Salinas, CA Guide To Social Security Survivor’s Benefits

 

After the death of a loved one, it can be difficult to deal with bills, insurance, and Social Security.  Of the 5.7 million people awarded Social Security benefits in 2019, 886K were survivors of deceased workers.  In total there were 3.9 million widows and widowers receiving benefits in 2019.  You should report to the Monterey County Social Security office when a spouse dies.  Their number is 1-800-772-1213.  Unfortunately, you cannot report a death or apply for survivors benefits online.  The calculation is that if your deceased spouse was taking Social Security, your benefit will be the greater of your benefit or your spouse’s benefit.  If you are not yet collecting Social Security and you’re at least 60, the best way to maximize your benefits are to collect the survivors benefit at your current age and then switch to retirement benefits starting at age 70.

https://www.usatoday.com/story/money/personalfinance/retirement/2021/01/20/social-security-covid-understanding-how-survivors-benefits-work/4221795001/

A Spouse’s Death Can Take Its Toll On Your Investment Portfolio

The Wall Street Journal recently posted a story about the fact that your financial portfolio might quickly start unraveling if you don’t prepare for the financial consequences of your spouse’s death in advance.  Not only will you see two Social Security checks go down to one, some people have pensions that don’t have survivorship benefits and those would expire immediately.  In addition, since you will have to file single, your tax rate may go up.  “When that plan is disrupted by the tragic death of a spouse, there isn’t a lot you can do besides cut expenses or go back to work,” Jennifer Murray, a financial advisor, told The Wall Street Journal.  The bottom line: discuss this issue with your financial planner.

Mistakes People Make When Taking Social Security : By Derek Baine

The Wall Street Journal recently ran a story entitled, The Biggest Mistakes People Make With Social Security, and in the number one position was thinking they will die young and opting to take early Social Security.  For the typical American between the ages of 55 and 64, the present value of their lifetime stream of Social Security payments amounts to about 60% of their retirement assets, according to Boston College’s Center for Retirement.  And it’s true for the wealthy, not just middle and low-income retirees.  “If you have a high-earner couple who earned the max and don’t claim until 70, you’re talking about getting the better part of $100K per year,” says Alicia Munnell, the center’s director.  “You have to be very wealthy before you don’t consider that important.”  If you claim Social Security at the age of 70 rather at the age of 62, your benefit will be at least 76% higher.  That’s a lot of money over what could be decades of retirement!

https://www.wsj.com/articles/the-biggest-mistakes-people-make-with-social-security-11620561601

Social Security Tips To Avoid Income Tax Surprises

Many seniors are surprised to find out that their Social Security benefits are taxable, and the bill can be significant.  The amount that is taxable for an individual earning $25K to $34K is 50%, while if you make more than $34K then 85% of your benefits are probably taxable.  What to do when you don’t want a surprise come April 15 is to fill out Form W-4V with The Social Security Administration requesting an amount to be withheld for taxes.  The choices are 7%, 10%, 12% and 22%.  These percentages apply to the full income, not the 50% or 85% that is taxable.    Most states, including California, do not tax Social Security income.

https://www.usatoday.com/story/money/columnist/powell/2021/03/17/2021-tax-season-are-social-security-benefits-considered-taxable-income/4717044001/

 

Pacific Grove, CA Guide To Social Security Survivor’s Benefits

An old woman smiling and speaking on the telephone

After the death of a loved one, it can be difficult to deal with bills, insurance, and Social Security.  Of the

5.7 million people awarded Social Security benefits in 2019, 886K were survivors of deceased workers.  In total there were 3.9 million widows and widowers receiving benefits in 2019.  You should report to the Monterey County Social Security office when a spouse dies.  Their number is 1-800-772-1213.  Unfortunately, you cannot report a death or apply for survivors benefits online.  The calculation is that if your deceased spouse was taking Social Security, your benefit will be the greater of your benefit or your spouse’s benefit.  If you are not yet collecting Social Security and you’re at least 60, the best way to maximize your benefits are to collect the survivors benefit at your current age and then switch to retirement benefits starting at age 70.

https://www.usatoday.com/story/money/personalfinance/retirement/2021/01/20/social-security-covid-understanding-how-survivors-benefits-work/4221795001/

Carmel, CA Guide To Social Security Survivor’s Benefits

A woman in Floral dress sitting in the chair and smiling

After the death of a loved one, it can be difficult to deal with bills, insurance, and Social Security.  Of the 5.7 million people awarded Social Security benefits in 2019, 886K were survivors of deceased workers.  In total there were 3.9 million widows and widowers receiving benefits in 2019.  You should report to the Monterey County Social Security office when a spouse dies.  Their number is 1-800-772-1213.  Unfortunately, you cannot report a death or apply for survivors benefits online.  The calculation is that if your deceased spouse was taking Social Security, your benefit will be the greater of your benefit or your spouse’s benefit.  If you are not yet collecting Social Security and you’re at least 60, the best way to maximize your benefits are to collect the survivors benefit at your current age and then switch to retirement benefits starting at age 70.

https://www.usatoday.com/story/money/personalfinance/retirement/2021/01/20/social-security-covid-understanding-how-survivors-benefits-work/4221795001/

Pacific Grove, CA Social Security Policy For Spouses Who Haven’t Worked

The November 2020 issue of Kiplinger’s Retirement Report (page 18) went over some of the tricky parts of Social Security.  One reader wrote in and asked when his wife can receive benefits and how much will she get given that she has not worked and, therefore, has not paid anything into the Social Security Fund.  The answer?  Like anyone else she can start receiving benefits starting at the age of 62.  If she does, she would get 33.5% of her husband’s full retirement benefit.  However, if she waits until her full retirement age, she will receive 50% of his benefits.

Think Twice Before Taking Early Social Security

Many people take Social Security at the earliest possible time rather than waiting until their official retirement age, which can cost them over $100K over the remainder of their lifetime.  Recessions and a jump in early Social Security claims go hand-in-hand, according to the Center for Retirement Research at Boston College.  According to Chicago’s Becker Friedman Institute, there’s been a 7% increase in the number of Americans who retired after the pandemic.  Edgar Freeberg, 66, said he had planned on waiting until he was 70 to claim Social Security.  “I was going for the 70 thing,” he told USA Today.  But after his job was outsourced, he felt he had no other choice.  Statistics show that filing at age 62 the average household loses out on about $111,000 in lifetime benefits.  Here in Monterey, Social Security payments top the national average by a high margin in the wealthier pockets like Carmel and Pebble Beach.  But if you are not on the high end of the wage earning spectrum, it may pay to wait to file.

https://www.usatoday.com/story/money/2020/09/29/social-security-took-checks-early-because-covid-you-get-do-over/3567304001/

Monterey, CA Guide To Social Security Survivor’s Benefits

After the death of a loved one, it can be difficult to deal with bills, insurance, and Social Security.  Of the 5.7 million people awarded Social Security benefits in 2019, 886K were survivors of deceased workers.  In total there were 3.9 million widows and widowers receiving benefits in 2019.  You should report to the Monterey County Social Security office when a spouse dies.  Their number is 1-800-772-1213.  Unfortunately, you cannot report a death or apply for survivors benefits online.  The calculation is that if your deceased spouse was taking Social Security, your benefit will be the greater of your benefit or your spouse’s benefit.  If you are not yet collecting Social Security and you’re at least 60, the best way to maximize your benefits are to collect the survivors benefit at your current age and then switch to retirement benefits starting at age 70.

https://www.usatoday.com/story/money/personalfinance/retirement/2021/01/20/social-security-covid-understanding-how-survivors-benefits-work/4221795001/

Pacific Grove, CA Think Twice Before Taking Early Social Security

Many people take Social Security at the earliest possible time rather than waiting until their official retirement age, which can cost them over $100K over the remainder of their lifetime.  Recessions and a jump in early Social Security claims go hand-in-hand, according to the Center for Retirement Research at Boston College.  According to Chicago’s Becker Friedman Institute, there’s been a 7% increase in the number of Americans who retired after the pandemic.  Edgar Freeberg, 66, said he had planned on waiting until he was 70 to claim Social Security.  “I was going for the 70 thing,” he told USA Today.  But after his job was outsourced, he felt he had no other choice.  Statistics show that filing at age 62 the average household loses out on about $111,000 in lifetime benefits.  Here in Monterey, Social Security payments top the national average by a high margin in the wealthier pockets like Carmel and Pebble Beach.  But if you are not on the high end of the wage earning spectrum, it may pay to wait to file.

https://www.usatoday.com/story/money/2020/09/29/social-security-took-checks-early-because-covid-you-get-do-over/3567304001/