Social Security Spousal Benefits
7 years ago
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- 7 years agolast modified: 7 years ago
- 7 years ago
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Spending of Social Security benefits
Comments (12)Joann, I don't argue with the fact that some of the money should be spent to help with family expenses but I would think it should be on a proportionate basis. There is the mother, her boyfriend and the 2 kids so they should pay perhaps 1/2 of the living expenses, at best. But when the rent is $650, electric is $100, cable is probably $45, they have DSL which I am not sure of the cost, water is $35, right now there is no phone because she didn't pay the bill, that adds up to no more than $950. I don't know what she spends on groceries, but there again, the kids should only pay a proportionate part. The two children's combined income is $1,730. I know there is money for school lunches, etc. but ..... the boy has $35 in his account, according to what his mother told him. When asked where the money went, she tells him she "paid bills." They had no bills for anything else, such as dental work or doctor bills. I think it has gone for past due bills for herself and her boyfriend. What I am told by Social Security, for any who are interested, is that I can make a complaint to the local office if I feel the money is being spent for something other than their needs, and the local office will investigate. It appears that there is enough leeway in what the guidelines state, that it will be hard to ever accomplish anything by complaining. I just don't want them to see them collect $9,180 per year for the next 3 years for the girl, and $9,180 for the next 4 years for the boy, and have nothing when they get ready to go to college....See MoreWhen to take Social Security?
Comments (2)Retirement appears less and less likely for many people. Wages have barely improved in decades and the cost of living is going up, tempting some people to retire overseas. It could be done, but there are a ton of plans one has to make first. One can always retire abroad for much less. It's good to think that Social Security still pays benefits to overseas retired persons, though taxes on that income in a new home country may apply as well as to the United States....See MoreQuestion about future social security benefits
Comments (18)Your SS benefits are not based on the last year you worked. It looks at your highest paid 35 years over your entire working career. It goes something like this: The calculation will be made over 35 years which is 420 months. First, your record is searched for 35 highest paid years. If you do have that many, then there will be some years counted as zero years. Next, the older years are indexed to sort of bring them up to todays dollars. The factors used is something like a cost-of-living adjustment, but in my humble opinion, the adjustment falls short of the actual inflation rate. However, the same index is applied to everybody be they rich or poor. For example, if you earned $100 30 years ago, the adjustment factor might be 4.5, so your $100 income made 30 years ago would be adjusted to 4.5 x 100 or $450 in current dollars. This is done for each year using a different factor for each year. If there are zero years, these are included also. The 35 highest paid years are used or all the years if there is less than 35. All of the adjusted years are totaled and then divided by 420, the number of months in 35 years. This becomes the average monthly income figure that is used to determine your benefit. Clear as mud? I hope it is a little better than that. Go to the social security site to find this information. The indexing list should be there and it may change some for each passing year. The formula for using the average indexed monthly taxed earnings for computing the benefit should be there....See MoreSocial Security Question
Comments (48)Go see your Social Security Office. You'll should call and make and appointment first. As other posters have said, the rules are many. If you have also worked and paid social security taxes, that will be considered. Basically, the amount you might get is computed in several ways and then the maximum benefit one is used. The various cases may be (1) your wages and lifetime contribution alone, ( 2) 50% of your spouce's amount, or (3) if disabled, the disabled amount. If you were born after a certain date, the full retirement age is increased above 65. At one time, the full retirement age was to increase in steps from 65 to 67. I have been retired long enough to have lost track of the current rules. If you are elgible at age 65 for full retirement, you can take early retirement (as early as 62) with a reduction in payments. The reduction is based on the average life expectancy. When I retired, life expectancy was age 77, e.g., half of your population group will have expired by age 77. The reduction works out to be 5/9 percent per month early, thus if you retire 3 years early, the reduction is (36 months x .05)/9 or 0.20 which is 20%. Is this bad? It depends on how long you will live. If you do not expect to live beyond 77, then early retirement is not a loss. You loose only if you live beyond 77. Here's why. If you retired at the normal age of 65, then the time span to 77 is 12 years; if retired at age 62, the time span to 77 is 15 years. Check it out. You'll find that the total money paid out over the longer time is exactly the same as that of the shorter span. For example, suppose the normal payout was $100 per month. The amount for 12 years is 12 x 12 x 100 = 14,400. Now suppose that you retired 3 years early. The payout is $80 per month. The amount for 15 years is 15 x 12 x 80 = 14,400. After age 77, the early payout plan is less than the other and the difference increases each year. Since I retired, life expectancy may have increased to 78 years. These calculations give amounts based on the current value of the dollar. As time goes by, there are COLA increases that will increase the payout to offset inflation to some degree. In my experience, the SS cost increase numbers do not fully cover the real inflation of the basics....See More- 7 years agolast modified: 7 years ago
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