Social Security checks soon will be obsolete

It's an electronic world, and holdouts will be dragged into it -- kicking and screaming if necessary.

The latest sign is the pending elimination of paper Social Security checks, which could affect several million beneficiaries nationally and an estimated 50,000 or so in Arizona. The deadline for signing up for either direct deposit or a debit card is March 1.

"Switching to an electronic payment is not optional -- it's the law," said David Lebryk, commissioner of the Treasury Department's financial-management service, in a statement.

Read more: Social Security checks soon will be obsolete

Top 10 things to know about Social Security

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Do you know your Social Security benefits basics?
Read more: Top 10 things to know about Social Security

Understanding Social Security benefits

There's no way to avoid the tough questions when you start figuring out just when to begin withdrawing Social Security benefits.

Perhaps the hardest of all: having to guess how long you might live.

The age at which you start collecting affects how much that monthly check will be. It comes down to figuring out how much you want to gamble on what can happen to your health and your lifestyle.

Read more: Understanding Social Security benefits

Social Security recipients need to act now!

In this mornings Call 12 for Action report, Social Security recipients now have more limited options. A new rule is on the books but you still have time to voice your opinion.

It used to be that you could apply for Social Security at say 62, receive a lower monthly benefit amount for years, then give all the money back in order to start receiving a higher monthly benefit amount. And better still you could do this without owing Uncle Sam any interest. Well, with no notice at all that rule has changed and it's causing big financial problems for some.

"I have received 15 checks."

Marshall Wozniak applied for monthly Social Security benefits last year at age 63. He only did it because he needed to show extra income on a mortgage application.

"I didn't spend a penny of it. I put every check in a savings account. I always intended to give the money back."

By eventually giving the money back to Uncle Sam, Marshall would get $400 more a month starting at age 66, $1000 more a month if he waited to age 70! Social Security recipients like Marshall could utilize this "payback" option several times in their lifetime and never owe a dime of interest.

"That is the only reason I applied, if that wasn't in place I would have waited."

And now it looks like Marshall should have waited because in December Social Security changed the rules. Now recipients can only use the "payback" option once in their lifetime and it must be within the first 12 months of when they start receiving benefits.

"And that cuts me out because I've been receiving checks for 15 months, so, I'm locked out for life."

That means Marshall, and many others like him, are now stuck with the lower monthly benefits that come from retiring early. And it's money Marshall doesn't even want right now.

"Our taxes will be higher, I may lose my VA health care, next year, because my income is higher."

But there's still hope. Social Security may reconsider this rule change at the end of a 60-day public comment period. Hundreds of recipients have already made their feelings known at www.regulations.gov. Many are outraged that they received no notice of the change.

"I think the very minimum they should have done was send a letter, a mailing, to every social security recipient."

Social Security didn't send that letter but the government is giving consumers a voice during this public comment period. But, the public comment period ends AT MIDNIGHT TONIGHT (Monday, February 7th).

So, if you want to be heard on this issue, go to www.regulations.gov, click on PUBLIC SUBMISSIONS and type in the keyword: SSA-2009-0073.

This will take you to the page where you can post your comments about this rule change, but again you have to do it by midnight.

Marshall wanted to withdrawal his benefit before the change took place but changed his mind at the last minute. Then the rule change occurred and Marshall withdrew his application two days later. He is hoping Social Security will accept his withdrawal retroactive to before the change. We are working with the SSA on Marshall's case and will keep you posted on how things work out for him and many others in a similar situation.





by Dave Cherry Call 12 for Action - Feb. 7, 2011 04:58 AM

Social Security recipients need to act now!

Websites are troves of information on Social Security benefits

Several websites provide insights and perspectives about the Social Security system and its benefits. Here are a few:

• AARP

www.aarp.org/money/social-security.

Features Social Security basics.

• The Social Security Network

socsec.org.

Contains news and views on a variety of topics.

• Today's Seniors

www.todaysseniors.com/pages/social _security_benefits.html.

Explores different retirement-age levels.

• U.S. Social Security Administration

www.ssa.gov.

Federal gateway to Social Security.

• NOLO

www.nolo.com/legal-encyclopedia/personal-finance-retirement

Select "Social Security" link.


McClatchy-Tribune News Service Aug. 15, 2010 12:00 AM



Websites are troves of information on Social Security benefits

How To Boost Social Security Benefits - IBD - Investors.com

Congress is still dithering while Social Security runs out of gas.

The newly released trustees' report says the old-age program's tank will be bone-dry by 2037.

That's no better, no worse than last year's projection.

With nothing in the trust fund, trustees say benefits then would have to be paid solely by tax revenues. So bennies would have to shrink to 78% of what's promised.

Perhaps Congress will restore Social Security's financial health before that happens.

Meanwhile, what if you retire and want to start drawing benefits? You can take steps to boost the size of your monthly check.

• Delay your start. The most basic strategy is to postpone tapping into the program.

You can start collecting at age 62. But if you wait until your full eligibility age, your benefits will be higher.

Depending on your age, waiting until you reach full eligibility age — which the program calls normal retirement age, or NRA — can expand your monthly check by up to 30%.

NRA is 66 for anyone born in 1943 through 1954. It's 67 for anyone born in 1960 or later.

The table nearby shows NRA for people born between 1954 and 1960.

Aside from resulting in a smaller check, starting benefits early also exposes you to an earnings cap penalty.

Basically, for every $2 you earn in excess of a certain threshold — which is $14,160 in 2010 — you lose $1 in benefits.

• Reward for extra delay. If you wait until after your NRA, your starting benefits are even higher.

This is due to the delayed retirement credit. It can be worth up to 8% a year, until age 70, depending on when you were born.

Anyone born in 1943 or later gets the 8% annual premium. If you were born in 1933-34, it's worth only 5.5% extra a year.

Suppose you were born in 1944. Your NRA would be 66. Let's say your monthly check would be $1,000, given your earnings history.

If you wait until age 70 to start benefits, your check will be 32% bigger. That's 8% times four years. Your monthly support would be $1,320.

The additional benefit you gain by waiting until 70 vs. 62 is striking. The extra monthly benefit is typically 75% higher, says Alicia Munnell, director of the Center for Retirement Research at Boston College.

"Almost everyone benefits by delaying the start of benefits," she said.

By PAUL KATZEFF, INVESTOR'S BUSINESS DAILY August 13, 2010

How To Boost Social Security Benefits - IBD - Investors.com