Social Security For Dummies
3rd Edition
Published on 8. December 2017
Book
Paperback/Softback
336 pages
978-1-119-37573-9 (ISBN)
Description
For the newest edition, laws, dates and resources will be updated, new policies will be discussed, in relation to social security. Since its inception in 1937, workers across the United States have set aside a portion of their wages to fund the Social Security Administration. For many, Social Security forms the foundation for their retirement funds, yet few fully understand the purpose and impact of this important U.S. Institution. Social Security For Dummies provides readers with the information they need to take charge and successfully navigate the U.S. Social Security Administration.
Vital updates include:
* Review against Social Security's website, which has changed a lot.
* Significant rule change involving spousal filing.
* Update discussion to marital filing strategies (as well as other references to this in the book) due to new restrictions on file and suspend.
* A fresh look at available Social Security calculators
* How Social Security benefits are funded and distributed
* Social Security options: Retirement, Survivor, and Disability and how to qualify
* Deciding when to begin accepting Social Security benefits
* Signing up, receiving checks, and understanding statements
* Challenges and considerations for special circumstances (i.e. divorce or death of beneficiary)
* Pointers for determining who to call for help, minimizing frustration, and getting the results
More details
Other editions
New editions
Previous edition
Jonathan Peterson
Social Security for Dummies, 2nd Edition
Book
06/2016
2nd Edition
Wiley
€19.80
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Person
Jonathan Peterson, an award-winning journalist, is a former executive communications director at AARP. During his news career, he covered the White House, state and national political campaigns, and various facets of U.S. domestic and economic policy.
Content
Introduction 1
About This Book 2
Foolish Assumptions 3
Icons Used in This Book 3
Beyond the Book 4
Where to Go from Here 4
Part 1: Getting Started with Social Security 5
Chapter 1: What Social Security Is and Why You Need It 7
Understanding What Social Security Means for You 8
Benefits for retirees 9
Benefits for children 9
Benefits for survivors 11
Benefits for the disabled and their dependents 11
Appraising the Value of Social Security 12
Understanding How You Pay for Social Security 14
How much you pay 14
Where your money goes 15
Getting the Most Out of Your Social Security Benefits 16
Getting in Touch with the Social Security Administration 17
Chapter 2: A Breakdown of Benefits 19
Bringing Security to Old Age: Retirement Benefits 20
Who qualifies and when 20
How you qualify 22
How much you get 23
Surviving the Loss of a Breadwinner 27
Who qualifies 30
How much you get 30
How benefits are earned 34
Paying Your Bills When You Can't Work: Disability Benefits 35
Who qualifies 36
How you qualify 36
How much you get 37
When the Need Is Great: Supplemental Security Income 38
Chapter 3: Deciding When to Start Collecting Retirement Benefits 39
Paying Attention to Your Full Retirement Age 40
Determining your full retirement age 40
Estimating how much you'll get each month based on when you retire 40
Looking at Life Expectancy When You Claim Benefits 45
Doing a break-even analysis: The payoff from different retirement dates 45
Considering what'll happen if you live longer than you expect 47
Considering Your Spouse When You Claim Social Security 50
Recognizing the Potential Payoff of Working Later in Life 52
Putting It All Together: The Right Time to Begin Collecting Benefits 53
Chapter 4: Protecting Your Number and Securing Your Card 57
Getting a Social Security Number 57
For U S citizens 58
For noncitizens 59
Managing Your Social Security Card 62
If your card is lost or damaged 63
If your name changes 64
Protecting Yourself by Protecting Your Number 65
Protecting your identity 66
Knowing what to do if scammers get your number 67
Part 2: Taking the Plunge: Filing for Social Security 71
Chapter 5: Signing Up for Benefits 73
When to Apply for Social Security Benefits 73
Where to Apply for Social Security Benefits 74
In person 75
By phone 75
Online 75
How to Apply for Social Security Benefits 76
Retirement benefits 78
Survivor benefits 80
Disability benefits 82
Supplemental Security Income benefits 83
How You Get Your Money: The Check Is Not in the Mail 84
Chapter 6: Determining How Much You've Earned 87
Your Social Security Statement 88
How to access it 88
How to understand it 89
Social Security Calculators 90
Social Security's own tools 91
AARP's Social Security calculator 93
Other online calculators 95
Chapter 7: Navigating the System 97
Being a Smart Consumer of Social Security 98
Keeping good records 98
Making sense of the correspondence you get from Social Security 98
Making (and showing up for) appointments 99
Getting the Answers and Help You Need 99
Finding answers online 100
Having someone on your side when you deal with Social Security 103
Life Happens: Keeping the Social Security Administration in the Loop 105
Setting the (Earnings) Record Straight 108
Halting Your Retirement Benefits 109
Recovering a Lost or Stolen Social Security Check 111
Getting Dinged for an Overpayment 112
Getting Social Security in a Global Economy 113
U S citizens 113
Noncitizens 114
Registering a Complaint with the Social Security Administration 116
Chapter 8: When You and Social Security Disagree: The Appeals Process 121
Reconsideration: Taking Your First Step 122
Deciding whether to file a request for reconsideration 125
Taking the steps to file 126
Going to an Administrative Law Judge to Solve Your Problem 128
Requesting a hearing 128
Preparing for your hearing 130
Participating in your hearing 131
Knowing What to Expect from the Appeals Council 134
Taking Your Claim to Federal Court 136
Part 3: Who Benefits and When 139
Chapter 9: Spousal Benefits: Watching Out for Each Other 141
Who Qualifies and Who Doesn't 142
Traditional spouses 143
Same-sex spouses 143
Common-law spouses 144
Divorced spouses 144
Widows and widowers 145
How Much You Can Expect to Get 147
How to Maximize Your Benefits 149
Maximizing your lifetime benefits as a married couple 150
Getting the biggest benefit possible for your surviving spouse 152
Chapter 10: Family Benefits: Who Gets What 155
Defining Who's in the Family 156
Spouses 156
Parents or grandparents 157
Natural children 158
Adopted children 159
Stepchildren 159
Grandchildren 160
Parents of a worker 160
Identifying the Benefits Family Members Are Eligible For 160
Dependent children under 18 160
Dependent children 18 and over 161
Disabled adult children 161
Grandchildren 161
Parents of a worker 162
Looking at How Having a "Child in Care" May Affect Your Own Benefits 162
Understanding the Family Maximum 164
Counting on Kids' Benefits When Parents Live Apart 167
Managing Benefits on Behalf of a Child 169
Chapter 11: When You Can't Work: Social Security Disability Benefits 171
The Two Types of Disability Benefits 172
Social Security Disability Insurance 174
Supplemental Security Income 178
How Social Security Defines Disability 179
Are you working for money? 180
Do you have a severe medical problem? 181
Is your disability on "the list"? 181
Can you perform the tasks required by your former job or a similar job? 182
Can you do any other available work in the economy? 184
How to Make Your Case 185
Cutting through the red tape 186
Gathering the best medical evidence: The role of your doctor 188
Getting help 189
Showing that you've tried to solve your problem 190
Telling the truth 191
What to Do If You Get Turned Down 192
What Happens to Your Benefit If You Can Go Back to Work 192
Part 4: Social Security and Your Future 197
Chapter 12: Enrolling in Medicare 199
Understanding the ABCs (and D) of Medicare 200
Part A: Hospital insurance 200
Part B: Medical insurance 201
Part C: Medicare Advantage 202
Part D: Prescription-drug coverage 203
Qualifying for Medicare 204
Signing Up for Medicare 205
Deciding what parts to enroll in 206
Keeping track of the enrollment periods 209
Knowing your options for applying for Medicare 211
Paying Premiums 212
Getting Hit with Late Fees 213
Part A 213
Part B 213
Part C 214
Part D 214
Buying Extra Insurance: Medigap 215
Getting Financial Help If You Need It 216
Extra Help for Part D 216
Medicaid 217
Medicare savings programs 217
Pharmaceutical assistance programs 217
Programs of All-Inclusive Care for the Elderly 217
State pharmaceutical assistance programs 218
State health insurance assistance programs 218
Chapter 13: Working in "Retirement" 219
The Pros and Cons of Not Retiring at Retirement Age 220
Facing the challenges of working later in life 220
Reaping the benefits of working later in life 222
The Earnings Test: How Your Payments Are Calculated When You Work 223
How the earnings limit works 223
How exceeding the limit may cost your family 225
How the earnings test affects benefits 226
Getting a break for your first months of retirement 227
Reporting earnings to the Social Security Administration 229
When You Go Back to Work after Retirement 232
Special Considerations for the Self-Employed 233
Tax deductions 234
Work credits 234
Earnings limit 235
Reporting requirements 235
Uncle Sam Giveth and Taketh Away: How Benefits Are Taxed 236
Chapter 14: Shaping a Financial Future You Can Live With 239
Envisioning Your Life with Social Security 240
Figuring out how much money you need 241
Determining how much income you need 241
Narrowing the gap between too little income and too much spending 242
Working with a financial professional 244
Preparing for Life on Social Security 246
Purchasing an annuity 246
Signing up for Medicare 247
Handling home equity 248
Getting long-term-care insurance 249
Understanding how Social Security interacts with private pensions 249
Managing your investments 250
Part 5: The Part of Tens 253
Chapter 15: Ten Myths about Social Security 255
Myth: Social Security Is a Ponzi Scheme 256
Myth: Your Social Security Number Has a Racial Code in It 257
Myth: Members of Congress Don't Pay into the System 257
Myth: Social Security Is Going Broke 258
Myth: The Social Security Trust Funds Are Worthless 259
Myth: You'd Be Better Off Investing in Stocks 260
Myth: Undocumented Immigrants Barrage Social Security with Illegal Claims 261
Myth: When Social Security Started, People Didn't Even Live to 65 262
Myth: Congress Keeps Pushing Benefits Higher Than Intended 262
Myth: Older Americans Are Greedy Geezers Who Don't Need All Their Social Security 263
Chapter 16: Ten Reasons Young People Should Care about Social Security 265
If You're Lucky, You'll Be Old Someday 266
Your Parents Will Be Old Even Sooner 266
You're Paying into the System Now 267
You Benefit When Social Security Keeps People Out of Poverty 267
You May Need Benefits Sooner Than You Think 268
Social Security Ensures That Time Doesn't Eat Away at Your Benefit 269
Social Security Benefits Are One Thing You Can Hang Your Hat On 270
The System Works 270
The Alternatives Are Worse 271
Life Is Risky 272
Chapter 17: Ten Choices Facing the Country about the Future of Social Security 273
Whether to Increase the Earnings Base 274
Whether to Cover More Workers 274
Whether to Raise Taxes 275
Whether to Cut Benefits 276
Whether to Modify the Inflation Formula 276
Whether to Raise the Full Retirement Age 277
How to Treat Women More Fairly 278
Whether to Divert People's Taxes to Private Accounts 279
Whether to Create a Minimum Benefit 279
Whether to Give a Bonus for Longevity 280
Part 6: Appendixes 281
Appendix A: Glossary 283
Appendix B: Resources 291
Social Security 291
Medicare 292
AARP 293
Other Sources 294
Appendix C: Strengthening Social Security 297
Index 301
About This Book 2
Foolish Assumptions 3
Icons Used in This Book 3
Beyond the Book 4
Where to Go from Here 4
Part 1: Getting Started with Social Security 5
Chapter 1: What Social Security Is and Why You Need It 7
Understanding What Social Security Means for You 8
Benefits for retirees 9
Benefits for children 9
Benefits for survivors 11
Benefits for the disabled and their dependents 11
Appraising the Value of Social Security 12
Understanding How You Pay for Social Security 14
How much you pay 14
Where your money goes 15
Getting the Most Out of Your Social Security Benefits 16
Getting in Touch with the Social Security Administration 17
Chapter 2: A Breakdown of Benefits 19
Bringing Security to Old Age: Retirement Benefits 20
Who qualifies and when 20
How you qualify 22
How much you get 23
Surviving the Loss of a Breadwinner 27
Who qualifies 30
How much you get 30
How benefits are earned 34
Paying Your Bills When You Can't Work: Disability Benefits 35
Who qualifies 36
How you qualify 36
How much you get 37
When the Need Is Great: Supplemental Security Income 38
Chapter 3: Deciding When to Start Collecting Retirement Benefits 39
Paying Attention to Your Full Retirement Age 40
Determining your full retirement age 40
Estimating how much you'll get each month based on when you retire 40
Looking at Life Expectancy When You Claim Benefits 45
Doing a break-even analysis: The payoff from different retirement dates 45
Considering what'll happen if you live longer than you expect 47
Considering Your Spouse When You Claim Social Security 50
Recognizing the Potential Payoff of Working Later in Life 52
Putting It All Together: The Right Time to Begin Collecting Benefits 53
Chapter 4: Protecting Your Number and Securing Your Card 57
Getting a Social Security Number 57
For U S citizens 58
For noncitizens 59
Managing Your Social Security Card 62
If your card is lost or damaged 63
If your name changes 64
Protecting Yourself by Protecting Your Number 65
Protecting your identity 66
Knowing what to do if scammers get your number 67
Part 2: Taking the Plunge: Filing for Social Security 71
Chapter 5: Signing Up for Benefits 73
When to Apply for Social Security Benefits 73
Where to Apply for Social Security Benefits 74
In person 75
By phone 75
Online 75
How to Apply for Social Security Benefits 76
Retirement benefits 78
Survivor benefits 80
Disability benefits 82
Supplemental Security Income benefits 83
How You Get Your Money: The Check Is Not in the Mail 84
Chapter 6: Determining How Much You've Earned 87
Your Social Security Statement 88
How to access it 88
How to understand it 89
Social Security Calculators 90
Social Security's own tools 91
AARP's Social Security calculator 93
Other online calculators 95
Chapter 7: Navigating the System 97
Being a Smart Consumer of Social Security 98
Keeping good records 98
Making sense of the correspondence you get from Social Security 98
Making (and showing up for) appointments 99
Getting the Answers and Help You Need 99
Finding answers online 100
Having someone on your side when you deal with Social Security 103
Life Happens: Keeping the Social Security Administration in the Loop 105
Setting the (Earnings) Record Straight 108
Halting Your Retirement Benefits 109
Recovering a Lost or Stolen Social Security Check 111
Getting Dinged for an Overpayment 112
Getting Social Security in a Global Economy 113
U S citizens 113
Noncitizens 114
Registering a Complaint with the Social Security Administration 116
Chapter 8: When You and Social Security Disagree: The Appeals Process 121
Reconsideration: Taking Your First Step 122
Deciding whether to file a request for reconsideration 125
Taking the steps to file 126
Going to an Administrative Law Judge to Solve Your Problem 128
Requesting a hearing 128
Preparing for your hearing 130
Participating in your hearing 131
Knowing What to Expect from the Appeals Council 134
Taking Your Claim to Federal Court 136
Part 3: Who Benefits and When 139
Chapter 9: Spousal Benefits: Watching Out for Each Other 141
Who Qualifies and Who Doesn't 142
Traditional spouses 143
Same-sex spouses 143
Common-law spouses 144
Divorced spouses 144
Widows and widowers 145
How Much You Can Expect to Get 147
How to Maximize Your Benefits 149
Maximizing your lifetime benefits as a married couple 150
Getting the biggest benefit possible for your surviving spouse 152
Chapter 10: Family Benefits: Who Gets What 155
Defining Who's in the Family 156
Spouses 156
Parents or grandparents 157
Natural children 158
Adopted children 159
Stepchildren 159
Grandchildren 160
Parents of a worker 160
Identifying the Benefits Family Members Are Eligible For 160
Dependent children under 18 160
Dependent children 18 and over 161
Disabled adult children 161
Grandchildren 161
Parents of a worker 162
Looking at How Having a "Child in Care" May Affect Your Own Benefits 162
Understanding the Family Maximum 164
Counting on Kids' Benefits When Parents Live Apart 167
Managing Benefits on Behalf of a Child 169
Chapter 11: When You Can't Work: Social Security Disability Benefits 171
The Two Types of Disability Benefits 172
Social Security Disability Insurance 174
Supplemental Security Income 178
How Social Security Defines Disability 179
Are you working for money? 180
Do you have a severe medical problem? 181
Is your disability on "the list"? 181
Can you perform the tasks required by your former job or a similar job? 182
Can you do any other available work in the economy? 184
How to Make Your Case 185
Cutting through the red tape 186
Gathering the best medical evidence: The role of your doctor 188
Getting help 189
Showing that you've tried to solve your problem 190
Telling the truth 191
What to Do If You Get Turned Down 192
What Happens to Your Benefit If You Can Go Back to Work 192
Part 4: Social Security and Your Future 197
Chapter 12: Enrolling in Medicare 199
Understanding the ABCs (and D) of Medicare 200
Part A: Hospital insurance 200
Part B: Medical insurance 201
Part C: Medicare Advantage 202
Part D: Prescription-drug coverage 203
Qualifying for Medicare 204
Signing Up for Medicare 205
Deciding what parts to enroll in 206
Keeping track of the enrollment periods 209
Knowing your options for applying for Medicare 211
Paying Premiums 212
Getting Hit with Late Fees 213
Part A 213
Part B 213
Part C 214
Part D 214
Buying Extra Insurance: Medigap 215
Getting Financial Help If You Need It 216
Extra Help for Part D 216
Medicaid 217
Medicare savings programs 217
Pharmaceutical assistance programs 217
Programs of All-Inclusive Care for the Elderly 217
State pharmaceutical assistance programs 218
State health insurance assistance programs 218
Chapter 13: Working in "Retirement" 219
The Pros and Cons of Not Retiring at Retirement Age 220
Facing the challenges of working later in life 220
Reaping the benefits of working later in life 222
The Earnings Test: How Your Payments Are Calculated When You Work 223
How the earnings limit works 223
How exceeding the limit may cost your family 225
How the earnings test affects benefits 226
Getting a break for your first months of retirement 227
Reporting earnings to the Social Security Administration 229
When You Go Back to Work after Retirement 232
Special Considerations for the Self-Employed 233
Tax deductions 234
Work credits 234
Earnings limit 235
Reporting requirements 235
Uncle Sam Giveth and Taketh Away: How Benefits Are Taxed 236
Chapter 14: Shaping a Financial Future You Can Live With 239
Envisioning Your Life with Social Security 240
Figuring out how much money you need 241
Determining how much income you need 241
Narrowing the gap between too little income and too much spending 242
Working with a financial professional 244
Preparing for Life on Social Security 246
Purchasing an annuity 246
Signing up for Medicare 247
Handling home equity 248
Getting long-term-care insurance 249
Understanding how Social Security interacts with private pensions 249
Managing your investments 250
Part 5: The Part of Tens 253
Chapter 15: Ten Myths about Social Security 255
Myth: Social Security Is a Ponzi Scheme 256
Myth: Your Social Security Number Has a Racial Code in It 257
Myth: Members of Congress Don't Pay into the System 257
Myth: Social Security Is Going Broke 258
Myth: The Social Security Trust Funds Are Worthless 259
Myth: You'd Be Better Off Investing in Stocks 260
Myth: Undocumented Immigrants Barrage Social Security with Illegal Claims 261
Myth: When Social Security Started, People Didn't Even Live to 65 262
Myth: Congress Keeps Pushing Benefits Higher Than Intended 262
Myth: Older Americans Are Greedy Geezers Who Don't Need All Their Social Security 263
Chapter 16: Ten Reasons Young People Should Care about Social Security 265
If You're Lucky, You'll Be Old Someday 266
Your Parents Will Be Old Even Sooner 266
You're Paying into the System Now 267
You Benefit When Social Security Keeps People Out of Poverty 267
You May Need Benefits Sooner Than You Think 268
Social Security Ensures That Time Doesn't Eat Away at Your Benefit 269
Social Security Benefits Are One Thing You Can Hang Your Hat On 270
The System Works 270
The Alternatives Are Worse 271
Life Is Risky 272
Chapter 17: Ten Choices Facing the Country about the Future of Social Security 273
Whether to Increase the Earnings Base 274
Whether to Cover More Workers 274
Whether to Raise Taxes 275
Whether to Cut Benefits 276
Whether to Modify the Inflation Formula 276
Whether to Raise the Full Retirement Age 277
How to Treat Women More Fairly 278
Whether to Divert People's Taxes to Private Accounts 279
Whether to Create a Minimum Benefit 279
Whether to Give a Bonus for Longevity 280
Part 6: Appendixes 281
Appendix A: Glossary 283
Appendix B: Resources 291
Social Security 291
Medicare 292
AARP 293
Other Sources 294
Appendix C: Strengthening Social Security 297
Index 301