Home Care – Helping Seniors Understand Social Security Benefits

By Roy Kleinert | October 3, 2023 | Comments Off on Home Care – Helping Seniors Understand Social Security Benefits
Home Care

Having enough money becomes even more important with age. In addition, understanding what benefits seniors have, such as Social Security, is key. However, it can be challenging to understand how it all works. This blog post will explain the basics of Social Security payments and give seniors useful advice on how to handle this important part of their financial future. Still, even with this knowledge, strong support from loved ones and home care is essential.

How Does Social Security Work?

In order to be eligible for Social Security, seniors will need to have earned enough “credits” by working and paying Social Security taxes. Different people need different amounts of credits, but most need around 40 credits, which is about ten years of work.

Also important to know is that there is a certain age when seniors can start getting full Social Security retirement payments. This is called the Full Retirement Age (FRA). The number varies by year of birth and is between 65 and 67. If they file before their FRA, their benefits may be less, and if they file after it, their monthly amounts may go up.

The amount of money they get from Social Security is based on their average adjusted monthly earnings (AIME) over the 35 years when they made the most money. This AIME is used by the Social Security Administration (SSA) to figure out their main insurance amount (PIA), which is the amount that their retirement benefits are based on. Additionally, seniors who are married can also get spousal benefits based on how much their partner has earned in the past. Widows or widowers can also claim survivor payments.

Seniors can work and get Social Security payments at the same time. But if they start getting benefits before their FRA and make more than a certain amount, their benefits may be cut for a while. Once they reach their FRA, their benefits will not go down, no matter how much money they make.

Tips to Help With Social Security

Social Security is a helpful tool, but seniors need help from loved ones to ensure they make the most of it. Also, following the tips below can help seniors and their support team navigate various steps.

Use Online Tools: The Social Security Administration (SSA) has many online tools and programs that can help seniors determine how much money they will get based on their work history and when they expect to retire. If they have difficulties navigating technology, their home care team may be able to help.

Talk to a Professional: If seniors aren’t sure when to start getting benefits or how they will affect their general plan for retirement, they might want to talk to a financial advisor or a Social Security expert. 

Keep Up-to-Date: Social Security rules and laws can change, so it’s important to know about any updates or policy changes that could affect their payments.

Think About Delaying Benefits: If seniors wait to claim benefits until after their FRA, they may get a bigger cash cushion in their later years.

Know What It Means for Taxes: If income goes over certain levels, seniors may have to pay federal income tax on their Social Security payments. Knowing about these tax effects can help them make plans for their money.

Seniors depend on Social Security payments to keep them financially stable, but the system can be hard to understand. With support from loved ones and home care, they can gain the assistance they need to make smart choices.

If you or an aging loved one are considering home care in Marlboro Township, NJ, please contact the caring staff at Lares Home Care 888-492-3538 or 732-566-1112.

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Roy Kleinert
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