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Social Security has redesigned your statement, which is why you have to look at it long and stern

As a result, I highly recommend you to visit Social security website To see important and clear information for your post-retirement safety. for that purpose,”My social security accountIs displayed or set on the site. Otherwise, you can only see the statement when it’s mailed after you’re 60 (176 million workers pay taxes on social security programs, but my society Only 63 million Americans have a security account).

“The statement has been streamlined, contains a clear message, and the information is easy to find at a glance,” Deputy Commissioner Kirolo Kijakaji of the Social Security Administration told me. “So I hope this helps simplify what can be a complex program for the general public.”

Complex kindly puts it down.

Professor of Economics at Boston University Software that helps people claim social security Wisely, I told me that the Social Security Handbook has 2,728 rules and 11 different social security benefits. He believes that at least half of the people who claim social security are “making big mistakes.”

Kotrikov, like other critics, has some problems with the new social security statement. I’ll talk about their concerns soon.

See also below. Social security proposals will increase income and temporarily increase profits

Significant improvement in new social security statement

There are some major improvements in the new social security statement.

A nifty, simple and colorful bar chart called Personalized Monthly Retirement Benefit Estimate (Depends on the age you start with). Earlier incarnations of the statement believed that it would be wise to start as soon as the social security claim was granted (62 years old) or at full retirement age (currently 66-67 years old, depending on when they were born). It may have been. .. However, the new chart shows the benefits of delaying billing if possible.

Under the rules of social security, basically, if you postpone the claim for benefits after retirement until you are 70 years old, you will receive a large benefit of 8% every year. In other words, if you’re 66 and wait until you’re 70 to start billing, you’ll get: There is a 32% greater benefit than if you applied for full retirement. However, 62 is one of the most popular ages when people start claiming social security.

New statement

Social Security Administration

The new statement focuses on the value of late billing through bar charts. For example, a person who was born in 1960 and continues to earn about $ 50,000 a year until he starts paying may find that he gets $ 1,050 a month when he claims 62, and $ 1,860 a month when he waits 70. Maybe.

“People should know that if they retire early, it means an actuarial deduction for the amount they plan to receive, which will follow the rest of their retirement,” Kijakaji said. I did. “Having that visual instinctively makes it clear what your choice is when people make their choice. [claiming] Decision. “

Your personalized revenue record.. Your Social Security Statement now lists most of your annual income taxed for your social security and summarizes some of your previous employment. You can find any year’s income in your “My Social Security” online account.

Survivor benefits. The statement shows exactly how much your spouse or underage child can receive on a monthly benefit from social security if you die this year.

Bullets called important things you need to know about your social security benefits. This explains, for example, that after the death of a married person, the benefits claimed to affect the benefits of the surviving spouse.

Thoughts of social security analysts

Gary Koenig, AARP’s Vice President of Treasury Security, said the new statement was “much better than before.” He is particularly pleased that the Social Security Administration no longer uses the term “early retirement benefits.” This is a phrase he thinks “frankly misleading.” But he wanted the agency to mention “the least profit to your maximum profit”.

Phil Moller, co-author of “Get What’s Yours: The Secrets to Maxing Out Your Social Security,” describes the overhauled Social Security statement as a “solid B.” He’s a fan of the new graphics, but I wish he had more explanations about claiming the rules.

However, Social Security Administration officials have told him that they are working to include benefit estimates, taxes paid, and revenue records in the sample statement “more representative of the actual scenario.”

Jim Blair of Premier Social Security Consulting praises how the new statement gives people better ideas on reducing benefits for early billing.

Martha Shedden, co-founder of the National Association of Registered Social Security Analysts, has conducted various reviews of the new Social Security Statement.

She liked its short length, layout and colored format. “This makes it easier for workers to quickly understand their benefits,” Shedden told me. And she approves links rather than esoteric words to monthly benefit estimates, a “retirement preparation fact sheet” (based on age 10) in a statement for people, and some of the social security claim rules. bottom.

But she says: These personalized quotes are based on previous revenues and are expected to continue to generate $ xx, xxx annual revenues until the award begins... “

Kotrikov, who consulted with the Social Security Administration about the redesign of the statement, thought the visual improvement was “good”, but there was some beef.

For one, “I don’t like being able to create a PDF of the entire revenue history and see if it’s correct,” he said. Shedden also complained about this.

People at the Social Security Administration tell me they are working to update the statement to show people more of their income history.

Kotrikov also quarreled with what he called the “slightly ridiculous and potentially very unrealistic” economic assumptions behind the predictions of a person’s social security benefits.

“They assume there will be no inflation in the future and the wages of the economy will not grow forever,” he said. Kotorikov added that social security assumes that “I will work until you retire.”

Is it time to mail the social security statement again?

Other social security analysts, including AARP, believe that the government should return to regular mailing of social security statements for all Americans over the age of 25, as it did ten years ago.

According to Kijakaji, it has not occurred at this time. “Mailing statements to anyone over the age of 25 increases printing and mailing costs from $ 80 million to $ 90 million annually,” she says.

look: Can Social Security afford all this federal spending?

Kijakazi added that he knows that the Know Your Social Security Act, a bipartisan bill in parliament, needs to revert to a paper statement of workers over the age of 25 who do not receive social security benefits. rice field. “If the bill is enacted, we will work hard to mail it as completely as possible, but it still costs a lot,” she said.

In the meantime, check the social security statement to make sure it’s accurate and what you might receive with benefits one day. If you find an error in your earnings record, please call the Social Security Administration (800-772-1213) to correct the problem.

Richard Eisenberg is Senior Web Editor and Site Managing Editor for Money & Security and Work & Purpose Channels at NextAvenue. He is the author of “How to Avoid the Middle-aged Financial Crisis” and is a Personal Financial Editor at Money, Yahoo, Good Housekeeping, and CBS Moneywatch.

This article has been reprinted with permission from NextAvenue.org, © 2021 Twin Cities Public Television, Inc. all rights reserved.

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Social Security has redesigned your statement, which is why you have to look at it long and stern

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7789-6376D9EF7C5C%7D&siteid=rss&rss=1 Social Security has redesigned your statement, which is why you have to look at it long and stern

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