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Social Security Myths Debunked

Social Security Q&A

Several weeks ago, we addressed seven common Social Security myths, including whether divorcees can really collect from a former spouse and what the monthly benefit average is for retirees.

After our post, we received a flood of questions (many of which were quite specific in nature) from our readers. To help them sift through fact and fiction, we decided to select five reader questions and go directly to the source -- the Social Security Administration -- to get the answers. Read on to learn five more tips, courtesy of Dan Moraski in the national press office of the Social Security Administration.

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Social Security ... Several weeks ago, we addressed seven common Social Security myths, including whether divorcees can really collect from a former spouse and what the monthly benefit average is for retirees.

After our post, we received a flood of questions (many of which were quite specific in nature) from our readers. To help them sift through fact and fiction, we decided to select five reader questions and go directly to the source -- the Social Security Administration -- to get the answers. Read on to learn five more tips, courtesy of Dan Moraski in the national press office of the Social Security Administration.
Q: Since I was m... A: In general, you will be able to choose which record to file on.
Q: My wife, age ...
A: Social Security survivors benefits can be paid to:
- A widow or widower -- full benefits at full retirement age, or reduced benefits as early as age 60
- A disabled widow or widower -- as early as age 50
- A widow or widower at any age if he or she takes care of the deceased's child who is under age 16 or disabled, and receiving Social Security benefits
Q: In another fo... A: Yes, it is possible to withdraw your application, pay back all the monies you've received and re-file. More information about this is available on our web site.
Q: Is it correct... A: No, Social Security retirement benefits are not reduced by withdrawals from retirement accounts.
Q: I just became... A: Individuals who were eligible for Social Security or SSI benefits at any time during the months of November 2008, December 2008, or January 2009 are eligible for the one-time Economic Recovery Payment. Since your eligibility for Social Security benefits began in February 2009, you are not eligible for the one-time Economic Recovery Payment.
Q: Social Securi... A: Bernard noted in her article that benefits for today’s retirees are safe, according to Social Security commissioner Michael J. Astrue. However, if nothing is done to reform the system, the trust funds will begin to lose money in 2016 and will run out by 2037. A Social Security spokesperson John Shallman assured that Social Security tax income would be enough to pay roughly 75 percent of scheduled benefits through 2083, as Bernard noted. However, if the thought of insolvency keeps you up at night, it might be better to cash in early.
Q: Do I have to ... A: Less than one-third of current beneficiaries pay taxes on their benefits, according to the Social Security Administration. The rule: If you file a federal tax return as an “individual” and your total income is more than $25,000, you will have to pay taxes. If you file a joint return, and you and your spouse have a total income over $32,000, you will also have to pay taxes. Consider having taxes withheld from your Social Security checks.
Q: If I retire a... A: No, Medicare benefits don't begin until a person reaches age 65. If you retire at 62, you should continue health-insurance coverage through your employer, if possible, or purchase it from a private insurance company until age 65.
Q: Is it a good ... A: To double dip, you must file specifically for the spousal benefit when you file. Make sure this is clearly stated on your application, so that it’s not assumed that you’re claiming both. According to Larry Swedroe of MoneyWatch.com, double dipping can be quite beneficial. If you file for your spousal benefit when you reach full retirement age, the regular benefits that you suspend will grow over time. By accepting a smaller benefit for a few years, you can receive a much larger benefit for the rest of your life.
Q: What if I sta... A: In short, the answer is yes… though temporarily. If your income exceeds a certain threshold before full retirement age, you will receive a smaller Social Security check. But basically, you earn credit during the period you did work, much as if you decided to delay taking benefits, as the New York Times’ Bernard noted. Her example:"Say you started benefits at age 62, but then decide to go back to work after a year. Once you turn 66, your benefits will be recalculated: the system will see that you initially planned on taking benefits four years early. But since you worked for three of those years, your check will be permanently higher because you really took benefits only one year early."
Q: What’s the av... A: According to the Social Security Administration, the average monthly Social Security benefit for a retired worker is about $1,153 in 2009.
Q: If I’m divorc... A: If you’re divorced but were married for at least 10 years, you can collect retirement benefits on your former spouse’s record, according to the Social Security Administration and as noted in Bernard’s piece. This works if you’re at least 62 and your former spouse is entitled to or is receiving benefits. But if you remarry, you can’t collect benefits unless your second marriage ends, by either death or divorce. If your former spouse passed away and you were married for at least 10 years, you can collect survivor’s benefits.

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