Peninsula Daily News Column 1-12-12 "How much you get depends on work"

            Good Morning, Survivors!

            Well, think about it: You’ve survived Medicare’s “open enrollment” for 2011, you’ve survived the Christmas holidaze with your faculties more-or-less intact, you’ve survived a few more weeks of government’s inability to do anything helpful about almost anything AND you’ve survived a New Year’s transition into 2012,  so it seems to me that someone ought to say, “Congratulations!”

            CONGRATULATIONS!

            OK, that’s enough of that - I’m going to charge straight ahead with our “Boomer Primer!” – Now, what was the deal with that?

            Fair question. This “Boomer Primer” is an attempt at giving Baby Boomers, who are teetering precariously on the verge of retirement OR just trying to figure out this whole “aging thing” a place to start – A list of “Things to Think About,” if you will, then actually DO something about; otherwise, it’s just another thing to clutter up the space in your mind between thoughts.

            And I’ve realized that no self-respecting “Boomer Primer” can call itself that without, at least, a nod to Social Security; alas, it’s going to be a brief nod because it is not possible to explain Social Security in a little column. It is not possible to explain Social Security in 30 “little columns,” because there are a million little nuances that turn on your particular situation. That’s what web sites are for, so pour yourself a friendly beverage and go to www.socialsecurity.gov where you will find a wealth (No kidding!) of info. Take your time.

            Hey: There’s even a page where you can “research popular baby names!” Well, OK, not a biggie for most of us but entertainment is where you find it.

            Let’s begin by clearly stating what is and is NOT true:

1. Social Security payments come from the Federal government – I’m sorry, but they do;
2. Social Security is NOT “welfare.” You’ve been paying into it throughout your working life. Think of it more as “insurance” or an “annuity” – You’ve paid for it, so it’s yours;
3. If you doubt #2, consider the fact that your Social Security payment (“benefit”) is based on how long you worked and how much you made, which is a way of calculating how much you paid into it (more or less) so, YES. It’s yours.

If you were born after 1929, you have 40 “credits” to collect; in other words, 10 years of work. As noted above, the longer you worked and the more you earned, the larger your Social Security benefit will be. If you retire before your “full retirement age” (“early retirement”), you’ll get less. If continue working and retire later than your “full retirement age,” you’ll get more. If your year of birth is from 1943 to 1954, your “full retirement age” is 66. If you were born in 1955, it’s 66 + 2 months. If you were born in 1956, it’s 66 + 4 months. You get it.

Can you work AND collect your Social Security at the same time? Yes. Your earnings in or after the month you reach your full retirement age will NOT reduce your Social Security benefit. If you started collecting Social Security BEFORE you hit your full retirement age, they will, to the tune of $1 less for every $3 you earned.

Social Security isn’t taxable, right? Wrong, because it is, but that depends upon how much you or both of you brought in from all sources, and how you file your taxes (joint vs. separate, etc).

What about Social Security “disability?” Well, what about it? It’s a way of attempting to sustain yourself if you’ve been disabled to the point where you can’t work. It’s complicated, and it can be harrowing, but it is not impossible, so if you find yourself in that circumstance, consider it. Another thing it is is well beyond the purview of anything we can tackle here, so just know that it exists.

When should I start planning for retirement? Yesterday, if you do, in fact, plan on retiring, in the classic sense. A better question might be, “How much will my Social Security benefit be?” Go to the web site I noted above, where you’ll find a tool for estimating your benefit that actually works remarkably well – AND it will let you “play” with “what-ifs:” “What if I retire early?” “What if I retire later?” Etc – You get it.

If I’ve enrolled in Medicare, haven’t I already signed-up for Social Security? No. The two are hopelessly (and, probably, incestuously) entwined, but they are two VERY different critters.

OK, then how do I sign-up for Social Security? Well, you can (a) go to the web site above and do it online (Really!); (b) call 1-800-772-1213 and do it on the phone, or (c) you can make an appointment at any Social Security office and do it eyeball-to-eyeball.

Aren’t the Feds messing with Social Security? Well, the Feds are talking about messing with Social Security, but so far, it’s talk. Look: All any of us can realistically do is play by the rules as they currently exist and hope for the best, because hoping for the worst would be stupid. Do I think that folks who are currently collecting their Social Security benefits are going to lose them? No. Do I think that folks who are a short-step away from collecting will lose it? I sincerely doubt it. Is that my personal opinion, based on nothing in particular? Yes.

Finally, remember this: Millions of people have figured this out, so you can, too. Go to the web site, take your time, make notes and think. What you’ve heard from your neighbors, buddies, cronies or family may or may not have anything to do with what’s true for you.

And that’s why you’re a “survivor.”