401(k) Specialist Issue 1 - 2020 - 40

401(k) SOCIAL SECURITY STRATEGIES
* Social Security benefits have lost 33% of buying power since
2000. TSCL's analysis found that, over a 10-year period, average
Social Security benefits of $1,075 per month in 2009 lost a
total of $15,258 in financial growth from 2010 to 2019 when
compared to the previous decade when COLAs averaged 3%.
By the end of that 10-year period, average benefits were $223
per month lower than they would have been had inflation
averaged the more typical 3%. People who have been receiving
Social Security benefits since 2009 have only seen a COLA
higher than 2.8% one time (in 2012).
Source: The Senior Citizens League
By the Numbers
* 67.9 million people received Social Security benefits in 2018.
Of those, 5.6 million were newly awarded Social Security benefits
in 2018. Women represent 55% of adult Social Security
beneficiaries in 2018, and seven in 10 beneficiaries in their 90s.
In addition, women make up 96% of Social Security survivor
beneficiaries.
Source: Social Security Administration
* Benefits increase by about 8% a year for every year of delaying
collecting Social Security, up until age 70. Someone who
qualifies for $12,000 a year in Social Security at age 62 would
get $15,600 by waiting until his or her full retirement age
and $19,675 by waiting until age 70.
Source: MLive
* Although benefits can begin as early as age 62 for eligible
seniors, the program incentivizes patience. " If we were to
place two retired workers with identical scenarios next to
each other (i.e., same work history, earnings history and birth
year), the one claiming their benefit at age 70 could earn as
much as 76% more per month than a retired worker taking
their payout as soon as possible (age 62), " Motley Fool notes.
Around 60% of retired workers take their payout prior to reaching
age 65, while only around 10% begin taking their Social
Security retirement benefit between ages 67 and 70.
Source: Motley Fool
* $137,700: the maximum amount of earnings subject to the
Social Security tax (taxable maximum) in 2020, an increase
of $4,800 from 2019's $132,900 maximum. Bernie Sanders has
noted in his presidential campaign that " a billionaire today pays
the same amount of money into Social Security as someone
who makes [2019's cap of] $132,900 a year because the Social
Security payroll tax is capped. "
Source: Social Security Administration
40
ISSUE 1 2020 | 401kSpecialist.com
Scam Alert
* Gail Ennis, inspector general at the Social Security Administration,
has issued a new warning for the general public to be
extremely vigilant of telephone scammers that are now using
email to threaten innocent victims and convince them to fork
over sensitive information like Social Security numbers. Social
Security scams are so popular during tax season because
fraudsters can use stolen Social Security numbers to claim tax
refunds before the owners of those numbers have a chance to
file their legitimate tax returns. Social Security has a news tool
that can be used to report suspicious activity.
Source: Social Security Administration
Filing for Benefits
* Social Security is technically designed to pay the same amount
in total lifetime benefits regardless of the age at which a
beneficiary claims them. Filing for benefits early will reduce
the amount of monthly payments, but you'll collect more
payments. Delaying benefits provides higher monthly payments
but fewer of them. If you live an average life expectancy, these
factors will even themselves out.
Source: Motley Fool
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401(k) Specialist Issue 1 - 2020

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