Category: Social Security

The Best Reason to Take Social Security Long Before Age 70

Mary Pat Campbell

Link: https://www.fool.com/retirement/2021/05/18/the-best-reason-to-take-social-security-long-befor/

Excerpt:

Delaying Social Security may mean scoring a higher monthly benefit — but it doesn’t necessarily mean snagging a higher lifetime benefit. In fact, if you pass away at a somewhat young age, you’ll actually lose out on lifetime income by delaying your filing until 70.

Let’s imagine you’re entitled to a monthly benefit of $1,500 at an FRA of 67. If you were to claim that benefit at age 62, it would shrink to $1,050, whereas delaying it until 70 would let it grow to $1,860.

But if you were to pass away at the age of 78, which is considered relatively young given today’s life expectancies, here’s what you’d be looking at in terms of lifetime income:

Filing at 62 would leave you with $201,600

Filing at 67 would leave you with $198,000

Filing at 70 would leave you with $178,560

Author(s): Maurie Backman (TMFBookNerd)

Publication Date: 18 May 2021

Publication Site: Motley Fool

Social Security Sees Slowdown in Retiree Rolls Amid Covid Deaths

Mary Pat Campbell

Link: https://www.bloomberg.com/news/articles/2021-05-03/social-security-sees-slowdown-in-retiree-rolls-amid-covid-deaths

Graphic:

Excerpt:

The rate of growth in retired Americans who collect Social Security has slowed down sharply, and the drop may be due in part to the disproportionate number of deaths from Covid-19 among the elderly.

The number of people who received retirement benefits from the Social Security Administration rose 900,000 to 46.4 million in March, the smallest year-over-year gain since April 2009.

While the Office of the Chief Actuary at the government agency said it is still too early to assess the impact from Covid-19, the year-over-year change appears to reflect excess deaths. About 447,000 people who died from the virus were 65 or older, according to data from the Centers for Disease Control and Prevention, or about 80% of total deaths.

Author(s): Alexandre Tanzi

Publication Date: 3 May 2021

Publication Site: Bloomberg

MassMutual Explores Near-Retiree Knowledge of Social Security Retirement Benefits During the COVID-19 Pandemic

Mary Pat Campbell

Link: https://www.argus-press.com/news/national/article_5ecdc18f-9144-582e-9fd1-aeb1c64c8d90.html

Excerpt:

Just over one-third (35%) of near-retirees (age 55 to 65) failed and another 18% earned a grade of D on a basic knowledge quiz about Social Security retirement benefits, while only 3%, received an A+ by answering all 12 true/false statements correctly, according to the latest MassMutual Social Security consumer poll.

Even more startling, over a quarter (26%) of individuals age 60 to 65 have no idea of the full retirement age.

There is good news, however, and an improving trend.

A large majority (83%) are very knowledgeable about the consequences of receiving Social Security benefits before reaching their full retirement age. A whopping 94% know that if they take benefits before full retirement age, their benefits will be reduced as a result of filing early while 86% know that if they receive benefits before their full retirement age and continue to work, their benefits may be reduced based on how much they make.

Publication Date: 6 April 2021

Publication Site: Argus Press

Bill Reintroduced to Shore Up Social Security, Medicare

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/04/15/bill-reintroduced-to-shore-up-social-security-medicare/

Excerpt:

A bipartisan group of lawmakers reintroduced Thursday legislation to shore up the Social Security and Medicare Trust Funds.

The Time to Rescue United States Trusts, or TRUST Act, would establish bipartisan, bicameral commissions to address the long-term solvency of major trust funds.

….

The Congressional Budget Office projects the Highway Trust Fund will be insolvent by 2022, the Medicare Hospital Insurance Trust Fund in 2026, the Social Security retirement fund in 2032, and Social Security Disability Insurance in 2035.

Author(s): Melanie Waddell

Publication Date: 15 April 2021

Publication Site: Think Advisor

Alicia Munnell: Biden’s Social Security Tax Hike Plan Falls Short

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/03/19/alicia-munnell-bidens-social-security-plan-falls-short/

Excerpt:

THINKADVISOR: What’s your take on President Biden’s proposal for fixing Social Security?

ALICIA MUNNELL: A step in the right direction. Good ideas but incomplete. There’s nothing wrong with it. It’s just not complete. He wants to have a few benefit enhancements and to increase taxes for people earning over $400,000. But I don’t think his numbers close the full 75-year Social Security [system] shortfall.

Author(s): Jane Wollman Rusoff

Publication Date: 19 March 2021

Publication Site: Think Advisor

MoneyPalooza Monstrosity: It Passed! More on the Multiemployer Pension Bailout

Mary Pat Campbell

Link: https://marypatcampbell.substack.com/p/moneypalooza-monstrosity-it-passed

Graphic:

Excerpt:

Here are the whole-number ratios if you can’t eyeball the relationships above.

The total MEP unfunded liability is 8 times that of the bailout bill amount

The total public pension unfunded liability is 22 times that of the bailout bill amount (this happens to be the same as the total American Rescue Plan Act of 2021)

The total Social Security shortfall is almost 200 times that of the MEP bailout bill

Author(s): Mary Pat Campbell

Publication Date: 8 March 2021

Publication Site: STUMP on Substack

The hopeful news for Social Security buried in the $1.9 trillion bailout

Mary Pat Campbell

Link: https://www.msn.com/en-us/money/retirement/the-hopeful-news-for-social-security-buried-in-the-1-9-trillion-bailout/ar-BB1eht7e?ocid=BingNews

Excerpt:

Lawmakers have moved to include in the bill an unrelated $86 billion bailout for bankrupt union pension plans.

And once they’ve done that, it’s going to be even harder for them to argue that they shouldn’t bail out the stricken Social Security trust fund that is actually their responsibility. Social Security’s deficit: $16.8 trillion, or about $50,000 for every person in America.

On the other hand, if Congress tries to weasel out of fully funding Social Security in a few years’ time, this rescue of private sector union pensions is going to look like an outrage.

Author(s): Brett Arends

Publication Date: 6 March 2021

Publication Site: MSN Money

How Biden’s ‘Donut Hole’ Plan Could Undermine Social Security

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/17/how-bidens-donut-hole-plan-could-undermine-social-security/

Excerpt:

But Richard Johnson, director of the Urban Institute’s Program on Retirement Policy, argues that he has a better idea — one that would generate more tax revenue for Social Security benefits without creating a donut hole, he tells ThinkAdvisor in an interview.

“Increase the $142,800 tax max to something like $250,000 today and continue to raise it [based on] average earnings growth,” he recommends.

Part of Johnson’s reasoning is rooted in the presumption that if Social Security were to be perceived as only for low-income earners, political support for the crucial program would be diminished.

Author(s): Jane Wollman Rusoff

Publication Date:

Publication Site: Think Advisor

Saving Social Security Is a Bipartisan Issue: Survey

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/22/saving-social-security-is-a-bipartisan-issue-survey/

Excerpt:

Most Americans of both political parties agree there Is a retirement crisis ahead.

A majority of those surveyed say COVID-19 has delayed their retirement plans.

Many stated that pension plans are better than 401(k) plans.

Author(s):  Ginger Szala

Publication Date: 22 February 2021

Publication Site: Think Advisor

Reliance on Social Insurance Tax Revenue in Europe

Mary Pat Campbell
Reliance on Social Insurance Tax Revenue in Europe

Graphic:

Excerpt:

A recent report on tax revenue sources shows that social insurance taxes—also referred to as social security contributions or payroll taxes—are an important revenue source for European governments. Social insurance taxes, as opposed to individual income taxes, are usually levied at a flat rate. The revenue is generally used to fund specific social programs, such as unemployment insurance, health insurance, and old age insurance.

In 2019 (the most recent data available), social insurance taxes were the second largest tax revenue source in European OECD countries, at an average of 29.5 percent of total tax revenue. Only consumption taxes were on average a larger source of tax revenue, at 32.4 percent.

Author(s): Elke Asen

Publication Date: 25 February 2021

Publication Site: Tax Foundation

Windfall Elimination Provision and Government Pension Offset Updated for 2021

Mary Pat Campbell

Link: https://www.asppa-net.org/news/windfall-elimination-provision-and-government-pension-offset-updated-2021

Excerpt:

2021 Levels. For purposes of the WEP [windfall elimination provision], the amount of substantial earnings in covered employment or self-employment needed for a year of coverage (YOC) is adjusted annually by the growth in average earnings in the economy, provided a cost-of-living adjustment is payable. In 2021, the amount of substantial earnings in covered employment or self-employment needed for a YOC is $26,550.

For people with 20 or fewer YOCs who become eligible for benefits in 2021, the WEP reduces the first factor from 90% to 40%, resulting in a maximum reduction of $498 (90% of $996 minus 40% of $996). For each year of substantial earnings in covered employment or self-employment in excess of 20 years, the first factor increases by 5%. For example, the first factor is 45% for those with 21 YOCs. The WEP factor reaches 90% for those with 30 or more YOCs and at that point is phased out.

Author(s): JOHN IEKEL

Publication Date: 3 February 2021

Publication Site: ASPPA

Annual Statistical Supplement, Social Security

Mary Pat Campbell

Link: https://www.ssa.gov/policy/docs/statcomps/supplement/2020/index.html

Preface:

The Supplement is a major resource for data on programs administered by the Social Security Administration—the Old-Age, Survivors, and Disability Insurance program, known collectively as Social Security, and the Supplemental Security Income program. The Supplement also includes program summaries and legislative histories that help users of the data understand these programs. Please note that additional disability tables and statistics can be found in the SSI Annual Statistical Report and the Annual Statistical Report on the Social Security Disability Insurance Program.

The Supplement has been published annually since 1940. Decisions affecting the future of Social Security are facilitated by the availability of relevant data over a long period. The data provide a base for research, policy analysis, and proposals for changing the programs. In addition to meeting the Social Security Administration’s information needs, the Supplement strengthens the agency’s ability to respond to requests for program data from congressional committees, government agencies at all levels, and the research community.

The Supplement is prepared by Social Security Administration staff from various components throughout the agency. I would like to express my thanks to them for their contributions.

Katherine N. Bent
Acting Associate Commissioner for Research, Evaluation, and Statistics
February 2021

Date Accessed: 24 February 2021

Publication Site: Social Security Administration