Average Social Security and SSI amounts in Sept. 2014

For September 2014, last month, following are three easily understood tables providing Social Security and Supplemental Security Income (SSI) information. These tables are online here

Supplemental Security Income (SSI) is a separate, low income program for the aged over 65, disabled or blind children, and disabled or blind adults that is administered by the Social Security Administration. Since SSI is completely different from Social Security, a person meeting the individual rules for each could become eligible for both programs. Income from Social Security reduces SSI amounts.

Learn more about Social Security and SSI at www.socialsecurity.gov. 

Table 1 shows the number of people, in thousands, receiving Social Security and Supplemental Security Income (SSI) divided by Social Security only, SSI only, and people receiving both. 

Table 2 shows Social Security benefit information for September 2014, separated by number of beneficiaries receiving specific types of benefits and the average dollar amount of those benefits. The number of beneficiaries is again shown in the thousands, with total benefits shown in the millions and average amounts in dollars.

The “notes” in table 1 explain differences in total Social Security beneficiaries shown between table 1 and table 2.

Social Security was never intended to provide full retirement income and this table emphasizes that fact. In September 2014, the average SSA retirement benefit, for the retiree only and excluding any family benefits, was $1,302.56.

Table 3 shows Supplemental Security Income (SSI) benefit information for September 2014, separated by number of recipients receiving specific types of benefits and the average dollar amount of those benefits. As above, the number of recipients are shown in the thousands, total benefits shown in the millions and average amounts in dollars.

In September 2014, the average SSI amount was $535.21.

These tables are online here in case you cannot read them clearly.

Social Security Announces 1.7 Percent Benefit Increase for 2015

Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 64 million Americans will increase 1.7 percent in 2015, the Social Security Administration announced today. 

The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that more than 58 million Social Security beneficiaries receive in January 2015. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2014. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics. 

Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $118,500 from $117,000. Of the estimated 168 million workers who will pay Social Security taxes in 2015, about 10 million will pay higher taxes because of the increase in the taxable maximum.  

Information about Medicare changes for 2015 is available at www.medicare.gov 

The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola 

A fact sheet showing the effect of COLA related automatic changes for 2015 is here.

Using your SSA Statement

In previous posts, I have encouraged readers to create a personal my Social Security account at www.socialsecurity.gov/myaccount/. Whether or not you now receive Social Security monthly benefits, online services are there for use. To create a my Social Security account, you must be at least 18 years old, have an email address and a United States mailing address. There are no fees to do this. As of September 30, nearly 14.5 million people had opened their free my Social Security account. 

If not yet receiving ongoing benefits, the major tool available is your Social Security Statement.

Many people think only of retirement when Social Security is discussed, but, in fact, the program includes disability and survivors benefits too. Including family member benefits, retirement represents about 70 percent of national Social Security benefits, survivors about 11 percent, and disability about 19 percent.Nationally, about 18.3 percent of the entire United States population, including adults and children of all ages, receive monthly Social Security benefits. 

Of course, retirement is the desired Social Security benefit, but studies show that just over 1 in 4 of today’s 20 year-olds will become disabled before reaching age 67 and people die at all ages.   

For all of these possibilities, your Social Security Statement is a great family financial planning tool. After creating your my Social Security account, look at your Statement (sample here), especially your earnings record and estimated benefits sections, at least annually. 

Directly from your actual Social Security work record as reported by employers, your earnings record for many years is shown. This is the only place where you can see your personal earnings history. Future Social Security benefits on your record are based on your lifetime earnings. Review your record for accuracy. If there is an error, follow the correction instructions. 

Now look at the estimated benefits section. The Social Security website retirement planning section, contains tools to estimate retirement amounts but disability and survivors estimates, potentially to your children and other family members, are only on your Statement. Useful at all ages and especially for young families with dependent children, these current estimates can be a foundation for your other family financial planning. 

Creating your personal my Social Security account lets you access your Statement whenever desired. Starting for December birthdays, this past September the Social Security Administration resumed periodic mailings of paper Statements. Workers attaining ages 25, 30, 35, 40, 45, 50, 55, and 60 who are not receiving Social Security benefits and who are not registered for a my Social Security account will receive the Statement in the mail about 3 months before their birthday. After age 60, people will receive a Statement every year. The agency expects to send nearly 48 million Statements each year.

 

 

 

Medicare Part B premiums for 2015

Medicare Part B premiums will remain the same in 2015 as for 2014.  

As announced on October 9th by the Department of Health & Human Services (DHHS), the agency that administers Medicare, the standard 2015 Medicare Part B (Medical) premium remains unchanged from the 2014 amount of $104.90 per month. Part B covers physicians’ services, outpatient hospital services, certain home health services, durable medical equipment, and other items.  

Not everyone pays the standard Medicare Part B (Medical) premium amount. Based on the amount of their Federal tax return modified adjusted gross income (MAGI), some people pay a higher Part B premium. 

Medicare Part B premium information for 2015 is on the Medicare website, www.medicare.gov. 

The detailed DHHS press release about 2015 Medicare Part B premiums is here.

Fast Facts about Social Security

Did you know that 65% of aged beneficiaries received at least half of their income from Social Security in 2012 or that 55% of adult Social Security beneficiaries in 2013 were women?

Fast Facts & Figures About Social Security, 2014 is available online. This annual chartbook highlights data on the most important aspects of the Social Security and Supplemental Security Income programs—the people they serve and the benefits they provide.

From the Preface: 

Fast Facts & Figures answers the most frequently asked questions about the programs administered by the Social Security Administration (SSA). It highlights basic program data for the Social Security (retirement, survivors, and disability) and Supplemental Security Income programs.

The tables and charts illustrate the range of program beneficiaries, from the country’s oldest to its youngest citizens. In all, about 63.2 million people receive some type of benefit or assistance.  

I thought the sections about beneficiary age and sex interesting. Perhaps you will too.

Social Security & SSI payment dates for 2015

The annual schedule of payment dates for Social Security benefits and the separate Supplemental Security Income (SSI) program has remained a very popular topic ever since I started these posts. 

The 2015 schedule of payment dates is now available for viewing or downloading as a pdf file at http://www.socialsecurity.gov/pubs/EN-05-10031-2015.pdf 

Until 1997, all routine monthly Social Security payments arrived on the same day. No more. Now they arrive on different days of the month. Back then, “check week” was a very hectic time for local Social Security offices and financial organizations, post offices and businesses including grocery stores.  

Multiple payment dates help spread out related workloads. Widespread use of direct deposit (electronic fund transfer) has also greatly reduced the number of payment problems formerly seen with paper checks. 

Most people starting to receive Social Security since 1997 receive their routine benefits on one of four days throughout the month: on the third of the month and on the second, third and fourth Wednesdays of the month. What day will yours arrive? 

With several exceptions, Social Security payment dates now 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 generally paid on the second Wednesday if the number holder was born within the first 10 days of a month, the third Wednesday if born within the 11-20th days and on the fourth Wednesday if born within the 21-31st days.  

Not all Social Security payment dates are birth date based. If you received Social Security before May 1997, your payment date remained the third of the month. People eligible for both Social Security and Supplemental Security Income (SSI) generally receive SSI on the first and their Social Security on the third of the month.  

Supplemental Security Income (SSI) funds are usually paid on the first of a month.  

As noted on the 2015 schedule, regular payment dates for both Social Security and Supplemental Security Income (SSI) are advanced if the usual date falls on a day when financial institutions such as banks or credit unions are closed. 

One more item about payments: routine Social Security retirement, disability and survivors benefits are paid in the following month, meaning the benefit for January arrives in February. Routine Supplemental Security Income (SSI) payments are for the month paid so SSI arriving in February is for February.

 A link to the 2015 calendar has been added to my Areavoices homepage blogroll.

Living apart and Social Security spousal benefits

Q: My husband and I are not divorced but have lived apart for many years. Can I still receive Social Security through his record?  

A: Living together is not required for Social Security spousal benefits as a wife or husband. Your individual SSA retirement amounts might prevent spousal benefits but living apart while married will not.   

In addition, having lived apart will not prevent either of you from potentially receiving future survivor benefits as widow or widower.  

Should you divorce, SSA benefits might be payable as a divorced spouse or surviving divorced spouse if the marriage lasted at least ten years and other requirements are met.  

More about Social Security benefits for a current or former spouse is in the SSA website Retirement Planner section. See “how members of your family may qualify for benefits.”  

You can file an online application for benefits as a spouse. Details are here 

Go here to learn more about Social Security survivors benefits.

 

Agency Resumes Mailing Social Security Statements

Tuesday, September 16, 2014 

News Release

SOCIAL SECURITY ADMINISTRATION

Agency Resumes Mailing Social Security Statements

Encourages People to Create a Secure my Social Security Account to Obtain Their Statement Online, Anytime

Carolyn W. Colvin, Acting Commissioner of Social Security, today announced the agency will resume the periodic mailing of Social Security Statements–once every five years for most workers–while encouraging everyone to create a secure my Social Security account to immediately access their Statement online, anytime. The Statement is a valuable financial planning tool providing workers age 18 and older with important individualized information regarding their earnings, tax contributions, and estimates for future retirement, disability, and survivors benefits.

“We have listened to our customers, advocates, and Congress; and renewing the mailing of the Statement reinforces our commitment to provide the public with an easy, efficient way to obtain an estimate of their future Social Security benefits,” Acting Commissioner Colvin said. “I encourage everyone to create their own secure my Social Security  account to obtain immediate access to their Statement online, anytime.” 

Beginning this month, workers attaining ages 25, 30, 35, 40, 45, 50, 55, and 60 who are not receiving Social Security benefits and who are not registered for a my Social Security account will receive the Statement in the mail about 3 months before their birthday.  After age 60, people will receive a Statement every year.  The agency expects to send nearly 48 million Statements each year.

The Social Security Statement helps people plan for their financial future.  In addition to providing future benefit estimates, the Statement highlights a person’s complete earnings history, allowing workers to verify the accuracy of their earnings. This is important because an individual’s future benefit amount is determined by the amount of their earnings over their lifetime.  To date, more than 14 million people have established a personalized my Social Security account at www.socialsecurity.gov/myaccount.

With a my Social Securityaccount, people may access the Statement from the comfort of their home, office or library whenever they choose. Individuals who currently receive benefits should sign up for a my Social Security account to manage their benefit payments and, when the need arises, get an instant benefit verification letter, change their address and phone number, and start or change direct deposit of their benefit payment.

Acting Commissioner Colvin reinforced that “whether conducting business with Social Security via the Internet, mail, telephone or face-to-face, we will continue to provide convenient, cost-effective, secure and quality customer service to meet the needs of the public we serve.” 

*****

You can see a sample Social Security Statement here.

 

 

OASDI by zip code for 2013

During July, I posted information detailing Social Security benefits paid by State and County in 2013 (annual publication OASDI Beneficiaries by State and County (2013)). OASDI is Social Security Old-Age (Retirement), Survivors, and Disability Insurance benefits.

Social Security payment information for 2013 is now available by zip code in the publication OASDI Beneficiaries by State and ZIP Code, 2013.

For individual zip codes, information provided includes the number of beneficiaries by type of Social Security benefit, amount of benefits paid, and the number of beneficiaries age 65 or older.

Receiving Social Security? Keep your earnings estimate current.

Q: I work part-time while receiving Social Security retirement and will earn less this year than originally estimated. Should I change my estimate with Social Security?

A: Yes, if you expect to earn over annual earnings test amounts, update your 2014 earnings estimate with Social Security now if your original estimate has changed. You can update your estimated earnings anytime during the year.

Your annual gross wage or net self-employment earnings can reduce Social Security benefits for the year until you reach full retirement age (FRA). Earnings test amounts for 2014 are at www.ssa.gov/retire2/whileworking.htm and in How Work Affects Your Benefits (SSA publication 05-10069). Pensions, investment and other non-employment income are not included for earnings test purposes. Earnings test amounts for 2015 are not yet available.

If you have not yet reached full retirement age, keeping your estimated calendar year earnings current with Social Security is important, especially if your original estimate was below the earnings test amount and you will actually earn over it.

If you expect to earn more than originally planned, with earnings to be over the 2014 earnings test amount for your age, updating your estimate now can prevent or reduce the chance of your being incorrectly paid and needing to refund money to Social Security.

If your current estimate is lower than originally expected, updating it now can release any withheld benefits to you faster. Revise your earnings estimate up or down as needed during the year. Report your actual earnings at the end of the year if you earn over the annual limit for your age.

People receiving Social Security because they have a disability do not have an earnings test and should contact Social Security to learn about available incentives if returning to work. 

Immediately is the best time to report changes to Social Security, including changes to your address, earnings or marital status.  Read “What You Need To Know When You Get Retirement or Survivors Benefits” (SSA publication 05-10077).

Change your estimate or report other changes by calling Social Security nationally at 1-800-772-1213 (TTY-1-800-325-0778) from 7:00am – 7:00pm, or contact your local office.