Understanding your Social Security benefits

Will My Disability Benefits Change When I Turn 65?Turning 65 years old has traditionally been associated with retirement and enrollment in federal benefit programs. However, people with disabilities may already be receiving federal benefits through Social Security, Medicaid, and Medicare before they turn 65.Disabled individuals who qualify for Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI) may wonder what happens to their disability benefits when they reach retirement age.The short answer is that their benefits dont end, and the amount they received prior to turning 65 remains the same. But given the complexity of the federal benefits system, there may be exceptions to these general rules on a case-by-case basis that need to be discussed with a disability attorney.Age 65 and Full Retirement AgeFor most of Social Securitys history, full retirement age, or the age at which someone could receive the maximum amount of Social Security retirement benefits based on their work history, was 65 years old.Reforms to Social Security in the 1980s raised the full-benefit retirement age to between 66 and 67 years old, depending on when somebody was born. For anybody born in 1960 and later, full retirement age is now 67.When Does Social Security Disability Convert to Regular Social Security?The Social Security Administration (SSA) does not permit a person to receive both disability and retirement benefits on one earnings record at the same time.For anyone receiving SSDI payments, their monthly disability benefit automatically switches to Social Security retirement upon reaching full retirement age. Again, this is age 66 or 67 for most people.When this switch takes place, the monthly payment amount stays the same.How Long Do Social Security Disability Benefits Last?SSDI lasts for as long as the recipient has a disabling condition and is unable to work, or until they reach retirement age, at which time the disability benefit converts to a retirement benefit.Social Security performs a continuing disability review (CDR) of SSDI recipients every three to seven years.Turning 65 or reaching full retirement age does not trigger this review. And once SSDI benefits change over to retirement benefits, there is no need for a medical review, since a recipient doesnt have to be disabled to receive Social Security old age benefits.SSI and Retirement AgeA person may qualify for SSI with a disability if they have little or no income and resources and are age 64 and younger, or they have little or no income or resources and are age 65 and older.Qualifying for SSI does not require a work history the way that SSDI does. So, someone can qualify for SSI without ever having worked. But because the SSI benefit payment is not tied to a work history, SSI benefits do not convert to retirement benefits upon reaching full retirement age.If someones receiving SSI for a disability, their benefits can continue after they reach retirement age as long as they still meet the programs financial requirements.Disabled SSI recipients are subject to a CDR at least once every three years, or every five to seven years. During the CDR, the SSA also reviews a recipients income and resources to ensure they are still eligible for and receiving the correct SSI benefit amount.Disability, Medicare, and Turning 65Medicare eligibility ordinarily begins at age 65. But people under age 65 whove gotten SSDI benefits for at least 24 months can start receiving Medicare.SSDI recipients automatically get Medicaid Part A and Part B, collectively known as Original Medicare, after receiving their 25th month of benefits. They can choose at that time to decline or keep Part B, which covers services from doctors and other health care providers. They must typically keep Part A, the portion covering inpatient hospital care.When individuals with qualifying disabilities turn 65 and gain age-based Medicare eligibility, they dont have to re-enroll or complete additional paperwork to continue receiving health care benefits.Turning 65, though, amounts to a secondary initial enrollment period. This could be a good time to re-evaluate current Medicare coverages and make changes.For example, a disabled Medicare recipient may have declined Part B coverage when they first enrolled but decide to keep this coverage when they enroll again at age 65. They can also choose to enroll in another Medicare program, such as Part C or D.Disability, Medicaid, and Turning 65Medicaid is government health care for people with limited income, including those with disabilities.In many states, SSI recipients automatically qualify for Medicaid. Medicaid eligibility thats based on receiving SSI should not be impacted by turning 65, but there could be considerations related to special needs trust funding at age 65.Medicaid covers some costs that Medicare does not, such as long-term care. Special needs trusts can help to preserve a beneficiarys access to benefits like SSI and Medicaid. But the window of time to fund a first-party special needs trust closes at age 65.Some people are also eligible for both Medicaid and Medicare. They may be able to enroll in a Dual Eligible Special Needs Plan, a type of managed care plan that helps to coordinate coverage for those with complex medical needs.Work With a ProfessionalSSDI, SSI, Medicare, and Medicaid all have complex rules that may vary by state. Whether youre turning 65 or reaching retirement age, contact Ashley Day at 251-277-3377. She can provide answers and assist with any necessary paperwork.  

Managing your finances can feel daunting, especially as lifes expenses add up. But with the right strategies, you can take control, stretch your dollars, and enjoy peace of mind. Here at Seniors Helping Seniors, we believe financial independence is empowering, and were here to help! From grocery savings to solar panels, these practical tips will guide you toward a brighter, more secure future.1. Shop Smart and Save at the Grocery StoreMany grocery stores offer senior discountsan easy way to save on everyday essentials. Pairing these discounts with meal planning can help stretch your weekly budget. Need a hand? A Seniors Helping Seniors caregiver can assist with planning nutritious meals while keeping costs down.2. Tap Into Free or Low-Cost Community ResourcesYour community likely offers a variety of free or low-cost services designed for seniors. Think meal delivery programs, recreational activities, or transportation services. Staying active and connected doesnt have to break the bank, and these resources can add tremendous value to your lifestyle without adding to your expenses.3. Take Advantage of Senior DiscountsFrom restaurants to retail stores, discounts for seniors are everywhere! Many establishments offer lower prices or special deals for older adults. Whether its a favorite coffee spot or a hardware store, these small savings add up, making it easier to enjoy your favorite things while staying within your budget.4. Use a Budgeting App to Track Your SpendingSimplify money management with a budgeting app. These tools make it easy to monitor your spending on groceries, utilities, entertainment, and more. If technology feels overwhelming, your caregiver can guide you through setup and show you how to track your finances effectively. Its a small step that leads to big financial clarity.5. Automate Savings and Bill PaymentsAvoid late fees and grow your savings by automating your finances. Set up automatic transfers to your savings account or schedule recurring bill payments through your bank. This hassle-free approach helps ensure your bills are always paid on time, leaving you more time to focus on what matters most.6. Work With a Caregiver for Personalized SupportA Seniors Helping Seniors caregiver can be your budgeting buddy. From spotting local discounts to helping you navigate government programs, your caregiver can provide personalized assistance. Together, you can create a financial plan that fits your needs, so you can spend less time worrying and more time enjoying life.7. Save on Energy with Solar PanelsIf youre ready to invest in long-term savings, consider solar panels. They harness renewable energy, reducing your electricity bills and your carbon footprint. With available tax credits and rebates, going solar might be more affordable than you think. Plus, its a great way to contribute to a greener planet.A Brighter Financial Future AwaitsYour golden years should be filled with joy, not financial stress. These tips are designed to help you budget smarter and save more, empowering you to live life fully and confidently. If youre feeling overwhelmed, our Seniors Helping Seniors team is here to help. With expert guidance and a caring approach, well work alongside you to create a plan that fits your life.Lets tackle those finances togetheryouve got this!Seniors Helping Seniors Making Life Easier, One Step at a TimeFor more tips and support, visit our website or contact your local Seniors Helping Seniors office.

People have many Social Security benefits questions because its such a vast program we help simplify the information and answer your top questions.Its common to associate Social Security with retirement. However, there is much more to Social Security than retirement income. There are many people who can qualify for Social Security benefits including retirees, their spouses, disabled individuals, and survivors of the deceased. For many people in the U.S., Social Security is a valuable program.In this article:What is Social Security?Who can qualify for Social Security benefits?What are Social Security credits and how are they earned?Can I qualify for benefits based on my spouses income?When should I take my Social Security retirement benefits?How is my Social Security benefit amount calculated?When do I apply and how do I apply for Social Security benefits?How can an Ameriprise financial advisor help? What is Social Security?1Social Security is a U.S. federal program that provides enrolled individuals with a source of income when they become unable to work or earn sufficient wages on their own. There are three types of Social Security benefits: Retirement (spousal benefits available in some cases)DisabilitySurvivors Who can qualify for Social Security benefits?You are eligible to receive Social Security benefits in the United States once youve accumulated 40 work credits as long as you also pay Social Security taxes (this is applicable for certain government employees or those who are self-employed). Non-U.S. citizens who are living legally in the United States and have earned benefits can also qualify for Social Security.What if I live abroad?Most U.S. citizens who live in foreign countries after they retire can qualify for Social Security benefits. However, the U.S. government will not send Social Security payments to those living in Cuba or North Korea. Additionally, Americans living in Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan must qualify for an exception in order to receive benefits while living abroad.How do I qualify for Social Security?To qualify for Social Security retirement benefits, in most cases:You must be 62+ years old, or disabled/unable to work, andYou must have sufficient credits earned throughout your working life.To qualify for Social Security spousal retirement benefits:To qualify for Social Security disability benefits if you are under the age of 62:To qualify for Social Security survivors benefits: What are Social Security credits and how are they earned?Social Security credits determine eligibility and benefit amounts in retirement. In 2023, earning $1,640 in income qualifies as earning one Social Security work credit.2 You are eligible to earn up to four credits per year. Most people need 40 credits (10 years of work) to qualify for Social Security benefits though younger individuals require fewer credits for disability benefits or for their family members to receive survivors benefits. Can I qualify for Social Security benefits based on my spouses income?Short answer: in some cases.Retirement benefits are based on your own earnings record. However, spousal and survivors Social Security benefits are based on your spouses earnings, whether the spouse is deceased or divorced from you. Keep in mind that you can qualify for spousal or survivors Social Security benefits as well as your own retirement benefit but, Social Security wont let you add these amounts together. Instead, you will receive whichever benefit is larger. When should I take my Social Security retirement benefits?Waiting to collect Social Security benefits may be beneficial if youre able to do so. While the age to receive your full retirement benefit is 66-67 (depending on the year you were born), you can begin collecting Social Security benefits as early as age 62. But each month you wait to start collecting (up until age 70) increases your eligible benefits.4Once you reach full retirement age, youre entitled to 100% of the benefits calculated from your lifetime earnings. If you wait until age 70 to begin collecting Social Security, your retirement benefit will be 32% larger.3However, waiting may not be the right choice for everyone. Your financial advisor will help you determine an approach that reflects your options and your personal situation. For example, they may consider:Varying tax rates on Social Security incomeCapital gains and IRA withdrawalsHealth issues and life expectancy in your family historyWhether your current retirement accounts and additional sources of income (including Social Security or pensions) will cover your essential expenses before you reach full retirement ageView our Social Security Infographic for more information How is my Social Security benefit amount calculated? Another common Social Security benefits question is how payments are calculated based on your lifetime earnings. To account for changes in average wages each year, the Social Security Administration (SSA) indexes your income using the national average wage index. The SSA calculates your average indexed monthly earnings (AIME) based on the 35 years in which you earned the most. A formula generates your basic benefits, otherwise known as your primary insurance amount. This primary insurance amount (PIA) is what you would receive at your full retirement age. If you were born between 1955 and 1959, full retirement age is between age 66 and 67. For those born in 1960 or later, full retirement age is 67.5 When do I apply and how do I apply for Social Security benefits?The SSA recommends applying four months before you want your Social Security retirement benefits to begin.  There are two ways to apply:Online application: Find it on the Social Security Administrations website.Over the phone: Call 1-800-772-1213 (TTY 1-800-325-0778) from 8 a.m. to 7 p.m., Monday through Friday, to apply by phone. How can an Ameriprise financial advisor help?Your Ameriprise financial advisor can answer any Social Security benefits questions you may have, as well as evaluate your Social Security options and help you with your overall retirement income planning. They will review how scenarios (such as working longer or delaying benefit collection) can help optimize the benefits for you, a spouse or family members.