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AARPLynne
AARPLynne
Conversationalist ⭐⭐
September 29, 2021

Ask the Expert: Social Security

  • September 29, 2021
  • 48 replies
  • 43990 views

AARP Social Security experts Joel Eskovitz and Jim Palmieri will lead the conversation and answer your questions around Social Security benefits as part of our Savings and Planning Theme Month. Join us here to learn more about the expected cost of living adjustment (COLA) for 2022 and how AARP can help answer your top questions about Social Security benefits.

 

Please note: experts do not answer a Member’s personal questions, but offer insights and general guidance into best practices, tips, resources – including the AARP Social Security Resource Center.

 

Learn and Earn! Ask a question of our experts to earn 50 points awarded via code emailed to you after you participate (one entry per week given points). Ends October 25.

    48 replies

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    WebWiseWoman
    WebWiseWoman
    Community Champion ⭐⭐⭐
    October 20, 2021

    @JimLPalmieri thank you in advance for your helpful tips!

     

    My question is I chose not to accept Medicare Part B when eligible in November on retirement (due to homelessness could not afford), planning on opting in for the next plan year.

     

    I, unfortunately, missed the deadline.

     

    I think I learned the penalties were very high (10% per month) if signing up after that? If that is true?

     

    Thank you in advance!

     

    #StaySafe

     

    #RIP_Colin_Powell

    JimLPalmieri
    JimLPalmieri
    Contributor ⭐⭐
    October 21, 2021

    Hello @WebWiseWoman   I'm very sorry to hear you missed the deadline due to homelessness. This is certainly a very difficult time for a lot of people, and I hope things are better for you now.

     

    My expertise is in Social Security and not Medicare, so I think it's better I not give any advice on this. I was able to track down this from AARP, and this from Medicare that describe the penalty in more detail and hope you find them helpful. Good luck!

    WebWiseWoman
    WebWiseWoman
    Community Champion ⭐⭐⭐
    October 22, 2021

    Thank you.

     

    #StaySafe

    drlindamc
    Contributor ⭐⭐
    October 20, 2021

    this year’s Social Security COLA is larger than it has been in almost 40 years. Can the amount we receive (based on the ‘22 COLA + our previous monthly amount) ever go below that amount, or will it always be that high or higher?  

    JoelE238769
    JoelE238769
    Contributor ⭐
    October 20, 2021

    @drlindamc The short answer is that in cases where inflation is virtually non-existent, the worst thing that can happen is that there is no COLA and your benefits are unchanged. That has happened a few times in recent years, most notably post-recession in 2009 and 2010 and again in 2015 (since established in 1975, those were the only three times that has happened; see here). So, yes, your total monthly benefits starting in January 2022 will always be that amount or higher going forward.

    GailL1
    GailL1
    Community Champion ⭐⭐⭐
    October 21, 2021

    Another Question - 

    We all know that from changes made to preserve the SS system back in the 80's that the FRA is increasing and will hit the current FRA top of 67 in a few years (those born in 1960) .

    However the early retirement age of 62 has not changed.   So, every time somebody retires on SS at the legislated early age of 62, as the FRA increases, they are getting a smaller and smaller benefit because the benefit is reduced by the number of months to their FRA.

     

    This won't officially change unless legislative changes are made. In fact, I am sure that it was part of the overall plan to save money.   But people can do it on their own -  by increasing their own "early" retirement age to -3 years earlier than their FRA. 

     

    Why is not more attention & notice made by senior advocacy groups and government disclosure to early SS retirees in regards to this mathematical shenanigans instilled by government?  SS Retirees that take their early benefit at the minimum age eligible  to collect are being bamboozled.  Individuals can control this reduction by waiting a few years longer to take their early (SS minimum age to collect)  benefit.

     

    IT‘S ALWAYS SOMETHING . . . . .. . . . Roseanne Roseannadanna
      roachme
      roachme
      Contributor ⭐⭐⭐
      October 21, 2021

      Gail,

       

      People who would like the equivalent of the old 25% reduction for receiving early benefits at age 62, need only delay the same number of months their FRA is past 66.  So someone with a FRA of 66 years 6 months, could delay taking SS until 62 years, 6 months to receive a 25% reduction instead of the 27.5% reduction at 62.  For age 67 FRA, start at age 63.

       

      The reason the SSA may not push it is the 5% less payout .  That goes along with what I have noticed about the SSA pushing taking a 6 month retroactive start date for people that waited past their FRA.  The 6 month retroactive start date will save SS 4% for the life of the benefits payments.

      AARPLynne
      AARPLynneAuthor
      Conversationalist ⭐⭐
      October 25, 2021

      Many thanks to AARP Experts Joel Eskovitz and Jim Palmieri and the Online Community for your participation in this session around Social Security. For anyone who'd like to continue to learn more about this vital topic, please visit AARP's Social Security Resource Center. Thank you!

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