Jonathan Peterson - Social Security For Dummies

Social Security For Dummies®, 4th Edition

Published by: John Wiley & Sons, Inc.,111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2021 by AARP. All rights reserved. AARP is a registered trademark.

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions .

Trademarks:Wiley, For Dummies, the Dummies Man logo, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc., and may not be used without written permission. AARP is a registered trademark of AARP, Inc. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc., is not associated with any product or vendor mentioned in this book.

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: WHILE THE PUBLISHER, AARP, AND THE AUTHOR HAVE USED THEIR BEST EFFORTS IN PREPARING THIS BOOK, THEY MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS BOOK AND SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES REPRESENTATIVES OR WRITTEN SALES MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR YOUR SITUATION. YOU SHOULD CONSULT WITH A PROFESSIONAL WHERE APPROPRIATE. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. THE PUBLISHER, AARP, AND THE AUTHOR SHALL NOT BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE PUBLISHER, AARP, OR THE AUTHOR ENDORSE THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ.

For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. For technical support, please visit https://hub.wiley.com/community/support/dummies .

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com . For more information about Wiley products, visit www.wiley.com .

Library of Congress Control Number: 2020945328

ISBN 978-1-119-68992-8 (pbk); ISBN 978-1-119-68996-6 (ebk); ISBN 978-1-119-68995-9 (ebk)

1 Cover

2 Title Page

3 Copyright Page

4 Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here

5 Part 1: Getting Started with Social Security Chapter 1: What Social Security Is and Why You Need It Understanding What Social Security Means for You Appraising the Value of Social Security Understanding How You Pay for Social Security Getting the Most Out of Your Social Security Benefits Getting in Touch with the Social Security Administration Chapter 2: A Breakdown of Benefits Bringing Security to Old Age: Retirement Benefits Surviving the Loss of a Breadwinner Paying Your Bills When You Can’t Work: Disability Benefits When the Need Is Great: Supplemental Security Income Chapter 3: Deciding When to Start Collecting Retirement Benefits Paying Attention to Your Full Retirement Age Looking at Life Expectancy When You Claim Benefits Considering Your Spouse When You Claim Social Security Recognizing the Potential Payoff of Working Later in Life Putting It All Together: The Right Time to Begin Collecting Benefits Chapter 4: Protecting Your Number and Securing Your Card Getting a Social Security Number Managing Your Social Security Card Protecting Yourself by Protecting Your Number

6 Part 2: Taking the Plunge: Filing for Social Security Chapter 5: Signing Up for Benefits When to Apply for Social Security Benefits Where to Apply for Social Security Benefits How to Apply for Social Security Benefits How You Get Your Money: The Check Is Not in the Mail Chapter 6: Determining How Much You’ve Earned Your Social Security Statement Social Security Calculators Chapter 7: Navigating the System Being a Smart Consumer of Social Security Getting the Answers and Help You Need Life Happens: Keeping the Social Security Administration in the Loop Setting the (Earnings) Record Straight Halting Your Retirement Benefits Recovering a Lost or Stolen Social Security Check Getting Dinged for an Overpayment Getting Social Security in a Global Economy Registering a Complaint with the Social Security Administration Chapter 8: When You and Social Security Disagree: The Appeals Process Reconsideration: Taking Your First Step Going to an Administrative Law Judge to Solve Your Problem Knowing What to Expect from the Appeals Council Taking Your Claim to Federal Court

7 Part 3: Who Benefits and When Chapter 9: Spousal Benefits: Watching Out for Each Other Who Qualifies and Who Doesn’t How Much You Can Expect to Get How to Maximize Your Benefits Chapter 10: Family Benefits: Who Gets What Defining Who’s in the Family Identifying the Benefits Family Members Are Eligible For Looking at How Having a “Child in Care” May Affect Your Own Benefits Understanding the Family Maximum Counting on Kids’ Benefits When Parents Live Apart Managing Benefits on Behalf of a Child Chapter 11: When You Can’t Work: Social Security Disability Benefits The Two Types of Disability Benefits How Social Security Defines Disability How to Make Your Case What to Do If You Get Turned Down What Happens to Your Benefit If You Can Go Back to Work

8 Part 4: Social Security and Your Future Chapter 12: Enrolling in Medicare Understanding the ABCs (and D) of Medicare Qualifying for Medicare Signing Up for Medicare Paying Premiums Getting Hit with Late Fees Buying Extra Insurance: Medigap Getting Financial Help If You Need It Chapter 13: Working in “Retirement” The Pros and Cons of Not Retiring at Retirement Age The Earnings Test: How Your Payments Are Calculated When You Work When You Go Back to Work after Retirement Special Considerations for the Self-Employed Uncle Sam Giveth and Taketh Away: How Benefits Are Taxed Chapter 14: Shaping a Financial Future You Can Live With Envisioning Your Life with Social Security Preparing for Life on Social Security

9 Part 5: The Part of Tens Chapter 15: Ten Myths about Social Security Myth: Social Security Is a Ponzi Scheme Myth: Your Social Security Number Has a Racial Code in It Myth: Members of Congress Don’t Pay into the System Myth: Social Security Is Going Broke Myth: The Social Security Trust Funds Are Worthless Myth: You’d Be Better Off Investing in Stocks Myth: Undocumented Immigrants Make Illegal Social Security Claims Myth: When Social Security Started,