June 11, 1997, the first Social Security benefits were issued based on birthdate.

Since payment date is always a popular topic, I have a link to the Social Security 2015 payment date schedule in the blogroll section of this post.

With several exceptions, since 1997 Social Security payment dates depend on the number holder’s (NH) date of birth. You are the NH if receiving Social Security on your own work record. If receiving based on the work of someone else, that person is the NH.

Therefore, if you receive Social Security retirement or disability through your own work, the payment date is based on your birth date. A child or spouse receiving benefits on your record will also have a payment date based on your birth date.

A couple can receive Social Security payment on different days if each person is receiving his or her own retirement benefit.

Social Security benefits are paid in the following month. This means the benefit for May is received in June.