November, 2020

Social Security November Newsletter

Social Security Spotlight: Benefits For Children
RSSA | Social Security Newsletter | November 2020

November 2020 Newsletter

Thanks for reading our November newsletter. It is jam-packed with Social Security, Medicare, and retirement news and information. Scroll down to see what’s included.
Top Stories

I Can Get Social Security When I Turn 62. Why Would I Wait Any Longer?

Source: RSSA

“You are correct, you can receive Social Security benefits beginning at age 62. However, you will receive a lot more money if you wait to claim benefits until later. You will actually receive the least amount you could possibly get if you choose to claim benefits at age 62…”

Factors Affecting Women And Their Retirement

Source: RSSA

“Women tend to face more financial challenges than men when it comes to retirement and Social Security. There are several factors that have a significant impact on the financial security of women…”

5 Ways President Biden May Make Lasting Changes To Your Retirement

Source: Forbes

“Biden’s plan would extend or enhance benefits to certain groups. For example, he would allow a surviving spouse to keep a higher share of benefits than allowed under current law. He would also increase benefits to teachers and public-sector workers…”

Biggest Social Security Changes for 2021
Source: AARP

“As it does every year, the maximum amount of earnings subject to the payroll tax is going up. In 2020, the maximum amount of taxable earnings is capped at $137,700; in 2021, that figure climbs to $142,800. Earnings over that amount aren’t subject to Social Security taxes next year…”

Martha Shedden is the President &
Co-Founder of RSSA.
Ask Martha
This month’s featured question: I was previously married for 28 years, but am now single, age 67, and collecting Social Security. If I marry a 69-year-old lady, who is also collecting Social Security, will her benefit amount change?
Martha’s response: Her benefit may change if the spousal benefit she would be able to collect is greater than the retirement benefit she is currently collecting. The important information you need to know is: What is the amount of your own primary insurance amount, or PIA? This is the amount of your retirement benefit that you were eligible to collect at your full retirement age of 66. And, will your new wife’s Social Security retirement benefit amount, a year after you are married, be less than 50% of your PIA?…
Social Security Spotlight: Benefits for Children
Do children qualify for Social Security benefits? Yes, children may be eligible to receive Social Security benefits. When a parent receives Social Security retirement or disability benefits, their child may also receive benefits. Also, when a parent dies, their child may receive benefits. The child can be a biological child, an adopted child, or a step child. To qualify for benefits, the child must be unmarried and younger than 18 (or is a student or is disabled – read more below).
Do students qualify for Social Security benefits? If the child is a full-time student (grade 12 and below), they may be entitled to receive benefits. Benefits continue until the child graduates from high-school (grade 12) or until two months after the child turns 19, whichever comes first.
Do children with disabilities qualify for Social Security benefits? If a child with a disability is younger than 18 years old, they may be entitled to benefits just as a child without a disability would. However, if a child is older than 18 years old, but was diagnosed with a disability prior to the age of 22, then the child may be entitled to receive benefits.
What is the benefit amount for a child? A qualifying child may receive up to 50 percent of the parent’s full benefit or up to 75 percent of the parent’s full benefit if the parent is deceased.
What is the benefit amount if there are multiple children? Each qualifying child is eligible to receive up to 50 percent (or up to 75 percent if parent is deceased) of the parent’s full benefit. However, there is a family benefit maximum threshold. If the family benefit exceeds the threshold, benefits will be reduced proportionately.
Success Story Of The Month
I was recently working with two clients, a married couple, Dan* and Stacey*. Dan is 61, currently works, and plans to retire at age 65. Stacey is 67, retired, but has not filed for Social Security yet. Dan is the primary income earner for their family.
They came to me to find out the best time to file for Social Security benefits. After learning more about them and collecting all of their necessary information, I was able to run a detailed analysis for them.
The optimal and recommended strategy for them was to have Stacey file for her own Social Security retirement benefits now while Dan waits to collect his own retirement benefits at age 70. If Stacey files now, she will receive approximately $400 each month. Although Dan will not be working or earning income from age 65 to 70, they have enough supplemental income from other assets to bridge the gap for those 5 years.
Stacey and Dan were surprised to hear that Stacey should collect now because she will be receiving a smaller payment each month than she would if she waits to file at age 70. However, I explained that once Dan files for Social Security at age 70 (Stacey at age 76), Stacey will be able to switch over to spousal benefits. She will receive the spousal benefit instead of her own retirement benefit because her spousal benefit will be (far) greater as it will be 50% of Dan’s retirement benefit (at his full retirement age). Her benefit will switch from $400 to approximately $1,500 each month. If and when Dan dies before Stacey, Stacey will then switch to survivor benefits, which will be 100% of what Dan was receiving. By having Dan wait until age 70 to file for benefits, they allow his monthly benefit to grow and lock in the highest payment possible.
Dan and Stacey were impressed with the report I provided them. They were extremely grateful to have worked with me and they wished they had met with me even sooner. We quickly learned that if they had made the decisions they were planning on making before meeting with me, they would have missed out on thousands and thousands of dollars each year.
Matthew, RSSA®
*Client names and identifying details have been changed or omitted.
Medicare’s Open Enrollment Period Ends December 7th
Don’t miss your opportunity to enroll in Medicare or make changes to your current plans. Follow these simple steps to ensure you are prepared to make your selections.
In Case You Missed It: A Social Security Webinar Now On Demand
Use password RSSAwebinar1021 to access this free webinar.
RSSA founders, Michael Rosedale and Martha Shedden presented at the virtual Accounting & Finance Show. Learn how to add client value and a new revenue stream to your practice by becoming a Social Security Expert.
Train To Become A Social Security Expert
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Are you a finance or state-licensed professional?

Offer Social Security advisory services to your clients. Become a Social Security expert while earning continuing education credits through our self-study program.

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Get Social Security Help Right From Home.
Meet with a RSSA® Virtually.
Most people don’t make optimal filing decisions and therefore, lose out on money they are entitled to. A RSSA® can help you maximize your Social Security benefits and support you in making the best decisions for your particular situation. A RSSA® can work with you in-person or completely virtually. Request a consultation today.
Our mission is to help Americans get the maximum Social Security income they are entitled to, enabling them to enjoy their lives more fully.
RSSA is administered by NARSSA, the National Association of Registered Social Security Analysts. NARSSA provides a comprehensive online platform for professionals to gain Social Security knowledge and earn the RSSA credential.
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