Today’s 5 Common Myths About Social Security
Without question, there are many misconceptions about the 2,728 social security laws and the many rules and exceptions to them. Nevertheless, a lot of misinformation is accepted as truth there. Understanding the specifics of the social security program is essential to a successful retirement.
Here are some of the most common myths you probably believe but should not.
MYTH 1: The retirement age is 65, which is the highest amount.
Nope. The traditional retirement age was 65, but the needle has risen higher. Beginning with persons born in 1938 or later, the retirement age increases to the period of 67 years for those born after 1959, gradually. The change was made in 1983 to reflect the fact that we live longer and healthier lives.
To find out when you reached your full retirement age, you can use the agency’s calculator.
The earliest person who can receive a reduced social benefit is at the age of 62 years. But once you’ve done that, you’ll be locked up for the rest of that amount. For most people, it is a much better strategy to wait as long as possible to start collecting. Benefits increase by 8 percent per year up to the age of 70 if you do not receive them.
MYTH 2: You can not work if you are on Social Security and if you do, there is a significant penalty.
Yes, you can take pensions and work at the same time. However, if you are younger than the full retirement age for the entire calendar year and exceed the annual income limit of $ 17,040 for 2018, the social security system reduces your retirement money by $ 1 for all over $ 2 earned over that limit. Once you reach retirement age, you can make as much as you want, and that does not affect your performance.
But things change in the year you reach your full retirement age. This year, Social Security deducts $ 1 for every $ 3 you earn from another limit – $ 45,360 for 2018 – but only in the months leading up to your birthday. Starting with the month in which you have reached the full retirement age, you can receive your benefits without restriction of your earnings.
Use this plan to find out how much your benefits are being reduced. And remember, as you continue to work, you continue to pay social security taxes on your earnings, even if you receive benefits.
MYTH 3: If you leave the US for more than 30 consecutive days, you lose your social benefits.
If that were true, it would undoubtedly give the plans coming from abroad a pallor!
US citizens can continue to receive payments outside the United States as long as they are eligible and in a country where Social Security can send payments (which removes North Korea or Cuba from your list of top retirement destinations). The rules vary for non-US citizens, those who collect survivors or dependent benefits, and those who manage the data of another person.
You can use the Payments Screening Tool Abroad to see if you continue to receive different pension benefits. In most cases, you will receive these benefits if you are in a country that restricts benefit payments Country in which payments can be sent.
Medicare, however, sees things differently. It only covers the health care you receive in the United States, with very few exceptions for those outside the country. Travelers relying on Medicare are urged to purchase a Medigap or travel insurance policy.
Expats who retire abroad often pay for medical care in the country. In many places, it is cheaper. Some airlines offer health insurance for expats, and if you have settled in your country of choice, you may be eligible for the public health program.
MYTH 4: Divorced spouses are just unlucky.
In fact, social insurance is very good for spouses. If the marriage lasted 10 years or more, your ex-spouse may benefit from your record, even if they have limited or non-existent work histories themselves. You only need to be 62 or older and not remarried.
A divorced spouse is entitled to a benefit equal to half the full retirement amount of the ex-spouse (or invalidity pension). This has no effect on the owner or his current spouse or deprives him of money.
In general, once an ex-spouse remarries, they can not seek benefits from their former spouse’s records, unless the subsequent marriage ends, be it through death, divorce, or cancellation.
MYTH 5: Stepchildren get nothing if you do not legally adopt them.
If you become disabled or retire, your qualified child – whether you are a biological, adopted or dependent stepchild – is entitled to up to 50 percent of your full retirement pension. If you die, your qualified child is allowed to up to 75 percent of your full retirement pension.
Step-children, as well as biological and adoptive children, are entitled to survivor benefits in their social security documents if they are family members at the time of death and are not married. The stepparent relationship must have existed one year before the application.
Social security follows the IRS Referrals Guidelines for stepchildren: An addict must have lived with you for at least half a year and you must provide at least half of their support. The survivor’s benefit ends when your birth, adoptive, or stepchildren reach the age of 18 or, if they are still at school, until graduation or two months after their 19th birthday, whichever comes first.