Want to Know about YOUR Social Security Opportunities?

A Window is Closing Soon

If you are turning 70 at any time from March through January 1, 2024 and have never claimed Social Security benefits of any kind there may be an opportunity for you that you didn’t know about or expect. Drilling down a little further: Are you currently married or widowed? If not, were you divorced after a marriage that lasted at least 10 years?

Depending on how many of those boxes you were able to check, there is a real possibility that you might be eligible for some unexpected but meaningful benefits. read more

 

 

 

 

MEDICARE PART B + IRMAA COULD DRINK YOUR COLA IN 2022

Less than a month after the historically high 5.9% COLA was announced for Social Security benefits in 2022, three pieces of unwelcome news arrived in rapid succession. 

  • On November 10, the U.S. DOL Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) for the previous 12 months ending in October increased by 6.2%. In other words, the purchasing power of Social Security benefits, which had already eroded before the new COLA went into effect, will likely decrease even further over the next 12 months.
  • On November 12, the Centers for Medicare and Medicaid Services announced that the basic Medicare Part B monthly premium will jump from $148.50 in 2021 to $170.10 – an increase of just over 14.5%. The annual Part B deductible increases from $203 to $233 (14.78%).
  • For joint filers who had more than $182,000 of Modified Adjusted Gross Income (MAGI) in 2020 – and for individual filers who had more than $91,000 of MAGI in 2020 – the Income-Related Monthly Adjustment Amounts (IRMAA) increase as well. See https://www.medicare.gov/your-medicare-costs/part-b-costs for details.

Social Security Announces 5.9% COLA for 2022

 

The bad news is that inflation is up – way up – year over year. The good news is that on October 13, SSA announced a 5.9% Cost of Living Adjustment (COLA) for 2022. This is the largest increase since the 7.4% COLA in 1982 and, more recently, the 5.8% adjustment in 2009. Read more

Applying for Social Security in the Time of Covid-19

 

Until mid-March of 2020 there were three ways of applying for Social Security benefits, or for enrolling in Medicare:

  • In person at your local SSA office:
  • By telephone, using either the national toll-free number (1-800-772-1213) or calling your local office (https://secure.ssa.gov/ICON/main.jsp); or
  • Online through the ssa.gov website

On March 16, 2020, SSA announced that as of the following day local offices would be “closed to the public for in-person service.” read more

Suze Orman’s Lame Social Security Advice

 

Over the past few years, the Social Security Administration (SSA) seems to have dramatically expanded its marketing budget. SSA is constantly putting out blog posts and other communications, primarily focused on enhancing its brand and trying to persuade us that it cares deeply about the members of the public it exists to serve. Read more…

Social Security Survivor Benefits: More Bad Advice from SSA

Over the past year I find myself increasingly being asked to assist in damage control. In many of those situations the damage has been inflicted by the Social Security Administration itself.

Case in point: having just read the May 31 SSA blog post entitled The Importance of Social Security Survivors Benefits http://blog.socialsecurity.gov/the-importance-of-social-security-survivors-benefits/, I sensed my blood pressure beginning to rise. Two different items set me off, one simply misleading and the other downright dangerous.

The misleading statement reads as follows: “The amount of benefits your family receives depends on your lifetime earnings. The higher your earnings are, the higher the benefits will be.” Obviously there is some truth to the foregoing statement, but it is misleading in at least two respects.

  1. If the worker died after claiming his or her benefits before Full Retirement Age, then his or her surviving spouse could receive significantly less than the surviving spouse of a lower earner. Survivor benefits are most often equal to the retirement benefits the worker was receiving at the time of death.

Example: Worker A had a Primary Insurance Amount (PIA) of $2,000. He died at age 71, having delayed claiming his benefits until age 70. His widow was potentially eligible for survivor benefits of $2,640.

Worker B had a PIA of $2,600. He died at age 71, having claimed his benefits at age 63. His widow was potentially eligible for survivor benefits of $2,145.

  1. The deceased worker’s earnings and date of claiming determine the maximum possible survivor benefits. However, the age at which the surviving spouse claims survivor benefits determines what percentage of the maximum possible benefit amount will actually be payable.

Example (continuing): Worker A’s spouse claimed survivor benefits at Full Retirement Age (66 in this case) and became entitled to receive $2,640 per month. Worker B’s spouse claimed survivor benefits at age 60 and receives $1,859 per month.

The dangerous statement reads this way:

When a worker dies, we recommend that their survivors apply for benefits right away. You can apply by telephone or at any Social Security office. For more information about survivors benefits, visit www.socialsecurity.gov/survivors. If you think you qualify, please don’t wait. Apply today.”

Worker B’s surviving spouse did exactly what the SSA blog suggests. She applied for survivor benefits when she turned 60, which is the earliest age of eligibility. As a result, she received a benefit of $1,859, which amounts to 71.5% of Worker B’s PIA, the minimum possible based on a PIA of $2,600.

Worker A’s surviving spouse ignored the SSA advice and waited until she reached Full Retirement Age to claim survivor benefits of $2,640, thus receiving 100% of the maximum possible, based on a PIA of $2,000. Read more…

How Many Thousands of Dollars of Social Security Benefits Will YOU Leave on the Table?

What if you discovered that what you don’t know about Social Security could result in your walking away from potentially thousands of dollars of additional income?  It happens to others, literally every day.

A 2012 study[1] reported that anywhere from 46% to 59% of those who became eligible during the previous two decades claimed Social Security retirement benefits as soon as they reached age 62. But filing too early is not the only way you can leave money on the table.

Many people view the claiming decision as a simple one: should I take it now or should I wait?  If I delay claiming benefits, how long would I have to live before I would “break even” compared to claiming earlier?  Very often the decision only seems simple because an individual or couple is unaware of multiple options, many of which are not common knowledge, that may be available to them.

In fact, the Social Security retirement system is NOT simple.  Married couples can often employ a variety of claiming strategies to enhance their retirement income; special options may come into play if you were previously widowed or divorced.  However, if you don’t know about these options you cannot make informed decisions that could help you and your spouse avoid losing thousands of dollars of income to which you might otherwise be entitled.

Consider this situation:

When we first began talking about Social Security, Richard was a successful attorney, still active in private practice and earning a very good living.  He was 67, and had already made the decision to delay claiming his benefits until age 70.  His wife Jayne was approaching 62, wanting very much to retire and begin collecting her benefits as soon as possible.  One strategy I showed them, and which they implemented as soon as Jayne reached 62, allowed them to do exactly what they had wanted to do – and it provided them with more than $15,000 of additional income over the first 30 months.  They would have totally missed this opportunity but for a casual conversation that led them to seek my advice.

My work helps real people make informed decisions about their Social Security benefits: married people and divorced people; widows and widowers; spouses who are the same age and spouses who are years apart; people who “don’t need” Social Security and people who depend on it to make ends meet; people who are eligible for the maximum retirement benefits Social Security has to offer, as well as stay-at-home moms and “house spouses” who don’t have enough Social Security “credits” to qualify for benefits on their own work records.

My process is simple: I gather relevant information about you and your spouse, or former spouses and either answer your most pressing questions or deliver an analysis illustrating the most promising options available to you. I typically encourage clients to share my work with a skilled financial planner so that your Social Security claiming decisions can be made within the larger context of your overall retirement financial situation.


[1] Social Security Claiming: Trends and Business Cycle Effects by Owen Haaga and Richard W. Johnson (Published by the Center for Retirement Research at Boston College, April 2012)

Social Security Consulting Services

There may be literally hundreds of Social Security claiming options available to couples, as well as to individuals who have been widowed or divorced.  Typically, seeing four to six strategies will give you a clear understanding of the range of possibilities available to you. Many of my clients are traditional married couples wondering when to claim retirement benefits, but quite a few have more complex circumstances that may include one or more of the following elements:

  • Noncovered pensions that bring the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) into play
  • Caring for Disabled Adult Children
  • Cross-border situations involving pensions from other countries
  • The interplay between Social Security, Medicare, and Health Savings Accounts (HSA)
  • Compensation planning for owners of closely held businesses

My services range from short consultations to comprehensive written reports. I also consult with financial services professionals and CPAs regarding their clients’ situations.

I believe that Social Security claiming decisions should not be made in a vacuum. Social Security is simply one piece – often a very important one – of your overall retirement planning puzzle. I encourage you to share my analysis and advice with your financial planner to put all the pieces together and settle on a claiming strategy that fits best with your situation.

Process.  You fill out an e-form questionnaire to which you attach pdf copies of your most recent Social Security statements and, most importantly, copies of your Earnings Records in xml format. All of these can be obtained from your online “my Social Security” account through the SSA website.  https://www.ssa.gov/ After I have had a chance to review that information, we might have a brief telephone conversation to make certain I understand your situation and can provide the assistance you are looking for. If there’s a match, I will quote you a fee and we will agree on how to proceed. Please click here for a description of available consulting options and associated fees.

 

 

Social Security Seminars

I have presented Social Security seminars or webinars to audiences such as the following:

  • Public groups
  • Private client groups
  • CPAs, attorneys, and financial services professionals
  • Employee groups

Most seminars run for 1.5 – 2 hours, although the length can be adjusted to meet the needs of the seminar sponsor. The vast majority of my Social Security seminars have been presented (pre-COVID) in person to live audiences. These are not canned presentations: all seminars are hand-crafted by me and tailored to fit the particular audience. Fees vary with the context, the location, and the nature and size of the group. 

 

Through a process that included a thought-provoking questionnaire, a comprehensive report, and a follow up telephone conversation, my wife and I have chosen a course of action in regards to Social Security planning that should net us $70,000 more than we had originally planned for before seeking your advice.

However, your service was much more than just equations and mathematics.  It included a comprehensive report to support your numbers, and the times we spoke were just as informative as the report itself.   The conversations revealed a deeper thought process and reasoning that is most difficult to put into words.  You never told us what to do, but rather gave us life choices to make under several different suppositions.

Thank you again on behalf of my wife and me.

David Winkler

Software Sales Executive, Weston, Florida

Ask The Maven

Peter M. Weinbaum, JD

The Social Security Maven

According to Wikipedia, a maven is “a trusted expert in a particular field, who seeks to pass knowledge on to others. The word ‘maven’ means one who understands, based on an accumulation of knowledge.” 

Peter Weinbaum began focusing on Social Security benefits in 2010 and officially launched his Social Security consulting practice in 2012. He regularly provides Social Security consulting to individuals and couples on their benefit options, and occasionally presents Social Security seminars and webinars upon request.

For nearly three decades before becoming a Social Security consultant, Peter led the advanced planning unit at a major mutual life insurance company, consulting with financial services professionals, attorneys, and CPAs in relation to their clients’ estate, business, and PW Portrait December 2014retirement planning arrangements.  During that time, he worked with advisors to some of the wealthiest families in America, while also assisting thousands of working people and small business owners by providing technical back-up to their advisors.

Peter earned his Bachelor of Arts from Harvard University  and his Juris Doctor from the University of Michigan Law School. He was admitted to practice law in Massachusetts and in New Hampshire. He also holds a Master of Education in counseling from the University of New Hampshire. He has earned the Chartered Life Underwriter and Chartered Financial Consultant designations, and was formerly a Registered Representative and an Investment Advisor Representative through Equity Services, Inc.

Before embarking on his career in the financial services industry he worked at a small Boston law firm, served for four years as Assistant Dean at Vermont Law School, and spent several years in college and university administration.

For over 20 years he was an active member of the Board of Directors of the Small Business Council of America, which presented him with the Connie Murdoch Award for outstanding service in 2002. He has since assumed Director Emeritus status on the SBCA Board.

View Peter’s LinkedIn profile.

The Social Security Maven® is a registered trade name of Stillpoint Associates, Ltd.

I can’t thank you adequately for your swift, professional and excellent advice on our rather tricky Social Security question.  Your answer was creative, not obvious, and especially timely. You obviously are the “go to” person for anyone with Social Security issues.  It’s wonderful to speak with someone who knows their stuff – and is creative and super-timely to boot!

I have over thirty years’ experience in financial planning with clients throughout Vermont, and wish I had known of your services many years earlier.  You’d have saved me countless gray hairs, and my clients significant sums of money.  Thank you for providing such a valuable service, and for doing it so beautifully.

Very much obliged to you!

Amy Leavitt

Former CFP and Principal, Leavitt Associates, Quechee, Vermont

For many years I have known Peter as a very accomplished estate planning attorney who has worked on many sophisticated and elaborate strategies to maximize retirement savings and income.  When I heard he was now focusing on Social Security I was intrigued because that seems so simple compared to what he had been doing.

Turns out, it’s just not that simple.  In fact, it’s surprisingly complicated, but Peter is very clear and thorough, and has developed his usual deep insights into the many nuances of the program.  We had him take a look at our situation and he was remarkably helpful in describing several strategies we should consider to optimize our decisions about when and how each of us should take our Social Security benefits.

He customizes his work to your specific circumstances and his insights will help you make the most appropriate decision for your family.  He doesn’t waste any time either so I found the process refreshingly simple yet impactful.

I highly recommend Peter to anyone approaching Social Security retirement age.

Thomas H. MacLeay

Chairman, Board of Directors, National Life Group