PDF Summary:Get What's Yours, by Laurence J. Kotlikoff, Philip Moeller, and Paul Solman

Ensuring your financial security during retirement is no easy task. The Social Security system in the United States is complex, with a maze of rules and calculations that determine your eligibility and benefit amounts. In Get What's Yours, authors Laurence J. Kotlikoff, Philip Moeller, and Paul Solman guide you through the intricacies of Social Security.

They explain the various types of benefits available, including retirement income, spousal support, child benefits, and disability aid. The book also explores strategies to maximize your lifetime Social Security payouts, such as strategically timing when you file and understanding how your marital status impacts your benefits. With this comprehensive overview, you'll gain a thorough understanding of the Social Security system and how to navigate it effectively.

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Upon reaching full eligibility for retirement benefits and initiating their collection, individuals can choose to suspend these payments and recommence them at 70 years old, which will lead to enhanced benefits. Delaying your claim past the age of 70 won't lead to further financial gains, as the accumulation of benefits stops at that point.

Employing accurate methods to determine retirement benefits is crucial; however, incorrect usage can lead to misleading outcomes. It is essential to strategically plan when to collect benefits, understand how earnings influence the benefits amount, and be aware of the necessary procedures for spouses to obtain their benefits.

Some individuals have encountered financial difficulties, particularly when mistakes in their application procedures arose following the passing of their spouse. Not fully understanding when to halt and later restart one's benefits might result in significant economic drawbacks by the age of 70. To secure their financial well-being, especially when confronted with unforeseen retirement circumstances and insufficient savings, retirees need to deeply understand the system.

Understanding your personal and family circumstances is essential, along with possessing the patience to select the most opportune time. With this knowledge, you will skillfully navigate the complexities of Social Security to guarantee that you obtain all the benefits that are rightfully yours.

The impact of one's marital state, the ramifications of ending a marriage, and the significance of benefits for survivors.

Grasping the impact of one's previous marital history, the ramifications of divorce, and the regulations governing survivor benefits can significantly influence the strategy for maximizing Social Security benefits. Individuals need to navigate skillfully through the complex web of Social Security rules to maximize their benefits.

Grasping the complexities associated with spousal benefits and those available to divorced individuals can prove to be quite challenging.

Married couples have the option to apply for benefits and subsequently put a hold on their claim.

The eligibility for Social Security benefits is significantly influenced by whether you are married, divorced, or widowed, encompassing various stipulations for each marital status. For example, Cheryl qualifies to begin collecting spousal benefits when Phil turns 70, and she is able to continue receiving these benefits until she reaches the same age, assuming she was at least 62 years old before January 2, 2016. Recent laws have led to a scenario in which senior citizens who choose to suspend their pension payments will also prevent their spouses or dependents from receiving any supplementary benefits during this interruption. Legislation has significantly altered the motivations behind certain marital choices, such as the consideration of ending a marriage, especially for individuals who had reached the age of 62 or were older at the beginning of 2016, indicating that a strategic separation followed by living together without remarrying could provide financial benefits.

Individuals who have gone through a divorce should be aware of and comply with certain rules and entitlements.

Individuals who have experienced a marriage lasting a decade or longer before divorcing are subject to specific regulations. People who reached the age of 62 prior to January 2, 2016, can choose to receive the complete benefits of their ex-spouse when they attain Full Retirement Age and postpone receiving their personal retirement benefits until they turn 70. The benefits designated for a current spouse and children are not impacted by the amounts assigned to ex-spouses after a divorce, as these are not subject to the limitations of the Family Maximum Benefit. Individuals who are divorced and fall under the criteria of earlier regulations can utilize specific tactics because they are exempt from the deeming provisions upon reaching Full Retirement Age.

Benefits received by survivors are particularly crucial, especially for women.

The financial support that a surviving spouse obtains is particularly vital, given that women often have longer lifespans than their counterparts. It is essential for a widow or widower to receive the full advantages based on their deceased spouse's employment record. The amount a surviving spouse is eligible to receive can be constrained if the deceased spouse began collecting retirement benefits prior to attaining their designated age for full retirement, this is due to particular computations such as the RIB-LIM formula. A widow can safeguard her financial stability and potentially secure a larger benefit by choosing to collect survivor benefits when she attains her Full Retirement Age.

Widows often face challenges in fully utilizing their benefits.

Widows face multiple obstacles when striving to obtain their complete entitled benefits following the death of their spouse. Deciding when to start receiving these benefits, along with one's retirement fund, can significantly influence their financial outcomes. For instance, individuals who have been widowed may initially collect benefits designated for survivors and later switch to their own retirement entitlements, should those be more substantial, especially if they postpone their claim until they reach 70 years of age. If a widow chooses to collect both benefits before the specified time, she might encounter a decrease in the amounts because of penalties for early filing.

Eligibility for Social Security benefits is intricately linked to one's marital history, requiring a thorough review of their specific situation. Individuals who are married or divorced should be highly conscious of the way legislative amendments, particularly those originating from the 2015 Bipartisan Budget Act, affect their strategy in pursuing entitlements. Understanding how spousal Social Security benefits work can lead to a more secure financial future.

Changes to the rules that dictate the sustainability and operation of the Social Security program.

The structure of Social Security within the United States has undergone notable changes and still faces issues concerning its fiscal soundness, potentially necessitating further adjustments.

The 2015 Bipartisan Budget Act introduced several changes.

The cessation of tactics such as "file-and-suspend."

The 2015 Bipartisan Budget Act significantly altered the structure of the Social Security system. The cessation of the file-and-suspend tactic, previously a common method among married couples to maximize their Social Security advantages, signified a substantial shift. The strategy that allowed one partner to start receiving retirement benefits and then suspend them, which in turn allowed the other partner to claim spousal benefits, encountered restrictions six months after new laws were implemented.

The rules for evaluating and then pausing payments upon attaining the age of full retirement have undergone revisions.

The legislation established fresh guidelines for evaluating eligibility upon attaining the Full Retirement Age (FRA). People who had not reached 62 years old by January 1, 2016, are deemed to be requesting all qualifying benefits upon filing for either spousal or retirement benefits. While an individual has deferred their retirement benefit, dependents like spouses, children, or ex-spouses cannot claim benefits based on that individual's earnings record.

Recent modifications have made it essential to scrutinize when and how spouses qualify for benefits, altering many strategies that were once commonly used. Individuals eligible for the grandfathering clauses could employ certain strategies if they were 62 years old at the beginning of 2016 but had not yet turned 70, although the window to leverage these strategies had greatly narrowed.

Concerns about the long-term financial stability of the Social Security system persist.

The program carries significant financial commitments that have not been sufficiently financed.

The Social Security system faces significant financial challenges that are projected to continue, highlighted in the 2015 report from the Social Security Trustees, which revealed a continuous fiscal deficit of $26 trillion. To ensure the continued payment of all planned benefits, a substantial and immediate hike in Social Security FICA taxes by 31% is necessary.

As the number of retirees grows and wages increase past the threshold subject to taxation, the pressure on the system's sustainability grows stronger. Official forecasts point to only about 75% of promised benefits being payable in the future, assuming no changes in current laws. Moreover, the core of the trust fund is characterized by its holdings in government bonds, which are essentially commitments to repay debts, thereby questioning the notion of a dedicated reserve set aside for supporting the Social Security program.

The actuaries' assessment of the system's unfunded liability revealed an increase approaching one trillion dollars over the course of a year. Minor adjustments alone might not ensure the enduring stability of the system.

Potential modifications being considered could involve tax increases, alterations to the benefits framework, and adjustments to the qualifying ages for retirement and benefit receipt.

To address these challenges, several changes have been suggested, including increasing tax rates, altering the distribution system, and adjusting the retirement age to align with the rise in average lifespan. The summary document suggests that thorough reforms could entail modifications to the benefits framework or rules, potentially including revisions to the coordination of various Social Security systems.

Historical data from the system suggests that in periods of turmoil, previous changes akin to the ones proposed during Alan Greenspan's tenure could serve as a model for subsequent adjustments. Postponing necessary adjustments to the policy could result in the future imposition of substantial and potentially disruptive modifications to safeguard the fiscal solidity of the program, necessitating more severe measures.

The ongoing functionality of the Social Security program is under pressure due to shifting population dynamics and economic constraints, underscoring the need for significant changes. Persistent worries regarding the enduring fiscal stability of the program indicate that additional adjustments may be forthcoming.