Next Top Five Common Questions on Social Security

November 02, 2023


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Next Top Five Common Questions On Social Security

1. How Does the Cost-of-Living Adjustment Work?

Once someone starts receiving Social Security benefits, their payments may increase in accordance with the rate of inflation in the prior year.5 

The cost-of-living adjustment (COLA) was 5.9% in 2021, followed by an 8.7% increase in 2022. However, three times in the past 14 years, there was no COLA increase for recipients.

2. Does Social Security Include Medicare?

Medicare and Social Security are both government programs. They aren’t the same, but they are linked. Some people become eligible for both programs at around the same time.5

Medicare provides federal health insurance for people aged 65 and older and is made up of four parts: Part A (hospital insurance), Part B (medical insurance), and Part D (prescription drug coverage). It also includes Part C, or Medicare Advantage, a bundled alternative to Original Medicare offered by private insurance companies that provides all the coverage of Parts A and B, plus some different rules, costs, and restrictions.

3. Can I Still Work and Collect Social Security Benefits?

Yes, you can collect Social Security benefits as early as age 62, even if you decide to keep working. Just be aware that your age and earnings may impact the amount of the benefits you receive during those working years.

Working won’t permanently reduce your Social Security benefits if you start taking them early. Once you reach full retirement age, your monthly benefit will increase, taking into account prior benefits detained due to earnings.6

4. When Should I Start Taking Benefits?

Deciding when to begin taking Social Security is a critical decision and one of our most common questions. It may seem straightforward, but it’s more complex than it looks.

Since everyone’s circumstances are unique, there are a few considerations that you may want to take into account:

  • Will you continue working? You may see some of your payments withheld if you are still working while collecting early benefits.
  • Are you married? Does your spouse anticipate benefits?
  • How is your health? Your health status could affect your decision on when to start taking benefits.

5. Will Social Security Go Bankrupt?

Social Security has often been called the “third rail” of politics because of the negatives associated with tackling the issue. However, relatively modest changes could place Social Security on sounder financial footing.5

While Social Security does face some challenges, there are several potential approaches that are being considered in Washington, D.C., to reinforce the program. It’s possible that one of the approaches might be proposed in the years ahead.

It’s estimated that without Social Security, 21.7 million more people would live below the poverty line. At some point, lawmakers are expected to address the situation.7 

As financial professionals, understanding your sources of retirement income is an integral part of our services. If you have any questions about social security, please do not hesitate to contact us. We’re here to help, and we may have resources that can help you better understand your benefits.

  1., April 17, 2023
  2., May 5, 2023
  3., 2023
  4., July 29, 2023
  5., September 29, 2022
  6., 2023
  7., March 29, 2023


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