 Personal Finance PowerPoint Presentation Social Security Insurance Prepare to get financially fit by practicing personal finance Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category, further broken out by course Each course then organized in a logical, reasonable fashion making it much more easy to find what you need than can be done on a YouTube page We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable So once again click the link below for a free month membership to our website and all the content on it In prior presentations we've been focusing in on retirement planning In prior sections we've been talking about investment strategies, goals, tools in general Now we're honing that down to the specific goal of retirement plans First given a quick overview of the sources of income What people are typically going to be living on the type of cash sources in retirement Including employer pension plans We've talked about in prior presentations Public pension plans which you can think of in essence as equivalent to the employer pension plans But on the public sector side of things If you are a public employee I'm also going to be including in here the benefit plans that we might have Which could include things like the social security And you can also think of Medicare and Medicaid Possibly as types of things that could be income in retirement These are the areas that I want to be careful and mindful about our planning Types of things that we would like to be able to not be required in terms of our planning In other words it would be great if we got them in retirement But not to be dependent upon them if we don't have to in our planning Because of course the laws could always change in the future Then we've got the personal retirement plans So these are going to be retirement plans that we might put together personally separate Outside of work they might include things like an IRA for example Or other kinds of savings or income outside of a tax benefit plan And then annuities which is a specific type of plan Retirement kind of vehicle or vehicle often used for retirement Which we may talk about more in future presentations Now we're focusing in most of this information Coming from Investopedia Social Security Insurance Payments Schedule 2022 which you can find online Take a look at the references resources continue your research from there This by Ward Williams updated July 18th 2022 So we've got the Social Security Insurance Payments Schedule 2022 When it comes to managing your life as a retiree It almost goes without saying that you'll need to keep abreast of the yearly Social Security tweaks And adjust your budget accordingly So when we think about the Social Security It's usually two sides of the coin that we're talking about So when you hear Social Security you might first think When you're paying into Social Security Which often takes place as a withholding from your wages Or in the form of self-employment tax for example if self-employed And then there's the retirement side of things When we're getting paid out from Social Security So you can think of it in a similar thing as like a publicly made kind of retirement plan Although it's not structured exactly the same way as a retirement plan In many ways there's also kind of questions with these kind of benefit programs Social Security Medicare Medicaid for example In terms of are these benefit programs or are they now Types of programs that are like a retirement program In other words are they there for people that need money In retirement because they weren't able to save for retirement Or are we now saying that they are a form of public retirement program for everybody The Social Security seems to be that we're leaning more towards It's like a public plan for everybody Everybody should have access to it People tend to think if I put money into Social Security Which is quite significant in terms of the rate of money that goes in Then I should get access to the retirement Which means we're thinking about it more like a traditional kind of retirement plan It's different though in that the money that we're putting in Is not going into some kind of investment account Saving it, earning money on it until we retire It's going to the current recipients of the Social Security at this point in time So when we get into retirement then we're going to be dependent upon Or if we're in retirement we are dependent upon The people that are currently earning the money They're the ones that are funding the retirement at this point in time That's a little bit different and it leads to those kind of bumps In terms of how many people are working and how many people are retiring Which has some funding problems which could lead to changes in the law Which is why I would not want to be completely dependent on retirement Social security unless I have to be right So in terms of how much it's going to be part of your retirement planning Will be kind of dependent in terms of where you are How close you are to retirement The further you are away from retirement The less security I would put into a guaranteed kind of payment At the point of retirement and try to look for other methods And if you get the Social Security great The closer you are to retirement The more likely you might have it already calculated in that you're dependent upon it And the more likely you're about to get it Because it would be very non-politically advantageous to take away retirement For current people going into retirement People that are going into retirement a lot later You can imagine them pushing the age out to an older age for retirement fairly easily And could be a necessity if things really get bad budget-wise So however, with so much new information to keep track of It can be easy to figure some of the smaller details such as When benefit payments are distributed Especially considering that this answer isn't exactly clear cut And varies from person to person As such, we have put together a Social Security Benefits Payment Schedule For 2022, which can be found below Understanding Social Security Payments Social Security officially known as The Old Age Survivors and Disability Insurance That's the OASDI program Provides monthly monetary benefits to qualified workers And their dependents, if any So it's considered an entitlement program Where in employees, employers, and self-employed finance These benefits with their Social Security taxes Which are then put into two Social Security funds So most of the time it's going through your employer As you earn money, they take the money out of your wages They put them into these Social Security funds Which again, aren't really making money They're just in a separate spending fund And they're going to be paid out to the current people That are in retirement at this point in time Typically, and again, as we hit retirement We're going to be dependent on the current workers To pay our Social Security, hopefully So eligibility and benefit amounts are based on An individual's contribution to Social Security And work history or that of their spouse payments So it gets fairly complex And you can kind of get into the weeds In terms of how much am I going to get in Social Security It will be dependent upon how much you put into Social Security And you might think, well, it should be dependent If it was a benefit program or a welfare type program You would think it would be more dependent upon How much your need, how low your income is In other words, and it kind of skews that way still Because basically the more money you've put into Social Security, the more benefit you're going to get out of it That's closer to a retirement plan kind of idea But you're going to get less and less of a benefit As you get more and more money that you're putting in So that means you're not getting as much of a benefit As your income goes higher The next dollar up is going to give you less of a benefit So you can get into kind of the weeds In terms of actual calculating your benefit Which we might talk about a little bit more later The SSA offers three types of Social Security benefits Retirement, this is the best known variety of Social Security benefit Which is available for individuals age 62 or older Who have worked a minimum of 10 years So if you've paid into Social Security So most people have unless you're a government worker And they have their own kind of benefit kind of situation Then at the 62 or above you got the retirement Individuals age 62 or older So the amount someone receives in retirement benefit Is dependent on their pre-retirement salary And the age at which they begin collecting So how much you're going to get will be dependent upon How much you put in during your working years And the age when you decide to start taking the benefits Additionally, a retiree's spouse Whether currently married or divorced May also be eligible for Social Security benefits Regardless of whether or not they have paid into the program So you got this marriage situation Of course that commingling can lead to some confusion In terms of the benefit calculations as well Disability, so most of the people we're thinking In terms of Social Security are at retirement But we also have benefits related to disability In the event that takes place People who are unable to work due to a disability Are eligible for Social Security distribution insurance Otherwise known as SSDI benefits So long as they have worked a certain number of years beforehand The amount of work required varies based on an individual's age While the monthly payment depends on their pre-disability salary Like retirement benefits SSDI may also be available For retiree's spouse, whether current or former And then you got survivor A survivor benefit are typically available For widow and widower's Qualifying divorced spouses and the children Of a deceased worker retiree following their passing The benefit amount varies based on the worker's salary And age at death in addition to survivor's age And relation to the deceased individual An additional death benefit is also available Which is a one-time payment of $255 That is distributed to the spouse Or children of a deceased retiree Supplemental security income There is a fourth kind of benefit Made available by the SSA Though it isn't part of Social Security Financed by general tax revenues Supplemental security income That's the SSI Is a needs-based program designed to help those With limited income and resources Who are unable to earn sufficient wages on their own So it's kind of interesting to think about Some of these programs in terms of which programs Are going to be welfare programs For people that need them And which programs are going to be kind of Benefit programs or things that basically everybody Are going to be dependent on in some ways And again, the Social Security for retirement Seems to be one that we're leaning more Towards everybody can kind of depend on Although I wouldn't depend on it too much If your age is below a certain threshold And then some of these other benefits Will be needs-based, which again You'd really like not to be dependent upon When you're thinking about your retirement planning They're there as a safety net In the event that you need them Adults and children with disabilities As well as individuals 65 or older Are eligible to receive SSI benefits The amount retirees are given Depends on federal and state laws Which take into account their place of residence Who lives with them And their other sources of income No work credits are required And those with enough work history May be eligible for both SSI And Social Security benefits Cost of living adjustments Social Security benefits rates rise In tandem with the cost of living As measured by the Department Of Labor's Consumer Price Index The CPIW In other words, when you're trying to figure out How much the amount Of payout will be They can't just have it stagnant Because we know that there's inflation Meaning the purchasing power of the dollar Will go down, therefore they have to adjust Generally on a periodic basis Possibly year by year The amount of payment or benefits In accordance with the inflation Which is given by the Labor's Consumer Price Index The CPIW This index is boosted by increasing inflation Rates that raise the cost Of goods and services To offset these costs Ensure the purchasing power And the benefits isn't eroded By inflation, the SSA Will issue what's known as Cost of living adjustment COLA According to a formula outlined In the Social Security Act COLA's are based on increases In the CPIW Specifically a COLA Is equal to the percentage increase In the CPI From the average for the current Year's third quarter to the average Q3 of the prior year In which COLA was connected So it's kind of a, when you try to Figure out the inflation exactly It's a difficult kind of calculation So, you know, they're trying to make It's an assumption, it's an estimate So you're getting kind of into the weeds But the general idea here would be That cost of living Has to be adjusted for cost of living Adjustments due to the fact that There's going to be inflation The purchasing power of the dollar will go down So you can keep up with the increased purchasing power Necessary Increases must be rounded To the nearest tenth of one percent Should there be no increase Or if the end result rounds to zero No COLA is issued For that year Payment schedule for 2022 Approximately half of older Americans Reside in households where Social Security Benefits compose at least 50% of their income And 25% of their group depend On their monthly payment for the majority If not all of their earnings So obviously that's quite significant For many, many people So as such it's important for Retirees to be aware of when They will be receiving their benefits While this is especially crucial To the .8% of beneficiaries Who need to be on the lookout For a physical check each month The remaining 99.2% Still ought to know When their Social Security income Is being directed deposit To ensure they aren't spending more money Than they actually have Social Security retirement, disability And survivor benefits all are Distributed on one of three Wednesdays each month For beneficiaries who begin receiving Benefits after May 1997 When a beneficiary will receive Their payments depends on their birth date As described below So if you were born between The first and tenth you will receive Social Security payment on the second Wednesday of each month If you were born between the 11th and 20th You will receive Social Security Benefits payments on the third Wednesday of each month If you were born between the 21st and 31st You will receive your Social Security Payments on the fourth Wednesday Of each month SSI benefit payments Follow a different schedule Specifically SSI benefits Are distributed on the first Of each month Should the first of the month fall on a Weekend then the new payment date Will be the last Friday of the Prior month For 2022 there will be no SSI Benefit payments in January, May And October while beneficiaries Will receive their payments at both The beginning and end of April September and December So we got the Social Security Payments schedule so here's the schedule You can take a look at it In more detail if you so choose Exceptions to the payment schedule There are several cases where the Default payment schedule isn't Allowed and Social Security benefits Are paid at a different time The current exceptions include Payment to children or spouses Who receive benefits based on Someone else's work record Will be paid on the same day As that primary beneficiary Payment to individuals who also Receives supplemental security Income payments have their Medicare Premiums paid for by the state Where they live will be paid On the first of each month Payment to individuals whose payment Date falls on a federal holiday Or weekend will be paid on the Weekday immediately prior In addition Social Security Payments will automatically be Issued on the third of each month To individuals who filed for Benefit before May 1st 1997 Also receives supplemental Payment for by the state where they Live in a foreign country Delivery of the payment So how is it going to be delivered The Social Security Administration Began phasing out issuance of Paper checks roughly a decade ago So like many things these days Like the taxes these days They're trying to go automatic They're trying to go electric So Social Security benefits are now Issued electronically and individuals Receiving benefits have a few digital Social Security benefits can be distributed Via direct deposit Individuals can visit their local branch Or contact their Social Security office To sign up individuals should be Prepared to present either With their Social Security number Their financial institution's routing number Their current account number And their account type checking or savings Social Security benefits can also Be awarded via a direct Express card A direct express card is a debit card They can be used to access benefits Without the use of a bank account Monthly benefits are deposited directly To the card and individuals Can use the card when making purchases The direct express card Can also be used at ATMs banks And credit unions to get cash So what if your payment hasn't Arrived yet For several reasons Social Security Payments may sometimes be late Those reasons can include but are not Limited to delays for initial Social Security benefits Process slowdowns for Social Security Administration updates to your Personal information such as your mailing Address changes to your payment Information such as new checking account And inclement Or severe weather So obviously the issue To get it in the mailbox If your Social Security payment is Laced it's advised to contact The Social Security Administration immediately For delay potentially Caused by changes in your personal Information contact your local SSA office The SSA often issues Notices for delays that collectively Impact a region or number Of individuals for example The SSA may post updates On delayed payments In areas impacted by Severe weather for delayed Potentially impacting other individuals Monitor SSA Communication and media channels It may also be advisable to wait A few business days for Non-emergency delays Benefits though not yet Received when they should have arrived May already be in transit And caused by temporary delays Due to post office bank or SSA Consider contacting the SSA When you feel appropriate Though be aware they may request You to wait a longer period after Your payment receipt date to ensure Payment has truly gone missing What beneficiaries can expect In 2022 On October 13, 2021 The Social Security Administration SSA announced its annual Change to the Social Security Program For 2022 starting January 1st 2022 approximately 64 million Americans Will receive 5.9 Cola to their Social Security benefits Their represents the largest Cost of living adjustment in 39 Years due to a spike in Inflation resulting from ongoing Economic difficulties caused By the COVID-19 pandemic So obviously we've had inflation going up That's going to have an impact on The cost of living kind of components And hopefully they're able to calculate That in with the Social Security Payments to keep up with The purchasing power of them Previously Cola averaged Just 1.65% Per year over the prior 10 years Inflation remained low So the inflation was artificially low By that time because the Fed was keeping it Quite low. According to estimates Released by the SSA This increase will amount to $92 For the average retired worker Raising their total benefits to $1,657 per month In 2022 Couples meanwhile will experience An average benefits increase of $154 to $2,753 Per month Disability benefit payments will Increase $76 To $1,358 Per month Disability workers with a spouse And one or more children Will experience an average $133 Increase to $2,383 Per month Lastly widows and widowers Will find their average benefit Increasing by $86 To $1,553 Per month Notably widowed mothers with a minimum Of two children will receive an Average of $178 Increase to $3,187 In addition to the Cola Several other major social security Changes will go into effect in 2022 The maximum amount of earnings Subject to the social security tax Also known as the taxable Maximum will increase To $2,000 The maximum amount Of earnings when you try to Calculate the amount Of taxes that you're going Of benefit that you're going to get Meaning when you put money into Social security then There's a certain percent that's taken out Of your check it's usually 6.2% I believe up to a certain Threshold and when your income goes Above that threshold you don't pay Any more into social security So basically one reason is you're not getting Any benefit it's not helping you anymore For the distribution of social security At the point of retirement So that's always a kind of a Contentious type of number And again the number this kind of concept Will depend upon whether we think Of the social security as like a Benefit program a retirement program For everyone which means that As you put more money in you Should also get some benefit from it In terms of the distribution when In retirement or is it a welfare Program in which case You shouldn't get as much a distribution In retirement it should go to the people That need it at retirement again These days it seems like we're leaning Towards it being like a public retirement Program for everybody And if that's the case you would think That as your income goes Above a certain threshold if it's Not adding to the benefit that you're Getting in retirement that you shouldn't Keep on having to put a massive amount Into the system over that But in any case the earnings limit For workers receiving retirement benefits Who are younger than their full retirement age Will increase to 19,550 Recipients who go This limit will have One dollar of benefits deducted For every two dollars earned Above 19,560 Once again the Earning limit for workers receiving Retirement benefits who are younger Than the full retirement age Will increase to 19,560 So there's kind of an Issue in terms of if you're getting the Social security can you still Basically work and if you're Working and earning money it could have An impact on the amount that you're Going to be receiving from the Social security which is a crucial Decision making component we might Talk about a little bit more in future Presentation in terms of should you Take the retirement the Social security benefits as early as We might dive into that more later The earnings limit can still For still employed benefits Who will reach their full retirement age In 2022 will Increase to 51,950 Recipients who go Above this limit will have One dollars of benefits deducted For every three dollars earned Above 51,960 Until the month they turn their Full retirement age The retirement age for Social security Will set to increase by two months Each year until it reaches 67 for those born in 1960 or later The full retirement age for anyone Who turned 62 in 2021 is 66 and 10 months and this is the thing That you can imagine that if you're Not close to retirement that They can keep on increasing as they Realize that they can't afford The benefits going up forever so At some point something will hit And that won't smell good and Something might have to happen and What they end up doing is for people That aren't in retirement they might Increase the age that the Benefits will pay out for example For 2022 the credit earnings threshold Will increase $40 to $1,540 in earnings Per credit So what is the Social security payout Schedule for 2022 Social security benefits will be paid On either the second, third or fourth Each month which of these three Is chosen will depend on the day of the Month when a retiree was born What will the 2022 cost Of living adjustment or COLA for Social security be beginning In January 2022 a 5.9% COLA Will increase Social security benefits For approximately 64 million Americans skyrocketing Inflation amid ongoing economic Difficulties caused by the pandemic Have resulted in the largest Cost of living adjustment in 39 years How much will Social security Insurance SSDI be in 2022 SSDI Benefit payments will increase An average of $76 to $1,358 per month For all disabled Workers in 2022 Meanwhile those with a spouse And one or more children Will benefit from an average of $133 to increase $2,383 per month What does the Social security Administration SSI Distribution supplemental Security income SSI So individuals who were born Prior to May 1997 Or receive both Social security And SSI will receive A check from the SSI And on the third day Of each month should the third Of the month be a weekend It will instead be issued Friday of the month So does Social security pay a month Ahead or a month behind Social security benefits are paid In the month following the month In which they are due, for example The payment for Social security benefits Awarded in January are paid in February What's the bottom line When it comes to Social security There are a lot of rules and information That one has to be mindful of Even minor mistakes Can have a noticeable impact On your life in retirement Accidentally overspending On your weekly budget Because you thought your monthly Social security benefit Had already been deposited Shouldn't be something you have to worry about So consider making your personal calendar With the appropriate dates Listed here