Social Security

Creating Exempt Family Employment to Minimize Social Security Payroll Taxes

Posted on May 1, 2023 by - Business Owners

What is creating exempt family employment?Social Security Payroll Taxes

If you own a family business, you can create exempt family employment to reduce the Social Security payroll taxes that your business incurs. You create exempt family employment by hiring your child who is under age 18, because the earnings of a child under 18 who is employed by a parent who owns a sole proprietorship are not subject to Social Security payroll taxes.

How does it work?

A child who is employed by a parent doesn’t have to pay Social Security payroll taxes under two conditions

  • The child must be under 18
  • The parent’s business must be organized as a sole proprietorship or a partnership

Tip: If the business is organized as a partnership, the parents must be the only partners.

Both the parent and the child save money

The child’s earnings are exempt from Social Security payroll taxes, so the child saves 7.65 percent of his or her salary. The parent also saves the employer’s share of Social Security taxes (7.65 percent of the salary) that he or she would have normally paid.

Strengths

Simple way to save payroll taxes

Hiring a child under 18 is no harder than hiring any other employee. However, if you do want to hire your child, you should check your state’s child labor laws.

Tradeoffs

The child’s employment status might be considered invalid by the Internal Revenue Service (IRS) or the Social Security Administration (SSA)

If you hire a child under 18 to work in your business, you must pay the child a wage that is appropriate for the actual work done by the child in an age-appropriate job. Otherwise, the SSA or the IRS may argue that the child isn’t really your employee.

Tax considerations

  • The cost of labor is a valid business expense deduction that can reduce your tax liability. For more information see IRS Publication 535, Business Expenses.
  • A child may have to pay income tax on his or her earnings over a certain amount. For more information see IRS Publication 929, Tax Rules for Children and Dependents.

We love to help you retire better. Check out our many Social Security planning options. Also, we love to keep in touch with our newsletter; click here to sign up.

Broadridge Investor Communication Solutions, Inc. prepared this material for use by Social Security Benefit Planners, LLC.

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on individual circumstances. Social Security Benefit Planners, LLC  provide these materials for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Social Security Benefit Planners, LLC and its affiliates are in no way associated with or approved, endorsed, or authorized by the Social Security Administration.

Divorce and Social Security

Posted on March 23, 2023 by - Divorce, Family Benefits

Divorce and Social Security

How does divorce affect Social Security retirement benefits?Divorce and Social Security

After a divorce, you can claim retirement benefits based on your own earnings record (if you have been employed and have accumulated enough credits over the years), or you can claim benefits based on your ex-spouse’s earnings record (whether or not you ever worked), provided that certain requirements are met.

What requirements must be met?

You may qualify for benefits based on your ex-spouse’s earnings record if all of the following conditions are met:

  • Your ex-spouse is currently entitled to receive Social Security retirement or disability benefits
  • You and your ex-spouse were married for at least 10 years before the divorce became final
  • You are not currently married
  • You are age 62 or older, and
  • You aren’t entitled to collect a retirement or disability benefit based on your own earnings record that equals (or exceeds) one-half of your ex-spouse’s PIA

If you are age 62 or older and you’ve been divorced for at least two years, you can receive Social Security benefits based on your former spouse’s earnings regardless of whether that spouse is already receiving benefits. This, of course, is assuming that the other four requirements listed above have been satisfied.

How much can you receive?

If you begin receiving benefits at your full retirement age (66 to 67, depending on your year of birth), your spousal benefit  is equal to 50% of your ex-spouse’s full retirement benefit (or disability benefit). For example, if your ex-spouse’s benefit at full retirement age is $1,500, then your spousal benefit is $750. However,  there are several factors that may affect how much you ultimately receive.

For example, if you’re eligible for benefits based on your own earnings record then the Social Security Administration (SSA) will pay that amount first. But if you can receive a higher benefit based on your ex-spouse’s record, then you’ll receive a combination of benefits that equals the higher amount.

When you  begin receiving benefits will also affect the amount you receive. You can receive benefits as early as age 62, but your monthly benefit will be reduced (reduction applies whether the benefit is based on your own earnings record or on your ex-spouse’s.)  This reduction is permanent. In other words, if you choose to receive reduced benefits at age 62, you will not be entitled to collect full benefits when you reach your full retirement age. If you decide to receive benefits later than your full retirement age, your benefit will   increase by 8% for each year you wait past your full retirement age, up until age 70 (increase  applies only if benefit is based on your own earnings record).

In addition, if you work after you begin receiving benefits (before you reach your full retirement age) and your earnings exceed the annual earnings limit that applies, your Social Security benefit may be reduced. Receiving a pension based on work not covered by Social Security may also result in a benefit reduction.

Note: If you decide not to collect retirement benefits until  full retirement age, you may be able to  maximize your Social Security income by claiming your spousal benefit first. The option to file a restricted application for spousal benefits  may be available to you if you were born on January 1, 1954 or earlier. By opting to receive your spousal benefit at full retirement age, you can delay claiming benefits based on your own earnings record (up until age 70) in order to earn delayed retirement credits. This can boost your benefit by as much as 32%. Because deciding when to begin receiving Social Security benefits is a complicated decision and may have tax consequences, consult a professional for help with your individual situation.

How does remarriage affect Social Security benefits?

If your ex-spouse gets remarried and you don’t, your Social Security entitlement will be unaffected.

If you remarry,  you generally can’t collect benefits based on your ex-spouse’s record unless your current marriage ends. Any spousal benefits you receive will instead be based on your current spouse’s earnings record.

What if your ex-spouse has died?

You may also qualify for Social Security survivors benefits based on your ex-spouse’s earnings record if your former spouse has died. You may qualify if:

  • Your ex-spouse was entitled to Social Security benefits
  • You and your ex-spouse had been married to each other for at least 10 years before the divorce was finalized
  • You are age 60 or over (or are between ages 50 and 60 and are disabled)
  • You aren’t currently married, and
  • You aren’t entitled to a retirement benefit that is equal to or greater than 100 percent of your deceased spouse’s benefit

Note that if you meet the above conditions, you will be entitled to full survivors benefits; that is, you will collect an amount equal to 100 percent of your former spouse’s PIA, not merely one-half. However, if you’re under full retirement age, your benefits will be reduced for each month you receive benefits under your full retirement age. Benefits at age 60 will be 71.5 percent of your former spouse’s PIA. It’s also important to note that a divorced spouse may be entitled to a mother’s or father’s benefit if caring for the dependent child (under age 16 or disabled) of his or her deceased former spouse. Typically, the amount of a mother or father’s benefit is equal to 75 percent of the deceased spouse’s PIA. Unlike a spousal benefit, it isn’t necessary for the marriage to have lasted 10 years.

For more information on how divorce may affect your Social Security benefits, contact the SSA at (800) 772-1213 or visit socialsecurity.gov.

Thank you for taking the time to read this article. We hope it has given you some insight into Social Security.  If you have any questions or would like more information, please feel free to contact us. We would love to hear from you. Our newsletter is a great way to stay up-to-date with our latest offerings and get helpful retirement planning tips. Signing up is easy; click here.

 

Broadridge Investor Communication Solutions, Inc. prepared this material for use by Social Security Benefit Planners, LLC.
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on individual circumstances. Social Security Benefit Planners, LLC  provide these materials for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. Social Security Benefit Planners, LLC and its affiliates are in no way associated with or approved, endorsed, or authorized by the Social Security Administration.

A 6.1% Bump in Social Security?

Posted on July 20, 2021 by - Retirement Benefits

Bump in Social Security

COLA and Social Security.

The news keeps getting better for Social Security recipients.

It’s now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant increase since 1983.1,2

It’s all about inflation. Social Security cost of living adjustments (COLA) are based on the consumer price index, which rose 5.4% in June — its largest 12-month increase since 2008. The official announcement is expected in October and, once it’s confirmed, the revised payment will go into effect in January 2022.3

More than 65 million Americans receive Social Security, and the annual cost of living adjustments are designed to help recipients manage higher costs. At the start of 2021, recipients saw a 1.3% increase.4

The average monthly benefit is $1,544 for retired workers. So a 6.1% increase amounts to $94 more a month. That might not be quite enough for a car payment, but it’s double the 3% raise being given to U.S. workers in 2021.4,5

Social Security can be confusing. One survey found only 6% of Americans know all the factors that determine the maximum benefits someone can receive.6 If you have more questions, please get our FREE E-Book on Social Security Basics and start getting your questions answered. Author Faye Sykes is a National Speaker on Social Security and understands how to maximize your Benefits.

 

Citations

  1. Fortune.com, July 15, 2021
  2. SeniorsLeague.org, May 12, 2021
  3. InvestmentNews.com, July 13, 2021
  4. SSA.gov, June 2021
  5. SHRM.org, June 2021
  6. FinancialAdvisorIQ.com, July 19, 2021

 

The forecasts for Social Security benefits are based on assumptions, subject to revision without notice, and may not materialize.

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Social Security Benefits Frequently Asked Questions

Posted on August 8, 2017 by - Social Security Benefits

According to the United States Government, over 59 million individuals will receive approximately $863 billion in Social Security benefits this year. With numbers like that, chances are good that you or someone you know may be eligible for benefits soon.  Social Security Benefit Planners answer some of the more common questions people ask about Social Security.

Do I qualify for Social Security retirement benefits?

Depending on your date of birth, the normal age of retirement (a government term related to the age in which benefits can kick in) is 65-67.  Take our quiz and find out exactly how much you understand about your own Social Security Benefits. You can apply for benefits if you are at least 61 years and 9 months old, or as late as age 70.

How do I apply for Social Security benefits?

You can apply for Social Security benefits either online, or in person at the Social Security office if there is one in your city. Click on our Interactive Map and find out how we can help in YOUR State

The Social Security Administration recommends starting the application process at least four months in advance of your planned retirement, and you will need information such as your birth certificate, Social Security card, and other government-issued documents. This list published by the Social Security Administration gives the full list of documents that may be needed for your application.

When is the best time to apply?

Every individual’s needs are different, but factors that may impact your decision to collect retirement can include your health, your financial needs, your other sources of income, and your plans to work after you start collecting your benefits. This is because the total dollar amount of your benefits will vary based on how old you are when you claim the benefit and whether or not you are still working.

If you are getting a divorce, you should also be thinking about Social Security. If you were married at least 10 years and do not ever re-marry, you may qualify for benefits based on your former spouse’s earnings when you both reach age 62. The result is that you could receive the higher of benefits based on your own work history or half of your former spouse’s benefit, even if he or she has remarried.

How much Social Security am I entitled to?

As of 2014, the maximum benefit per month for a person who earned the maximum taxable earnings for 35 years or more is $2,663 per month. However, the average monthly retirement benefit is $1,328.  Learn about the FACTS of Social Security

Have more questions about how to Maximize YOUR Social Security? Ask Faye Sykes, National Speaker for Social Security Benefit Planners and learn how planing now will save you time and money later.

Top Tips for Business Owners to Maximize Retirement Income

Posted on July 14, 2017 by - Business Owners, Social Security Benefits

Are you a business owner with an at-home spouse who helps out with bookkeeping or a variety of other tasks that need to be done? Once you get to retirement age it’s too late, but for those of you that are in your 20’s, 30’s, 40’s or even 50’s there’s still time to let these efforts build future benefits. Paying your spouse at least $4,880 a year will ensure that they continue to vest into the Social security system, which will help you at retirement time.

To fully vest you need to earn 40 credit hours, with a maximum of 4 credits per year at $1220 per credit.  Spouses who are not vested can still pull a half benefit off of their working spouse’s retirement benefit (or ex-spouse’s, if married over 10 years). If widowed after being married 9 months or more, you can draw benefits up to your deceased spouse’s full amount, depending on what age decide to file.

If both spouses have work history the social security retirement benefits picture can drastically change for the better. With two vested partners you’ll also have more options, such as the potential for the lower earning spouse to pull earlier while delaying the higher earning spouse’s filing until age 70 to get the highest benefit. And don’t forget that social security disability benefits are hinged on a person working at least 5 out of the last 10 years, which can help when the worst happens.

As you can see, it’s in your best interest to ensure that the work both partners contribute to your business is recognized as paid employment by the Social Security Administration. We offer a pre-check social security flat fee planning option that will help you review where you are today and give you insight about the impact on future income you can make by ensuring that both spouses are being paid for the work that they do.

Please “Select a Plan” so we can get started on maximizing your social security benefits or take our quiz to find out how much you know about your social security.

Social Security for Dependent Parents

Posted on July 12, 2017 by - Family Benefits, Social Security Benefits, Spousal Benefits

Parents take care of us for so many years, and in some cases we are able to help our own parents in their retirement.  But what will happen if your dependent parent doesn’t outlive you?

Very few people know about an important social security benefit that can help your financially dependent parent should you die. If your parent relies on you for more than half of their living expenses, they may be able to receive benefits after your death. In order to take advantage of this benefit you must have earned enough credits to qualify for social security – that’s 40 credit hours – and your parent must:

Receive at least half of his or her support from you

  • Be at least 62 years old
  • Not have remarried since the adult child’s death
  • Not have an individual social security benefit that’s more than the potential benefit based on your earnings

How This Affects Social Security Benefit Planning

First, the age at which you claim your own retirement benefit doesn’t affect the time at which your parent can start receiving a parent’s benefit. (It is your date of death that determines that.)

Second, the age at which you claim your retirement benefit doesn’t affect the amount of your parent’s benefit based on your work record. The amount of a parent’s benefit is 82.5% of the deceased person’s primary insurance amount if there is one eligible parent. If there are two eligible parents, each parent’s benefit as a parent is 75% of the deceased person’s primary insurance amount. (If the parent is already receiving a different Social Security benefit — such as their own retirement benefit — then the total amount they will receive is the greater of the two benefits.)

We offer a FREE Quiz that you can take to test your knowledge on YOUR social security. Most often people wait until they need it the most.  Don’t be that person. Contact us today! Or Call: 877-270-SSBP (7727)

What Every Expat Needs to Know About Social Security

Posted on July 10, 2017 by - Expat Social Security, Social Security Benefits

So you have decided to work or retire out of the United States. How does this affect your Social Security and Medicare benefits? The answer varies by country, and it will work out better for you in certain countries than in others. It’s important to understand what is at stake.  We broke down what Expats or (Expatriate) needs to know

  • About 20 countries have agreements to prevent double taxation. In the rest, you will pay taxes to your host country as well as Uncle Sam.
  • About 25 countries maintain bilateral agreements that allow you to transfer social security credits to and from the US. For example, if you work in the US for 20 years and then move to Canada and work there for another 10 years, when you retire you can transfer your US credits to Canada to vest into their system (or vice versa).
  • There are a few countries, such as North Korea and Cuba, where you will not be allowed to receive social security benefits while living there.
  • Your non-US spouse may or may not be entitled to your benefits if you were to pass. The laws vary by country and are quite complex.
  • If you think you will ever move back to the US then it is very important to sign up for Medicare part A, which is free, at age 65. There are ways to opt out of part B if you qualify, but if you do not sign up for part A there are permanent penalties that will persist throughout your retirement.
  • If you worked overseas and did not pay into social security for certain years, your pension from that country will most likely trigger a Windfall Earnings Provision (WEP) that partially offsets your social security benefit.

Determining retirement benefits for expats can be a confusing and complex situation, with many country-specific rules that change over the years. If you need help navigating social security options for expats and their families, please visit our website at www.socialsecuritybp.com to learn more.

How does Divorce and Social Security Work?

Posted on July 8, 2017 by - Divorce, Social Security Benefits

How does Divorce change my Social Security

We get a lot of questions regarding Divorce and Social Security. How it works, and who qualifies for what? Filing for Social Security involves a dizzying array of choices and decisions. When should you claim benefits? What’s the best way to maximize your income? Selecting the right options isn’t easy for anyone, and for those who are divorced it can be even harder. If you’re confused by the myriad of rules and regulations around filing for Social Security as a divorced individual, keep these guidelines in mind:

If you were married over 10 years, you can claim spousal benefits. This is true as long as you meet the following conditions:

  • You’ve been divorced for at least two years at the time you file.
  • You have not remarried.
  • You have reached the age of 62 (or older).
  • Your spouse is qualified by work history and citizenship to claim Social Security retirement/disability benefits.

Your spousal benefit will be equal to one half of the full retirement amount your ex-spouse is qualified to receive, assuming you file at your full retirement age. In many cases, this could be more than the amount you would receive based on your own work history – if you were out of the work force caring for children, for example. If your own work record is higher than you will receive your own benefit. In either case if you file at age 62 this could reduce your benefit as much as 30% for the rest of your retirement which can cost you thousands of retirement dollars.

You can receive the full amount of your ex-spouse’s Social Security benefit if he or she passes away. If your ex-spouse is deceased you can receive benefits as a widow or widower instead of spousal benefits. You qualify for the full amount of your ex-spouse’s retirement benefit, just as you would if you had still been married at the time of death. The rules are similar to those for spousal benefits:

  1. The marriage must have lasted at least 10 years.
  2. You must have attained your full retirement age (your benefit will be less if you file early).
  3. You must not have remarried before age 60. A marriage at or after the age of 60 will not affect your ability to qualify for this type of benefit.

In both types of Social Security benefits, it makes no difference whether your spouse has remarried one or more times. These benefits are yours if you qualify based on your age and marital status, even if there is a current spouse or widow who also collects benefits.

Still confused? Please contact our office for a consultation. We’ll help you clarify your options and find your best path forward. Social Security Benefit Planners 877-270-SSBP (7727) info@socialsecuritybp.com

Military Service and Social Security – How it works

Posted on July 5, 2017 by - Social Security Benefits

Worried about how your military service affects your Social Security? You don’t have to, because the retirement income you’ve earned through military service won’t reduce your Social Security benefits. In fact, if you served on active duty between 1957 and 2001, you may even be credited for extra earnings on your Social Security record.

For Social Security purposes, active duty includes active duty, reserve duty and active duty for training (ACDUTRA), and includes your service in the:

  •         Army
  •         Navy
  •         Air Force
  •         Marines
  •         Coast Guard
  •         National Guard
  •         Public Health Service (service as a commissioned officer)

Although your benefits are not impacted by retirement income from the military, Social Security benefits for survivors may reduce the income beneficiaries receive through the Department of Defense Survivors Benefit Plan. Your military retirement advisor or the Department of Defense will be able to offer information specific to your situation.

Whenever you served, the American people thank you and wish you a happy retirement, complete with all the Social Security benefits to which you are entitled. Want assistance in understanding optimal options for maximizing your Social Security? Choose one of our plans and please use USA2017 to save $50 off any plan.

Are Employees of Foreign Governments Covered by Social Security?

Posted on July 5, 2017 by - Social Security Benefits

Working inside the U.S. as an employee of a foreign government or an instrumentality of one can mean you’re not covered by Social Security. These workers include diplomats, embassy employees, non-diplomatic representatives, consular officers and employees of foreign government instrumentalities (non-commercial organizations that function on behalf of a foreign government).

Whether or not your work will be counted toward Social Security benefits is controlled by your citizenship status.

U.S. Citizens who work for a foreign government are treated as self-employed citizens are for Social Security. Your employer will not withhold Social Security taxes but your earnings can still count toward your coverage under the program. You are responsible for paying self-employment taxes on the income. Citizens who work for an instrumentality are covered by Social Security, but their earnings may be treated as employment or self-employment based on three conditions. The U.S. Department of State and the IRS will determine which category your work falls into.

Non-citizens are not covered by Social Security for work they perform for a foreign government. Their employment for an instrumentality of a foreign government may or may not be covered by Social Security, depending on same three conditions mentioned above.

Dual citizens who hold citizenship in the U.S. and another country are covered by Social Security in most cases, but depending on the country for which they are working, they may need to pay self-employment taxes or not. Dual citizens who work for an instrumentality of a foreign government may or may not be exempt from paying Social Security taxes on their earnings. Reciprocal social security agreements between the U.S. and foreign governments vary by country, so it is important that dual citizens speak with a qualified professional or governmental administrator to determine program eligibility and tax responsibilities.

If you want to understand options that pertain to your situation please go to our “Select a Plan” and sign up for one of our planning options. Use FOREIGN2017 to receive $50 off any plan.

 

Social Security for Federal Government Employees

Posted on July 5, 2017 by - Social Security Benefits

Long-time employees of the Federal government may be confused about their Social Security benefits, and it’s easy to understand why. The U.S. government changed the retirement system for their employees in 1984, and only one of those systems include earnings for Social Security.

Prior to 1984, all employees were covered under the Civil Service Retirement System (CSRS), which did not withhold Social Security taxes from workers’ earnings. As a result, these earnings do not qualify government workers for Social Security credits or benefits.

The retirement system that replaced the CSRS is the Federal Employees Retirement System (FERS), and under this system Social Security taxes are withheld from workers’ earnings. These earnings are included in calculating Social Security credits and benefits.

Everyone who began working for the Federal government during or after 1984 is covered under Social Security, assuming a sufficient work history to earn the required 40 credits.

Federal employees who switched to the FERS program are also covered under Social Security; all the work they performed after switching to FERS is counted toward their Social Security credits and these earnings are used to calculate benefits.

Some workers who were already covered under CSRS chose to remain under that program after FERS was available. These employees have not contributed into Social Security and are not eligible to receive benefits under the program. However, they are eligible to receiver Medicare Part A coverage after they earn the 40 quarterly credits required of all participants.

We want to help you customize retirement income options socialsecuritybp.com and use FEDERAL2017 for $50 off any plan option.

Top 7 Reasons that you should NOT have a plan to maximize your Social Security Retirement Income

Posted on May 24, 2017 by - Retirement Benefits, Social Security Benefits, Social Security Myths

  1. Even though your dreams were to always travel the world you didn’t save enough and love to watch “Rick Steve’s Europe” and “An Idiot Abroad” instead. It still feels like you are there, right?
  2. Living in a 600-square foot rental apartment in retirement with no spectacular view was in the future plans.   
  3. Or even better was your life long goal to move into the in-law suite on your kid’s property-  now this could be extra fun!
  4. Being able to order anything off the dollar menu at any fast food restaurant always rocks – YUM.
  5. Not having the option to NOT work well after you wanted to retire. Hi Ho, Hi Ho off to work we go.
  6. Your 1982 Dodge Colt isn’t pretty but still gets you from A to B.. just not C.
  7. Delaying, reducing the dosage or not purchasing all your needed prescriptions because of the high cost. Who needs their health anyway!

Of course we want people to travel, have decent housing and food, the option to retire when they want and being able to take care of their health.

Did you know that almost 50% of Americans opt to take Social Security as early as they can and therefore lock themselves in up to a 30% permanent reduction in Social Security retirement income? We have helped many individuals and families see how they can increase their annual income anywhere from 3k to 30k per year.

Now that is some real Clams, Cheddar or Dough back in your pocket.

You paid into this over your whole career why not make the most of this valuable insurance program!

To get our free e-book go to www.socialsecuritybp.com or sign up to get your own customized plan to get your extra Clams today!  

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

Social Security Expert Faye Sykes on the Air with Radio Host Dana Barrett

Posted on May 22, 2017 by - Radio Shows

Faye Sykes, CEO of Social Security Benefit Planners joined us in studio during hour one of today’s show! Faye explained the right time to take social security and how she and her company is able to help families maximize their social security benefits.

During hour two, Jackie Cannizzo, Executive Director of JCI Foundation joined us to dish on two upcoming events you don’t want to miss! The JCI Foundation will host the Judson Women’s Leadership Conference on June 20th at the Cobb Galleria; a great opportunity for women to learn and be inspired by successful leaders from all walks of life.

https://soundcloud.com/dana-barrett-clips/social-security-benefit-planners-faye-sykes-on-maximizing-your-retirement-income

The Birth of Social Security in America

Posted on May 16, 2017 by - Social Security Benefits

How do I collect Social Security?

We take Social Security for granted, but where did this important insurance program come from and when did it start? It hasn’t been around forever, has it? The answer is no. Social Security began after the Great Depression, when millions of Americans who had lost their savings were facing an old age defined by stark poverty. Few workers had pensions through their jobs, and President Franklin Roosevelt wanted to do something to alleviate the poverty that faced so many older workers in their retirement years.

Since its creation in 1935, millions of retirees have been able to live more comfortably because of this national insurance program, which they collectively funded through payroll taxes during their working years you will see this as FICA on your payroll statement. Though Social Security wasn’t meant to be the only source of income for beneficiaries, it was in its early years and, unfortunately, it still is today for many. As per Social Security fact sheet in 2017 21% of married couples and 43% of unmarried persons rely on Social Security for 90% or more of their income. Many people do not realize that this is a program that has a life insurance, disability and retirement income benefits that you and your family can benefit from.

With changing demographics that include more retirees and fewer workers, Social Security has had to evolve over the years. President Reagan signed into law several revisions to Social Security after Congress passed suggestions made by the Greenspan Commission, which had reviewed the program’s financial picture. These changes included an increase in the payroll tax that pays for benefits as well as a gradual increase in the retirement age, from 65 to 67.

In the future, it’s likely that more changes will have to be made to keep the program financially sound. The prospect can sound alarming, but making necessary tweaks to keep a valuable program that provides millions of Americans with the basic income they need is well worth the effort. Long live Social Security!

For a full customized projection of your Social Security income please sign up for a plan option or learn more at www.socialsecuritybp.com.

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

Broke as a Joke? Social Security’s Finances

Posted on May 8, 2017 by - Social Security Benefits

What is the future of Social Security?

Is Social Security broke? Reading the news can sometimes leave you with the impression that Social Security is practically out of money. This massive program provides key income and takes in millions of dollars each year, but is it going belly-up?

Here’s how it works. The payroll taxes that you and everyone else pay each month (FICA and Medicare) go to the treasury, where they are counted as credits to the Social Security Trust Fund. Those who receive Social Security benefits get their money from what’s paid in, but there is some left over. The excess is invested in special issue U.S. Treasury bonds, which earn interest. The interest is credited to the trust fund, as well.

Right now, more money comes into the program through taxes and interest than goes out in benefit payments. Years of this excess pay-in has created a surplus that amounted to $2.7 trillion by 2014’s close. That figure will continue to increase until 2019, when the surplus is expected to reach $2.8 trillion.

But as the Baby Boomers retire and smaller birth cohorts begin to fill the ranks of the workers whose taxes fund Social Security, there will be more money going out in the form of benefits than there is coming in through payroll withholding taxes. At that point, the treasury bonds that the Social Security Trust Fund owns will be needed to help cover the benefits that beneficiaries receive.

The program is expected to fully utilize its surplus in 2034, which will leave payroll taxes as the only source with which to make benefit payments. According to current projections, those taxes will cover approximately 79% of the anticipated amount needed. Congress will have to decide whether to cut benefits or increase funding, which they could easily do by raising the limit on the amount of income to which FICA and Medicare taxes apply.

Social Security isn’t exactly going broke, but it will need to be tweaked in order to provide the benefits that today’s workers have been promised when they retire. Do you have an opinion on how to handle the future shortfall in the program’s budget? Let your senators and representatives know!

To receive your own customized Social Security benefit projections please visit our website www.socialsecuritybp.com to learn more or sign up for a plan.

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

Social Security Is More than Just a Retirement Plan

Posted on May 3, 2017 by - Retirement Benefits, Social Security Benefits

How to Retire on Social Security?

Social Security Isn’t Just for Retirement

When you think of Social Security, you probably think about retirement. It’s true that the program provides critical income for millions of retired Americans, but Social Security also does much more.

Designed as a safety net to provide older people who could no longer work with a basic income, Social Security has grown into a much broader safety net over the years, offering financial benefits to protect not only retirees, but also disabled workers and the families that have lost a family member.

Just a few years after the program began, it was expanded to provide benefits for the spouse and any minor children of a deceased worker. Starting in 1939, survivors could receive financial support from Social Security if the family’s breadwinner died. This makes it function as the largest life insurance program in the country, although it’s not generally considered to be one.

Would you think of the payroll deductions you contribute to Social Security as disability insurance premiums? Probably not, but in 1954, Social Security also began making payments to disabled workers and their dependent spouses and/or children. Trying to purchase the same kind of disability protection that Social Security offers can be prohibitively expensive, or even impossible for some workers. With Social Security, everyone who has worked enough to buy into the program is covered. Typically, you need to show that you have earned over the minimum amount to vest currently $5,200 per year five out of the last ten years.

Retirement benefits are an important and well-known part of Social Security, but don’t mistakenly believe that’s the only thing it does. Social Security protects working Americans and those who depend on them in many different and equally valuable ways.

There are over 2,700 regulations that oversee Social Security which affect life, disability and retirement benefits. Please check out our website www.socialsecuritybp.com to learn more or to sign up for a customized plan.  

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

Social Security Is a Lifesaver for Many Women

Posted on April 25, 2017 by - Social Security Benefits

How do Women collect Social Security?

Social Security a Women Lifesaver

Social Security is a retirement, disability and life insurance program and if you’re a Woman, this can be a lifesaver in retirement. It’s not that women are more interested in a financially secure old age than men. Americans of both sexes rely on Social Security for critical support in their retirement years, but for a variety of reasons, it’s often women who depend on it the most.

  • Longer lives – Women, on average, live longer than men. Without sufficient private retirement savings, this longevity can result in Social Security being the sole or majority source of income. The potential of running out of retirement savings is a problem that affects many retirees, but because of their longer life expectancy, more women end up counting on Social Security alone to support them.
  • Smaller paychecks – Sadly women on average don’t earn as much as men. They often work in fields that are lower-paid than those where men predominate, and even in the same job women frequently earn less than a man does in the same position. Fair? Maybe not, but it’s a fact. That makes it harder to save for retirement and reduces pension benefits, where they exist. As a result, Social Security often forms a greater part of women’s retirement income than men’s.
  • Fewer working years – Between raising children and caring for aging parents, women often take years out of their careers that men do not. While some men do choose to stay home with children or serve as caregivers for parents, it is far more likely that a woman will do so, statistically speaking. Since the formula that determines Social Security benefits is biased toward lower-earning workers, women get some protection from the hit they would otherwise take from a shorter work history.
  • Less other retirement income – Men are more likely than women to have pensions through their jobs, and to have larger pensions than the women who do qualify (partly because of women’s shorter work histories and lower wages). Without this additional income in retirement, women tend to be more dependent on the benefits they receive from Social Security than men are.

Social Security shouldn’t be your only plan for retirement income, but whether or not it is supplemented by private savings, if you’re a woman, it’s a critical component. Having a plan with your spouse before taking benefits can make a huge difference in how much money is available in retirement. Sign up today to have your own customized Social Security plan www.socialsecuritybp.com or info@socialsecuritybp.com.

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

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.