Myths and Facts about Social Security (Part 2)

Posted In: News Retirement

V5k9Swo2kSIaWq2T_bHiSR9DBBh985AaCuQrB1euvggMyth: Social Security is only a retirement program.

Fact: Social Security also offers disability and survivor’s benefits.

With all the focus on retirement benefits, it’s easy to overlook the fact that Social Security also offers protection against long-term disability. If you receive these benefits, your family members may be eligible to receive benefits too.

Another valuable source of support for your family is Social Security survivor’s insurance. If you were to die prior to retirement, certain members of your family, including your spouse, children, and dependent parents, may be eligible for monthly survivor’s benefits that can help replace lost income.

 

Myth: If you earn money after you retire, you’ll lose your Social Security benefit.

Fact: Money you earn after you retire will only affect your Social Security benefit if you’re under full retirement age.

Once you reach full retirement age, you can earn as much as you are able without affecting your Social Security retirement benefit. If you’re under full retirement age, however, any income you earn may affect the amount of benefit you receive:

  • If you’re under full retirement age, $1 in benefits will be withheld for every $2 you earn above the 2015 limit of $15,720.
  • In the year you reach full retirement age, $1 in benefits will be withheld for every $3 you earn above the limit, until the month you reach full retirement age. If you reach full retirement age in 2015, that limit is $41,880.

Even if your monthly benefits are reduced in the short term due to your earnings, you should receive the higher monthly benefits. SSA recalculates your benefit at full retirement age.

*Original article from Broadridge/Forefield Newsletter

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Any opinions expressed in this forum are not the opinion or view of Ambassador Advisors or American Portfolios Financial Services, Inc. (APFS). They have not been reviewed by either firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.

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