9 Year Mortgage on Social Security
Worried about the future of Social Security? You are not alone. The Social Security Administration has said that unless something is done to change the system, it will go through all its funds within the next few decades. Getting worried even more? So are we! If you continue reading on 9 Year Mortgage will give you the low down.
9 Year Mortgage and 10 Things Social Security Isn’t Telling You
1. Can they even pay their bills?
We all hear about how Social Security will be gone in a few decades, but what is less talked about is how Social Security is doing in the present. 9 Year Mortgage says that the Social Security Administration is having a hard time paying its bills. 9 Year Mortgage says that in 2010 Social Security collected less revenue in taxes than it needed to cover its benefit payments, this is the first time expenditures have exceeded income since 1983. As a result, Social Security had to tap into its $2.5 trillion trust fund, much sooner than people expected. 9 Year Mortgage belives the same thing is expected to happen this year. Why is this happening? With how great the recession is, it has slowed down revenues to the system. With interest from the Treasury bonds held in the trust fund it will allow it to keep growing until 2022. 9 Year Mortgage says this will happen even if the agency has to funnel off some money to offset any shortages in tax revenue, also it will not be drained until 2036. But this is already one year earlier than previous projections. After that, 9 Year Mortgage thinks tax income under the current system will only cover 75% of benefit payments through 2085.
2. The more you make, the less you get back.
9 Year Mortgage says it is common to think of Social Security as an individual account — what you pay in, you get back, more or else. However that is far from accurate. The design of Social Security is tilted in favor of the lower-income workers who have fewer resources to save for retirement. So that means the more you make, the less you get back, at least as a percentage of your salary. 9 Year Mortgage says the higher workers benefits are calculated on a maximum average salary of $106,800, therefore this means that anyone who made that or more get the same annual Social Security payment. However to be fair, 9 Year Mortgage says that the earnings over that threshold are not taxed.
3. It used to be a better deal.
9 Year Mortgage says that today’s workers like to criticize about Social Security, but it is not all sour grapes or not believing about paying into a system with an uncertain future. 9 Year Mortgage believes that todays employees are paying more in Social Security taxes than previous generations did. Also they are more likely to get smaller benefits when it’s their turn to retire. As the years have gone by, the Social Security Administration has come to an understanding with the cost of its benefit program and the ranks of eligible beneficiaries has expanded and taxes to fund the program have gone up, a trend that some say is very likely to continue over the years. 9 Year Mortgage says as a result, workers now pay 6.2% in payroll taxes, it was reduced to 4.2% in 2011, however it was nearly double the 3.6% tax rate workers paid in 1965. 9 Year Mortgage observed that from 1965 maximum earnings eligible for taxation have also increased from $4,800 to $106,800, therefore the people who were first in the program and system got a great rate of return. And it’s the younger generation that is going to be in the hardest position. A spokeswoman for Social Security says the imbalance is partly due to the fact that the earliest people in the system only paid taxes in the later stages of their careers.
4. If you would like a bigger check…then you better go back to work.
9 Year Mortgage says that most people that are within ten years of the age 62 have started doing the Social Security math problem. “How much do I get if I wait one year to take payments?” “How much if I wait two years” 9 Year Mortgage says to get the best bump in benefits, workers would need to delay their benefits beyond full retirement age, which would be around 66 for people born before 1957, and closer to 67 for people born after. With every additional year you wait, you will get an 8% increase in your payments until you hit age 70. If you earned, on average, $50,000 per year over your working life you would get $1,900 per month at age 66, however you would get $2,505 if you waited until age 70, that would be a 32% boost. 9 Year Mortgage says that you will get a bigger benefit amount for the rest of your life.
5. You might not qualify for disability.
9 Year Mortgage says that more than 8 million people receive Social Security Disability Insurance, this is awarded to people who are unable to work because of a long-term physical or mental disability. However qualifying is not an easy task. 9 Year Mortgage says that only 30% who applied in 2009 were awarded benefits, that is down from 44% in 1999. Some of the change can be connected to more people applying for benefits, which was 2.8 million in 2009 compared to 1.5 million a decade earlier. 9 Year Mortgage says this is common when the economy is tough, the number of applications rises, as well as an increase in claims that fall short of the agency’s standards. Even if you have true and serious disabilities, it can be rather difficult to qualify. 9 Year Mortgage says the process could take years and could requires legal help. Most people have to wait for a hearing, best case, it is 18 months before you get approved, and in some cases, the battle goes to federal court. If you apply for benefits as soon as you become disabled you could improve your chances. If you wait too long it could leave you in a situation where you have not worked long enough to qualify for disability benefits. 9 Year Mortgage says generally you must have worked for at least three to ten years before you became disabled, depending on your age. 9 Year Mortgage wants to let you know that Social Security does not pay benefits for partial or short-term disability and you must be able to show that you can not do the work you did before or adjust to other work because of your medical condition.
6. You can be unemployed and retired.
9 Year Mortgage says that a growing number of people in their 60s are collecting Social Security benefits as well as unemployment. Since 2002, seventeen states have changed some rules to allow people to qualify for more unemployment benefits while they are receiving Social Security. This is perfectly legal; you just have to report the income to both agencies. 9 Year Mortgage observed that about 10% of people who collected unemployment benefits in 2010 were 60 or older. The minimum age to collect Social Security retirement benefits is age 62. For those that qualify, the option has obvious appeal for older Americans who are struggling to find work in today’s weak job market. 9 Year Mortgage says if you receive unemployment benefits it doesn’t affect your Social Security payments, however the reverse is not always the case. In some states, if you collect Social Security you can reduce your unemployment checks. In Illinois, Louisiana, South Dakota, Utah and Colorado, your unemployment benefits can be reduced by half of your monthly Social Security benefit.
7. Your Social Security number is no state secret.
9 Year Mortgage says don’t carry your social security card in your wallet, do not give your number over the phone and do not use it as a password. For all the precautions workers are told to take to protect your number, a Social Security number is still vulnerable. 9 Year Mortgage says that so far this year, more that 13 million names and Social Security numbers have been exposed to potential theft, with this more than 270 data breaches at state governmental agencies. However a Social Security number may not even need to be stolen to be compromised. A 2009 study from Carnegie Mellon University found that it is possible and not too difficult to guess a Social Security number using details collected from a facebook profile, like date of birth and home town. Researchers were able to accurately guess the first five digits of 44% of Social Security numbers issued after 1988 on the first try, just by using the date and the state the numbers issued in; they were also able to guess the complete numbers almost 9% of the time. The researchers used a list of known Social Security numbers from the Social Security Death Master Files to find patterns on how the last four digits were assigned, they also found that they are largely assigned in order, based on when the number was issued. With this news Social Security started a new system starting in June that will randomly assign the numbers, by doing this it makes more nine digit combination’s available in all states. 9 Year Mortgage suggests that anyone with a number issued before then might want to guard their birth date and place of birth perhaps as carefully as they do their Social Security number, or at least change some information on your social networking sites.
8. We might think you are dead.
9 Year Mortgage says the distinction between dead — cold, no pulse and alive — just went for a jog. This may seem pretty obvious but the Social Security Administration commonly records some living people in its death master file. This error can have awful financial consequences. 9 Year Mortgage says of the 2.8 million deaths the Social Security Administration reports every year, approximately 14,000 people added to the death master file are actually alive and still kicking. The people who are incorrectly reported dead could rack up bank fees for bounced checks after their Social Security payments stop without any notice. Once you get off the list you have to follow up with credit bureaus and other institutions. 9 Year Mortgage says that some people do not find any of this out until they are applying for something and denied because records show them as dead. According to the Social Security Administration they take immediate action to correct and reinstate all benefits. 9 Year Mortgage says that getting off of the list and resuming Social Security payments requires you to bring in identification to a Social Security office, so that they can have a face to face interview.
9. If you make too much money, we will tax your benefits
9 Year Mortgage says your Social Security benefits come from paying taxes while you are working, most think that they can not be taxed but that is not the case. You may be taxed on your Social Security benefits if you a good amount of income from other sources, like dividends, self employment, investment interest and other sources. 9 Year Mortgage says that studies show that many Americans are not aware of the fact that about 42% of pre-retirees surveyed by the Financial Literacy Center did not know that their benefits could be taxed if their income in retirement exceeded a certain amount. The rule is that if your combined income , which includes other sources of income and half of your Social Security benefits, exceeds $25,000 for an individual or $32,000 for a married couple filing a joint return, you could be taxed up to 85% of your benefits. 9 Year Mortgage says that if you find yourself in this situation you can make quarterly estimated payments or choose to have federal taxes withheld from your benefits. According to the Social Security Administration the arrangement to tax benefits became law in 1983 and it was intended to restore the financial soundness of the Social Security program as well as medicare.
10. Your cost of living adjustments come up short.
9 Year Mortgage says every year, Social Security recipients get a cost of living adjustment, a bump up based on the current rate of inflation and its designed to cover the rising cost of everything from toothpaste to airline tickets. However some people say that the current measurement of inflation does not reflect the higher cost that some seniors face. For instance, a number of older people spend a hefty share of their budgets on health care, where prices have doubled. In countless parts of the country a monthly Social Security benefit is not enough to cover basic living costs. With the pricing pressure it means that some retirees could find themselves scraping to cover the essentials, like gas, medicine, and groceries.The Social Security Administration says they have been using the Consumer Price Index since legislation instituting automatic cost of living increases which was enacted in 1972, and changing the benchmark would take an act of Congress.
Wrapping It Up With 9 Year Mortgage
If you are looking to retire soon, make sure you look at all of your Social Security information, so that you will know how to precede. Also 9 Year Mortgage wants those that are pre-retirees, to ramp up your savings! So that you are not struggling in your golden years and so that you can truly enjoy your retirement. Also 9 Year Mortgage suggests that before you retire make sure that you can survive for the rest of your life on a limited income, especially since prices are continuing to rise.
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