8 Social Security Rules EVERYONE Should Know
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- Опубликовано: 9 сен 2024
- The Social Security Administration’s website has tens of thousands of pages, each more complicated than the next. This video, 8 Social Security Rules Everyone Should Know, focuses on those that are most impactful for the vast majority of people.
The video is a quick guide into Social Security benefits, rules, exceptions, and those that don’t make a lot of sense on the surface. Most importantly, “8 Social Security Rules Everyone Should Know” simplifies eight complicated rules to their base, so that viewers can get the most out of the video without knowing a lot of Social Security terminology and lingo.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
Thank you! I believe that I'm 10 years out from Social security. We don't consider SS to be our main retirement income, but it is helpful to consider how to maximize it. I appreciate all of the wisdom you share!
People that are counting on SSI for 100% of their retirement are in for a broke future.
Good to see your subscriber base increase. I like your deadpan delivery. Just fact no rhetoric. Keep up the great work
It definitely made more sense to take SS early rather than stay with an employer who NEVER gave raises and required me to spend over half of my daily net income for gasoline to drive 162 miles a day round trip for my work commute. Now I drive only when I want to and can pick from twenty-four vehicles to enjoy!
Why did you live so far away from where you worked???
@@robertstevens2030 The "income" did not allow me to purchase a home in Orange County.
@@jeffshadow2407 twenty-four cars? Are they all yours?
@@The_Red_Pill__ Yes, all mine. Like Jay Leno without the airplane hangar!
You are one of the best! You're accurate, concise and add a bit of humor. Thanks.
Thanks Rick
I went till full retirement 70 would be pushing it as a physical job and there was too much wear and tear on my body
FRA is only 67.5, you silly goose
Your videos are very informative. One improvement I suggest is to do chapters. I already knew most of these but could have scrolled to the ones I did not know with chapters. Instead, I wasted time sitting through the information I was already aware of. Thanks!
Geoff,
I am going to be 62 in 2023 and I am super stressed… I wish you were my financial advisor because my anxiety is through the roof …
Do a budget, add all expenses +$1220 for medical insurance, then add $500-$1000 per month as emergency. Downsize, declutter. You will be surprised how much less stuff you will need. Finally, live on the estimated amount to see how it goes.
It will be fine, I underestimated medical insurance. Sold some stuff.
Do a budget! What do you spend today on everything then go to the medicare website to find your cost for health insurance for you and your significant other. Once you know how much you will need go to the IRS website and figure out how much in taxes you're going to pay and add that to the figure. So today's figures plus Medicare plus taxes will give you an idea. It's not 100% but nothing can be 100% when projecting into the future.
Social security should not be taxed. It's already been taxed when we earned it.
In fact it was tax that you paid!
@@HolySchmidtnope. The employer pays half and the average person only pays in about 15% of what they draw out.
Another unfortunate fact: 😮 When the federal government originally extracted the funds from us, they did not treat the money like a retirement fund. Instead it went into the general treasury and paid for government programs, to service the national debt, or whatever they wanted to use it for.
The same legislators who let this go on decade after decade opted out of the system for themselves. For themselves they created a separate retirement system, as well they should knowing full well what was happening and where Social Security was heading. Those legislators should be held liable for their decisions imo.
Lol that’s never stopped them before
@@johnscott2746it’s even more fun being self employed. We pay the whole thing 😵💫😵💫😵💫
Although the video is limited by time, Geoff might have pointed out that if there are 35 working years where you maxed out (earned above the FICA limit), your benefit should be the max as well, despite all those bend points. And if you have maxed out in 35 separate years, and continue to work, you and your employer will continue to pay in to the system. This belies most of the concept of Social Security as a retirement system.
I don’t think there are too many people who have maxed out the FICA over their careers over 35 years
@@Satjr35031 Agree! And I don't see how any of what dmiller said "belies" anything. It is a retirement system regardless of any of the details.
@@mattball2700 According to Investopedia, Social Security is designed as a "progressive" social insurance system, which means it replaces a greater part of average monthly pay for low-income workers than it does for high-income workers. The bend points implement this skew relative to each worker's Average Indexed Monthly Earnings. It may share some aspects of a conventional retirement plan, but it is different. That is helpful for people to understand. I doubt conventional plans have 'bend points', but they might.
Please more dog pics! Thanks for the tips!
Geoff I'd appreciate a video on Social Security and Irma how it changes your premium that you pay for Medicare part B & D
Here is your video: It dosen't. Why would you think anything about a hurricane is in the rules, you silly person?
Another great video. Love the dog 😉
:)
I'm going through this right now. It seems that when we visited the SS office to sign my wife up for medicare I opened the door with my left hand when I should have used my right, stepped over the threshold with my right foot first when I should have used my left. I also shouldn't have smiled at the first Social Security worker that I came upon, I should have waited for the 3rd one to come into view. What I should have asked the 1st worker was, If you are traveling down the interstate and the left front wheel of your canoe falls off, how many pancakes does it take to fill a manhole? oh by the way the answer is none ice cream doesn't have bones. But no all these rules, regulations and exceptions to them and you can't do this unless you do this first and jumping through hoops, almost makes me not want to go through with it. If the 26 mile trip each way wasn't bad enough the wait in the waiting room with all the non English speaking people didn't make it any better.
I did get my wife set up to go on medicare and was told her Part-B would be $164.90 a month then last week we received a letter that said no, it will be $329.70 a month. all because we cashed in an IRA in year 2021. What I want to know is are we stuck paying that higher amount for the rest of our lives? I was told to fill out a SSA-44 form and send it in with the previous years (2020) tax returns. Then I was told that it probably won't get approved. I'll be signing up for medicare in July and wonder if it will be the higher amount or if I should use 2020's or 2023's tax returns? It was a one time income adjustment and it happened to fall just before we signed my wife up.
Thank you! I'm 53, just downloaded the checklist.
I used to live by a couple with two sons. One was named Miles the other Sky.
Cool names
My stepson married a nice girl named Star. Her older sisters name is Twinkle!
Great recap on Social Security policy. Thank you for the information.
You bet
1 thing you should know is that is you're working (collect early), the money you make in 1 month, may carry over to the next month. That is to say, you may work the hours in 1 month, but the payday is in another month.
Thumbs up for Miles!
Thank you!
Thanks as always Jeff. 😊
I have been enjoying your channel for a couple years now. But I have not seen anything where you have addressed the supersecret Social Security rule where they take back all of your Social Security checks for any months you made over the limit in your first year. I started taking my Social Security at age 65 and was convinced to continue working at a reduced rate for three months after I started receiving my first check. A year later Social Security administration made me pay back all for the 3 months that I made slightly over the monthly limit. It would be great if you could if you could address this so others don’t get slammed with having to pay back a year after it is found.
Great video with good info as always. Thanks! Love your dog!
Do “earnings” also include dividends & interest?
Thank you Mr Schmidt great information as always
Thanks Richard.
Miles ate my SS homework!
I’ve tried that one!
Geoff… as always another good video packed with important information! Husband and I have submitted SS applications… we both just turned 65 and have retired recently. We have benefits to begin on 1/1/2023…. Question I have is will there be inflation adjustment for ages 62-65? Honestly… someone gets paid handsomely to set up some rather confusing Social Security rules!!! Thank goodness for you to break it down! Oh… Miles’ debut was fantastic!
Great video ❤ I watched several times.
Thank you
Your wife asked you ," where did you go?" You- " I just walked miles."
Admittedly… that was pretty good.
Thanks Jeff. Good information.
Social Security Reform seems that addressing it's Solvency seems to be Behavior Modification if anything. Individual retirement accounts have been available since 1974 and younger generations won't depend on Social Security like present recipients..
Thanks for this. Our Toby sends Miles greetings from portugal
Picture of your dog, Myles...! 😅😂😅 He’s adorable
Thank you :)
Hello Miles! Your daddy is God-send for countless people.
Miles did it. 😀
Works like a charm!
Is the 3/1 earnings rule for the last year before FRA, calendar year or full year. Seems like it would penalize people that were still working and were born in January.
Is it me or are there 8 different ways to reduce your SS benefits? Weren't we taxed enough when we worked? Why are we being taxed on money we receive when we are no longer working? Perhaps I misunderstood.
You are not taxed on your contributions. Only your employer's and the accrued interest
Thank you for info. do you some advive about ssdi if you can please
Hi Selam, okay. Is there anything in particular you would you like me to cover.
How would rental income affect social security since it isn't considered earned income?
Good question.
Rent is investment income and no soc sec tax is paid. It is not considered earned income. I own rental property.
If I retire when I'm 66 1/2 can I work after I turn 70?
If you draw Social Security at full retirement age (say age 67 for conversation sake) you can keep working and not return any of your payment back.
Is Earnings Limit based on W-2 income or is your Adjusted Gross Income?
Just to be clear: If you earn $50k for 30 years or $100k for 15 years (adjusted for inflation and nothing else), your benefit would be the same?
TY!
Technically yes But the inflation index could skewed the numbers a little different at the end
Eeeee! Miles! He is adorable!
Thank you!
If you need the money take SS at 62. If you had some success while working you can wait until 70 and get a larger check
Hi Miles do you get Ruff Greens?
Sounds like he should given it a try!
Where can I find the amount of provisional income when I start getting taxed on SS?
It’s any income you receive like IRA 401K Pensions Interest from bank accounts Etc that is deemed as Provisional income
Thanks
You bet
The company I worked for when I was 61 went bankrupt and escorted everyone out to their car. That unfortunately was 2008 and there were no jobs to look for. The Great Recession. So In that case I got BUTT PUNCHED.
I am glad I retired at 57.
Yikes!
😁 yay miles!
Thank you Joy!
nice anneversary..
Thank you Geoff. I could watch this stuff for hours.
Thanks Doug
TMI. Let me explain. Learn your benefit payment. Pick a retirement date. Live your life.🤗
Really, adding a picture of your dog is what made the video for me. 😅 I mean sure there’s great info, but great info AND a dog is better.
while probably not mentioned...never assume people working in a social security office...are looking after your best interests...they arent..they work for the government..
Since the government is made up of people you voted for, why do you think they are not looking after your best interests?
I have NEVER see an explanation that says deferring collecting SS to full retirement age you MUST continue working and the calculation is based on your current yearly earnings
That is because there is no rule you must continue working, try reading up on the basics instead of sluggishly watching youtube
@@DrSchor what you must do then is spend hours upon hours researching SS retirement benefits when you retire. Social security website along with financial advisors (and RUclips) talks about deferred retirement collecting to increase payments but ALL hide the fact that you MUST continue working. Its not just RUclips.
Hey Miles
Miles says hello!
I love kitties but Miles is okay also. 8-)
Kitties are nice
🎄 Great video ~ thank you 🎁⛄
Thanks Gary
Do we pay taxes on SS after FRA?
Most likely yes Depending on your Provisional income it could have some tax on your SS But FRA has nothing to do with taxation
35 years rule. I retired with only 33 years of working am short of 2 yrs.. I'm receiving a monthly pension from PBGC and from my UNION at work with taxes deducted on it. Am not taking my SSS pension yet am trying to hold until next year I turn 66..how's that affect my sis pension.
step 1 would be to determine if either of the other pensions were SS substitutes as opposed to additional retirements independent of SS (WEP might apply) and if so there is a significant earnings help available. After those issues are investigated you can proceed. fyi a rule of thumb is 2 missing years will likely cause a loss of 5.7%,
If possible try to work part time for 2 years. As long as you make over $6,560 you will get credit for an entire year. Much better than a zero. As long as you earn under $21,240 your social security benefits will not be reduced. That amount changes when you reach full retirement age.
Bobby don’t get hanged up on the 35 year You could make the same amount of money as someone who worked 35 years You would get the same SS benefit
@@jameswitte5676 thanks a lot for your prompt reply n my queries..Nah I just roll the punches n whatever I would receive n my SSS pension...I really don't have no desire to go back to the work force anymore..I love where I am right now
Again appreciate your feedback so much.
I think what frustrates me is not knowing about all these rules for social security when I was younger. As a young mother, I had years where I'd only earn $1000 to $5000. Now I'll need to work an extra year for each year I didn't make squat until I have 35 decent years.
Up until a couple of years ago, I thought Medicare was free, so I didn't plan for it.
I didn't even consider what my retirement needs would be until I was in my 40s.
And lastly, I have NO idea how much things will cost when I retire. I stink at math. I know I live off of $22000 right now, (I make $45k but I'm shoveling everything I can into my retirement svgs) and $7800 of that is my mortgage (principle and interest, fixed). Is there a simple formula I could use to estimate what I'll need in 10 yrs, 12 yrs, etc? How do I calculate for inflation? I've never seen this discussed anywhere.
Tiffany who knows what 10-12 years might bring You are doing the correct thing by contributing to your retirement account Hang in there I’m sure you will be fine especially since you know that you are Al least planning by contributing
No simple formula unfortunately. The main reason being the variables are, well, variable. Inflation, healthcare, hosing, transportation are the big ones. If you knew what inflation would be every year for the next ten years you'll have an idea what you'll sped in ten years IF you still live the same lifestyle. Speak to a financial advisor if you are not good with these things. (I am not a financial advisor).
Don't plan on collecting social security until age 70. HUGE difference between collecting at 62 or 70. Save for that, and if you can, keep working (female age 61, hubby is 71 and just started collecting a year ago) .
Were you married at that time? If so (and if you are still married), you are expected to be taking your spouse's SS (at the rate of 50%).
This holds even if you are no longer married to that person (as long as you haven't gotten remarried).
So things may not be a bleak as you think they are...
However, you can always improve on the situation, so get some information from a qualified advisor and then work to improve (which it sounds like you are doing, so good for you).
@@joethecomputerguy1 why do you think SS is hosing you?
I only accept cat photos for fair exchange! Hahahaha....
Who doesn't love a dog. I want to see more of Miles.
Lol. Okay, I’ll feature him in future videos.
Geoff, to get your checklist, one has to enter an email address and after doing so website claims it's on its way. I've signed up using two different email addresses and got nothing. I even check the spam folders and still nothing. I think your website maybe broken.
I just sign up using an alternate email address and it arrived.
Come for the dog, stay for the good advice…
I am retired and living in Thailand. I am 64 and plan on applying for my SS benefits at 66+8. My question is twofold. My wife is a Thai national, she is 57, can she as a non-US citizen collect my benefits after I pass? How long must we have to have been married before she is eligible?
Thanks
I am married to a Filipino. Some of the wives of ex-pats who live in the Philippines do not qualify for any S.S. if they never live in the US. My wife came to the USA and worked for 13 years. She qualifies even if she is not a USA citizen if she stayed married to me for 10 years (which she has). But some wives are left destitute in the Philippines when their husbands die even though the husband gets a SS check. Any children of a union may qualify if they are born after the father is age 65 I believe. Like most things S.S. does, the answers can be complicated. Take some time and get solid answers.
I hate they tax my benefits because my wife is not retired and makes good money
ed smalley ..
Would you be sure to add to SSI videos that when you pass, SSI takes back the payment paid to you in the month you die.
That statement is the whole video.
I'd like to see a video that talks about benefits and drawbacks of taking SS at age 70. It sounds like if the higher earning spouse waits to take SS at 70 then later passes away, their spouse gets the choice of keeping their SS own payment or getting what their spouse would have received at FRA...not at age 70.
No, actually if the higher earning spouse passes away at 70 then the survivor would be elig. for the SS amt. that they were receiving at their date of death. They would continue receiving their own SS & then be elig. for the difference.
Thank you for a great video. My question is this, and it pertains to someone who took social security in 2023 at age 62 (ie, early). This question also revolves around the once in a lifetime SS allows a person to stop receiving benefits and then testart them at a later time.
If a person at age 62 in 2022 collected social security for 6 months while, also working during the year, and decides to stop his/her social security afterall. This single person earned 50k in work earnings and collected $12,732, stopping SS in Oct of 2022.
1.) is this combined income of 62,732 now just taxed as ordinary income?
2.)If this person restarts SS in 2023, are they subject to a clawback/ reduction; or is this avoided by stopping SS and paying ordinary inc tax on the total in 2022?
I know this is your opinion and thatbyou are not giving tax advice
Thank you !
You have to pay back the amount collected in total. Google is your friend here.
Geoff, as always, thanks bunches! Fur baby hugs for Miles! 😁
Thanks Carol
Rule #9-- SS Admin gives out wrong information sometimes, just like the IRS does.
Indeed
SS Administration has provided me two different documents with errors! I have yet to receive my correct SS payment paperwork as to what I will begin receiving next February, a month after I turn the big 70! So very frustrating.
How can there be mistakes in such a short set of rules? They provide only 110,000 pages of directions online for SS.
Why not I just get a loan an start up a business for myself
I give up: why not?
Also, tax’s increase when you hit 71 years old because the standard deduction is lowered at that age.
Never heard about that.... link?
really, where ever did you get that idea from?
@@DrSchor that statement is bs about tax increase....
Cute dog 🐶
Thanks Keith
Cool dog😋
Thanks :)
It would be nice to have $2,000 stimulus check for l people with social security disabilities so we can invest as well 😔
You're so correct! Save, ¡nveest and spend for necessities and a few luxuries relatives to on's total asse~ts ratio.
There is only one rule to remember, wait until you are 70. Do not accept a smaller check.
Not everyone can wait until 70 due to physical issues, for one. I’m fortunate that I can make it to FRA, but waiting until 70 is a bridge too far.
@@JBM425 FRA is much better than 62. 62 is foolish
Even with the fluctuation in the economy, I'm so excited I've been earning $45,000 from my $10,000 investment every 10days.