Included in President Obama’s December 17th proposal to avert the fiscal cliff was a significant change to government benefits, most notably Social Security. The President conceded to Republican demands to change the method currently used to measure inflation, which determines the cost of living adjustment (COLA) for Social Security and other federal programs. The President’s proposal would mean that inflation would now be measured using the chained Consumer Price Index (chained CPI), which would replace the current CPI formula. Although not included in the final fiscal cliff bill, the chained CPI is very much still on the table as a…
Glenn Smallwood does not have a cell phone, computer, or credit card. Nor does he have a bank account. And that’s exactly the way he likes it. “I guess you could say I’m an old fuddy duddy,” Smallwood, 63, a semi-retired insurance salesman in Clearwater, Fla., told ABC News. “I’m set in my ways. I don’t want my money in a bank. I keep my money in my pocket.” So when Smallwood received a notice from the U.S. Treasury Department informing him that as of March 2013, his Social Security checks would be directly deposited into his bank account –or…
As the baby boom approaches its Social Security years, it is turning the decision about when to start collecting benefits from an automatic move into a major planning and research opportunity. Having intensively looked into car seats and college admissions for their kids and tried to map out careers and 401(k) plans, boomers now will focus attention on squeezing Social Security for all it is worth. "Baby boomers are the first generation that isn't going to put up with crappy advice," says William Meyer, Chief Executive Officer of Social Security Solutions, Inc., one of a number of new companies selling…
The COLA, or Cost Of Living Adjustment, has been a nearly annual increase in Social Security payments. Why? To keep benefits consistent with inflation. Otherwise, seniors would be at the mercy of rising prices on fixed incomes. Lean times in the economy, however, have meant cutting back COLA for the past two years, leaving many seniors with no choice but to further tighten their belts. The 3.6% increase will be warmly received by many. For example, beneficiaries receiving $1,186 a month, the average for retired workers, will see monthly benefit increase of $43. To be sure, it’s not a dramatic…
When should you start taking your Social Security benefits? The current common advice is to wait as long as possible, in order to maximize your eventual monthly benefit. In fact, AARP recently launched a new online calculator to help you decide when to start taking benefits … and it clearly illustrates the benefits to claiming later. The calculator is a useful tool, and worth checking out, but as Reuters Wealth points out, the calculator is not totally neutral, and lacks advanced features that could allow you to estimate more complex situations. For example, the AARP calculator does not allow you…
Estate Recovery: Sections 1902(a)(18) and 1917(b)(1) of the Act require States to pursue estate recovery when a Medicaid beneficiary received medical assistance under the State plan: 1) in cases where a lien has been imposed under the State’s lien authority, and 2) for recipients age 55 and over, who received nursing facility services, home and community-based services, or related hospital and prescription drug services. States may optionally seek recovery to pay for costs of other approved State plan services provided to those 55 and over, except Medicare cost sharing paid on behalf of Medicare Savings Program beneficiaries on or after…
In this article, MarketWatch’s Robert Powell takes on the problems and the hype surrounding Social Security and Medicare, as well as what they mean to you. The article first moves to cut through the media-created frenzy and outline some of the reasons why the situation isn’t so bad and that it’s important not to panic (you may also want to read a related article on retirement fears, also from MarketWatch: http://www.marketwatch.com/story/dont-let-fear-ruin-your-retirement-2011-05-23.) A few of the tips: continue working at least until your full retirement age, or to age 70 if possible, keep your skills up to date, and be sure…
Who knew that question would even be asked, let alone become so politically charged? The popular media today frightens people with blaring headlines that Social Security is bankrupt, and you are unlikely to receive a dime … countered by reassuring comments that the system has a multi-trillion-dollar surplus. So – which is it? Is Social Security a pipe dream, a shell game, a bankrupt program from which you will never receive benefit? Or is it a social safety net for those whose working years are over? A recent Morningstar article tries to answer those questions, and provides insight as to…
If you’re not already familiar with the Social Security's website, it may be time to start. You may already know that you can go online to get an application to replace your Social Security card, apply for Medicare, retirement or disability benefits, even search popular baby names. While all those online services may be helpful, a new addition to the website may become essential. The government is working to provide your yearly earnings statement online by the end of this year, and forego the massive mailings. The statements, mailed to 150 million people each year, show a projection of your…
The first stage of the retirment planning is the period when you first enter the workforce and begin setting aside funds for later in your life and ends when you actually retire. A consideration in choosing an employer should be the amount they will contribute to your retirement savings and if they have a pension plan. Sign up for the 401(k), 403(b), or 457(b) plan if offered and contribute the maximum allowed as soon as you start working. In 2007, less than 32 percent of workers under age 35 participated in plans when they were offered at work, according to…
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