The last year has seen the largest increase in Social Security checks in the past 25 years with a rate of 5.8 percent. At the same time, as per the present law, the enrollees are also not going to get any cost-of-living adjustment in the next three years. In fact, the increment in Social Security is linked to the Consumer Price Index for the urban workers. It can be recalled here that the Consumer Price Index has decreased last year due to the plunging prices.
It’s the new retirees born in 1947and signed for the Social Security this year, rather than the current beneficiaries, who are going to get affected by the impact of the lack of Social Security boost. These people didn’t reap any benefit from the increase of Social Security last year. Moreover, there is every possibility that their purchasing power may erode by inflation before the cost-of-living increases once again in 2012. Andrew Biggs, a former deputy commissioner of the Social Security Administration and a resident scholar at the American Enterprise Institute has done an analysis to find out the possible impact of it on the retirees. According to the analysis, the new retirees may face a permanent benefit reduction of about 5 percent, while the benefits of the current retirees will remain the same.
Owing to the inflation hitch in 2008, newly retired couples are going to get a monthly Social Security check of $2,235. According to the calculations of Biggs, they will lose almost $1,340 per year. The calculation also says that, if the couple survives until the age of 83, they would lose around $25,000 in their lifetime.
It is not possible to evade this financial loss by delaying your retirement either, unless the cost-of-living gets adjusted, which is again projected to resume in 2012.
Social Security is the national retirement care plan that is available in the US. Pension is one of the important benefits that are provided through the program. The pension is also known as Old-age Insurance benefit or Retirement Insurance Benefits. The pension benefits are applicable after one attains the age of 62 or more.
In most cases, the payments and the benefits that you get from Social Security are made in the third of each month or on the fourth Wednesday. Usually, the benefits that you get that based according to the date of the birth and some other factors.
In order to be covered under the Social Security pensions , there are certain things that one needs to comply with. The requirements of the benefits are made as per the mode of payments and also the age of the applicant. Some of the requirements that you need to follow are:
You need to be of the age of 62 and above to enjoy the benefits
You either need to apply for the benefits or convert the Disability Insurance Benefits after reaching the age of full retirement
One can apply for pension benefits through a number of ways. You can make applications for Social Security benefits :
By making applications through the net
By making applications through the mail
By applying directly at the office of Social Security
By making applications with the Immediate Claims Taking Unit
There are also some factors which determine the amount of the Social Security pension. Some of them are the amount of the payroll taxes that you pay into the Social Security Trust Fund, the age when you can claim the benefits, the current income that you are earning and also whether you are a part of any type of military service.
The present recession has really hit the retirees and older adults hard. As most retirees and the aged have to depend on their savings, the economic down slum has left them helpless. Relax, proper planning can help you cope up with the recent down slum and enjoy benefits even in this falling stock market. You need to act with prudence and take wise decisions.
According to experts, one should keep his or her eyes open while dealing with the funds in the recession market. Prevention is always better than cure and as you need to have an idea where to use your funds. Do not invest all your money into the stock market. Although the stock market can give you more returns, they are always prone to market changes. To cope with the recession, you need to have a diversified portfolio. Diversification helps you to maintain a balance between your profits and losses. Usually, a diversified portfolio consists of stocks, short and long term bonds, debentures, equities and other relevant investment channels.
By having proper savings you can also prevent recession from hitting you hard. Recent surveys have proved that those who had retirement accounts have not been hit so hard by the current down market. To enjoy good and secure benefits on your benefits, you can opt for IRA or 401 (K) accounts. They are lucrative and are also liable to various tax benefits.
At times all these can be really confusing. You may not be able to make the proper retirement planning to sail through the tough market conditions. Some useful tips from the financial advisor can be handy at this time. The adviser can guide you to make the right planning and prevent recession from hitting you directly.
So take the best step forward now and enjoy the benefits!
Are you retired and looking for a proper place to live in these post retirement period? Retirement is perhaps one of the happiest periods in our lives. It is a break from the daily mundane job related stress. Retirement provides you the scope to experience leisure to the fullest. And to enhance this leisure period, you need to find your ideal retirement friendly state.
First things first, you need to find the right state where the tax rates are low. High rate of taxes will take a toll on your funds. States such as Texas, Washington, Wyoming, Nevada, South Dakota, Tennessee and New Hampshire do not charge any kind of income taxes. The cost of real estate is also pretty low in these areas. This really helps the retirees as they need to depend on fixed sources of income. The states of Illinois, Pennsylvania and Mississippi do not charge any type of income on your pensions. This is a great deal for the aged as their pension amount is not deducted.
Social Security benefits are also important considerations that retirees should look into. There are a number of states in the US where you can enjoy various types of Social Security benefits.
If you have good amount of real estate holdings or property, you may be liable to property taxes. You need to have an idea of the various property taxes while finding you retirement state or location. Try to stay in places which have low property taxes as you need not shed more money.
If you keep these factors in mind, you can easily find your suitable retirement location and enjoy living your post retirement period.
It may sound surprising but Social Security can provide you free loans. Under the present scenario, retirees can choose between various options like claiming the benefits at 62 and getting reduced returns or delaying claiming the benefits till 70 and enjoying full returns every month.
Now, in order to get higher lifetime benefits, you can use some unconventional strategies. One of them is known as the “Free Loan from Social Security” strategy. By applying this strategy, you can get some free loans from the social security accounts. For instance, if you claim Social Security at 62 years of age and reclaim the same at 70 years, you can receive a higher benefit. As you only need to pay back the principle loan amount, you can keep the interest and invest it in some other channel.
If you are of age 70 and adopt a Free Loan” strategy, you can first claim some benefits at 62 years of age and again reclaim it at 70 years. The interests that you receive provides you with the head-start’ on reaching the break-even age. In order to be break even, you need to live until you are entitled to the total benefits of social security.
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Social Security is the national retirement care plan that is available in the US. Pension is one of the important benefits that are provided through the program. The pension is also known as Old-age Insurance benefit or 
