Changes in Social Security Law Will Cost Everyone Over $40,000 in Two Weeks

This article is for everyone ! I urge you, no matter your age, and especially if you are already full retirement age to go to https://www.ssa.gov/planners/retire/ to see what your Social Security benefits are worth today. The reason I state this with some urgency is because anyone old enough to receive “full retirement” benefits today must elect to “file and suspend” by April 30, 2016 or lose this option forever. Because there are 1.2 million of you who fall into this category, I figure it might be worth posting about it here. Not filing and suspending by the deadline means you lose another $40,000 in Social Security benefits. But, and this is important too, not even knowing what your benefits are worth and how to set them up for retirement right now, no matter your age, is also costing you big money!

The Website will give you several links straight from the Social Security Administration that can help you gather tons of great information about what will happen to your Social Security benefits. Typically most people don’t seem too worried about this until they are knocking on the door of retirement. But here’s some facts that may entice you to inquire about certain Social Security provisions today that will help you make better decisions and create a lot more money in the future:

  • The average person at this moment is receiving $1,378 a month for life (from the Social Security Administration) and this total amount will average $297,648 being paid out to each worker who qualifies for these benefits.
  • If you will do what I suggest by checking out all your benefits and options, you may add to this large $297,648 amount.
  • Remember, however, you may also lose 25% from this total amount because of what you don’t know. That is a difference of $74,412 plus or minus, depending on how you structure things and how well you understand the laws that govern your Social Security benefits based on age, etc. Don’t lose 25% of benefits that could be coming to you simply because you choose not to act.

At this moment I feel like I am standing on a tall mountain way up in Canada, yelling as loud as I can, but not one person is within 150 miles of me. There might be a fisherman that may hear me, but most likely he is a Canadian, and cannot even use this information. I am not joking.  Nobody listens to what the bureaucrats are saying as they are tired of hearing a story that is constantly changing. But the real information you need to pay attention to is coming directly from the SSA and is available on their site, so again, I urge you to go there.

Why are people so unorganized and disinterested? Why aren’t you more proactive at determining your benefits? I hear comments all the time24773043 (b:w) like “Social Security probably won’t even be there when I retire, so why bother?” Well, guess what? Since 1935, everyone in this nation who has retired has received 92 percent of all their retirement income from Social Security. Say what you wish, but if these benefits were to be cut in half, you would still receive almost $150,000 in retirement income. Okay, so it’s not $297,000, but it’s quite a bit of money and certainly better than a poke in the eye! There really is huge value located within these complex rules of Social Security and Medicare. I challenge you to get proactive about protecting your money, whether it’s close to $300,000 or $150,000. before it is too late!

When you click on the site, you can get information about all of the following:

  • Retirement planners (https://www.ssa.gov/planers/retire/). This provides detailed information about your Social Security retirement benefits under current law. It also points out things you may want to consider as you prepare for the future.
  • Information on retirement age.
  • Estimate of life expectancy.
  • Your personal retirement benefits estimate.
  • Other benefit calculators that let you test different retirement ages or future earning amounts.
  • Information on other Social Security programs.
  • Information on what happens if you decide to work after you retire or are already a Medicare beneficiary.
  • Information on how certain types of earnings and pensions can affect your benefits.

And if you are already near retirement age, you can:

  • Learn what your retirement options are at your current age.
  • Get information about how members of your family may qualify for benefits.
  • Find instructions on how to apply for benefits and what supporting documents you will need to furnish.
  • Apply for retirement benefits.
  • Information on how to apply for Medicare.

Again, take my advice and get comfortable with the SSA Website. You will be glad you did.  For more information about retirement planning (and I’m not talking standard investment advice you will get from a financial advisor, but real information you can use today on how spending, debt, and taxes are affecting your ability to retire, contact me: peter@moneymastery.com, (801) 292-1099.