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Blog

  • As regular readers of SS&Y are aware, the Social Security Administration administers 2 trust funds. The Old Age Survivors Insurance (OAS’) fund pays retirement benefits. The Disability Insurance fund (DI) pays disability benefits. When Congress passed and President Obama signed the Bipartisan Budget Act in November of 2015 to reallocate current contributions between the OASI…

    7+ months ago
  • The Social Security Administration has announced there will be no Cost of Living Adjustment in 2016 for the nearly 65 million Americans drawing Social Security disability, retirement or SSI benefits.  This is because there was no inflation between the third quarter of 2014 and 2015 as measured by the Consumer Price Index for Urban Wage…

    2+ years ago

News

  • Spring-Summer 2015 Newsletter SSDI Insolvency Looms We’ve known it’s been coming for some time and now it’s on our doorstep. Unless Congress acts the Social Security Disability Insurance Trust Fund (DI Trust Fund) will become insolvent late next year and unable to pay full benefits any longer. Millions of Americans who rely on their disability checks for most, if not all,…

    2+ years ago
  • Fall 2014 Newsletter OBAMACARE UPDATE On October 1st it will have been a year since enrollment began in the Affordable Care Act national health insurance program known as Obamacare. The difficulties in the early weeks and months have been well documented. But where are we a year later… Read the Newsletter in PDF format.   Read the Newsletter in PDF…

    2+ years ago

Why Delay Claiming Social Security

Americans are allowed to claim social security benefits at age 62. Even so, a growing number are waiting until closer to age 70. Here’s why.

Under the Social Security Act, older adults are allowed to collect Old Age, Survivors & Disability Insurance (OASDI) as early as age 62. However, according to the Center for Retirement Research at Boston College, more people are waiting longer to receive their social security benefits. In 2005, 55 percent of men and 60 percent of women began claiming SSI at age 62. As of 2013 those numbers have dropped to 36 percent of men and 40 percent of women.

Waiting to Claim Social Security Could Get You More Money

ClockMany people are choosing to delay their social security insurance benefits because by doing so they will be entitled to more money each month later on. By claiming benefits at age 62, your benefits could be permanently reduced by as much as 25 percent compared to if you wait until age 70.

Since most couples rely on social security for most, if not all of their income, that can make a big difference. At the beginning of 2015, the average monthly social security payment was $1,328 per month, or $15,936 a year. That is just above the federal poverty level. By delaying a claim on social security until age 70, older Americans can ensure a higher standard of living.

Social Security Benefits are Based on What You Put In

You may also want to postpone receiving your social security benefits if you have not made enough contributions into the system. Before you can be eligible for SSDI or OASDI, you must have worked and paid social security taxes on a specific number of “quarters.” This is based on your yearly income. If you have had a long period of unemployment this could affect how soon you will be entitled to social security and how large a benefit you will receive.

For example, financial blogger Jennie L. Phipps of Bankrate.com described a conversation she had with a friend retiring at age 70:

Like many women who raised a family, she didn’t earn very much until she was in her 50s, so even though she has maxed out her Social Security, she is only receiving $2,337 per month, slightly more than $28,000 a year. From that, Social Security will deduct $104 a month, or $1,248 a year, to pay for Medicare.

My friend was distressed by this total. “I could live well on $3,501 a month. Even $2,663 would help a lot,” she complained.

By working longer and continuing to contribute, you can increase your total quarters and your pay out.

Deciding when to begin claiming SSDI can be difficult. Particularly when a disability is involved, it is a good idea to discuss your options with an experienced social security disability attorney. William Crawforth has been representing disabled people throughout Michigan for over 30 years. He can answer your questions and help you through the process. If you or someone you love are considering applying for social security benefits, contact William Crawforth today for a consultation.

Call today if you have questions about the Michigan Social Security Disability Attorney and Lawyer Services provided by William Crawforth.

To schedule an appointment call 800-864-1244 or fill out the contact form at the top of this page.

  • State Bar of Michigan
  • Washtenaw County Bar Association
  • National Organization of Social Security Claimants' Representatives

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