Frequently Asked Questions
Financial Advisors like you probably have been asked these same questions by almost every client who is curious about the social security benefits they are entitled to, have heard many popular social security myths or misinformation, or you might even have these questions yourself. In this document, you’ll find answers to some of the most common questions asked about Social Security, as well as links to Claim with Confidence content for further information on each topic.
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Is Social Security going broke?
Social Security is going to be around in one form or another for a long time. Probably well into the next century. The worst thing that could happen would be a cut in benefits for everybody. But according to the recent Trustee’s report, that benefit cut would not happen until the year 2035.
For more, continue reading about this in the following article: Social Security is Going Broke – Right?
What happens if you claim benefits and continue to work?
Your benefit might improve.
If you were to continue to work into your 70s, 80s or 90s, Social Security recalculates your benefit every year. If you made enough money to knock out one of your previous wage-earning years, and increase your benefit going forward.
If your earnings at 67 exceed your earnings from a previous year, Social Security would delete the lower year. They add the higher earning year, recalculate your benefit, and pay you the higher amount going forward - even though you have already claimed your benefit. It will not be a substantial increase, because you are only replacing one out of 35 wage-earning years, but you should see a slight increase.
For more, continue reading about this in the following articles: What Happens if You Claim Your Benefits and Continue to Work and Can You Claim Social Security and Continue to Work?
https://claimwithconfidence.com/blogs/news/can-you-claim-social-security-and-still-work-part-2
Can you change your mind after claiming your benefits?
Yes.
There are two ways you can change your mind after already claiming Social Security benefits:
The first way only works if you have been receiving your benefits for less than 12 months. If you can pay back everything you received, Social Security will consider you to have never claimed your benefits.
You can suspend your benefits, which means you will stop receiving your monthly benefit. Every year your benefit is suspended, it will grow by a minimum of 8% per year up until age 70. And if there are any COLA increases while the benefit is suspended, you can add it on top of the 8% increase.
For more, continue reading about this in the following article: 2 Ways to Change Your Mind After Claiming Your Social Security Benefits.
Are my Social Security benefits taxable?
Yes.
Up to 85% of your Social Security benefits can be taxable. And it depends on how much money you make in your retirement. In fact, the earnings limits are quite low. Every year, more people join the ranks of those who pay taxes on their Social Security benefits.
For more, continue reading about this in the following article: Did You Know Social Security Taxes Your Benefits?