children

Social Security Benefits for Children

Posted on April 18, 2017 by - Children's Benefits, Social Security Benefits

Social Security for Children

You would be surprised to know that according to the Social Security Administration, there are approximately 4.4 million children who receive $2.5 billion in aid each month.

Children of disabled, retired or deceased parents may receive Social Security benefits, which are intended to help families provide for their children through high school. When a parent dies or becomes disabled, Social Security is given to help the family meet the financial needs of the family. The law also protects unmarried and dependent grandchildren who were being cared for by the deceased, disabled, or elderly.

What children qualify for Social Security? It makes no difference whether your child is adopted, biological, or dependent step children, they maybe eligible if they meet certain requirements.

  • Has a parent(s) who is disabled or retired and eligible for Social Security benefits.
  • Is unmarried.
  • Is younger than 18 years old or up to age 19 if he or she is a full time high school student.
  • Is 18 years or older and disabled (as long as the disability began before the individual turned age 22).

 

How to Receive Benefits

First, the family must present the child’s birth certificate, the parents’ Social Security number and the child’s Social Security number. There may be additional documents required as well. Depending upon the circumstances, the applicant must provide a parent’s death certificate and/or evidence of disability from a doctor.

If your child is disabled, the Social Security Administration has a fact sheet and starter packet to help you navigate the process of receiving benefits. This information will guide you along the path to sign up for and obtain benefits and includes a frequently asked questions section as well.

If you are taking care of a child and are receiving benefits, then his or her benefits may stop at a different time than your own. For example, if the child is not disabled, then the caretaker’s benefits will terminate when the child turns 16 years old. If the child is disabled and you have responsibility and control of the child, then your benefits may continue. For these types of specific circumstances, it’s best to contact the Social Security Administration.

The Social Security benefit for children is an important government tool to help keep families — especially the youngest of the bunch — solvent during times of death and disability. Be sure to check in with the Social Security Benefit Planners in evaluating your own case.

Redo for Social Security Retirement Benefits

Posted on April 17, 2017 by - Retirement Benefits

Did you sign up early to start receiving Social Security benefits? If you’ve only recently begun to take benefits, you can still change your mind. For the first twelve months that you’re receiving Social Security income, you have the option to reset this to a later date and increase your payments.

During the initial year, you can halt your monthly payments and delay benefits to get further increases with age 70 being the maxed benefit. This flexibility comes at a cost though; you’ll have to pay back any amount you have already received. For some people, doing so is worth it, if you took benefits at age 62 this is up to a 30% reduction in benefits for the rest of your life. Each year you delay between ages 62 and 70 gives you a nice increase. If you’re the breadwinner in your family ideally you should wait as long as possible as a survivor spouse only gets the higher of the two.  

It isn’t just the currently calculated benefits that will be affected, either. Since Social Security cost of living increases (COLA) are figured as a percentage of your current benefits, delaying until full retirement age or longer means that each year you receive benefits you’ll have a higher amount from which to calculate annual COLA increases.

Unless you really need Social Security income as soon as you are eligible, it’s usually best to wait until your full retirement age or when it maxes out at age 70. One of our Social Security retirement advisors can help you find the best time to take benefits, or help you halt benefits now to increase your retirement income later. www.socialsecuritybp.com to read more, info@socialsecuritybp.com or call 877-270-SSBP (7727)

Not associated with or endorsed by the Social Security Administration or any other government agency.

Social Security Expert Faye Sykes on the Air with Ryan Poterack

Posted on March 22, 2017 by - Radio Shows

Planning today for tomorrow. Social Security expert Faye Sykes, NSSA, CLTC, National Social Security Advisor and CEO of Social Security Benefit Planners joined radio show host Ryan Poterack with expert advice on Social Security planning. LISTEN NOW!

Not associated with or endorsed by the Social Security Administration or any other government agency.

Podcast: Play in new window | Download

Social Security Myth #6: No more Social Security?

Posted on March 21, 2017 by - Family Benefits, Social Security Myths

MYTH: Social Security will go broke in the next 20 years.

That’s a scary statement, and it gets tossed around frequently. Should you worry about it? Not really. Social Security is essentially a pay-as-you-go system. The workers today are paying through their FICA taxes for the benefits current retirees are receiving.

In 2017, if you are W-2 employee you pay 7.65% of your income into the program and your employer pays an equivalent amount. Self-employed workers are required to pay the full amount of 15.3% (but they may be able to deduct some of the expense when they file their annual tax returns).

Any surplus money currently goes into a trust fund and is invested into treasury bonds. By 2034 the trust is projected to run out of money, and this is the source of the scary “going broke” concept. Even if the projection is accurate, however this doesn’t mean that benefits will stop all together. The payroll taxes alone from those working in 2034 should still cover about 79% of promised benefits.

But it’s true that in this scenario there would not be enough money for the program to continue exactly as it is. Congress will need to act by raising taxes, cutting Social Security benefits or both. We should expect a solution to be hammered out long before 2034. Though either of these options would be hard choices that will no doubt inspire real debate, the risk to millions of Social Security beneficiaries that vote will hopefully get politicians of all persuasions to act in plenty of time to prevent the program from facing a true crisis.

Not associated with or endorsed by the Social Security Administration or any other government agency.

Are You Part of the Sandwich Generation?

Posted on March 9, 2017 by - Retirement Benefits, Retirement fears, Social Security Benefits, Uncategorized

Many Americans today are part of what is known as the sandwich generation. No, that doesn’t mean covered in peanut butter or surrounded by lettuce and tomatoes. It refers to being economically sandwiched by two other generations, one older and one younger, that rely on you for financial support.

Providing emotional support for parents and children is part and parcel of being human. It’s both demanding and rewarding, but also creates some fear for the future. Providing financial support for these loved ones while taking care of yourself and your own future, however, can be tough. For many, it seems like an inescapable burden, and fulfilling it can leave you unable to provide sufficient resources to meet your own needs.

If you’re still funding your adult kids’ lifestyles and struggling to take good care of your parents’ financial needs at the same time, you might want to consider whether it’s the best strategy. Despite the desire to provide everything you can for your family, this financial sandwich can leave you in a bad situation a few years down the road.

  • Your kids have their whole life to pay back college and other debts. It feels good to provide your children with a debt-free college education and help with a car, house or other steps toward the good life. But can you afford it? Ignoring your financial future so you can give them the best start isn’t in anyone’s best interest. If you can’t support yourself in retirement, they’ll feel duty-bound to help. It’s often better to let them take out loans to accomplish their goals, while you save for your retirement years. That leaves you better prepared to take care of your own future needs while helping them realize the true costs of their choices and value them appropriately.
  • Learn from your parents and save more toward retirement. The financial sandwich you’re in now should illustrate the importance of saving for retirement. It’s more expensive than most people expect, between rising healthcare costs, inflation and longer lifespans. You’re seeing that first-hand with your parents; learn the lessons that their predicament illustrates and get serious about saving now, so you won’t be in the same one later.
  • You cannot take out loans for retirement. While it’s relatively easy to get a loan for a college education, house or car, just try asking for one to pay for retirement expenses. Lenders will laugh at you! Once you’re past working age, it’s virtually impossible to get a loan unless you can prove you have the resources to pay it back. That’s not a situation that inspires confidence for older Americans who need extra income just to get by, so let the kids get a loan now. It’s far easier to obtain and pay back than the one you’ll need if you don’t save enough for your retirement.

What’s the takeaway? Giving your retirement savings short shrift so you can keep paying for the generational sandwich isn’t wise. If you don’t have enough saved, it’s helpful to do what you can to maximize your Social Security income. But in the big picture, it’s probably more important to save for your own retirement than to fully fund your children’s college and post-college years.

Not associated with or endorsed by the Social Security Administration or any other government agency.

Social Security Myth #4: Only Minor Children Get Benefits When You Die.

Posted on March 7, 2017 by - Children's Benefits, Family Benefits, Social Security Myths, Widow Benefits

MYTH: Social Security only helps minor children at your death.

You probably know that Social Security can provide benefits to children, but if you’re like most people, you believe that this can only happen if you die. That’s not the way it works, though.

Social Security was set up in 1935 to protect Americans, including their
children, through a paid insurance program known as FICA. That’s what the FICA taxes that come out of your paycheck each month are paying for. This program provides financial assistance in cases of disability, at retirement and at death.

If a parent – or in some cases, a guardian grandparent – is caring for a minor child or children and is receiving retirement or disability benefits through Social Security, the children may be eligible to also receive benefits. They may qualify for benefits if their parent or guardian dies as well.

In all three situations, the biological, adopted or dependent step-children may be able to receive benefits until they turn 18 – or longer, if they haven’t finished high school. Children with disabilities can continue receiving benefits for even longer.

The amount of benefits a child can receive varies but can be up to 75% the amount the deceased parent would collect from Social Security. A family limit applies when there are multiple children surviving the parent. This “family cap” is usually between 150% and 180% of the parent’s full benefit. No matter how many children are eligible to receive benefits, the total amount cannot exceed the family limit.

In cases where one parent passes away, a non-working parent or one who earns less that $16,920 per year may also receive additional Social Security family benefits until the child reaches age 16. Again, if the child is disabled, these benefits can continue beyond that age for the adult who exercises parental control and responsibility for the disabled child.

Not associated with or endorsed by the Social Security Administration or any other government agency.