In my previous article, I describe how the Social Security program works and examine the program’s financial standing over the last thirty years. Currently, Social Security is running a small annual surplus, paying benefits as scheduled, and trust fund reserves are larger than they’ve been in decades. At a glance, everything appears A-ok. However, the[Learn more…]
Social Security
How Much Can I Plan on Social Security?
In my first article on Social Security, I described how the program works and reviewed the program’s financial standing over the last thirty years. In my second article, I examined the financial future of Social Security and the policy changes necessary to shore up the program’s long-term finances. Here, I outline Sensible Financial’s new projections[Learn more…]
Getting the most out of Social Security
At Sensible Financial we spend a lot of time thinking about and advising on Social Security. A search on our website yields over a dozen articles. For most Americans, Social Security is their largest asset. (If it is not your largest asset it is still likely to be a very large asset). Choosing when you[Learn more…]
The Importance of Creating a my Social Security Account
For at least a year now, Sensible Financial has been advising its clients to create and then “lock down” their my Social Security Account. This account is located on the Social Security Administration’s web site, www.ssa.gov. Since September 29, 2018, your my Social Security account has been the only way to apply for Social Security and Medicare benefits online. Whether you are creating this account, or logging into an account you previously created, the web site[Learn more…]
How to Fix Social Security (According to the Presidential Candidates)
Social Security is not in crisis, but the coming inability of Social Security taxes to cover benefits is close enough (2033-2034) to have prompted most presidential candidates to take a position. Republicans want to close the gap by reducing benefits. Democrats want to close the gap by increasing tax revenues. The enacted solution is likely[Learn more…]
Just How Good is Social Security, Anyway?
Axel Börsch-Supan, a German expert on public pensions, spoke at the 18th Annual Meeting of the Retirement Research Consortium in Washington, DC earlier this month. He offered an implicit framework for how public pension systems should work. He suggested that these systems should: Be operationally transparent Automatically adjust to changes in the supporting economy Not[Learn more…]
New Rules for Claiming Social Security Benefits
New rules eliminate the ability of spouses who do not reach 62 by January 1, 2016 to file for spousal benefits while letting their own retirement benefits grow. April 29, 2016 is the deadline to reach age 66 and “File and Suspend” in order to let your retirement benefits grow while your spouse takes spousal[Learn more…]