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Atlanta Bargain Hunter

Senior citizens prepare for Social Security freeze

9:00 am October 12, 2010, by Rana Cash

With the announcement that senior citizens will face yet another Social Security freeze, many are bracing for a paycheck that doesn’t meet the rising cost of living, according to an Associated Press report.

The government is expected to announce this week that more than 58 million Social Security recipients will go through a second straight year without an increase in monthly benefits. This year was the first without an increase since automatic adjustments for inflation started in 1975.

It’s a frightening thought for many seniors who do not have a pension to rely on. Here are some tips to maximize your Social Security benefits:

1. Retire, then retire again

A retiree collecting Social Security may find another well-paying job. In this scenario, the individual can withdraw benefits application and repay in one lump sum what they’d received. Later, they would reapply for what would be a larger Social Security benefit, as much as 30 percent higher. Additionally, the money that was received prior to gaining a new job can be put into an account to gain interest.

2. File and suspend

File for your retirement benefits so that your children or spouse can collect an amount based on your earnings record. Then, Sims said, suspend your benefits until age 70. According to Kiplinger, your benefits will increase an additional 8 percent for each year you delay collecting beyond your normal retirement age, up until age 70.

3. Wait

It’s not the answer many want to hear, but waiting longer to retire is key, Sims said. “Even if you find a job paying 1 million dollars a year, there is no reduction in benefit if you work until full-retirement age.”

For more on making Social Security work for you, read this Q&A by James Daniel, an Atlanta-based certified financial planner.

Follow me on Twitter @atlbargains and on Facebook at AJC Atlanta Bargain Hunter

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7 comments Add your comment

Janet E. Myers

October 12th, 2010
9:38 am

I am sure those that decided we on Social Security didn’t need or shouldn’t get a raise this next year will of course expect and get a raise in thier income. This doesn’t seem fair when we who have to try and decide whether to buy food or medicines. And maybe even be unable to meet the raising costs of everyday living and those in Alphabet City are living high on the hog (at our expense). Where does this seem right???????????????

Linda Dougherty

October 12th, 2010
10:56 am

I am in the “donut hole”. I am no longer taking some of my medication as I can’t afford it. Now Washington tells me in addition to this mess I will not get a raise in my social security. Why not just line those of us over 65 years of age and shoot us. Certainly we deserve no better treatment. We have raised a bunch of selfish, disrespecful, individuals and put them in power. Thank you for the payback Washington power mongrels.

catlady

October 12th, 2010
12:20 pm

Guess we have to share the pain, seniors! I am getting a $4000 cut this year due to furloughs (lost 1200 last year) and our insurance is being changed in a way that is unfavorable to me and the rates are going up and the deductible is going up and the copays are going up and the stop loss amount is going up!

At least you HAVE a SS check (fixed income) and insurance you can count on!

How many years has it taken you to recoup your SS “investment”? About 5? So after you use up what you put in, you are living on gravy.

4 more years till I can get SS at 62 and 7 till I can get Medicare. I will have worked full time for 41 years at 62, plus raised 3 kids, gotten 2 graduate degrees, and taken care of all other household duties. I really don’t want to hear your bellyaching, especially if you are “drawing” off your mate!

lauraj400

October 12th, 2010
12:44 pm

I am disabled and draw off my dad,does anyone have a problem with that?Catlady,have you ever been married?

Aunt Jane

October 12th, 2010
2:01 pm

Just shoot me. This senior is sick-to-death of being the scapegoat for all that ails this economy. “The rich get richer … .”

Ole Guy

October 12th, 2010
8:42 pm

Ladies, Ladies! Enough with the catfights and bickering. As cruel and arms-length as it may seem, we all must contend with our own poo poo. Does anyone care to read of my tales of strife? NO! And do you want to know why? BECAUSE NO ONE GIVES A POO POO, that’s why. Mine has not been a life of peaches and cream; somewhere along the way, I learned that, while any form of “old age” entitlement would be nice, in the end, ya gotta do for yourself…like me Granny used to say, “You make your bed…now lie in it”.

At 64, I have yet to collect on SS although, in a few months, I will be obliged to sign up for medcare. Following a few years of my own personal poo poo, I was indeed fortunate to land this job which allows frequent travel, pays relatively well, and gets me back to the ATL for the periodic Braves game or two. Meanwhile, I am able to leave my portfoloio alone that much longer.

Why am I elaborating on my good fortune? I’ve lived the poo poo. I’ve experienced, first hand, the uncertainty and gnawing reality that my loved ones and I, despite all kinds of education, credentials, and glowing work experiences, may have to wonder, “Is that all there is? Is that what X years of sacrifice, hard work and brilliant achievement yields”?

MY next worry is that the government, in a few years, will say, “Hey, remember when we promised you tax-free income on your ROTH investments? JUST KIDDING, HA HA”!

So people, as cruel and uncaring as it may seem…STOP FEELING SORRY FOR YOURSELVES! I don’t like this poo poo any more than you. I’ve lived my poo poo, and I suspect I will have a whole lot more poo poo with which to contend in my “golden years”.

Life’s a BEACH, people. The tide comes in; the tide goes out. Whether you get your pinkies wet or not is a matter of timing and, yes, pure ole dumb luck.

While much of the current discomfort (I call it discomfort. You want to see real pain? Try dropping in on a few villages in Iraq. YOU AIN”T SEEN NOTHIN TILL YA SEE WHAT MANY PEOPLES OF THE WORLD MUST CONTEND WITH!) can traced to personal greed and overindulgence of the so-called good life to the point of “dropping off the deep end of irrecovery”, many have, through no fault of their own, encountered extreme difficulty. Laura, I can only wish you Godspeed.

Cat, your insensitivity, particularly for an educator, is unbelievable. “If we all (mankind) formed one huge circle and exchanged our own problems for those of our neighbor, we would, most-likely, want our own problems back”. (in memory of Granny)

Augustus

October 13th, 2010
9:33 pm

The fact is SSI increases are based on CPI and CPI did not increase in 2010. Why should retirees get a “raise” when there’s no inflation? Is it to reward them from doing a job? I receive SSI and I understand how it works. I don’t expect increases when CPI doesn’t budge. I am grateful that the benefits aren’t reduced when inflation is less than zero.