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Category: Social Security

  • 2025: What will your Social Security benefits be when you retire?

    2025: What will your Social Security benefits be when you retire?

    What will your Social Security benefit be when you retire? Knowing how much you will receive from Social Security can help with your retirement planning. Two-thirds of Americans rely on Social Security for most of their income in retirement, and one third rely on it for virtually all (90 percent or more) of their retirement income.

    The Social Security Administration cannot tell you exactly what you will get.  But, it has a calculator that will provide you an estimate. What you receive depends on the average of your top 35 earnings years, as well as on the age at which you choose to claim Social Security.

    You can sign up to get benefits before the full retirement age (age 66 today, i.e. for those born between 1943 and 1954, and rising to age 67 for those born in 1960 or later). But your benefit will be reduced by around 6 percent for each year you retire prior to your full retirement age — up to a 25 percent reduction if you retire at age 62, the earliest possible age you can claim benefits. If you wait until after your full retirement age to claim benefits, your benefit is increased by 8 percent each year — up to a 24 percent increase if you wait till age 70.

    Your benefits will be protected against inflation by cost-of-living increases. And, of course, if Congress changes the Social Security Act, that could affect your benefits as well. In January 2025, the average monthly benefit for a retired worker is just over $1,976 and just over $3,089 for a retired couple.

    To qualify for benefits, you need at least 40 credits of earnings, i.e. 10 years of either working four quarters or paying enough into Social Security during the year to satisfy the four-quarters requirement. To understand how credits are calculated, click here. Or, you might qualify based on the earnings record of a current or divorced spouse (if the marriage lasted 10 years or longer).

    SSA also provides calculators to estimate survivors and disability benefits. And the AARP has a calculator to help you decide when to sign up for benefits.

    Here’s more from Just Care:

  • Wait to claim Social Security benefits, if possible

    Wait to claim Social Security benefits, if possible

    You have earned your Social Security benefits. You should claim them when it meets your personal circumstances. For most people, though, it is best to wait as long as possible (though there is no reason to delay beyond age 70).

    Although people often talk about a single retirement age, it is best to think about Social Security as having a band of ages. The earliest you can claim retirement benefits is age 62. For every month you delay up to age 70, your monthly benefit is larger – larger for the rest of your life!

    The intention is for benefits to be actuarially neutral, so that your decision whether to retire and claim benefits is made independent of the size of the benefit. However, one of the enormous values of Social Security is that it is payable not only for the rest of your life but for the rest of your spouse’s life. Unlike savings and other assets, which can disappear as you age, Social Security is indexed against inflation and you cannot outlive it. Delaying receipt ensures not only that your monthly payments will be as large as possible when you are very old and likely need them most, but also as large as possible for your widow(er).

    Of course, some people don’t have a job or savings at 62. In that case, people have no choice but to claim their Social Security benefits as soon as possible. Other people suffer from serious medical conditions at 62, are unmarried, and might not live long enough to benefit from delaying their Social Security benefits. But, anyone who has no reason to collect their Social Security checks early, should not do so.

    Some people are simply risk averse, but some claim early because they have heard Social Security is going bankrupt. The truth is that Social Security has never missed a payment in its nearly 90-year history and almost certainly never will. Those scare stories should not scare you into claiming early, against your financial interest.

    In addition to educating people about the many advantages to delaying, there are legislative improvements that should be made. While the actuarial adjustments are intended to be fair and neutral, there are strong arguments that those who retire early have their benefits reduced too much and those who retire later have their benefits increased too much. Congress should correct that.

    Congress also should increase the overall level of Social Security benefits, so that even those who retire early have a benefit that is adequate for an independent dignified old age. And Congress should update the measure of inflation, so benefits retain their value, as they are intended to do.

    Again, Social Security benefits are earned benefits but if you can delay claiming them, you are almost always right to do so. For the same conclusion argued somewhat differently, see Peter Coy’s opinion piece for the New York Times.

    Here’s more from Just Care:

  • Social Security turns 88 today; it’s time to expand its benefits

    Social Security turns 88 today; it’s time to expand its benefits

    On August 14th, 1935, President Franklin D. Roosevelt signed Social Security into law. Eighty-eight years later, our Social Security system is among the most successful and popular government programs in history. Nearly every worker pays premiums (Federal Insurance Contributions or FICA) for Social Security. In return, workers receive insurance benefits when they retire, become disabled, or lose a family breadwinner. Social Security is secure, efficient, and the most important source of retirement income for the vast majority of Americans. Social Security does have one major flaw, though: Benefits are too low.

    The average Social Security benefit is only $1700 a month — considerably lower than in peer nations. That is not enough for working families to enjoy a secure retirement or make ends meet when tragedy strikes in the form of serious and permanent disabilities or death. It’s not surprising that our nation is facing a retirement income crisis. Too many Americans fear that they must work until they die, because they will not be able to retire without a drastic decline in their standard of living. Expanding Social Security is the solution.

    Social Security Works was founded to fight the fearmongering about our Social Security system. Today is Social Security’s 88th birthday. 

    The good news is that Democrats have plans to expand our Social Security system. President Joe Biden ran on a promise to expand Social Security, and Congressional Democrats have introduced multiple bills to do so. One of these is the Social Security 2100 Act, which is sponsored by Rep. John Larson (D-CT) and co-sponsored by over 175 of his fellow House Democrats. Another is the Social Security Expansion Act, which is sponsored by Senators Bernie Sanders (I-VT) and Elizabeth Warren (D-MA).

    These bills, as well as numerous other expansion proposals, have much in common. They would keep Social Security strong for generations to come (averting the modest shortfall that some politicians have used as an excuse to demand benefit cuts). They would increase benefits for everyone, with additional targeted increases for low-income beneficiaries, family caregivers, the very old, and others. Additionally, they would update the annual cost-of-living adjustment to reflect the real expenses beneficiaries face and prevent benefits from eroding.

    These are common sense proposals that enjoy broad support from Americans across the political spectrum. Indeed, 83 percent of Democrats, 73 percent of independents, and 73 percent of Republicans want to expand Social Security and pay for it by making the wealthy contribute their fair share. Yet, not a single Republican member of Congress is signed on to a bill expanding Social Security benefits.

    We’ve gotten Republicans on the record―and helped defeat them when the public learns the truth.

    The truth is, Republicans in Congress support cutting Social Security and ultimately ending the program as we know it. This is laid out in the budget proposal from the Republican Study Committee (RSC), a group that counts about 70 percent of House Republicans as members.

    The RSC budget would raise the retirement age to 69, which is mathematically equivalent to a 13 percent benefit cut. It would also decimate middle-class benefits — benefits those workers have earned and paid for. The Republican goal is to turn Social Security into a flat, poverty-level benefit — so that it loses political support and can be destroyed.

    Nor is the RSC budget the only Republican plan to cut Social Security. Every major Republican Presidential candidate, including Donald Trump, is on the record supporting Social Security cuts. Republican politicians are ignoring the will of their voters in favor of protecting their wealthy donors.

    Republicans have also been waging a quiet war on the Social Security Administration (SSA), the agency that administers the program. Since 2010, largely-Republican controlled Congresses have slashed SSA’s budget by 17 percent — even as the number of beneficiaries grew by 22 percent. This has forced the agency to lay off thousands of workers, close field offices, and reduce hours.

    SSA needs adequate funding, and strong leadership. President Biden has nominated former Maryland Governor Martin O’Malley to serve as SSA Commissioner. Biden has also requested a ten percent increase in funding for SSA. The best 88th birthday gifts Congress could give Social Security are to swiftly confirm O’Malley and grant Biden’s funding request.

    Then, Congress should take up legislation to expand Social Security. If Republicans refuse, Democrats should make Social Security a major issue in next year’s election — and urge voters to support the party that is working to expand, instead of cut, their earned benefits.

    Social Security is the cornerstone for our nation’s economic stability. Together, we can build on that cornerstone and bring prosperity to everyone in this country!

    Here’s more from Just Care:

  • Health care costs eat into your 2021 Social Security benefits

    Health care costs eat into your 2021 Social Security benefits

    Mark Miller writes for his subscription blog, RetirementRevised.com on how cost of living adjustments to Social Security are far smaller than Medicare premium cost increases. Medicare’s costs increase far faster than the rate of inflation. Only if Congress increases Social Security benefits can most older Americans maintain their standard of living from one year to the next. 

    As we have reported, your Social Security benefit will rise 1.3 percent in 2021 or an average of $20 a month. The 2021 standard Medicare Part B monthly premium will increase $3.90 to $148.50 for anyone who did not earn more than $88,000 a year in 2019.

    People with smaller Social Security benefits will likely not see an increase or see only a de minimis increase in their Social Security benefits. Fortunately, thanks to a “hold harmless” provision in federal law, people cannot see their Social Security checks decrease. So, no one with incomes under $88,000 will see an increase in their Medicare premium larger than the increase in their Social Security benefits.

    The average Social Security benefit increase in the last 12 years has been just 1.4 percent, even though average Medicare cost increases have been far higher. And, Social Security increases over the past ten years have been painfully small. In three of those years, Social Security benefits did not increase at all. In one of those years, benefits increased three-tenths of a percentage point.

    Because Social Security cost-of-living increases are tied to a basket of goods whose costs do not increase as quickly as health care costs, and because older adults use more health care than younger people, most older adults struggle to maintain their standard of living as they age. To help address this issue, Congressman John Larson’s Social Security 2100 Act would increase Social Security benefits by 2 percent; and, it would reduce taxes on Social Security benefits.

    This year, the Medicare premium is rising $3.90, about 25 percent of what it otherwise would have increased. Congress limited the amount the 2021 premium could increase in a COVID relief bill.

    If you want Congress to increase Social Security benefits, please sign this petition.

    Here’s more from Just Care:

  • Social Security: Always there for you in a crisis

    Social Security: Always there for you in a crisis

    On this 19th anniversary of the horrific attacks of September 11, 2001, we find ourselves in the midst of several crises, all battering us simultaneously. Nineteen years later, Donald Trump is doing everything he can to divide us and tear down our fundamental institutions. Consequently, it is especially important today to remember how we came together in the aftermath of 9/11 and how essential our institutions were in response to that tragic day.

    Though not usually thought of as one of the nation’s first responders, our Social Security system was there in the immediate aftermath of 9/11, protecting and supporting the families of the victims. Social Security was among the first insurers on the scene, working to locate victims’ families and assist them in claiming the benefits their loved ones had earned for them.

    By Thursday, September 13, just two days after that tragic day, the employees of the Social Security Administration were in overdrive, working 15-hour days, seven days a week. The families of virtually every worker who perished that day were eligible for Social Security survivor benefits. The daunting task facing Social Security was to identify those families, contact them, and help them secure the financial protection their loved ones had earned.

    A stay-at-home dad lost his wife in the World Trade Center on September 11. In the midst of his grieving, he could see no way to remain at home with his child or support the child at the level they had been living. Unaware of the valuable Social Security benefits his wife had earned for her family through her work, he reluctantly put the family home on the market after that tragic day. The call from Social Security, from out of the blue, was a godsend. He hung up the phone and called his real estate agent. He could keep his home, after all.

    Virtually every child who lost a parent on 9/11 received Social Security benefits, as well as surviving spouses. That’s over 2,375 children and 850 surviving spouses. And those left with severe disabilities as a result of the attacks, over 640 people, received Social Security benefits, along with 99 of their children and spouses. In addition, over 1,800 family members received one-time payments.

    The extraordinary effort on the part of Social Security’s civil servants was on top of their regular work, which did not stop. It was on top of dealing with the trauma with which all Americans, including these dedicated first responders, were coping.

    They performed that work exceptionally well. Just three weeks after the tragic day, the stay-at-home dad and his child, as well as the other victims’ families, were among the 47 million beneficiaries who received those vital Social Security benefits.

    As that experience — as well as Social Security’s response to Hurricane Katrina and other personal and national crises — underscores, this essential institution is there to provide economic stability in times of tragedy and grief.

    Right now, we’re in the midst of many crises. We’re in the middle of a pandemic that has already taken over 190,000 lives — with nursing home residents and workers accounting for over 40 percent of the deaths. Our western states are experiencing enormous and deadly wildfires. Gulf states are dealing with the terrible aftermath of Hurricane Laura. We are experiencing the worst economy since the Great Depression and a long overdue reckoning with racial injustice.

    In a pandemic where staying home is often the safest option to stay healthy, Social Security allows seniors and people with disabilities — those most threatened by the coronavirus — the modest income they need to be able to pay rent, buy food, and fill life-saving prescriptions. Moreover, Social Security’s guaranteed monthly retirement benefits are there for those older Americans who have lost jobs and, unable to return to work, are able to claim their earned benefits.

    While Social Security cannot correct our nation’s racism, it is especially important to people of color, women, the LGBTQ community, and others who have faced discrimination. Moreover, Social Security’s disability and survivor benefits, which are disproportionately earned by people of color, implicitly compensates a bit for some of the health and longevity inequalities which are a product of that racism.

    As important as Social Security is for those who retire after a lifetime of work, it is most accurate to see it as a program that protects the entire family. It is there for those fortunate to live to old age. It is also there when tragedy strikes in the form of death or work-ending illness or injury.

    With every paycheck, workers contribute to Social Security’s Old Age and Survivors Insurance Trust Fund and the Disability Insurance Trust Fund. These trust funds, now and in the future, pay benefits to the surviving children and spouses who lost loved ones to COVID-19 and the natural disasters plaguing the Western and Southern states. They pay benefits to those who suffer long-term disabilities as a result of those crises.

    Those trust funds to which we all contribute pay benefits to the nation’s seniors who have contributed to building our nation, to the nation’s veterans and to the nation’s workers, when wages are lost in the event of death, disability or old age. The payments to the surviving 9/11 families and first responders came from these same Social Security trust funds.

    The unity in the aftermath of 9/11 is a sentiment we should try to restore to our troubled nation. We’ve never felt more divided, but in the face of so many crises, it’s imperative that we come together. To survive, we must recognize that we are the United States. We are strongest when we join together, recognizing our common humanity, sharing our risks and taking responsibility. Those are the values that underlie our Social Security system.

    People of all races, genders, religions, sexual orientations, and political affiliations contribute to Social Security. Whether we are born in the United States or elsewhere, we all contribute, pooling our risks and sharing our responsibilities.

    As divided as we are over many issues, we are united in our overwhelming and deep support for Social Security. Poll after poll finds that we believe Social Security is more important than ever, that it should not be cut, but rather, should be expanded.

    The level and depth of support is unsurprising. Social Security represents the best of American values. It unites us. President Dwight Eisenhower described it as “a reflection of the American heritage of sturdy self-reliance which has made our country strong and kept it free.” Former Senator Bill Bradley insightfully explained, “Social Security is the best expression of community in America.”

    Our nation is facing a level of crisis and uncertainty unprecedented since the Great Depression. President Franklin D. Roosevelt responded to that crisis by creating our Social Security system. Now, we must come together to build on FDR’s foundation by increasing Social Security’s modest benefits. An expanded Social Security will provide exactly what’s needed in a crisis: Greater stability and peace of mind for all of us.

    The upcoming election is a serious test of our values. Donald Trump is a divider. Joe Biden is a uniter. He wants to be president of all of us. Donald Trump threatens our Social Security system. Joe Biden promises to protect, strengthen, and expand Social Security. Who wins may determine how we survive future times of crisis.

    Here’s more from Just Care:

  • President Trump’s 2021 proposed budget would most hurt vulnerable older adults

    President Trump’s 2021 proposed budget would most hurt vulnerable older adults

    Monique Morrissey writes for the EPI blog about President Trump’s proposed 2021 budget. Morrissey explains that this White House budget would hurt vulnerable older adults, even though it claims to benefit them. 

    President Trump’s proposed budget would cut Medicare and Medicaid spending significantly. It would also cut discretionary spending unrelated to defense. In other words, funding for programs that help older Americans would be cut. Programs at risk include HEAP, which provides home emergency assistance to low-income older adults.

    The President proposes more than $750 billion dollars in cuts to Medicare over ten years, which is likely to jeopardize access to care for older adults and people with disabilities. However, we don’t yet know what the President means when his proposed budget says that it will find Medicare savings by ending “excessive spending and distortionary payment incentives.” It also says that it would “preserve benefits and access to care.”

    One Medicare provision in the proposed budget makes sense–to equalize payments for particular health care services across different venues. Right now, Medicare pays wildly different amounts for the same procedures depending upon whether they are performed in an outpatient or inpatient setting. 

    The proposed Medicare budget cuts would likely increase people’s out-of-pocket health care costs and undermine access to care. The President would like to cut government payments to providers that cover unpaid medical bills. Consequently, providers may be less inclined to treat people with Medicare with limited incomes. In addition, hospitals and clinics in low-income areas may be forced to shut down. These potential issues would likely end up affecting middle-class older adults as well.

    The President also wants to cut back on Medicaid expansion, which could leave more older adults without adequate health care coverage and put more health care providers serving people with low incomes at risk. In addition, he wants to increase copays for emergency room visits for people with Medicaid, which would deter them from getting needed care. And, the President wants to repeal the Affordable Care Act, which would not only increase the number of uninsured Americans dramatically but also drive up costs in Medicare. For example, it would mean the Part D prescription drug coverage gap would be reinstated.

    The President proposes to cut Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) by $76 billion over ten years. He intends to reduce the number of people who benefit from SSDI by five percent. He also wants to cut Social Security administrative costs, which are already too low. Further reductions in spending on administration could mean the closing of more Social Security offices or reductions in their hours of operation.

    Here’s more from Just Care:

  • Enrolling in Medicare? Here’s a checklist

    Enrolling in Medicare? Here’s a checklist

    Most people get Medicare just before they turn 65 (though people with disabilities get Medicare after they receive SSDI for 24 months and people with ALS get Medicare the first month they receive SSDI). As a general rule, you are way better off with Medicare, public health insurance, than with private health insurance. But, figuring out when to enroll in Medicare and what to do can be daunting. And, each fall, you need to revisit your options because they can change significantly from one year to the next. Here’s a checklist:

    • Do you have health care coverage from a current job, either yours or your spouse’s?
      • If you do not, you likely want to sign up for Medicare in the three months before your 65th birthday month, so that your Medicare coverage begins on the first day of your birthday month.  (Your current health insurance in most cases will no longer be your primary coverage after your birthday month.)
      • If you have health care coverage from either your or your spouse’s current job, click here for advice on whether you should sign up for Medicare. Depending upon the job, you may need to enroll in Medicare in order to avoid penalties. Note: COBRA does not count as insurance from your job.
    • Have you already signed up for Social Security?
      • If not, you can sign up for Medicare online through the Social Security Administration. You do not need to sign up for Social Security to enroll in Medicare. Keep in mind that when you sign up for Social Security affects the amount of your monthly check. Click here for advice on when to claim Social Security benefits.
      • If you’ve already signed up for Social Security, you will get Medicare automatically. You should receive a notice in the mail about your automatic enrollment in Medicare Part A (hospital insurance) and Part B (medical insurance), both of which you need whether you enroll in traditional Medicare or a commercial Medicare Advantage plan. The Medicare Part A premium is fully paid for if you or your spouse worked for at least 40 quarters and paid taxes; if not, there’s an additional premium. The Medicare Part B premium, which you must pay no matter which Medicare plan you choose, will be deducted from your Social Security check automatically.
        • You will be automatically enrolled in traditional Medicare, government-administered insurance.
        • You can choose to join a Medicare Advantage plan (Part C), instead of traditional Medicare, by signing up with a Medicare Advantage plan; you will be automatically switched out of traditional Medicare.
    • Key differences between traditional Medicare and Medicare Advantage commercial health plans
      • A Medicare Advantage plan, commercial insurance that contracts with Medicare to offer benefits, is often a lot more expensive and a lot more complicated than it at first may seem. Deductibles, coinsurance and copays can be extremely high, and you cannot buy supplemental coverage to cover these costs as you can with traditional Medicare. At the same time, unlike traditional Medicare, Medicare Advantage plans limit your choice of doctors and hospitals to their network. Your annual out-of-pocket costs for in-network care can be as high as $6,700 and, if you need to go out of network, your costs can be far higher. Here are four key differences between traditional Medicare and a Medicare Advantage plan.
      • If you choose traditional Medicare, as 70 percent of people do, Medicare will cover your care from almost all doctors and virtually every hospital in the US. You will want supplemental insurance to fill gaps in traditional Medicare and prescription drug coverage. With that, all or nearly all of your costs for medical and hospital care should then be covered, so you can budget for your care. And, it will be simpler to access care when you need it.
    • What do you need to consider each Fall, during the Medicare open enrollment season?  Each Fall, you will be able to switch Medicare plans. Because Medicare Advantage plans and Part D drug plans can change significantly from one year to the next, you will likely be better off if you do some homework. Here are two questions you should answer during the Open Enrollment Period.
      • If you’re in traditional Medicare, you can assume your coverage will remain the same in terms of access to doctors and hospitals. So, no homework there. But, you will need to check into your Medicare Part D drug plan options, which can change dramatically from one year to the next. (Here’s a Medicare tool to help you choose.)
      • If you’re in a Medicare Advantage plan, you cannot assume your coverage will remain the same each year. The network doctors and hospitals can change at any time, and the premiums, copays and deductibles can change each year. You will need to do some research around costs and to ensure you are in a Medicare Advantage plan that allows you to see the doctors and hospitals you want to use. You can switch to traditional Medicare. But, if you do not have Medicaid or retiree coverage to fill gaps, you will need a Medigap policy.

    For more about Medicare benefits, Medicaid, Social Security and long-term services and supports, click here. 

    To understand when Medicare is the primary payer and when it is secondary, click here. 

    If you have Veterans’ or other military benefits, learn how they work with Medicare.

  • Social Security benefits are relatively small

    Social Security benefits are relatively small

    As often as they can, Republicans in Congress argue to “reform” Social Security benefits. That’s code for cutting benefits.  In truth, Social Security benefits are relatively small.

    Social Security benefits are earned benefits, with people contributing over their lifetime into the Social Security Trust Fund. Only money from that Trust Fund goes to pay people’s Social Security benefits. So, Social Security benefits do not affect the deficit.

    The principal reason that Social Security faces a long-term shortfall is that more people are relying on it. There are more older adults and more people with disabilities than ever before. So, Social Security is paying out more money than it has in the past. Social Security’s costs are about five percent of GDP today and are projected to rise to six percent in the 2030’s.

    The overwhelming majority of Americans, along with Democrats in Congress, believe that Social Security needs to be expanded, not cut. While Social Security faces a long-term shortfall, there is no need to cut benefits. As of now, it has enough money to pay out benefits until 2035. And, after that, it has enough money to pay out three-quarters of the benefits it owes, if nothing is done to shore up the Trust Fund.

    Social Security protects workers and their families when they retire or have a disability or die. Here are five important things to remember about Social Security from the Center on Budget and Policy Priorities.

    Social Security benefits are relatively small. They average under $1,500 a month and under $18,000 a year. As a result many older adults live in poverty or near poverty, when you factor in their out-of-pocket health care costs.

    The majority of people depend heavily on Social Security when they retire or become disabled. About one in two older adults receiving Social Security depend on it for half or more of their income. About one in four older adults depend on it for 90 percent of their income. And, around one in four older adults has an annual household income under $20,000. Just one in ten retiree households has an annual income averaging $230,000.

    Including Social Security income, the median household annual income was around $44,000 in 2012. If you look at median household income by race and ethnicity, white and Asian households had far higher incomes than Black and Latino households, $47,000 and $48,000 respectively as compared to $32,000 and $30,000 respectively.

    For many reasons, means-testing Social Security benefits would not help to shore up the Social Security Trust Fund. There are so few retiree households with significant incomes that if you only means-tested retirees in the top 10 percent of income earners, it would not generate a meaningful amount of money. To generate adequate revenue, the federal government would have to reduce benefits of households with low incomes. Moreover, administrative costs would be high. 

    Only Social Security provides the majority of older adults guaranteed income for as long as they live, with some inflation protection. Fewer and fewer retirees can count on defined benefit plans in addition to Social Security income. Defined benefit plans pay people a guaranteed amount every year in retirement. Instead, people tend to have defined contribution plans, if they have an additional income source in retirement. These plans have no guarantees. If the stock market falls, people can easily lose income they need. If it collapses, people might have to depend entirely on Social Security.

    Several other developed countries provide higher Social Security benefits to their citizens than the United States. The United States might be the wealthiest country in the world, but it ranks in the bottom third of developed countries in terms of the generosity of its retirement benefits. While Social Security benefits in the US are better than in Japan, Mexico and the United Kingdom, they are far less generous than in the majority of developed countries, including Turkey, Italy, Austria and Spain. Social Security benefits replace, on average, less than half of Americans’ income. On average, other developed countries replace 58 percent of their citizens’ income.

    Most of the Democratic presidential candidates are proposing to expand Social Security benefits. Senator Warren has a plan to increase benefits by $200 a month. Others support Congressman Larson’s Social Security 2100 Act.

    Because Congress raised the age of eligibility for Social Security from 65 to 67 and because Medicare costs are rising, people retiring down the road will receive less from Social Security than people today. People born in 1960 will not receive full Social Security retirement benefits until the age of 67. In simple terms, on average, retirees are losing two years worth of Social Security benefits–more than $35,000 in income–which retirees born in 1937 and earlier received.

    If you would like Congress to expand Social Security, please sign this petition.

    Here’s more from Just Care:

  • Top Social Security questions and answers

    Top Social Security questions and answers

    The New York Times answered the top Social Security questions from its readers.

    Question 1. Is Social Security in good financial shape?

    Social Security is in good financial shape today and at least for another 15 years. By 2035, however, Social Security will face a shortfall. If Congress does not make changes, Social Security would be able to pay out only 80 percent of scheduled benefits. Congress can and always has made changes to keep it paying out full benefits. 

    There is good reason for Congress to act. According to Richard W. Johnson at the Urban Institute, unless Congress acts, another one-third of retirees could be pushed into poverty. Fortunately, there’s a bill in Congress, the Social Security 2100 Act that would strengthen Social Security over the long term. All it would take is increasing payroll tax rates by 0.1 percent a year through 2043 and applying payroll contributions to all earnings over $400,000.

    In 1977, Congress intended for Social Security to cover 90 percent of people’s earned income. But, it now only covers 83 percent of wages. The average wage has not increased as quickly as wages above the Social Security cap, which is $132,900 today.

    Question 2. How do Social Security spousal benefits work?

    If you have been married for at least one year,  you can claim a benefit as high as 50 percent of your partner’s benefit if your partner is claiming benefits. You can claim the benefit before your full retirement age, but it will be lower because you are claiming before your full retirement age.

    Usually, you must file for your own benefit and your spousal benefit at the same time. Social Security will pay you your own benefit and your spousal benefit as well, but only if your personal benefit is less than half of your spouse’s benefit.

    If you were born before 1954, you can file for a “restricted claim.” You would then get only your spousal benefit and you could continue to accrue retirement credits on your account until age 70.

    You also get a survivor benefit if a spouse dies so long as you were married for at least nine months before your spouse died. This benefit is usually 100 percent of your former spouse’s benefit.

    If you are divorced but had been married for at least 10 years and are now single, you can get a spousal or survivor benefit from your ex-spouse. If you get married again, you lose these benefits. You cannot get spousal or survivor’s benefits from your new partner unless you have been married a minimum of one year.

    Spousal benefits apply to same-sex married couples.

    Question 3. Will I get benefits for the rest of my life and will they be taxed?

    Once you claim Social Security benefits, you will get them for the rest of your life, and they will be adjusted up a bit for inflation. They may be taxed if your gross income, nontaxable interest income and half your Social Security benefit are greater than $25,000 for an individual or $32,000 for a couple filing jointly.

    If you file a federal income tax return as an individual and your combined income is above $34,000, as much as 85 percent of your benefits may be taxable. If your income is between $25,000 and $34,000, you may need to pay income tax on as much as 50 percent of your benefits.

    If you file a federal income tax return as a married couple and your combined income is above $44,000, as much as 85 percent of your benefits may be taxable. If your combined income is between $32,000 and $44,000, you may have to pay income tax on as much as 50 percent of your benefits.

    Here’s more from Just Care:

  • Social Security: What to know before claiming benefits

    Social Security: What to know before claiming benefits

    Bloomberg News reports that Americans lose trillions of dollars because they do not claim Social Security benefits when they should. Here’s what you should know before claiming Social Security benefits.

    If you need Social Security benefits to meet your daily needs, you should claim them as soon as possible. But, if you can wait to claim them, you will receive higher Social Security income. The difference between taking benefits at 62 rather than at 70 is stark. For example, if your monthly check would be $725 at 62, you could get $1,280 if you waited until 70.

    Put differently, if your full retirement age (FRA) is 66 and you can wait until 70 to claim Social Security benefits, you get 32 percent more in monthly benefits for your lifetime than you would if you claim benefits at 66. You get 8 percent more for each year you delay claiming benefits after age 66 up to age 70.

    If you were born between 1943 and 1954, your full retirement age (FRA) is 66, though you may claim benefits any time between age 62 and 70.  (If you were born in 1955, your FRA is 66 and 2 months; your FRA increases by 2 months each year until 1960 when it is 67.) If you claim benefits at 62, you get 25 percent a month less each month for your lifetime than you would if you waited to claim until you are 66. To learn about how claiming benefits early disproportionately hurts people with low incomes, click here.

    Of course many factors go into when you should claim benefits. If you’re in good health and can wait, you will ensure a higher monthly income throughout your life.  Moreover, if you’re married and earn more than your spouse, delaying your receipt of benefits, will ensure increased Social Security income for your spouse after you pass. On the other hand, if you’re in poor health, it might be wise to claim benefits early so you are able to get back as much as possible from Social Security.

    It’s wise to confirm that Social Security has correct information about your income. You can check online by creating a “my Social Security account” at https://www.ssa.gov/myaccount/.  Once you do that, you will get a Social Security Statement that shows the income information Social Security has on file. Let Social Security know right away if you find a mistake.

    What benefits does your spouse get? Because Social Security is insurance designed to protect families, your spouse, even your divorced spouse if you were married at least ten years, is entitled to Social Security benefits based on your income. The spousal benefit amount is half of the amount of your benefit if that amount is larger than what your spouse would receive based on his or her own income. And, after you pass, your surviving spouse or divorced spouse if you were married at least ten years, is entitled to your full Social Security benefits if that is larger than the amount your spouse would otherwise get based on his or her own income.

    Today, just four percent of people wait until age 70 to claim benefits. More than seven in ten people claim benefits at 62 or 63.

    The National Association for Social Insurance toolkit provides questions to ask based on a range of situations in which you might find yourself, including whether you should keep working and claim benefits. To read the toolkit, click here.

    NB: On average Social Security replaces only 40 percent of a person’s pre-retirement income.

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