Social Security benefits: Questions & answers guide

When it comes to Social Security, there is a lot to consider. Social Security is often associated with a retirement program, but you may enroll if you become disabled or lose a family member. Take a look at the diagrams below for information on how to make the right choices for you and your family.When should I start collecting Social Security benefits?The answer is different for every person and depends on many individual factors like your date of birth, marital status and financial position. The longer you wait to start collecting Social Security, the higher your monthly benefit will be. An Ameriprise financial advisor can help you determine an appropriate time for you based on your financial situation and goals. Social Security benefits by ageWhat is my full retirement age?Your full Social Security retirement age depends on the year you were born. If you were born on January 1 of any year, refer to the previous year to determine your full retirement age.1  Year of birth  Retirement Age1943-195466 years old195566 +2 months years old195666 +4 months years old195766 +6 months years old195866 +8 months years old195966 +10 months years old196067 years old  How do my Social Security benefits change if I retire early or late?As life changes and priorities shift, you may wish to retire before or after your full retirement age. Your Ameriprise financial advisor can help you determine an appropriate choice for you. Retiring early locks you into lower monthly payments and will decrease your lifetime benefit amount. Retiring later increases your monthly payment and the amount you will receive over your lifetime.Comparing Social Security benefits by age Can I receive the Social Security benefits of my spouse?As the spouse of someone receiving benefits, you may be able to claim benefits based on their income, even if you have never worked under Social Security. You may be eligible for benefits if you are: Social Security benefits of a spouse Can I collect benefits on behalf of my child?You may be able to claim benefits if the child you are caring for fits the following criteria: Benefits on behalf of a child Can my children receive Social Security benefits?A child who has a parent who is disabled or retired and entitled to Social Security benefits may also be eligible for benefits if they are:   Am I eligible for survivors benefits?You may be eligible for survivor's benefits if you are: How does my military service or government employment affect my Social Security?As a veteran or government employee, your Social Security benefits may differ from others:   Can I still work and collect Social Security benefits?You can collect Social Security benefits while working, starting at age 62. However, your age and earnings may impact the amount of benefits you receive during that time. Working won't permanently reduce the Social Security benefits you receive, nor will your withheld benefits disappear.Once you reach full retirement age:Your monthly benefit will increase, taking into account prior benefits detained due to earnings.Extra income no longer decreases your benefits.If you work and collect Social Security when you are:   These types of income are exempt from the Social Security earning limit:Social Security income exemptions*If you work for someone else, only your wage amount applies to earnings limits. If you're self-employed, only your net earnings count. Does Social Security allow for inflation or cost of living increases?The Social Security Administration can enact yearly benefit increases called cost-of-living adjustments (COLA) based on inflation. Since 1975, COLAs have ranged from 14.3% (1980) to 0.0% (2009, 2010, 2015). Your financial advisor can help you identify other sources of income when Social security inflation adjustments are low.YearCost of Living Adjustment20228.7%20215.9%20201.3%20191.6%20182.8%20172.0%  When and how do I apply for Social Security?An Ameriprise financial advisor can help you navigate the process for Social Security. When to apply for Social SecurityYou can currently apply for Social Security in the following ways:Our advisors can helpIf you have any questions about Social Security, your Ameriprise financial advisor can help you understand all aspects of your benefits and help you live more confidently so if your life changes, your plan can too.

A newly proposed rule by the Social Security Administration (SSA) could ultimately change the way in-kind income is defined for recipients of Supplemental Security Income (SSI).What Is SSI?Supplemental Security Income (SSI) is a federal public benefits program that provides monthly payments to individuals with limited means, including people with disabilities and seniors. In many cases, recipients of this type of benefit automatically qualify for Medicaid as well.In 2023, the federal SSI payment standard is $914 per month for an individual ($1,371 per month for a couple).SSI Income GuidelinesIndividuals who receive SSI must meet very strict guidelines in order to continue qualifying for these public benefits.For people with disabilities, these guidelines include having an impairment that meets the SSAs narrow definition of disability as well as maintaining specific monthly limits on their assets and income.SSAs Definition of IncomeAs SSI support is intended for those with limited means, any additional income could potentially put an SSI recipients benefits in jeopardy.According to the SSA, income includes any item an individual receives in cash or in-kind that can be used to meet his or her need for food or shelter.An SSI recipient whose income exceeds their monthly SSI award even if it is unintentionally can result in the individual losing their benefits or having them lowered by a certain amount.Historically, SSA has included free food in its definition of income. SSI recipients must provide the SSA with details about their food expenses. A recipient who accepts so-called in-kind support and maintenance (ISM) in the form of food, such as a supply of groceries brought to the recipient by a family member or friend, generally will have their benefits reduced by about one-third.Fortunately for SSI recipients, this is something to which the SSA is now proposing a shift.Proposed RuleIn February 2023, the SSA announced its proposal to omit food from its calculations of ISM. If put into effect, Supplemental Security Income recipients who receive this type of support may no longer see their benefits shrink as a result. In addition, they would no longer need to report their food expenses to the SSA.The complexities of our current food ISM policies may outweigh their utility, the SSA states in its proposed rule. The current requirements for reporting in-kind food receipts could discourage SSI applicants and recipients from receiving an often informal but important form of help.In addition to simplifying reporting requirements for SSI recipients as well as processing time for the SSA, the SSA says the new rule would provide increased financial security to impacted beneficiaries; provide consistent treatment of food support regardless of source; and facilitate improved food security among beneficiaries.The SSA will be seeking public comments on this proposed rule up until April 17, 2023.Additional ResourcesTo learn more about these benefits, refer to this introduction to SSI, or consider consulting with a qualified special needs planner in your area.Contact Sharek Law Office at 412-347-1731 or click here to schedule a complimentary 15-Minute Call to learn how we can help. This article is a service of Sharek Law Office, LLC. We dont just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than youve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge. Please note this is educational content only and is not intended to act as legal advice.

If you are an individual with a disability who holds an ABLE account, your annual contributions to this type of account generally must not exceed $17,000 a year, as of 2023. However, ABLE account owners who are employed can contribute their work income to this type of account beyond the typical $17,000 annual threshold until the end of 2025.What Is an ABLE Account?ABLE accounts are a type of savings account designed for people with disabilities. They permit individuals with disabilities to save money, tax-free, without putting their means-tested public benefits at risk.As of 2023, up to $17,000 per year can be set aside into an ABLE account. The account holder is allowed to have a total of up to $100,000 in their ABLE account and remain eligible for such assistance programs as Medicaid and Supplemental Security Income (SSI). Under current law, individuals who became disabled before the age of 26 are eligible to open an ABLE account. Its funds can be used to cover the costs of education, assistive technology, transportation, and other items.ABLE accounts came into effect following the 2014 passage of the Achieving a Better Life Experience (ABLE) Act. Several years later, an ABLE to Work provision made it possible for ABLE account owners who work to start saving more. However, the ABLE to Work Act is currently slated to expire at the end of 2025.Who Can Benefit From the ABLE to Work Act?If you are living with a disability and hold an ABLE account, you may benefit from the ABLE to Work Act. There are a few rules of which you should be aware.First, if youre contributing to your ABLE account, you cannot also contribute to your employers defined contribution plan (for example, a 401(k) plan).