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Social Security

Tuesday’s need-to-know money news

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Today’s top story: Parents with student debt want a do-over. Also in the news: What you need to know about Medigap Plan G, don’t let Social Security steer you wrong, and why Millennials and Gen Zers should be investing in Roth IRAs.

Parents With Student Debt Want A Do-Over
Nearly 1 in 3 parents regret their decision.

What Is Medigap Plan G? What You Need to Know
Medigap Plan G, part of Medicare Supplement Insurance, helps cover additional costs not met by Original Medicare.

Don’t Let Social Security Steer You Wrong
When to claim benefits is a complex decision. Don’t rely on the help line staff, and consider getting a pro’s help.

Why Millennials and Gen Zers Should Be Investing in Roth IRAs
Minimize your tax exposure while taking advantage of compound interest.

Thursday’s need-to-know money news

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Today’s top story: Don’t let Social Security steer you wrong. Also in the news: 3 times to think twice about paying for your kid’s college, a new episode of the Smart Money podcast on investing, and how to spot the signs of a better market for homebuyers.

Don’t Let Social Security Steer You Wrong
When to claim benefits is a complex decision. Don’t rely on the help line staff, and consider getting a pro’s help.

Pay for Your Kid’s College? 3 Times to Think Twice
Don’t take on college debt for your child if your financial health will suffer when your kid doesn’t pay the bill.

Smart Money Podcast: Nerdy Deep Dives: Investing, Part 1
Exploring your personal money background and how it can affect your investing choices.

The Property Line: Watch for Signs of a Better Market for Buyers
Home buyers can track the number of offers, days on market and inventory to see whether the market is becoming more favorable.

Don’t let Social Security steer you wrong

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Few retirement decisions are as critical, or as easy to get wrong, as when and how to take your Social Security benefits. The rules can be so convoluted that many people rely on what they’re told by Social Security employees, but that could prove to be an expensive mistake.

In my latest for the Associated Press, how to protect your Social Security and learn the facts.

Q&A: About spousal and survivor benefits

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Dear Liz: I am 82 and receive $786 from Social Security. My wife is 75 and receives $1,400 from Social Security. I believe you said that a lower beneficiary could get the same amount as the higher beneficiary. When I contacted Social Security, I was informed that my benefit needed to be less than half of my spouse’s in order to qualify. When I asked him where in the regulations I could find that information, he abruptly hung up. Was he right?

Answer: Yes. The only time you would get the same amount as your wife is if she died, and at that point you would get only the survivor benefit (one check for $1,400, instead of the two checks totaling $2,186 you receive now as a couple).

Survivor benefits are different from spousal benefits. Spousal benefits are what you might receive while your wife is alive. Spousal benefits can be as much as 50% of the higher earner’s “primary insurance amount,” or what she was entitled to at her full retirement age. If your retirement benefit is larger than that spousal benefit amount, you would get your own benefit rather than the spousal benefit.

The Social Security site has plenty of information on how benefits work as well as calculators to help you estimate your benefits. You can start by reading its publication titled “Retirement Benefits” at https://www.ssa.gov/pubs/EN-05-10035.pdf.

Q&A: Pensions and Social Security benefits

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Dear Liz: My situation is similar to the former teacher who wrote about a pension impacting Social Security benefits. I started Social Security at 62. My wife’s government pension is from a job that didn’t pay into Social Security. I’ll receive her pension if she should die before I do. If this occurs, how will my Social Security be impacted?

Answer: It won’t, because your situation is actually the reverse of the former teacher’s.

You paid a portion of each paycheck, currently 6.2%, into the Social Security system. The teacher (and your wife) did not, so their benefits are affected by rules designed to prevent people who didn’t pay into Social Security from getting more than those who did.

Q&A: Medicare and Social Security

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Dear Liz: If my wife and I wait until we are 70 to collect Social Security but retired at our full retirement age of 66 and 2 months, would we still be able to get Medicare for those 3 years and 10 months before we reach 70?

Answer: You’re eligible for Medicare at age 65, which is typically when you should sign up. Delaying can incur penalties you’d have to pay for the rest of your life.

People receiving Social Security benefits at 65 are signed up automatically for Part A (hospital coverage) and Part B (which pays for doctor visits), with the Part B premiums deducted from their benefits. If you’re not already receiving Social Security, you’ll need to contact the Social Security office, which manages Medicare enrollment, to sign up and pay the Part B premiums.