Social Security: An Invitation to the Party
Before we get too far into the topic of Social Security, let’s talk about birthdays for a moment. Hopefully, all of us will have one this year. A few days ago, and without much fanfare, I celebrated my 47th . My favorite home-cooked meal with my wife and kids and a little rocky road for dessert. Perfect. Absent was the reluctant restaurant workers’ version of Happy Birthday sung in English but sounding as foreign as any language can possibly sound. None for me, thanks. Just love, laughter, and second helpings. This is how I want it. It’s my birthday, after all. Relatively small investment, big return. (See what I did there.)
Social Security is also celebrating a birthday this year – thankfully. This August, Social Security turns 80. Inspired by the country that brought us BMWs and Beethoven, FDR signed the Social Security Act into law to provide for unemployment insurance as well as help for seniors and needy children. Title II of the act created the retirement benefits that we’ve come to recognize as Social Security.
“We can never insure 100 percent of the population against 100 percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age.”
FDR (at the bill signing)
In keeping with blog etiquette, I’ll not introduce you to the thousands of pages of Social Security rules that exist. But I do want to share a few questions and answers with you that we’ll address in greater detail next week.
Q: I’m eligible to file for Social Security at age 62. Should I?
A: Well, it depends. I can offer tens of thousands of reasons why you might want to wait. That said, your particular situation may dictate that you consider filing at 62.
Q: When am I considered to be at Full Retirement Age (FRA)? Is it really that important?
A: If you were born between 1943 and 1954: 66, 1955: 66 and 2 mos, 1956: 66 and 4 mos, 1957: 66 and 6 mos, 1958: 66 and 8 mos, 1959: 66 and 10 mos, 1960 and later: 67. And yes, FRA is a very important concept in Social Security world.
Q: Are there strategies for filing and claiming that I should know about?
A: Most certainly. And we’ll talk about them in the next post.
Q: Will Social Security even be around by the time I’m eligible?
A: Making approximations on your age, I’d say yes. Might it look different than it does now? It certainly may.
The above merely scratches the surface of what you need to be familiar with before visiting your local Social Security office. And as well-intentioned as the folks there may be, they’re not to offer advice or to make your decision for you. This decision is yours, and it’s a big one. Over the next post or two, I’ll provide information to get you moving in the right direction, asking the right questions, and planning for the retirement you’ve always wanted. Social Security is not an “issue”. It’s a benefit. Not paying enough attention to it – now that’s an issue – and one that could cost you thousands. But let’s stay on the bright side; your Social Security benefit can last a lifetime…and keep up with the cost of living, to boot! And that, my friends, is worth celebrating.
