Fong Law Group

Maximizing Social Security Survivor's Benefits 取得社會安全遺屬最大的利益 (中英對照)

Social Security survivor's benefits provide a safety net to widows and widowers. But to get the most out of the benefit, you need to know the right time to claim. 

While you can claim survivor's benefits as early as age 60, if you claim benefits before your full retirement age, your benefits will be permanently reduced. If you claim benefits at your full retirement age, you will receive 100 percent of your spouse's benefit or, if your spouse died before collecting benefits, 100 percent of what your spouse's benefit would have been at full retirement age. Unlike with retirement benefits, delaying survivor's benefits longer than your full retirement age will not increase the benefit. If you delay taking retirement benefits past your full retirement age, depending on when you were born your benefit will increase by 6 to 8 percent for every year that you delay up to age 70, in addition to any cost of living increases.

You cannot take both retirement benefits and survivor's benefits at the same time. When deciding which one to take, you need to compare the two benefits to see which is higher. In some cases, the decision is easy—one benefit is clearly much higher than the other. In other situations, the decision can be a little more complicated and you may want to take your survivor's benefit before switching to your retirement benefit. 

To determine the best strategy, you will need to look at your retirement benefit at your full retirement age as well as at age 70 and compare that to your survivor's benefit. If your retirement benefit at age 70 will be larger than your survivor's benefit, it may make sense to claim your survivor's benefit at your full retirement age. You can then let your retirement benefit continue to grow and switch to the retirement benefit at age 70. 

Example: A widow has the option of taking full retirement benefits of $2,000/month or survivor's benefits of $2,100/month. She can take the survivor's benefits and let her retirement benefits continue to grow. When she reaches age 70, her retirement benefit will be approximately $2,480/month, and she can switch to retirement benefits. Depending on the widow's life expectancy, this strategy may make sense even if the survivor's benefit is smaller than the retirement benefit to begin with. 

Keep in mind that divorced spouses are also entitled to survivor's benefits if they were married for at least 10 years. If you remarry before age 60, you are not entitled to survivor's benefits, but remarriage after age 60 does not affect benefits. In the case of remarriage, you may need to factor in the new spouse's spousal benefit when figuring out the best way to maximize benefits. 

社會安全遺屬福利為寡婦和鰥夫提供安全網。但是為了充分利用這些福利，您需要知道申請的正確時間。

雖然您可以在60歲之前申請遺屬福利，但如果您在退休年齡之前領取福利金，您的福利將永久地減少。如果您在完全退休年齡領取福利金，您將獲得配偶所有的福利，或者如果您的配偶在領取福利金之前去世，您將拿到配偶在完全退休時的全部福利。與退休福利不同，延遲申請遺屬福利的時間到完全退休年齡後並不會增加福利。如果您延遲領取您的退休福利到您的完全退休年齡後，根據您出生的時間，不包括每年生活指數的調整，您延遲到70歲時每年福利將增加6%至8%。

您不能同時享受退休福利和遺屬福利。在決定取哪一種時，您要比較一下兩種之中哪一種收益比較高。在某些情況下，很容易就可以決定 –其中 一個利益顯然比另一個好得多。在其他情況下，可能會稍微複雜一些，您可能希望先獲得遺屬福利，後才是退休福利。

要確定最佳策略，您需要查看您在完全退休年齡時和70歲時的退休福利，並將之與遺屬福利進行比較。如果您在70歲時的退休福利金額大於您的遺屬福利金，那麼在您的完全退休年齡申請您的遺屬福利可能更合理。然後，您可以讓您的退休福利金繼續增長，並在70歲時轉為退休福利。

示例：一名寡婦可以選擇每月2,000美元的全額退休福利或每月2,100美元的遺屬福利。她可以獲得遺屬福利同時讓她的退休福利金繼續增長。當她達到70歲時，她的退休福利將約為每月2,480美元，她可以轉為退休福利。根據寡婦的預期壽命，即使遺屬福利小於退休福利，這種策略也可能更合理。

請緊記，如果離婚配偶結婚超過10年，他們也有權享有遺屬福利。如果您在60歲之前再婚，您無權享有遺屬福利，但60歲以後再婚不會影響福利。在再婚的情況下，您可能需要考慮新配偶的配偶福利，同時找出最大利益的最佳方法。

Social Security Scams Keep Going 社會保障詐騙仍繼續下去 (中英對照)

“The Social Security scam is circulating once again, and officials want to stop it from claiming more victims.”

It seems like scammers have become more aggressive and a frightening tone has gotten more than one otherwise sensible person embroiled in them. Crooks are calling and telling people that their Social Security numbers have been suspended, and that they need the number and the person’s bank account information to issue a refund, says KKTV’s report “Social Security officials hope to combat scam.”

In addition to the aggressive angry voice, is the fact that the caller ID has been “spoofed” or made to appear that the person is actually calling from the Social Security Administration or another government agency.

Nancy Berryhill, Acting Commissioner of the Social Security Administration, advises people to be very cautious and not to provide anyone with information like their Social Security number or bank account information to unknown people, either on the phone or over the Internet.

The SSA has launched a public service campaign warning about these calls, in the hope that consumers will realize that the SSA never makes threatening phone calls and never asks for gift cards in payment. The campaign is being run in conjunction with the Office of the Inspector General.

The scamming calls are nationwide. The message is clear: if you get this kind of a phone call, hang up.

While the SSA does occasionally call people, it’s usually someone who is working with the agency on an on-going matter, so that the call and the agent making the call is not a stranger.

Berryhill advises people that if they are contacted by someone claiming to be from the Social Security Administration or the Office of the Inspector General, they should get the person’s name, their phone number and then hang up. If the same person calls again, hang up. It is more than likely to be a thief.

Contact the local Social Security office and find out if a call has been made to you. Never provide a caller with your Social Security number.

Some of the crooks are able to get information about people, including part of their Social Security numbers, and they call stating that they are asking only to verify the entire Social Security number. Again, if someone from Social Security was really calling, they would have that information and would not need it to be verified.

Reference: KKTV (March 22, 2019) “Social Security officials hope to combat scam”

“社會保障騙局再次流傳，官員們希望能阻止以免有更多的受害者。”

騙子似乎變得更進取，而且用恐嚇的語氣令不少精明的人落入陷阱。 KKTV的報告稱“Social Security officials hope to combat scam.”，騙子打電話告訴人們他們的社會安全號碼已被暫停，他們需要號碼和個人的銀行賬戶資料才能退款。

除了咄咄逼人的憤怒語氣之外，來電顯示本身已經是騙局 ,來電顯示顯示該人是從社會安全局或其他政府機構打來的。

社會保障管理局代理專員Nancy Berryhill建議人們要非常謹慎，不要通過電話或互聯網向任何人提供社會安全號碼或銀行賬戶資料等信息給來歷不明的人。

對於這些電話SSA已經發出了公共事務活動警告，希望消費者能明白到SSA從未打過威脅電話，也從不會要求支付禮品卡。而該活動正在與監管局合作進行。

詐騙是全國性的。訊息很明確：如果你接到這種電話，請掛斷電話。

雖然SSA偶爾會打電話給人，但通常是致電給與當局正在打交道的人，因此致電的人並不是陌生人。

Berryhill建議,如果有人聲稱是來自社會保障局或監管局的人，他們應該取得該人的姓名，電話號碼，然後掛斷電話。如果同一個人再次打來，請掛斷電話。它很可能是一個詐騙者。

聯繫當地社會保障局，了解他們是否曾經致電給您。切勿向來電者提供您的社會安全號碼。

一些騙子能夠獲得有關資料，包括社會安全號碼的一部分，他們打電話說他們只要核實整個社會安全號碼。如果來自社會保障部門的人真正打來時，他們已經有您的社會安全號碼，並不需要核實號碼。

參考: KKTV (March 22, 2019) “Social Security officials hope to combat scam”

Social Security Scams Keep Going 社會保障詐騙仍繼續下去 (中英對照)

“The Social Security scam is circulating once again, and officials want to stop it from claiming more victims.”

It seems like scammers have become more aggressive and a frightening tone has gotten more than one otherwise sensible person embroiled in them. Crooks are calling and telling people that their Social Security numbers have been suspended, and that they need the number and the person’s bank account information to issue a refund, says KKTV’s report “Social Security officials hope to combat scam.”

In addition to the aggressive angry voice, is the fact that the caller ID has been “spoofed” or made to appear that the person is actually calling from the Social Security Administration or another government agency.

Nancy Berryhill, Acting Commissioner of the Social Security Administration, advises people to be very cautious and not to provide anyone with information like their Social Security number or bank account information to unknown people, either on the phone or over the Internet.

The SSA has launched a public service campaign warning about these calls, in the hope that consumers will realize that the SSA never makes threatening phone calls and never asks for gift cards in payment. The campaign is being run in conjunction with the Office of the Inspector General.

The scamming calls are nationwide. The message is clear: if you get this kind of a phone call, hang up.

While the SSA does occasionally call people, it’s usually someone who is working with the agency on an on-going matter, so that the call and the agent making the call is not a stranger.

Berryhill advises people that if they are contacted by someone claiming to be from the Social Security Administration or the Office of the Inspector General, they should get the person’s name, their phone number and then hang up. If the same person calls again, hang up. It is more than likely to be a thief.

Contact the local Social Security office and find out if a call has been made to you. Never provide a caller with your Social Security number.

Some of the crooks are able to get information about people, including part of their Social Security numbers, and they call stating that they are asking only to verify the entire Social Security number. Again, if someone from Social Security was really calling, they would have that information and would not need it to be verified.

Reference: KKTV (March 22, 2019) “Social Security officials hope to combat scam”

“社會保障騙局再次流傳，官員們希望能阻止以免有更多的受害者。”

騙子似乎變得更進取，而且用恐嚇的語氣令不少精明的人落入陷阱。 KKTV的報告稱“Social Security officials hope to combat scam.”，騙子打電話告訴人們他們的社會安全號碼已被暫停，他們需要號碼和個人的銀行賬戶資料才能退款。

除了咄咄逼人的憤怒語氣之外，來電顯示本身已經是騙局 ,來電顯示顯示該人是從社會安全局或其他政府機構打來的。

社會保障管理局代理專員Nancy Berryhill建議人們要非常謹慎，不要通過電話或互聯網向任何人提供社會安全號碼或銀行賬戶資料等信息給來歷不明的人。

對於這些電話SSA已經發出了公共事務活動警告，希望消費者能明白到SSA從未打過威脅電話，也從不會要求支付禮品卡。而該活動正在與監管局合作進行。

詐騙是全國性的。訊息很明確：如果你接到這種電話，請掛斷電話。

雖然SSA偶爾會打電話給人，但通常是致電給與當局正在打交道的人，因此致電的人並不是陌生人。

Berryhill建議,如果有人聲稱是來自社會保障局或監管局的人，他們應該取得該人的姓名，電話號碼，然後掛斷電話。如果同一個人再次打來，請掛斷電話。它很可能是一個詐騙者。

聯繫當地社會保障局，了解他們是否曾經致電給您。切勿向來電者提供您的社會安全號碼。

一些騙子能夠獲得有關資料，包括社會安全號碼的一部分，他們打電話說他們只要核實整個社會安全號碼。如果來自社會保障部門的人真正打來時，他們已經有您的社會安全號碼，並不需要核實號碼。

參考: KKTV (March 22, 2019) “Social Security officials hope to combat scam”

Social Security Scammers are Good at Scaring Victims 社會保障詐騙者擅長嚇唬受害者 (中英對照)

“The stories being spun by scammers are getting more outlandish. Ketti Bingen discovered this after a recent caller told her there was a warrant out for her arrest.”

No wonder these scams work: the people behind them have just enough information about their victims to put a good scare into them. Last year, complaints about Social Security scams took a giant jump upwards: the Federal Trade Commission reported complaints went up by 1000%, according to Fox 6 Now’s news story “‘The people who are calling have some pretty good tricks up their sleeve:’ Social security scam calls spiking.”

Ketti Bingen received a phone call telling her that someone had found a car by the side of the road somewhere in Texas that was registered in her name. They told her there was blood on the car, and when they went to the address the car was registered to, they found a massive number of illegal drugs.

The caller had the last four digits of her Social Security number. They wanted her to divulge her name and date of birth. The caller advised her to file for a new Social Security number. Lucky for her, she knew enough to hang up.

Not all Americans are that smart. In 2017, the Federal Trade Commission heard from 3,200 people who were taken hook, line, and sinker–to the tune of $210,000 each in this scam. In 2018, 35,000 people were fooled. The total loss: $10 million.

The Wisconsin Consumer Protection agency and agencies across the country repeat the message: the Social Security Administration does not call and demand money from people. It never makes threats, warns of an impending arrest or demands that people send gift cards.

If the Social Security Administration wants to reach out to people, they do so by mail.

Another reason people fall prey to these phone scams is that the caller IDs on their phones appear to be coming from the government agencies. However, that is also a scam. It is not relatively easy to “spoof” a phone number, or make it appear that the number the scammer is calling from has a different caller ID number.

If you are worried about someone calling your home claiming to be from the Social Security Administration, you can call the Social Security Administration’s dedicated fraud bureau. You can request confidentiality when you call, if you are concerned about safety.

Reference: Fox 6 Now (Jan. 27, 2019) “‘The people who are calling have some pretty good tricks up their sleeve:’ Social security scam calls spiking”

“詐騙者編造的故事越來越古怪。Ketti Bingen最近接到一個來電告訴她有逮捕令後才發現這一點。"

難怪這些詐騙工作：在他們背後的人有足夠關於受害者的資料，以便他們能成功地恐嚇受害者。去年，關於社會保障騙局的投訴大幅上升：聯邦貿易委員會報告有關投訴增加了1000％，根據Fox 6 Now新聞報導“‘The people who are calling have some pretty good tricks up their sleeve:’ Social security scam calls spiking”

Ketti Bingen接到一個電話，告訴她有人在德州的某個地方找到了一輛以她名字登記的車。他們告訴她車上有血跡及他們在車上發現了大量非法毒品。

來電者有她的社會安全號碼的最後四位數字。他們希望她透露她的姓名和出生日期。來電者建議她申請一個新的社會安全號碼。幸運的是，她知道這是詐騙所以便掛斷電話。

但並非所有美國人都那麼聰明。 2017年，聯邦貿易委員會收到3,200人完完全全地被騙, 而每個騙局平均騙得210,000美元。 2018年，共有35,000人被騙。總損失為1000萬美元。

威斯康星州消費者保護機構和全國各地的機構再重申：社會保障管理局不會致電並要求任何人提供資金。更永不會威脅，警告將逮捕或要求送禮品卡。

如果社會保障管理局希望與人聯繫，他們會通過郵件聯繫。

這些人成為這些詐騙電話的犧牲品的另一個原因是他們手機上的來電顯示似是來自政府機構。然而，這也是一個騙局。 要識別“詐騙”電話號碼或者看起來是詐騙號碼並不容易。

如果您擔心某人致電您家而自稱是來自社會保障管理局，您可以致電社會保障管理局專門處理詐騙的行政部門。如果您擔心安全問題，可以在打電話時要求保密。

參考: Fox 6 Now (Jan. 27, 2019) “‘The people who are calling have some pretty good tricks up their sleeve:’ Social security scam calls spiking”

How Am I Going to Have Enough Money to Retire?

“How much do you need to save? How much can you really afford to put away and still live the life you deserve today? How does anyone make it work?”

It can be very overwhelming to save for retirement. How are you expected to take care of your responsibilities to your family, enjoy life and put away enough to have an enjoyable retirement that might last 10, 20 or even 30 years? That’s the question posed in the Twin Cities Pioneer Press article, “Your Money: Helping you live in the moment and plan for the future.”

The question is asked frequently by people at all ages and stages of their lives. Here are some tips on how you can use comprehensive financial planning — by looking at a variety of retirement income savings methods and income strategies — to make the most of retirement savings. Some of them may not apply now, but you’ll need to know about them in the future, like Social Security.

Do you have a retirement savings strategy? Not everyone takes advantage of the 401(k)s, 403(b)s and IRAs that are available. Some of these retirement accounts come through an employer, and a traditional IRA can be set up on your own. If you work for a company that offers the option of having a Roth IRA and you’re just starting your career, it could be a great option. You pay taxes on contributions now, when your income may be lower, but when you take distributions, you won’t pay income tax on them. There are no required distributions for a Roth IRA — other retirement accounts require a certain amount of yearly withdrawals. If you are in a high-income tax bracket, the Roth IRA is not for you.

Social Security strategies make a big difference in retirement income. Deciding when to take benefits is complicated. However, it is well worth the effort. It could be a difference of thousands of dollars over time. Realize that the later you start taking benefits, up until your 70^th birthday, the greater the benefits will be. Your Full Retirement Age or FRA is currently age 66 for Americans born between 1943–1954, and a few months older for those born later. You can apply for benefits as early as age 62, but you’ll get a reduced benefit — as much as 25%!

What about a Roth conversion? For some people, enhancing their retirement savings by moving existing savings into accounts that offer better tax advantages, adds up nicely for current and future tax brackets. A Roth conversion is when you pay the tax on all or a portion of a traditional IRA and move it into a Roth IRA, where it continues growing. If you have owned the account for at least five years, you can then take withdrawals out tax free, once you turn 59½. Note that this is a complicated decision that must be made in conjunction with all of your other retirement and investment funds.

Planning for retirement income is just that: planning. The alternative — winging it and hoping for the best — rarely works out. The earlier you begin planning for your retirement, the more likely it is that you’ll enjoy this phase of your life.

Reference: Twin Cities Pioneer Press (Jan. 26, 2019) “Your Money: Helping you live in the moment and plan for the future”

Social Security Theft Is on the Rise: Be Prepared and Protected

“Last fall, after the Equifax breach, Jim Borland, acting deputy commissioner for communications at the Social Security Administration wrote a blog post on the agency website headlined ‘Protecting Your Social Security.’”

The advice in the blog post is still applicable today: everyone should go to the Social Security website and create an account. It’s a gateway to many online services from the Social Security Administration, and if you don’t set up your account, there is a greater chance that someone can set one up using your name. By creating your account, says Next Avenue in the article “Protect Yourself Against Social Security Identity Theft,” you can try to preempt this form of Social Security theft.

One woman took this advice, since anyone who is older than 18 and has a Social Security number, and email and a mailing address, is allowed to open an account, even if they are decades away from claiming any benefits. However, within nine months of doing so, she received an email from the Social Security Administration saying they were deactivating her account. What happened?

She hadn’t done anything. No one else, as far as she knew, had access to the account. Therefore, she called the Social Security Administration and requested a direct deposit block on her account. This did two things: it prevented changes to direct deposit information through a financial institution or through the Social Security website. It also stops anyone who might be trying to change a mailing address.

Some further research resulted in information about what might have happened. The U.S. Public Interest Research Group website reports that with a name, birth date and Social Security number, a thief can try to open an account in your name and then change your direct deposit information to their checking account. It’s not that hard to gather that information online.

A 2018 report from the Javelin Strategy and Research firm found that nearly 30% of Americans were notified of a breach of their accounts in 2017. That’s up from 12% in 2016 and cost $16.8 billion dollars.

Scammers have shifted tactics. One consumer helpline reports that there have been fewer complaints about people impersonating IRS agents demanding money and an increase of complaints about people impersonating Social Security Administration representatives.

How can you protect yourself?

If you haven’t already done so, sign up for a “my Social Security” account. Check it on a regular basis to monitor your address information or date of birth. If you see any information that has changed or is wrong, contact the Social Security Administration immediately.

If there’s any fraud or identity theft, you may also want to contact fraud hotlines at the Social Security Administration, Office of the Inspector General, the Federal Trade Commission and the Senate Select Committee on Aging.

If you have a problem logging into your account because the password has changed, call the Social Security and ask for “helpdesk,” when the system asks why you are calling.

Reference: Next Avenue (Jan. 17, 2019) “Protect Yourself Against Social Security Identity Theft”

Yes, You Have to Pay Taxes on Social Security—Sometimes

“So, your friend or relative who tells you they don’t have to pay any income tax on their Social Security may be correct—for themselves. But that may not be true for you.”

It’s like listening to your know-it-all brother-in-law bragging about how much he’s made on a stock, when you know full well that his financial situation is bad. Some people do have to pay taxes on their Social Security benefits. But some, as reported in the Tyler Morning Telegraph’s news story “Plan Retirement Right: Social Security and Income Taxes,” don’t.

Seems counter-intuitive. After all, didn’t you work all those years and weren’t those benefits supposed to be yours, tax free? The Internal Revenue Service determines who has to pay income tax on Social Security benefits, and they do so, using a number known as “Combined Income.” That’s a number unique to you and your spouse that determines whether a portion of those benefits are taxable. It’s not the same as another IRS number you may know all too well—your AGI or Adjusted Gross Income.

Here’s how you calculate it:

Adjusted Gross Income + Nontaxable Interest + HALF of your benefits = Combined Income.

You’ll also need to consider a few situations, where you may end up owing taxes on some portion of your Social Security benefits:

• If you file taxes as an Individual and your combined income is anywhere from $25K up to $34K, you might owe taxes on as much as half of your benefits.
• Or, if you file taxes as an individual and your combined income is over $34K, you may owe as much as up to 85% of your Social Security benefits.

Joint filers, “married, joint,” may owe taxes, if the combined income for you and your spouse is anywhere from $32K to $44. You may owe taxes on up to 50% on your Social Security. If the Combined Income for you and your spouse is more than $44K, you may owe taxes on up to 85% of your Social Security benefits.

Even if you file taxes “married, separate,” the IRS says it’s likely that you’ll be paying taxes on benefits.

Here’s how to handle this unwelcome tax burden:

Estimated Tax Payments. If you’ve been self-employed, you may be accustomed to doing this every quarter. You’ll have to be disciplined to make sure to set aside funds and pay on time.

Withholding. Some people have Social Security withhold the portion of the amount they would otherwise have to pay taxes on. This works well for people who have been employed and are used to having someone else manage their deductions. You’ll need to use IRS Form W4-V and select from a few different levels of deductions: 7%, 10%, 12% or 22%.  

Reference: Tyler Morning Telegraph (Dec. 26, 2018) “Plan Retirement Right: Social Security and Income Taxes”

Retirement Planning Tips For the Coming Year

“Are you ready for retirement? There are steps you should take to ensure you’re able to live the life you desire, once it’s time to pass the management reins to the next generation.”

On average, American men today will live to 84.3 years, says the U.S. Department of Social Security. That means you can expect to enjoy at least 20 years of retirement or muddle through two decades of financial worry, depending on your level of preparation.

Consider that the average monthly income for a couple receiving Social Security benefits is $2,176. That’s about $26,000 a year, says Farm Journal’s Ag Pro in the article “5 Retirement Investment Tips.” If that’s an average benefit, then farm couples should expect to receive less than that. Why? Because farmers are very good at avoiding taxes, said David Marrison, Ohio State University Extension specialist. Even if they receive the average amount, he asks, where’s the rest of the household income?

When it comes to retirement income, about $26,000 is just not enough. To allow for a comfortable retirement and limit negative impact on the family farm, or any family business for that matter, planning must be done in advance. Here are a few tips that are simple, direct and can make a difference for your retirement.

When are you going to retire? Many people retire at 65.  However, the decision often needs to be made from a financial perspective and not based on age. If you can work a little longer, that may give you a better chance of building up enough finances to retire comfortably.

What’s your budget? This is where so many people fail. How much money are you going to need when you retire, starts with knowing how much money you are spending now. For farm and business owning families, some expenses can get co-mingled, such as fuel or utilities. Get into the details and make sure you are not missing any expenses.

Inflation. Recent years have seen a very low impact of inflation but that may be changing. Once you’ve identified your target savings goal, build in inflation. Here’s one way to do it: take the number 72 and divide it by an interest-rate factor. Many experts use 4%, which is the average inflation rate for the last five decades. Using this rule, you can expect your living expenses to double what they are today because of inflation. Sounds scary? That’s why planning is so important.

Make a plan for savings. View retirement as both a means to an end and a way to reduce tax liability. For farmers, good times used to translate into mitigating taxes, by purchasing equipment. However, it’s likely that putting away money in a 401(k) may have been a better idea.

Start saving today. Even if all you are doing is setting aside 10% for the future, if you are young enough that can be a good start.

Add to these tips getting your estate plan done or updating your estate plan. Your estate plan is a critical piece for farm families, who want to pass the farm down to the next generation. In addition to a will, you also need Power of Attorney for your finances and documents for health care. Make an appointment with a local estate planning attorney to get this done.

Reference: Farm Journal’s Ag Pro (Dec. 24, 2018) “5 Retirement Investment Tips”

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”

A Note to Younger People: Heed the Voice of Experience

“If you could, what financial advice would you give your younger self?”

We like to think that we live without regrets, but it’s not always easy to do, especially when it comes to planning for retirement, says The Washington Post in “The top regrets of retirees.” A study looking at retirees found that many, and especially women, admitted that they had made mistakes in their retirement planning. The report from Global Atlantic was based on data from more than 4,200 retirees and pre-retirees in America. The company wanted to learn how expectations for retirement costs lined up with reality.

The expectations often did not.

The risk of running out of money is real, said the report, noting that 39% of retirees said they had planning regrets. Here are the top reasons for regret:

They found themselves relying too much on Social Security for income.

They did not pay down debt before retiring. Many people today are retiring with a mortgage. People used to pay off their mortgage before retiring, but it’s less and less common now.

They didn’t save enough. Most people didn’t start saving for retirement, until they turned 31. Missing almost a decade in saving can make a huge difference over time. Let’s say an employee puts away $50 every time she gets a paycheck—twice a month—and puts the money into an account with a 6% annualized return. If she started saving at age 23, by retirement age she’d have $227,150 in that account. If she waited to start saving until age 31, the account would be worth $128,578—$88,572 less. If she was able to save $100 per paycheck, by retirement, she’d have $434,299 versus $257,156.

The power of time and compounding makes a huge difference. Compounding is the process through which an asset’s earnings are reinvested to earn additional earnings over time. The more time your assets have to grow, the most compounded growth can occur.

Age 31 seems relatively young to start thinking about retirement, but by waiting that long, workers are missing out on almost a decade of savings, asset accumulation and the associated potential of compound returns.

The survey also revealed that women are more likely than men to have retirement planning regrets. How’s this for a difference: 62% of women had retirement regrets, versus 47% of men. The women also noted that once they realized their mistakes, more women than men adjusted their lifestyles to increase savings, by cutting expenses, like traveling or eating out.

If you have retirement regrets, your best course of action is to do the best you can now, without worrying about what you didn’t know in the past.

Reference: The Washington Post (Dec. 10, 2018) “The top regrets of retirees.”