Black People : Something to be aware of when you draw Social Security

Discussion in 'Black People Open Forum' started by KPITRL, Jul 3, 2014.

  1. KPITRL

    KPITRL Well-Known Member MEMBER

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    There is something very misleading about the yearly Social Security Statement you get every year after you've earned enough credits to qualify for benefits...I think they mail them out every three years now, I'm not sure. But anyway if you stopped working, or retired early, or stopped working for some reason, and you've been off the books not paying into Social Security, then do not depend on that yearly statement. You will be getting less than what that statement says more than likely. After all, it's really just an estimate.

    The way that statement reads is what's so misleading, and I think they lay it out this way on purpose for whatever reason. This part, which is at the top of page 2, is so tricky that mostly everybody misunderstands it. I talked to one attorney, and he got so confused, he told me when I found out how it's supposed to be understood, let him know...that had to be a black attorney. All jokes aside, here is how the top of page 2 reads, and how they play with words:

    *Retirement: You have earned enough credits to qualify for benefits. At your current earnings rate, if you stop working...
    At age 62, your payment would be about.........................(amount per month)

    Most people read this as if they're saying if you stop working, then at age 62 you will get the dollar amount per month they listed. But what it's really saying is, if you continue to work until you're 62, then your dollar amount would be the amount per month they listed.

    Even if you do work until 62, these are still only estimates. However again, if you stop working now, and never pay into Social Security again, then the amount you would receive at 62 will be less than what it says in that statement they mail to you. But if you earned a lot in your working career before you stopped working, then the amount you receive at 62 won't be a lot less than what they listed, however it will still be less.

    Now with all said, this may be more misleading to me than the rest of you, because they haven't mailed me one since 2008. Perhaps the next one they mail me may show a closer estimate, however I already know it's not going to be as much as they said in 2008. Now if you'r e not working, but you've still been receiving your statement yearly, or at least every couple of years, then your estimate may be more accurate. One way or another, I'd call the Social Security Administration and check on it. You don't want to do like many people do, and find out after they apply for benefits.

    While I'm on the topic of retirement, I'm going to make a thread on this very important subject, because what I've noticed is, we as Americans tend to let each other run into a brick wall, one after another on this. Looking out for outsiders is one thing, but for some reason, we don't seem to pass enough info down to our offspring's or other young people in our family when it comes to this. I can't really say it's anybodies individual fault 100%, but it's something that shouldn't be happening as much as it does.
     
  2. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    If you apply for social security at age 62, you will not receive full benefits. Depending when you were born, full benefits kick in after the age of 65. Your employer(s) is suppose to send to the social security administration your earnings. You thus, should get a statement every year. I did. Also, the lawyer you talk to has to be versed in retirement law. This has little to do with their race





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  3. KPITRL

    KPITRL Well-Known Member MEMBER

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    I was joking about his race. That's why I immediately said all jokes aside. But he could have come out with something better than, "tell me when you find out". That was a joke all by itself.
     
  4. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Lawyers who are versed in real estate law, cant tell you about constitutional law. It is what it is





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  5. KPITRL

    KPITRL Well-Known Member MEMBER

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    I worked with a Social Security Lawyer before...one of the best in the area, although I still think he was a little crooked with me for personal reasons. But you'd be surprised what a lawyer know and don't know, especially when it comes to SS, and how the rules can change overnight. By the way, this other lawyer I was talking about in my original post was a Social Security Lawyer. Some questions you just have to asked the Social Security Administration, meanwhile lawyers are there to make sure they comply by the law, or do the research themselves, something this lawyer didn't at least do. Lets just say he wasn't to well versed, and not because he was black.
     
  6. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Are you sure he was a SSA lawyer? Or did he just say that to get paid?





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  7. KPITRL

    KPITRL Well-Known Member MEMBER

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    I think he said that to get paid.
     
  8. KPITRL

    KPITRL Well-Known Member MEMBER

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    I may be preaching to the choir here for some, but many people think that all US citizens qualify for Social Security (SS), but they don't, especially federal government workers who's majority of work years were before 1987, or retired before 1987. Then you have those who just didn't earn enough credits, however they do qualify for Social Security Income (SSI), which is what we know as welfare.

    I myself thought that since Franklin Roosevelt signed the Social Security Act in 1935, as a result of the Great Depression, everybody automatically paid into it and qualified. I had no ideal that most federal employees back in the day weren't paying into SS. These were the federal employees covered under the Civil Service Retirement System (CSRS). Being an ex-federal employee back in the day since 1986, I'm just now finding out that we weren't even paying into SS the year I started, and many of the older brothers who worked there a while before me would not be able to apply for it when they retired. This includes one brother who retired from there, and I still stay in contact with. I had no ideal he and the rest of the older cats we knew, including my uncle, were not going to qualify for SS.

    They wounded up switching us all over to the Federal Employees Retirement System, known as FERS (where you do pay into Social Security through FICA), which was a year after I started government service, which was 1987. Up until recently, I thought the only ones who didn't qualify for SS were the ones who didn't earn enough credits.

    This all came to mind when I thought one day about former spouses of people I knew who were deceased, and how they would try to collect their ex's SS survivors benefits, some had been divorced for years. I was having this conversation with my mother last spring, at the same time thinking she was collecting my fathers SS survivor benefits all these years, just to find out he wasn't due to collect SS either, because he was a government employee under the old system. You would have thought that if anybody qualified for SS, it would have been federal employees back in the day before the mid 80's. Now this may sound confusing, but after how this economy collapsed in 2008, I'd rather had been under the old CSRS system, and I also see why so many old-times didn't switch over to the new system (FERS) when they had the option, way before the economy even took it's downturn. I'm going to cover some of this on the thread I said I would start, about passing more retirement preparation warning to the ones years behind us, like our offspring.
     
  9. Kadijah

    Kadijah Banned MEMBER

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    Federal employees are not the only ones who don't pay into SS. Many state employees don't, as well. Nor do/did some people who work(ed) for the railroads (Railroad Retirement). Many teachers aren't covered by SS, either (usually get benefits through a State Retirement Board). There's at least one other occupation/employer that doesn't opt into the SS system that I can't think of, off-hand. Some have half SS/half State pension plans where both are paid into.

    Many of these pension plans where no SS is paid into, pay HIGHER benefits than SS alone, so those workers are not necessarily at a disadvantage when retirement comes. Anyone currently employed by a non-SS contributing entity, or at or near retirement age, should check on the payouts. Since how much you put in contributes to how much you get out, a state worker in one of the non-SS or half SS/half state pension Northern states prolly will receive a higher paycheck than one who works in the South. Some southern states pay much less in pensions than MOST northern states (of the 50 states, I think either Mississippi or Alabama pays the least in State pensions).

    Good info, K.
     
  10. Major Tubbs

    Major Tubbs Well-Known Member MEMBER

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    Thank you. I did not know this, this is very informative and i will pass this information along
     
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