Aging ain't for Sissies
Aging isn't easy. My name is Marcy Backhus and I am your host! Make sure your complete well-being is handled with a community and information that can make it easier and FUN. Aging needs humor, which you can find in the "Aging ain't for Sissies" Podcast, along with informational guests that give us the information we need.
Aging ain't for Sissies
Social Security Without The Headache
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Social Security looks like a simple choice until you realize one decision can lock in your monthly income for life. I break down the key ages, the tradeoffs behind claiming early or waiting, and the practical steps I use to research benefits without getting lost in jargon.
• why Social Security is a permanent decision for most people
• the three key claiming ages and what changes at 62, full retirement age, and 70
• why taking benefits early can be smart for some situations
• separating headlines from facts when you worry about Social Security’s future
• how spousal benefits work while a spouse is alive
• how survivor benefits differ and why couples should plan together
• the uncomfortable but essential question of longevity and health
• setting up a Social Security account and checking your earnings record
• using your full financial picture to choose a claiming strategy
• avoiding bogus websites and sticking with official .gov sources
If today's episode cleared up some of that confusion around Social Security, share it with a friend.
Chicago Updates And Big News
SPEAKER_00Hello and welcome back to Aging A for Sissies. My name is Marcy Backis, and I am your host. Well, I'm happy to have you here. This is a very, I live in downtown Chicago. If you didn't know that already, um, and today's a very exciting day in Chicago. Today is the opening of the presidential Obama Presidential Center. So we have had um dignitaries and big wigs in the city all week. I haven't had one single spotting, which makes me kind of sad. Jerry O'Connell, maybe. Um, but uh I hear that at Gibson's, one of our favorite restaurants right down the street. Last night Obama and Clinton were having dinner. I don't know. There's a lot going on. Big doings today. Bruce Springsteen is in town singing for Obama. And uh, if you haven't seen the Presidential Center, please go online and look it up. It is a beautiful building, unique, different. It's not a building that you've seen before. I think it's pretty fabulous. I think it's pretty exciting. And we are expecting here in our lovely city over a million visitors a year, strictly for the Obama Presidential Center. Not to mention all the other fabulous things here in my great city of Chicago.
Health Check In And Summer Joy
SPEAKER_00Life is going good for me. Had a cancer checkup yesterday. Everything's looking good. For those of you that have been with me for a long time, know I went through cancer last year. So it always feels good after you go to your oncologist and you get the thumbs up for a little while longer. I think you're always waiting for the other shoe to drop if you've had cancer. I think it's just the way it is. I believe that's just part of the process. Um, but we're doing good, looking good, doing good, feeling good. Summer is in full swing here in the city. Uh, Wednesday night fireworks last night on Navy Pier. We have them every Friday and Saturday. Um, I don't know. The city is just electric at this time of year. This time and Christmas time are two of the times the city just honestly, I wouldn't want to be anywhere else. It feels like you're in a movie all the time. And uh so that's what's been going on with me. Planning my trip to California, planning a trip to Arizona, planning a trip to France. Those are the things that are on my list, my to-do list, right? I'm pretty grateful to have that as a to-do list. But I hope that your summer is treating you well, whether you're working, whether you're retired, uh, hope you're traveling, I hope you're doing what you want to do because this part of life, this aging part of life, was the part of life we worked really hard to get to. We're blessed to be here. No matter what your aches, pains, or issues are, you are blessed to have lived this long. And I want you to live
Why Social Security Decisions Matter
SPEAKER_00it well. Today we're going to be talking about social security. Now, the first thing I want to say is I am no expert. As a matter of fact, anything I ever talk about, I am not an expert on unless it's hair coloring. That I am truly an expert on. And I'm licensed to be one. But the rest of it is just information I glean for you and I try to put into an enjoyable podcast. So if I get something wrong, if something's wrong on this, I'm doing my best. I'm going to tell you, I'm going to give you information today about Social Security, and it is your job to vet that information. Okay. But I did my best to vet it ahead of time. And today we are tackling a topic that it that makes people's eyes glaze over. I'm telling you. It just does. Social security. But stay with me because whether you're already collecting Social Security, I am, getting close to collecting it, or just wondering what all the fuss is about, this is one of the most important financial decisions many of us will ever make. Because trust me, when you make the decision to take Social Security, you can't change it. So we'll we'll get into that a little bit. So when I say that, I'm not just saying it tongue in cheek. I'm telling you, it's an important financial decision and it's unchangeable. And yet nobody really explains it. Like there's nobody out there explaining social security. There's probably some podcasts. Yes, I know. I looked it up on the internet. Yes, I know. Um, that's why I'm doing it because no one else is doing it. So most of us know three things. You can start it at 62, you will get a check, or these days you can set it up as an automatic deposit. And somehow the government figures out the amount. And those are all true things. That's about it. That's about what we know. That's about where our social security knowledge begins and ends. So today we're going to talk about Social Security in plain English, no financial jargon, no complicated formulas, just the things you really need to know. And by the end of this episode, I hope you'll feel a little less confused and a lot more informed. Because, friends, aging ain't for sissies, and apparently neither is figuring out social security. And that is no lie. I had to figure it out for both Craig and I. I did a lot of research, did a lot of things, and um, I want to share that with you.
The 62, 67, And 70 Tradeoffs
SPEAKER_00So I want to start with the biggest misconception. Many people believe they should take Social Security as soon as they can. All right. After all, you've paid into it your entire work life. Why wait? All right. That I I and neither one of these things or any of one of these things I'm going to tell you are right or wrong. It's just going to be a choice. So here's the catch. You can start collecting Social Security as early as age 62, but your monthly benefit, aka the check, is permanently reduced if you claim it early. Because 62 is not what the government considers retirement age. The longer you wait up to age 70, the larger your monthly check becomes. All right. And I'll explain a little bit more of that. So notice I said permanently, not temporarily, permanently. So your benefit will be permanently reduced if you claim Social Security early. 62 is considered early. 67, I'll get I have it in my notes when I get there. 67, 65 to 67 is considered retirement age. That's when your check will be what your check should be. If you hold off and that money, you hold off to getting that money till 70, your check will be larger. Okay. But I also want you to think about let's say you waited till 70 and you get a larger check, but you die at 75. Well, would it have been better to have taken it at 62 and have gotten money from 62 to 70? These are things you have to figure out. Okay. All right. It and that decision follows you the rest of your life. I took mine at 62. I can't change it, never will be able to change it. It is what it is. I knew that when I did it. I did it strictly because I don't think I have a long life. And there's a lot of reasons for that. It's all medical. Trust me. Um, and plus I live in a city. I could be hit by a bus any day, and that's no joke. It's true. But I took mine early. Craig took his a little later. Okay. Because that decision is you once you make it, you can't go back. Now, does that mean that everybody should wait? Because woo, no. That's where things get interesting. So these are the three big ages everybody should know. If you're approaching retirement, there are three ages you need to understand. 62. This is the earliest age you can begin collecting Social Security retirement benefits. A lot of people jump in here because they're tired of working. And believe me, I understand that feeling. But taking benefits at 62 means accepting a smaller monthly check for the rest of your life. All right, it can mean that, but it could also mean you may still be working and you take that. Okay. You can invest that money. Do you think you can invest it better than what the government can? I think you can. So let's say you're going to take it and it's $2,000 a month. Okay. And if you waited, it would be more. But you take that $2,000 a month and you invest it until age 66 or 70. It may look better. Again, these are things you got to figure out. Okay, full retirement age. This is for most of today's retirees. Full retirement age is somewhere between 66 and 67, depending on when you were born. That's the age when you qualify for your full benefit amount. So somewhere, the age 65 got bantered around as retirement age. And I know companies and government agencies think it's earlier. I'm telling you, this is you will not get your full benefit amount until between 66 and 67. You can go on the Social Security website and you can figure out when you will qualify for your full benefit amount. That's the amount of full retirement age. Now, age 70. So we've talked about 62, the 66 to 67 years, age 70. This is the magic age. Every month you delay after retirement age. Now, what's retirement age? Between 66 and 70, 67, depending on your birth date. Every month you delay after full retirement age increases your future benefit until age 70. After that, there's no advantage to waiting any longer. Think of it this way: the government is basically saying if you wait a little longer, we'll pay you more each month. And you can do, there is a mechanism on the website to what benefit you'd get at what age. It's not, you don't have to guess. There is a, you put in the dates, you put in things, and it gives you the amount. So let's talk about why everyone doesn't wait. I gave you a little foretaste of this because life happens. Some people need the money. Some people retire earlier than expected. Some people have health concerns. I'm one of those. I took my money because I don't see myself living a super long life. And I wanted my money now. Some people simply want to enjoy retirement while they're healthy. Healthy enough to travel and have fun. We've talked about that on this podcast. There are real considerations, and that's why there isn't one perfect answer for everybody. One thing I found really interesting while I was looking, researching this episode is that many people claim benefits earlier than planned because they're worried Social Security won't be there in the future. Okay. AARP, which you know I do belong to AARP, I think everybody should, notes that concerns about the program's finances often push people to file earlier. But filing earlier out of fear isn't always the best financial decision. It is important to separate facts from headlines. Okay? Right now, I'm not worried about it running out. They've been talking about that since I was a kid, to be honest with you. It is important to separate facts from headlines. Do your research. Again, I'm giving you information. I expect you to research it. Let's talk about married couples.
Spousal Benefits Versus Survivor Benefits
SPEAKER_00Okay. Now let's talk about something many people don't realize. Marriage matters. Social security isn't just about your own work record. Now, this I took my spousal benefit, so I'm going to explain that to you. Spousal benefits may allow someone to receive up to 50% of a spousal's benefit depending on eligibility and claiming age. Survivor benefit may also be available after a spouse dies. Okay, so survivor benefit and spousal benefit are two different things. Okay. I did not work a lot in my life. I did work enough to get social security. When I looked at what I would receive as social security or taking a spousal benefit, I got more taking a spousal benefit. Craig is alive. I am married to Craig. I can still take a spousal benefit. So what that means is I I get a portion of the amount Craig gets. He gets his full amount, but I get a spousal benefit also. This is so hard to explain. Without diminishing his benefit. I know it's weird. I learned about it when I was researching years ago for us. I get more using a spousal benefit than I would getting my own. Now, their survivor benefits may also be available after a spouse dies. So if your spouse has passed away, you can get yours and survivor benefits. We get Craig's and I get a spousal benefit. If Craig is to die, I do believe I only get his benefit. So what I want you to do is research spousal benefit and have it explained. Your husband does not, or your wife does not have to be dead to receive spousal benefit. They can be alive, get their full benefit, and you get a higher benefit using a spousal benefit versus your own. And that's what we do. So that means your claiming decision can affect not only you, but also your spouse. This is one reason financial planners offer encourage couples to look at the bigger picture rather than treating Social Security as two separate decisions. It needs to be looked at together, folks. And I could not claim a spousal benefit unless Craig got Social Security first. He did because he's five years older than me, people. So it worked out for us. But research that again, spousal benefit and survivor benefit, two different things. Spousal benefit, your spouse is still alive. Survivor benefit, your spouse has met their demise. Okay. So the question no one likes to ask, how long do you think you're going to live? And that is a big part of this. You know, this is why I made the decision I made. Nobody likes this question, but it's important. If longevity runs in your family and you're healthy, waiting longer may produce significantly more lifetime income. If your health is poor, your circumstances may point toward claiming earlier. This isn't just a math problem, it's a life problem. And unfortunately, none of us have a crystal ball. So you're going to have to look at your life history, your family history, and make some decisions. Okay. That was a lot of information. I know.
Your Pre Filing Checklist And Budget
SPEAKER_00What you should do before filing, before you make any decisions, right now, go on and create a Social Security account. You don't have to be any particular age to do that. Create your Social Security account. If you're young, it'll show you what you're paying into Social Security. It'll give you information. You see your earnings record. Make sure it's accurate. Understand what your projected benefits are. Make sure that all your jobs have been reported. Look and know your financial picture should always be crystal clear to you. And Social Security, whether you're 30 or whether you're 70, is important. Understand what your projected benefits are. Look at your whole financial picture. Social Security shouldn't be considered in isolation. Look at what you have in your savings, investments, pensions, expenses. And they've made some changes on double dipping. And if you are in a pension situation and getting Social Security, there's been some updates on that. So if you have old knowledge, go in and look at that. Health record, health care costs, retirement goals. AARP recommends looking at your complete retirement budget before deciding when to claim benefits. Do not make the decision based on your neighbor. Your neighbor's best strategy may be completely wrong for you. The strategy I shared with you about Craig and I may not work for you at all. You need this is an individual, aka couple's decision. I don't know if AKA was right there. Also non-ass. No, probably not. Anyways, it's a decision that needs to be looked at by both of you. Every retirement is different, everybody has different savings, everybody's health situation is different. Every family is different. Everybody, you may have a pension from one job, you may have a 401k. You have all these things happening out there that started when you were young. You may not even remember. You need to keep an eye and look on everything. And and have it, have it really, have a real good understanding. All right. Craig still works. We also receive Social Security because there was a point where he retired for a hot second. Again, you make those decisions and they stick with you. So I know there's gonna come a point where our income is gonna get drastically reduced. So I am trying now to have us live on the budget we'll have when we retire. And I'm not putting my head in the sand anymore. I'm trying to keep us on track with that. So that's what I'm not doing anymore this week. All right, that was exhausting. It's a lot of information.
Avoid Scams And Use .gov Sites
SPEAKER_00When you're dealing with Social Security, don't go to bogus sites. Make sure that anything you're ever on is.gov in the address. Make sure when you're giving information and you're handling these kinds of things, you're not giving your information over to nefarious sites. Double check everything. I don't want you making a poor decision in getting online and having that mess up for you. So make sure you're on the right government site and get that Social Security um login as soon as you possibly can. Okay, here's what I want you to remember: Social Security isn't just a government check. It's one of the biggest retirement decisions you'll ever make. And the good news, you don't have to become an expert overnight. You just have to start asking questions. I want you to learn your options, understand the trade-offs. I've just glossed over things today. I've glossed over them. I I did a lot of research on AARP and on the internet. I didn't want to get deep in decisions. I've glossed over information. I've I've hopefully hit a couple of hot buttons for you to go in and get more information. If you have a financial advisor, this is the person that can help you with that. If you don't, do the research on your own. You just have to ask questions and learn your options, understand trade-offs, look at your situation honestly, and make the best decisions for your life. Because retirement isn't about maximizing every penny. It's about creating a life that works for you.
Share With A Friend And Closing
SPEAKER_00Thank you for spending part of your day with me. If today's episode cleared up some of that confusion around Social Security, share it with a friend. Chances are they're wondering the same thing. And until next time, as always, I just want you to keep laughing, keep learning, keep asking questions. And remember, we're not aging quietly. We're aging intentionally. Because, my friends, aging ain't for 50. Until next week.
