IMPORTANT DISCLOSURE INFORMATION
The following presentation by New England Capital Financial Advisors, LLC (“NECFA”) is intended for general information purposes only. No portion of the presentation serves as the receipt of, or as a substitute for, personalized investment advice from NECFA or any other investment professional of your choosing. Please see additional important disclosure at the end of this penetration. A copy of NECFA’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.newenglandcapital.com.
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.
CenteronBudgetandPolicyPriorities.org, April 17, 2023
Nerdwallet.com, May 5, 2023
GOBankingRates.com, July 29, 2023
Nerdwallet.com, September 29, 2022
CenteronBudgetandPolicyPriorities.org, March 29, 2023
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by New England Capital Financial Advisors, LLC [“NECFA”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from NECFA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. NECFA is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the NECFA’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.newenglandcapital.com. Please Note: NECFA does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NECFA’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a NECFA client, please contact NECFA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.