10 Issues That Decrease Your Social Safety Verify


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You have worked hard for Social Security pension benefits and you probably want every dollar you are entitled to.

The sad reality, unfortunately, is that there are reasons why your social security contributions could go down. Many are under your control, but some are not.

Read on to find out how your monthly check could be broken for everything from poor timing on your part to poor planning on the part of the government.

1. Failure to collect incorrect wage information

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Social security benefits are based on your lifetime earnings. If the government doesn’t have the correct wage information for you, the result could be a minor social security exam.

To make sure the government has the correct information about your wages, sign up for your own account on the Social Security Administration (SSA) website. Among other things, you can use the account to check your earnings history.

For more information on social security accounts and income histories, see 9 Social Security Terms Everyone Should Know.

2. Receiving some types of pensions

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Some workers may not be eligible for social security due to the nature of their employment. As we report in “6 groups who cannot rely on social benefits”:

“Not every employee pays into the social security system. In some states, civil servants are exempt from social security contributions because of their retirement benefits. These workers can include employees of state and local government agencies, including school systems, colleges, and universities. In some states, this may include police officers and firefighters. “

3. The Medicare application window is missing

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While the full retirement age for Social Security is slowly changing, the age for Medicare eligibility has remained the same. This means that you must apply for Medicare at the age of 65 even if you don’t apply for Social Security until age 66 or later.

Failure to comply may result in penalties for default. For example, Medicare Part B premiums are 10% higher for every 12 month period that a person is not enrolled for Medicare coverage when eligible. Since Medicare payments are generally deducted from your Social Security benefit, it could lower your Social Security benefit every month.

4. Rising Medicare Premiums

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Even if you apply for Medicare in a timely manner, you may find that rising Medicare premiums are affecting your social security payments. That’s because Medicare premiums are generally deducted from Social Security payments.

In 2012, people paid $ 99.90 a month for Medicare Part B, which covers outpatient services. For 2021, that premium is $ 148.50 for most people, with high earners paying more – between $ 207.90 and $ 204.90, depending on their income.

5. Take up old-age provision early

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If you claim your Social Security benefits before your full retirement age (an SSA set age), the future check will be smaller. While the government may be happy to send you monthly checks at the age of 62, this reduces your potential monthly payment – potentially by up to a third or more.

The cut is permanent, so don’t expect big increases in benefits when you reach full retirement age.

6. Incorrect retirement age

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You may think you’re doing everything right by applying for social security benefits at age 65, but filing at that age will also reduce your payments. Although 65 was long considered the full retirement age, the government has slowly moved the goalposts.

If you were born between 1943 and 1954, your full retirement age is 66. The number increases every year by two months (for example 66 and 6 months for those born in 1957) until reaching full retirement age of 67 years for those born or after 1960.

7. Earning too much as early retirees

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If you choose to take early retirement, think twice about continuing to work while you are receiving benefits. If you are younger than your full retirement age in 2022 but are old enough to be on Social Security, you can only earn up to $ 19,560 before any of your benefits are withheld. In this situation, the government will reduce monthly benefits by $ 1 for every $ 2 earned over that amount.

When you reach full retirement age in 2022, you can earn up to $ 51,960 in the months leading up to your birthday. If you exceed this amount, Social Security will take $ 1 for every $ 3 you earn over the limit.

Fortunately, these are not permanent cuts in your benefits. And from the month you reach full retirement age, you can earn an unlimited amount. In addition, any benefits that are withheld on the basis of your income will be counted towards your benefits every month after you reach full retirement age.

8. Owe taxes or child support

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The government can also take social security money to pay back taxes or child support.

The tax garnishment is limited to 15% of your monthly benefit. However, if you owe child maintenance, prepare for the state to pay up to 65% of your benefits to pay that obligation.

9. Late Payment on State Student Loans

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A US Treasury Department rule prevents credit card and other consumer account debt collectors from seizing your social security benefits. However, this protection does not extend to debts owed to the federal government. If you’ve defaulted on federal student loans for yourself or a child, some of your social security benefits may be withheld to help you pay off the debt.

10. Outlast the Social Security Trust Fund

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Your social security benefits could take a hit if you survive the program’s trust fund. According to the 2021 Trustee Report, the Old Age and Survivor Trust Fund – which pays out social security pension benefits – will run out of money in 2033.

The retirement of the largest generation in US history, the baby boomer generation, is calling the system into question as the cost of these workers’ benefits is growing faster than the working-age population who are paying into the system.

After 2033, the program will only have enough workers’ incomes to pay 76% of social security benefits, the report said.

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