May, 2021

Social Security May Newsletter

Social Security Spotlight: Working While Collecting Benefits
RSSA | Social Security Newsletter | May 2021
May 2021 Newsletter
Top Stories

Social Security Rolls Out New, Shorter Statements

Source: ThinkAdvisor

“The Social Security Administration kicked off a “soft launch” for a redesigned Social Security statement that is being targeted at a “small percentage” of my Social Security online account users who aren’t currently receiving benefits…”


Divorced? 3 Things To Know About Social Security

Source: RSSA

“Your marital status is just one of the many factors to take into consideration when maximizing your Social Security benefits. If you are divorced, there are a few important things to know that could help you maximize your Social Security benefits….”


The Biggest Mistakes People Make With Social Security

Source: The Wall Street Journal

“Many Americans mismanage their biggest retirement asset: their Social Security benefit. And it can cost them dearly. For the typical American household age 55 to 64, the present value of this government pension represents 60% of their retirement assets…”


Don’t believe everything you hear: 3 Social Security myths that could ruin your retirement

Source: USA Today

“If you file for benefits at age 62, they’ll be reduced by 25% to 30%, depending on your precise FRA. Now, you may have been led to believe that once you reach FRA, your full monthly benefit will be reinstated, but that’s just not true. Once you claim your benefits, your monthly payment will stay the same for life…”


4 Ways The Secure Act 2.0 Would Change Retirement Planning

Source: Forbes

“Should the Secure Act 2.0 eventually pass, consider how the changes may impact you and what planning opportunities exist. Just because you have more flexibility, doesn’t mean it makes sense to use it…”

RSSA In The News

TheStreet | Why Do I Pay Taxes On My Social Security and Pension Benefits?


NARSSA’s President and Co-founder, Martha Shedden, shares valuable information regarding the taxation of Social Security benefits.

NARSSA makes Social Security advisory eLearning platform available to FSP members.
Ask Martha
This month’s featured question: I’m 61 and I plan on working for at least a few more years before retiring from my job and I’m still not sure when I would like to collect Social Security. However, I want to check my earning’s history and make sure it is accurate. Where can I check this information?
Martha’s response: You can access your personal earnings record by visiting your ‘my Social Security’ account. If you don’t have an account you can set one up today. It is quick, easy, and free to create an account and your account provides valuable information and tools. Once you have an account, it is important that you take a look at all of the information in your account, especially your earnings record. Make sure the details are accurate because your earnings history has a direct impact on the amount of benefits you are entitled to…
Social Security Spotlight: Working While Collecting Benefits
Can I work while collecting Social Security benefits? Yes you can work and collect benefits at the same time. However, depending on your age and income, your benefit may be reduced. If you are working while collecting, and are between the ages of 62 and Full Retirement Age (FRA), you will be subject to the Retirement Earnings Test. During this time, if you earn more than the earnings limit for that year, your Social Security benefit will be reduced.

How does the Retirement Earnings Test work and what is the 2021 earnings limit? There are two earnings limit thresholds. In 2021, the lower earnings limit is $18,960. This applies to those who are age 62 up to the year they reach FRA. The reduction is $1 in benefits for every $2 you earn exceeding the lower limit. The upper threshold applies to earnings in the year you turn your FRA. This amount is $50,520 for 2021. The reduction is $1 in benefits for every $3 you earn exceeding the upper limit.

What happens when I reach my Full Retirement Age (FRA)? The earnings limit no longer applies starting the month you turn your FRA. This means you can collect Social Security benefits and work without having a reduction in benefits.

What are considered as earnings? Your wages you make from your job are considered your earnings. If you are self-employed, your net earnings count as your earnings. Bonuses, commissions, and vacation pay are included as earnings, while pensions, annuities, and investment income are not.

Do I lose the money in benefits that was reduced or will I get it back later? You don’t really “lose” the money. When you reach your FRA, the Social Security Administration increases your monthly benefit to account for the prior withholding.
Case Study of the Month
When working with a recent client, I learned that the Social Security Administration (SSA) had given my client incorrect information regarding her monthly benefit amounts. She was also told that waiting 8 years from 62 to 70 to collect would not change her benefit amount. This is not true, and in fact, I provided my client with options that enhanced her benefit by an extra $750 a month. If my client had not gotten professional support, she would be missing out on over $95,000 in benefits.
If you’re 55 and over, speak to a Registered Social Security Analyst today. RSSAs help people understand their options and optimize their Social Security benefit during retirement!
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Consult With An RSSA & Maximize Your Benefits

Most people don’t make optimal filing decisions and therefore, lose out on money they are entitled to. An RSSA® can help you maximize your Social Security benefits and support you in making the best decisions for your particular situation. An RSSA® can work with you in-person, on the phone, or via video. Request a consultation today. Get help now.


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