Fong Law Group

How Working and Taking Social Security Benefits Works Or Doesn’t (中英對照)

“Taking Social Security while still working, may sound like a good way to boost your income while you prepare for your impending retirement, but this strategy can have unexpected costs.”

It seems too good to be true — the idea of working at your regular job, receiving your regular salary and giving yourself a little extra income by applying for Social Security benefits at the same time. However, as explained by the article “Working and Taking Social Security at the Same Time? Watch Out for This” from Yahoo! Finance, there are some real pitfalls to doing this, unless you are very careful.

If you are under your Full Retirement Age (FRA), which depends on when you were born, the government may reduce your benefits, if your paycheck exceeds certain thresholds. This is formally known as the Social Security Earnings Test. You’ll need to work all the numbers to see if this strategy might work for you. Don’t expect it to, by the way, because that’s not what Social Security is all about.

The Social Security Earnings Test calculates how much you will lose in Social Security benefits, if you are under your FRA and if you’re earning over a certain amount every year from a paycheck. In 2019, that limit is $17,640. Note that this only applies to earned income. It does not apply to any other government benefits, investment earnings or pension income. For every $2 you earn more than $17,640 in 2019, the SSA (Social Security Administration) deducts $1 from your monthly benefit.

Let’s say you are entitled to a $1,000 benefit every month ($12,000 per year) and you also earn $2,400 from your job. You’ll lose $3,180 in benefits and you’ll get only $8,820 for the year.

The numbers are a little different, if you are reaching your FRA at some point during 2019. The 2019 earnings limit when a person has reached FRA is a lot larger at $46,920, instead of $17,640. In this case, for every $3 you earn over the limit, the SSA will reduce benefits by $1.

Here’s the sweet spot: as soon as you hit your FRA, the rules no longer apply, and you can earn as much as you can. The SSA won’t take deductions from your paychecks.

There is a Retirement Earnings Test Calculator on the Social Security website. You must enter your date of birth, estimated earnings and your estimated Social Security benefit. It will provide further information on how earnings will be calculated.

If you are counting on Social Security for most of your living expenses during retirement, consider working longer, at the very least until you reach your FRA. You can also keep working full-time and delay taking Social Security benefits, so when you do start getting that monthly benefit it will be bigger.

For every month you delay taking Social Security beyond your 62^nd birthday, benefits increase by 2/3 of 1%. You’ll reach 100% of your benefits at FRA, and if you can keep delaying benefits until age 70, benefits increase by a significant amount: 132% if your FRA is 66, or 124% if your FRA is 67.

Reference: Yahoo! Finance (Feb. 25, 2019) “Working and Taking Social Security at the Same Time? Watch Out for This”

工作同時領取社會安全金是可行還是不可行

“在你還在工作的同時領取社會安全金，可能聽起來像是一種為你將來退休做準備同時增加收入的好方法，但這方法會產生意想不到的代價。”

申請社會保障福利同時有正規工作，領取正常工資和給自己一點額外收入的想法似乎好得令人難以置信。但是，正如來自雅虎財務文章“Working and Taking Social Security at the Same Time? Watch Out for This” ，這樣做有一些陷阱，除非你非常小心。

如果您還未達到完全退休年齡（FRA），這取決於您出生的時間，如果您的薪水超過特定門檻，政府可能會減少您的福利。這正式稱為社會保障收入測試。您需要小心計算所有數字，看看這個策略是否適合您。順便說一句，不要期望，因為這不是社會保障的原意。

如果您在完全退休年齡下, 並且每年從薪水中獲得超過一定數額的收入。社會保障收入測試計算您在社會保障福利中將損失多少。在2019年，該限額為17,640美元。請注意，這僅適用於賺取的收入。它不適用於任何其他政府福利，投資收益或養老金收入。您在2019年的收入如超過17,640美元，每多2美元, SSA（社會保障管理局）將從您的每月福利中扣除1美元。

假設您每月獲得1,000美元的福利（每年12,000美元），同時您工作收入為2,400美元。你將損失3,180美元的福利金，而今年你只能獲得8,820美元。

如果您在2019年的某個時間到了您的完全退休年齡，那麼這些數字會略有不同。當一個人於2019年達到完全退休年齡時，2019年的收入限額便會提高到46,920美元，而不是17,640美元。在這種情況下，若超過限額, 每多3美元社會保障管理局將扣除1美元的福利金。

亮點在這裡：只要到達您的完全退休年齡，規則就不再適用，你可以盡可能賺到盡。社會保障管理局不會從您的薪水中扣除。

社會安全局網站上有一個退休收入測試計算器。您必須輸入您的出生日期，估計收入和您估計的社會安全金。它將提供有關如何計算收入的更多資訊。

如果您在退休期間依靠社會安全金來支付大部分生活費，請考慮延長工作時間，至少到達您的完全退休年齡。您還可以繼續全職工作並延遲享有社會保障福利，這樣當您開始領取每月福利時，它會更多。

在您62歲以後, 您每推遲一個月去領取社會安全金，福利便會以百分之一的三分之二增長。您將在您到達完全退休年齡, 您會獲得全額福利，如果您延遲享有社會保障福利直到70歲，福利將大幅增加 : 132% 如果您的完全退休年齡是66歲或124% 如果您的完全退休年齡是67歲。

參考: Yahoo! Finance (Feb. 25, 2019) “Working and Taking Social Security at the Same Time? Watch Out for This”

Thinking of Claiming Social Security Early Because of Headlines? 因頭條新聞而想提早領取社會安全金？(中英對照)

“Despite a permanently reduced monthly benefit, here's why more workers could opt to take their payout as early as age 62.”

The Social Security Administration reports that 62% of retired Americans rely on their benefits for at least half of their income stream, with about a third of Americans relying on Social Security for almost all their post-working income. That’s been corroborated by Gallup organization surveys of retired and non-retired people, according to an article in The Motley Fool titled “Social Security: Why Claiming Early Could Be All the Rage Next Decade.” Only one in 10 people don’t depend on Social Security at all for income when they are retired.

Claiming early means a smaller monthly and lifetime benefit for you and likely for your surviving spouse. Your retirement benefits are based on your 35 highest earning, inflation adjusted, years. To max out, you’ll need to have worked for 35 years. Years with zero income can impact your overall totals.

Birth year is another factor. That determines your Full Retirement Age (FRA), the year that you become eligible to receive your full retirement benefit. Claim earlier, and you risk permanently reducing the monthly benefit by as much as a third. Claiming after your FRA could boost benefits by 32%.

Most people do start claiming Social Security benefits before their FRA, for a variety of reasons. Sometimes it’s because they have lost their job, are over 60 and can’t get hired. Some people simply don’t know that the longer they wait to claim, the higher their benefits will be. What is clear is that 60% of retired workers in 2013 took their benefits between 62-64, with another 30% claiming between 65-66. One in 10 workers took benefits after their FRA.

There has been a change in recent years. While more people are waiting longer to claim their benefits, fewer are waiting until their FRA. The reason is tied to the headlines. People are worried that Social Security is going to be cut, and they want to get the income they can while the agency is still fully funding benefits.

The 2018 Trustees Report (officially, "The 2018 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds”) said the agency will pay out more than it collects in 2018, the first time this has occurred since 1982. The net cash outflow is expected to grow faster starting in 2020, and then by 2034, the $2.89 trillion in assets may be gone. Congress will need to act, or benefit cuts to all retirees will have to be made—by as much as 21%.

Can anyone know what will occur between now and 2034? Congress could fix any concerns by passing a bill that solves the problem, and those who claim early will be left with smaller benefits. We also don’t know when we are going to die. The decision of when to claim must be made by each individual, based on their FRA, their other sources of retirement income and their expectations for the future.

Reference: The Motley Fool (Dec. 20, 2018) “Social Security: Why Claiming Early Could Be All the Rage Next Decade”

“因每月的福利金長年地減少，這就是為什麼更多在職人士選擇提前在62歲時領取支付。”

社會保障管理局報告說，62%的退休美國人至少有一半的收入依賴他們的福利，大約三分之一的美國人依靠社會福利來獲得退休後的收入。根據The Motley Fool的一篇題為“Social Security: Why Claiming Early Could Be All the Rage Next Decade.”的文章，蓋洛普組織對退休和非退休人員的調查證實了這一點。只有十分之一的人在退休時沒有依賴社會保障以獲得收入。

提前申請意味著您和您的在生配偶可能會獲得較小的每月和終身福利。您的退休福利基於您的35個最高收入，通貨膨脹調整,工作年數。若要領取最高額的退休金，你需要工作35年。收入為零的年份會影響您的總體收入。

出生年份是另一個因素。這決定了您的完全退休年齡（FRA），即您有資格獲得全額退休福利的年份。提前申請，您可能會將每月福利金額永久性地降低三分之一。在您的完全退休年齡之後申請可以將福利額提高32%。

由於各種原因，大多數人確實開始在完全退休年齡之前申請社會福利。有時是因為他們失去了工作，已經超過60歲而且無法被雇用。有些人根本不知道他們等待申請的時間越長，他們的福利就越高。顯而易見的是，2013年60%的退休工人在62-64之間獲得了福利，另有30%的人在65-66之間獲得。十分之一的人在完全退休年齡之後獲得了福利。

近年來發生了變化。儘管有很多人願等長一點時間來領取退休金，但更少的人等待他們的完全退休年齡，原因與他們每天讀到的頭條新聞有關。人們擔心社會安全金將被用盡，他們希望該部門還能提供保障時領取收入。

2018年受託人報告（正式，“2018年聯邦老年和在生保險和聯邦殘疾保險信託基金董事會年度報告”）表示，該機構在2018年入不敷支，這是自1982年以來第一次發生這種情況。從2020年開始，淨現金額流出預計將增長更快，然後到2034年，2.89萬億美元的資產可能會消失。因此國會需要採取行動，或者必須削減所有退休人士的利益 - 高達21%。

誰能知道從現在到2034年之間會發生什麼？國會可以通過一項方案去解決社會安全金的問題。如果是這樣的話，那些提前申請的人將獲得較小的福利。我們也不知道什麼時候會死。何時領取的決定必須由每個人根據他們的完全退休年齡, 他們的其他收入來源以及他們對未來的期盼而作出。

參考: The Motley Fool (Dec. 20, 2018) “Social Security: Why Claiming Early Could Be All the Rage Next Decade”

Making Sure Spouse Receives the Most Social Security 確保配偶得到最大的社會安全保障 (中英對照)

“A report shows that 82% of surviving spouses could have collected a higher benefit, if they restricted their application to survivor benefits and waited until the age of 70 to claim their own retirement benefits.”

Losing a spouse at any time in life is difficult. However, losing a spouse while you are retired also presents some serious financial challenges. A recent article in Kiplinger, “Maximize Social Security benefits for surviving spouses,” explores the steps that a surviving spouse can take to make sure she is are receiving the most Social Security benefits possible. There’s a right way and several wrong ways to do this.

If you are widowed before claiming Social Security benefits, there are options to maximize Social Security payments by coordinating the timing of claims and survivor benefits.

If you don’t know about this, don’t count on Social Security to tell you about mixing and matching the benefits. A report issued early in 2018 by the Social Security Administration’s Office of the Inspector General found that as many as 82% of surviving spouses taking benefits could have received a higher monthly benefit by restricting their application to survivor benefits only and delaying taking their own benefits up to age 70.

Without restricting an application, a beneficiary eligible for both benefits receives the highest one to which they are entitled.

Not knowing about how to maximize survivor benefits, can put a big hole in monthly income. The report projects that the Social Security Administration underpaid about $132 million to more than 9,000 beneficiaries age 70 and older, and in the coming years it will underpay more than 2,000 additional beneficiaries who are under age 70 – by about $9.8 million, once they reach age 70.

Educate yourself about how this works. Surviving spouses need to consider whether they can make the most of their benefits by taking the survivor benefit first, and later switching to their own benefit, or by taking their own benefit first and then switching to a survivor benefit. The key factor to consider in this equation: How much either benefit can grow.

You can claim a survivor benefit as early as age 60, or age 50 if disabled.  However, it is reduced, if it is claimed before the survivor’s full retirement age (FRA). It won’t grow past the survivor’s full retirement age. The most a surviving spouse will receive is 100% of the benefit the deceased spouse received or was eligible to receive at his death.

Run the numbers and do the math. Once you figure out which number will grow the most, you may want to delay that benefit. The amounts and the age you claim could make a big difference in the quality of your retirement.

Resource: Kiplinger (Aug. 7, 2018) “Maximize Social Security benefits for surviving spouses”

“一份報告顯示，82％的倖存的配偶可以獲得更高的福利，如果他們的申請僅限於倖存者福利，並等到70歲才申請退休金。”

生命中任何時候失去配偶都會很痛苦。但是，在退休期間失去配偶更會帶來一些嚴重的經濟問題。Kiplinger最近的一篇文章，“Maximize Social Security benefits for surviving spouses,” (為倖存的配偶最大限度地提高社會保障福利) 探討倖存配偶可以採取的步驟，以確保她是獲得最多的社會保障福利。你可以選擇一種正確的方法和幾種錯誤的方法來做這件事。

如果您在申請社會安全保障福利之前喪偶，可以通過協調申請的時間和倖存者福利來最大化社會安全金。

如果您對此不了解，請不要依賴社會安全局來告訴您混合和匹配的好處。社會安全局監察長辦公室於2018年初發布的一份報告發現，多達82％的倖存配偶可以通過僅限於申請倖存者福利並延遲到70歲才領取因為可以獲得更高的每月福利金。

如果沒有其他限制，有權領取倖存者福利和本身的退休福利只能拿到較高的那份福利。

不知道如何最大限度地提高倖存者福利，可能嚴重的影響每月的收入。該報告指出，社會安全局向超過9,000名70歲及以上的受益人少支付了大約1.32億美元，並且在未來幾年內，它對超過2,000名70歲以下的受益人，當他們達到70歲時，少支付了大約980萬美元。

教育自己如何運作退休福利。倖存的配偶需要考慮他們是否可以通過首先獲得倖存者福利，然後轉為自己的福利，或者首先獲得自己的福利然後轉為倖存者福利來充分利用他們的福利。最需要考慮的關鍵因素是: 每份退休收益能增長多少。

你可以提前在60歲就申請遺屬撫恤金, 如果殘疾的話，50 歲就可以。然而，如果在倖存者達到退休年齡(FRA)之前申請的話，撫恤金就會減少。一旦倖存者的退休年齡過了，撫恤金就不會增長。倖存的配偶最多可領取過世配偶生前領取的或有權領取的全部福利。

你要學會計數。一旦你計算出哪個數字會增長最多, 你可能會想推遲這個份退休金。你所

領取的金額和申請的年齡會對你的退休品質產生很大的影響。

參考: Kiplinger (Aug. 7, 2018) “Maximize Social Security benefits for surviving spouses”