The Growing Social Security and Medicare Problem

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wrote: "He is to receive over $2,000 a month in disability (SS) benefits and his wife who is younger and healthy, will receive over $900 per month. (Why?)" The answer is found in SSA's liberal entitlement program. She is likely receiving benefits because they have a child who is less than 16 years of age and she does not currently work or, if she is, she earns less thatn the current income limit of $14160.00 gross per year. This is the only way in which she can benefit off of his record. It's called CIC (Child in Care).
Not only does she draw a benefit, but the minor child is drawing auxillary child benefits as well. She will draw until the child is 16 and she will fall off the record. Her lost benefit will be added to the child's benefit and the child will receive that benefit until he/she turns 18 or graduates High School, which ever comes first.
Here is the monthly outcomes based on the facts you provide and the assumption the wife is working as well:
NH SSA disability benefit $2000.00
NH allowable work w/o penalty SSA work penalty $1000.00
CIC (spouse) benefit $ 900.00
If spouse worked w/o penalty to her benefit $1000.00
Child's benefit $ 900.00
Total: $5800.00 per month / $69600 per year
What a country?!

David of ID 2:22PM January 06, 2011

Also, employer matches employee's contribution...

Bill Hedges of MO 1:17PM January 06, 2011

There is one major flaw in the Urban study. There is no allowance for any earnings on the money paid in prior to retirement.
Ken Romenesko

Ken Romenesko of WI 12:52PM January 06, 2011

S/S was never meant to be the end all for your retirement.. But a supplement.
Veronica I got my S/S statement each year as a adult. I learned early S/S wasn't enough. I search and found job with retirement plan. I didn't buy new cars, take fancy vacations, or ate out often.
Today I have my S/S check, retirement check, and cash on hand to invest in stocks on a modest income.
Ann G of IL Bush does not force you to get Medcare D. You are not required to get supplemental insurance.
You are for part A:
"Every American aged 65 or older is eligible for Medicare. Those who receive Social Security benefits are automatically enrolled in Medicare. There is no way to opt out. Either you enroll in Medicare Part A, or you forfeit your Social Security benefits."
http://healthinsurance.about.com/od/faqs/f/retirees.htm

Bill Hedges of MO 12:35PM January 06, 2011

Since 1983 those who worked for a paycheck have managed to save 2.8 trillion dollars for Social Security. The money was saved because we knew there would be many boomers.
The money is in US Treasury Bonds. When you buy US Treasury Bonds, the government can use the money until you cash in the bonds. Then they have to pay back the principal plus interest. Boomers will not have to cash in the bonds all at once, but as money is needed for Social Security benefits.
Many people have paid into Social Security from every paycheck for 45 years. This money is the worker's money. The government doesn't have anything to do with it except to pay the bonds as they are cashed in.

Jo of AR 11:57AM January 06, 2011

Wow in reading the last comment- I just dont not know what to think I am 55 yr. old and I got my SS statement and was greatly suprised at what I would be getting if I retire at 62. With the cost of living rising I can not live off what I would be receiving, and I have worked since I was sixteen, as I am sure alot of others have as well. Now unemployed and seeking work I will have to work until I am about 70 yrs. The not so funning thing is that just who will hire me, extremenly experienced in adm. but hiring manager prefer younger less experience. I say just what is a senior to do. Now I a working on my MBA and should complete in 2012, its going to take a good job to paid off student loan. But my out look will be to safe everything until retirement. Widow in NC

Veronica Dixon Dean of NC 11:30AM January 06, 2011

The writer must have picked up his 'facts' from someone's wastebasket. Seniors are NOT getting a 'free lunch,' as he stated but the majority of us have worked fifty years or more to build up this country. We have paid into Social Security and Medicare and continue to pay for Medicare until we die. Seniors are paying not only for Medicare but the greedy insurance industry is raking us over the coals by charging us $200-300 dollars a MONTH for supplemental insurance! Plus, we were forced by the Bush administration to sign up for Medicare D which only serves to enrich the already multi-billion industry. If we did not sign up immediately for Medicare D, we were penalized. What does the writer recommend? Is he willing to allow his mother to starve to death? Is he willing or cold-hearted enough to watch the elderly die due to lack of medical care? It is so Republican of him and so easy to criticize and be just a 'talking head' but when it comes down to stating real 'facts' they all get it wrong---deliberately or by mistake. Get it through your thick skulls, we are not getting 'free rides' we paid our dues and continue to pay our dues as are millions who do so without complaining and whining. The writer 'forgot' to state that Social Security is not the problem---our politicians, Congress is the problem since they are the ones who raided the Social Security funds to hide the fact they mis-managed, misapproriated, stole from the fund to cover up their spending sprees. Don't blame the seniors blame Congress for not doing the job they were elected to do. Do you see any of our elected officials worrying about what they will do when they grow old? Of course not, they are the ones who get a "Free ride" since their benefit package is paid for by the over-burdened taxpayer. All their health care is paid for, all their bloated benefits are covered by the hard-working taxpayer while they whine away and blame the seniors for their stupidity and incompetence. By the way, Brandon, when Clinton left he left a legacy of a surplus that Bush and the Republicans went through in probably a year, then they left just IOUs that Bush laughed about...so if you feel the need to blame, point a finger at Congress and stop blaming the ones who built this country. I'm glad I'm not your Mother, you would probably leave me to die on the street.

Ann G of IL 10:51AM January 06, 2011

Raise the income cap to tax above the 106,000 and tax all income including capital gains. Again this is the third rail of politics and affects many more people than meets the eye. I agree with Dee Too of South Carolina, we need to run SS and Medicare like the insurance companies run their businesses.

John S. of NM 9:58AM January 06, 2011

My friend, aged 55, medically "retired" from his job and was told to file for disability. He thought, "No way I'll qualify." So he filed. He is to receive over $2,000 a month in disability (SS) benefits and his wife who is younger and healthy, will receive over $900 per month. (Why?) Plus, he can earn up to $800 per month at a new job without losing these benefits. This is in addition to his company retirement benefits!
In 10 years when I retire, I'll receive $1,260 per month and my wife, nothing.
What's wrong with this picture?

Hog Ryder of AL 9:52AM January 06, 2011

Just make the Medicare contribution without an upper income limit and apply to capital gains. Problem solved. Much simpler and fairer as the prosperous who made money off of the low wages of the example couple will be able to pay their fair share of their windfall.

Eriemaster of OH 9:26AM January 06, 2011