Misleading or incomplete information could cost you a small fortune in missed benefits. We’ll put you on the right path to maximize your income.
Social Security will pay out nearly $1 trillion in benefits this year. For more than half of all recipients, the payments are more than 50% of their retirement income. But for the eighth year in a row, this critical pay-as-you-go program will take in less in taxes than it pays out in benefits. If nothing is done to change the system and the economy behaves as expected, a financial catastrophe demanding across-the-board benefit cuts will arrive in 18 years (see the box on page 28 for more about the shortfall). // You’ve heard this lament before, of course, along with assurances that, sooner or later, members of Congress will get around to doing something to shore up the system. But focusing on the long-term crisis masks a much more immediate threat, one that can explode long before 2035—perhaps when you, or someone you know, walks into a local Social Security office, takes a number and waits to talk with an agent about claiming benefits. The chances are all too good that you will get incomplete or misleading information that could cost you a small fortune in missed benefits. // That’s what happened one day last December to Joseph and Christine Biernat of Southington, Conn. Their goal was to arrange for Christine’s benefits to start flowing when she turned 65 in February 2017 and to check out Joe’s options. Social Security got it half right.
Christine, a registered nurse who spent many of her working years as a homemaker, knew that her “full” benefit of $814 would be trimmed to $762 because she was claiming a year before her full retirement age (FRA is 66 for those born from 1943 through 1954 and will gradually increase to age 67 for those born later). Applying was a breeze, and she got her first payment via direct deposit in March.
This story is from the June 2017 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 2017 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”
OVERCOME RETIREMENT OBSTACLES
Most likely, you'll encounter setbacks on your journey. But with careful planning, you can surmount them.
Find the Right Budgeting App
Mint is closing up shop. Luckily, you have alternatives.
How to Use Leftover 529 Funds
OR families who want to save for their children’s future higher-education expenses, a 529 collegesavings plan offers alluring tax-advantaged benefits. You can withdraw funds tax-free for qualified educational expenses, such as tuition, room and board, books, and computers.
Smart Borrowing in an Era of Higher Interest Rates
There are strategies you can use to lower the cost of new and outstanding debts.