Ask Liz Weston

Get smart with your money

Social Security

Thursday’s need-to-know money news

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Today’s top story: 5 pieces of popular tax advice that are actually baloney. Also in the news: VW aims to plug into nostalgia with the electric bus, Social Security is underpaying thousands of widows and widowers, and 33% of Americans don’t have more savings than credit card debt.

5 Pieces of Popular Tax Advice That Are Actually Baloney
Popularity doesn’t make them true.

VW Aims to Plug Into Nostalgia With Electric Bus
We’re going back to the 60’s.

Social Security underpays thousands of widows and widowers
Claiming a larger benefit.

33% of Americans do not have more savings than credit card debt
A third of the country is in trouble.

Q&A: Credit freezes complicate setting up online Social Security accounts

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Dear Liz: You’ve recently written about protecting ourselves by establishing online Social Security accounts. Social Security prevents me (or anyone else) from creating an online account because I have credit freezes in place. As I understand the process, Social Security uses the credit bureaus to verify my identity. With a freeze, there’s no identity verification. In other words, in order to set up a fraudulent online account, someone besides me would have to unfreeze my credit report first. Is that correct?

Answer: Pretty much. Another way to establish an online account is to go into a local Social Security office with proper identification. But most hackers are unlikely to take the trouble to do either.

You may still want to create an online account to monitor your Social Security earnings record and promptly correct any mistakes or spot employment fraud (someone using your number to get work).

You could make a trip to a Social Security office or temporarily lift your freeze with the bureau that’s providing identity verification services. Currently, that bureau is Equifax — and yes, that’s the bureau that suffered the massive database breach that started this discussion.

Tuesday’s need-to-know money news

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Today’s top story: How to live below your means without feeling deprived. Also in the news: How to dodge the drama of family loans, the launch of Apple Pay Cash, and using Social Security benefits to plan your retirement income.

How to Live Below Your Means Without Feeling Deprived
It doesn’t have to be a slog.

Family Loans: How to Dodge the Drama
Coping with one of the touchiest subjects.

Apple Pay Cash Launches: How It Stacks Up
A new money transfer app.

An almost perfect retirement income source
Using Social Security benefits to plan your retirement income

Q&A: Here’s a way to fight Social Security fraud

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Dear Liz: To make us less likely to become victims of fraudulent activity, years ago I froze our credit bureau files. I assume the Social Security Administration could be hacked as well. Can those files be frozen?

Answer: No, but you can create an online account to track and monitor your Social Security records — and it’s probably a good idea to do so. Fraudsters are creating such accounts and using them to divert benefits onto prepaid debit cards. If you created yours first, this fraud will be harder to pull off. If someone has already created an account in your name, you can find out and start the process of taking back your identity. The place to set up your account is www.ssa.gov/myaccount.

Friday’s need-to-know money news

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Today’s top story: How to mend holes in your budget with a little needle and thread. Also in the news: Understanding online loans, the cybersecurity best practices for small businesses, and a 2% boost is on the way for Social Security in 2018.

Mend Holes in Your Budget With a Little Needle and Thread
Easy repair measures.

Understanding Online Loans
Reading the fine print.

Cybersecurity Best Practices for Small Businesses
Protecting your digital assets.

Social Security benefits to get 2% boost in 2018
A small raise is in the future.

Q&A: Starting Social Security benefits early will cost you

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Dear Liz: I started getting Social Security at age 62. I would have only gotten $327 a month based on my work history, but they gave me $666 based on my husband’s work history. He gets $1,966 but your article said I should get half. Should I be receiving more?

Answer: Probably not.

Your spousal benefit would have been half of your husband’s “primary benefit amount” only if you’d waited until your own full retirement age to apply. Because you started several years early at 62, your check was reduced by 30%.

His primary benefit amount is what he would have received if he started benefits at his own full retirement age. Full retirement age is currently 66 and will rise to 67 for people born in 1960 and later.