52 Simple Ways to Manage Your Money – 43. Here I Come – Social Security
What it is…
A plan to supplement retirement income from monies paid into the Social Security Administration over the lifetime of a worker. It also provides other assistance, such as disability and survivors’ benefits.
How it helps …
Gives a base to income in retirement.
Provides Medicare hospital and medical benefits, at some cost.
How it hurts…
Not enough for an entire retirement income.
Anyone born after 1937 will not get full retirement benefits at age 65— they will be delayed by a sliding scale, depending on your date of birth.
You could lose some of your Social Security benefits if you have a government pension in addition to your Social Security benefits.
Consult a Social Security counselor to be sure.
Medicare alone is not enough to meet today’s high health-care costs— you will need some type of supplemental coverage.
Key Items to look for…
Your account summary.
Benefits available to you under your spouse s account.
Time …
One time: fifteen minutes to send for summary; more if you visit the Social Security Office to see a counselor.
A half an hour to read brochures and fact sheets.
Ongoing: a half an hour to keep information up to date.
Keys to action …
Visit your Social Security office to get form SSA/7004— the request for a summary of your account. Or phone 1-800-772-1213 to ask for the form and to ask questions.
Apply at least three months prior to retirement date to get your paperwork in order.
SET IT UP
Social Security was never intended to be the sole source of a person’s retirement income.
STEP ON IT
Many people have benefitted from the other parts of the parts of the program, like disability and survivors’ benefits.
STEP ON IT +
The Social Security program administers the Medicare program for the government, but it is not funded from the social security tax; rather, it is funded from income tax.
Notice…
Your feelings about the Social Security program.
Your willingness to deal with a large bureaucracy.
But what if…
The program goes broke before I retire?
It probably won t. The fund has a surplus at this time.
Thought primers…
When 1 think of retirement, I…
One of the things I believe about Social Security is…
If it turns out that I am right…
It is beginning to dawn on me that…
If I depend on one program to save me…
