Social security

Early Social Security and Federal Retirement

October 14, 2022 /by mark heinrich

The Federal Employee Retirement System (FERS) was established by Congress in 1986 and went into operation on January 1, 1987. This retirement program offers potential advantages from three separate sources. Covered employees’ retirement benefits will come from Social Security, the Thrift Savings Plan (TSP), and the FERS Basic Benefit Plan.

You can get a FERS pension estimate from your federal organization’s human resources department. What happens to your Social Security benefits? The TSP offers several calculators and tools to assist you in forecasting your future income alternatives based on the balance in your TSP account.

Your Social Security and MRA

Your Social Security pension can be predicted on the Social Security website, but it makes a crucial assumption for people retiring at the Minimum Retirement Age (MRA). This article will examine why people retiring at their MRA should be aware of how working or not working after serving in the federal government impacts their Social Security income.

FERS employees are eligible for a full (unreduced) instant annuity at age 62 with at least five years of service. They are also qualified for a full, immediate FERS pension whenever they reach their MRA with a minimum of 30 years of service or when they turn 60 with 20 years of service.

The FERS MRA ranges in age from 55 to 57, depending on the birth year. The range is 55 for those born before 1948 to 57 for those born in 1970 or later, with those born before 1970 having the lowest MRA.

The good news is that you will receive your Retiree Annuity Supplement (RAS) if you leave federal employment with enough time at your minimum retirement age or any age before age 62 to be eligible for retirement. You are entitled to receive the supplement, which is paid by the Office of Personnel Management (OPM) in addition to your FERS annuity, as long as your post-FERS retirement earnings do not exceed $19,560 in 2022. Your supplements will be reduced by $1 for every additional $2 over the cap.

The RAS ends the month you turn 62, whether or not you begin receiving Social Security at 62. These and other details about the RAS are covered in an entire chapter of the OPM’s CSRS and FERS Handbook.

The RAS has no bearing on your ultimate Social Security income. Although you are not paying FICA tax since you are receiving the supplements for not working, your social security account is not receiving any contributions from any wages during this time.

Your wage history is visible in your Social Security online account and is utilized in a formula to determine your projected pension. The forecast, however, considers an annuity based on whether you kept working until age 62, your full retirement age, or age 70. These estimates depend on the supposition that you will continue to earn around the same amount as you did the previous year.

Will you have 35 years of Social Security tax payments at your MRA?

Remember that Social Security builds your retirement benefit using the 35 years of your highest earnings. Delaying retirement typically enables you to replace specific low-income periods with larger years, which increases your benefit because your yearly income tends to increase with time. However, each year it did not work, you received no income credit for calculating your pension if you don’t have up to 35 years of earnings.

Use the Social Security online calculator for just a personalized evaluation as a workaround if you plan to retire at your minimum retirement age and stop working. Be aware that this approach requires time and careful data entry.

It’s advisable to acquire expert assistance rather than take on the calculator problem. If you plan to stop working before age 62, consider calling Social Security for specialized help in obtaining an accurate estimate of your Social Security pension. Verify that all of the data in your Social Security account is accurate. Utilize the free phone number at 1.800.772.1213. It is accessible between 8 a.m. and 7 p.m on workdays.

Contact Information:
Email: [email protected]
Phone: 9187441333

Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Markâ€™s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families.

Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation.

Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402

Member FINRA www.finra.org / SIPC www.sipc.org

Broker Check http://brokercheck.finra.org/

Retirement’s top 5 monetary threats

October 14, 2022 /by aaron steele

Many individuals excitedly await retirement, yet it also causes worry. After retirement, you may travel more, spend more time with family, and try new things. However, retirees face severe risks.

Older Americans may be more aware of the dangers. Compared to Generation Z, just 14% of the following generation is secure about their financial future in 2022, according to a Bankrate study in December 2021. Several factors contribute to the financial insecurity of retirement, including rising healthcare expenses, price fluctuations, and hyperinflation. As individuals encounter retirement, they must be aware of these and other dangers.

Top Threats

The rising expense of health care

If you don’t prepare, you might find yourself in a financial bind as you age. According to Fidelity’s projections for 2022, the average 65-year-old couple will require $315,000 to cover their healthcare costs alone. In each scenario, the cost will be different, but this indicates what it will cost in retirement.

Because Medicare might not even pay all your medical bills, retirees’ healthcare is more expensive. For example, long-term healthcare, dentistry, and assistive devices are not included. Medicare Part A premiums could rise to over $500 per month by 2022.

Volatility in the financial markets

In the near term, the stock market may be highly volatile, making it challenging to develop long-term wealth. Research from financial management firm First Trust shows that the typical bear market in the United States lasts 1.4 years, with a loss of 41% on average. These bearish circumstances might seriously threaten your financial stability if they occur during your retirement years.

Therefore, having a well-diversified portfolio is a good idea as you approach retirement. At the conclusion of your employment, increasing the proportion of bonds in your investment might reduce your exposure to market turmoil. Bonds are less risky than stocks, but no investment is risk-free.

Inflation

If you’re retiring in 2022 and no longer accepting wage increases from a job, inflation is a concern for you. Luckily, Social Security adjusts benefits for inflation each year. Conversely, inflation might risk devastating your lifestyle even if you have plenty of available cash and aren’t dependent on work.

Investing in equities after retirement is a common way for retirees to combat inflation. Maintaining a small stock investment can help stave off the consequences of inflation, despite the fact that retirees typically have a lower stock allocation than those in their 20s. Some other investments, such as TIPS or Series I savings bonds, adjust for inflation regularly. This might be helpful.

Having no money left to spend

As a result, many retirees are concerned about running out of money. In addition to the fact that individuals are living longer than in previous decades, many retirees may not have the resources to cover their last expenses.

When it comes to saving for retirement, you can do a few things if you’re behind and worry about running out of money someday. Your retirement funds could be boosted by optimizing payments to an IRA and boosting your payments to a 401(k) or another plan.

Postponing Social Security benefits and purchasing insurance are two more options. If you postpone taking Social Security, you will receive more money each month. On the other hand, annuities allow you to purchase insurance that will pay you a fixed sum for the rest of your life.

The loss of a loved one

Your spouse also poses retirement risks. Pension benefits may be cut after a spouse’s death. Sharing expenditures with your spouse may make it harder to make monthly payments. Also, remember that funerals are costly.

Several insurances may help lessen the financial effect of your spouse’s death. Survivor payments and life insurance can reimburse you.

Conclusion

Retiring isn’t easy. Leaving a job requires several life and financial adjustments. After retirement, you may encounter medical expenses, macroeconomic variables, and inflation. Because there are so many factors, a financial counselor may be helpful. An advisor can help you assess how much money you’ll need and how to plan your draw-down.

If you’re worried about consultation costs, a fee-only fiduciary financial adviser can assist. This service may cost you upfront, but it will likely save you money over time.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

Working Longer Not the Only Way to Boost Retirement Funds

October 8, 2022 /by todd carmack

Several strategies increase the amount of money available to pay for your retirement. In this post, we’ll examine two additional strategies: 1) continuing to work part-time after retirement; and 2) downsizing or relocating to a region with a cheaper cost of living.

You can work part-time after retirement if continuing in your government position is not an option because: 1) you detest it, or 2) you must resign by law. You can postpone applying for Social Security by working part-time, allowing it to increase to a higher sum. It will also keep you busy since not everyone adjusts well to having an extra 45 to 50 hours per week to fill.

If you choose to, nothing will prevent you from continuing to work full-time after retirement. Consider working at a job you enjoy, or that makes use of your existing skills.

Consider downsizing, moving to a region with a cheaper cost of living, or doing both if working after retirement is the last thing you want to do. This is ideal for people who have lived in high-cost areas for a long time and have built up home equity in the high six figures.

Additionally, you might not require as much space as you did when raising your children (in fact, reducing the number of bedrooms in your house is an excellent way of keeping your children from moving back in). Downsizing will result in savings even if you stay in the exact location. You will discover that expenses (such as taxes, utilities, and so forth) will be lower for your new, smaller home, in addition to the difference between what you paid for your previous home and what you received when you sold it.

You can increase your retirement income by moving to a region with a lower cost of living because you will spend less for a similar home and even less if you downsize.

According to statistics, most individuals do not relocate after retirement. Thus not everyone may benefit from the relocation strategy. A survey from Boston College’s Center for Retirement Research found that 17% of seniors move at the time of retirement, and a further 16% move later in retirement, usually when health issues dictate it.

Do you have to pay taxes on the capital gain you made when you sold your primary residence?

Due to the sale, you will likely owe little or no tax. You can shield $250,000 in capital gains from taxation if the house you sell has been your primary residence for two of the previous five years or $500,000 if you file jointly.

There are many ways to improve your finances in retirement, but if you’re still young and the methods we’ve covered here don’t particularly appeal to you, there is something you can start doing right away. That is, make as many TSP contributions as possible to ensure that there won’t be any income gaps when you retire.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Social Security and Federal Retirement

October 2, 2022 /by mark heinrich

When it comes to the details surrounding your Social Security retirement benefits, it can seem a bit confusing, especially in terms of understanding and receiving the amount you are qualified to receive. By taking the time to understand the average retirement check for the current year, maximum earnings, work record, full retirement age, and more, you will be well-equipped to receive your Social Security benefits to their fullest.

There are many ways in which you can rest assured you are receiving the most out of your Social Security check each month. For example, many individuals are misinformed regarding how crucial it is to receive Social Security payments at the right age, claim proper benefits on a spouse’s work record, and continue working past the earliest retirement age available (depending on your age).

The age at which you choose to retire has a significant influence on your overall benefits, even in terms of spousal eligibility. For example, if the wife chooses to retire early on, it will impact her spousal benefit at whatever point her husband retires in the future. However, suppose she waits until reaching full retirement age. In that case, she will be eligible to receive half of the full Social Security benefit the spouse qualifies to receive or her benefit (depending on which is higher).

In this example, the highest possible amount the wife was eligible to receive at full retirement age is subtracted from half of her husband’s benefit. However, this amount is a bit higher than the benefit she has received, considering she opted for early retirement at age 62. The current amount she receives will increase by the sum calculated from half of her husband’s benefit, providing a new monthly benefit. Had she chosen to retire at her full retirement age, the wife could have received a higher monthly payment, further highlighting the importance of avoiding early retirement when possible.

Although age 62 is the earliest you can begin receiving Social Security benefits, there are many reasons to put it off until reaching full retirement age. Depending on the year you were born, the full retirement age may be somewhere between 65 to 67. Health problems are one of the main concerns for those who choose to retire early, among other conditions. This further enables those with a limited lifespan to enjoy time with their loved ones while they still can. Consequences of early retirement often include penalty taxes and significantly lowered Social Security benefits.

Individuals who were married for more than ten years, who did not remarry, and haven’t received a work-sponsored pension may be eligible to receive Social Security benefits depending on their spouse’s work record. When a former spouse meets specific requirements, they are treated as a current spouse, thereby extending entitlement to their Social Security benefits. However, if the former spouse receives Civil Service Retirement System benefits, they will be affected by the Government Pension Offset. This detail will further reduce spousal benefits by up to 60%. Unfortunately, in many cases, this nearly eliminates the entirety of the retirement benefit.

Contact Information:
Email: [email protected]
Phone: 9187441333

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402

Member FINRA www.finra.org / SIPC www.sipc.org

Broker Check http://brokercheck.finra.org/

You May Be Making These 4 Retirement Errors Without Even Realizing It

September 24, 2022 /by bill hoff

Retirement planning should be rewarding. It’s bittersweet to leave your career and start a new chapter. There are things you can do to improve your retirement savings and investments, and other factors that might damage you. Here are four retirement mistakes you may not have noticed.

1. Inability to take advantage of the Roth IRA tax benefits while they are still available

Roth IRAs are a great method to save for retirement. Allowing your money to grow tax-free and withdrawing tax-free from retirement funds can help you retire wealthy. Six-figure Roth IRA withdrawals escape capital gains taxes, saving thousands over time.

Roth IRA contributions are not open to everyone because of the income threshold. If you’re single and make less than $129,000 a year, you can make contributions to the $6,000 maximum, with a cut–off range up to $144,000. Contributions for couples’ joint income are limited to $204,000, with a cut–off range of up to $214,000.

Don’t miss out on the significant tax advantages of a Roth IRA.

2. Reaching the maximum limit for 401(k) without contributions to IRA

A 401(k)-contribution limit of $20,500 (or $27,000 if you’re over the age of 50) will be in place for the tax year 2022. Many folks are unable to contribute the full value. Nevertheless, even if you have the resources to donate the full amount, you may discover it to be overvalued.

You must not contribute any less to your 401(k) than your company’s contribution. To maximize your IRA contributions after you have adjusted your payments to your company match, the next stage is to increase your payments.

There are a few reasons why this is a good idea. To begin with, you may not be capable of contributing to a Roth IRA if your income exceeds a certain threshold (conventional IRAs do not have this restriction but do limit the amount you may deduct from your income). IRAs, like brokerage accounts, allow you to invest in any stock or mutual fund you want. When you can invest in various options, rather than only those supplied by your employer, you have greater control over your money or where it flows.

Increasing your 401(k) contributions after maxing out your IRA contributions may be an option.

3. Employing targeted date funds in the 401(k) account

In your 401(k) plan, you’ll see funds named after the year in which they were created, such as ABC Fund 2060. Because they’re called “target-date” investments, the year listed here is the year you’re close to retiring.

To become more cautious as you approach retirement, target-date funds redistribute your assets. On the other hand, target-date funds are more expensive since they are actively managed rather than passively.

Target-date fund expenses can be avoided by investing in the funds that are commonly held in the fund. Suppose you’re in your 30s and have a 401(k) breakdown like this, 60% is invested in the large-cap index fund, a 20% stake in a global index fund, 10% invested in an Index fund for mid-cap companies, and a 10% stake in a small-cap index fund. Please remember that small-cap and mid-cap vehicles are riskier, so you’ll want to avoid them as you get closer to retirement.

4. Miscalculating your Social Security benefits

You can expect to get a monthly Social Security income based on the day you retire. Social Security now considers the age of 67 to be the FRA for anyone born after the year 1960. However, you have the option to begin receiving benefits at the age of 62 or to wait until you are 70 before doing so.

For each monthly claim earlier than your FRA, your benefits are cut by five-ninths of 1%, up to a maximum of 36 months. Taking benefits longer than 36 months prior to your FRA will result in a reduction of your monthly benefit by a fraction of a five-twelfth.

At the age of retirement, the maximum benefit can include $2,364 at age 62, $3,345 at 67 years old or full age of retirement, and $4,194 at age 70.

However, you may need to lower your hopes if you want to get the most out of the program. Monthly Social Security payments average $1,666. Even if you do get more than that, the odds are not in your favor of getting the greatest amount of money possible.

Contact Information:
Email: [email protected]
Phone: 2178542386

Bio:
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.

Bullet points:
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
Federal Government
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.

OPM’s FERS Retirement Timeline: What to Expect

September 8, 2022 /by todd carmack

Are you considering retiring from your federal job? Congratulations! You’ve dedicated yourself to public service for a long time, and now it’s time to reap the advantages of that fantastic benefits package you’ve heard so much about throughout your career.

Unfortunately, to complete the retirement process and earn your pension, you must jump through some hoops. It’s a time-consuming and costly process (if you’re not careful). Since the epidemic, the average processing time for retirees has been around 60-90 days.

Timeline for Retirement Paperwork

The application for FERS retirement is merely the first step. First, your department’s personnel office will ask you to sign a few documents and begin the process of certifying your service, which can take a long time if any paperwork is missing. Your life insurance (FEGLI) and health insurance (FEHB) enrollments are also transferred to the OPM.

Then it’s off to the payroll office. They authorize your final paycheck and the payout of unused yearly leave once they receive your papers from personnel. They also send your salary, retirement contributions, and service history to the Office of Personnel Management (OPM).

When OPM receives all of your papers from these other offices, they provide you with a civil service claim number that you may use to keep track of everything. Then you wait for them to assess your eligibility, compute your annuity, and Ã¢â‚¬â€ at long last! Ã¢â‚¬â€ sending you your check.

So, how long will this all take? Here’s where we are now in terms of the board timeline:

â€¢ Day 1: The date of your retirement. Congratulations! Get rid of your alarm clock and start doing those things you’ve always wanted.

â€¢ TSP monies are available for withdrawal on day 30. The payroll office will notify TSP of your automatic retirement, and you should be able to withdraw your funds without penalty within 30 days of retirement.

â€¢ Day 30-45: A lump amount payment for annual leave is sent. This payout takes at least two full pay periods to complete following your retirement date, and it can take up to six weeks to receive. The payroll department is responsible for this process.

â€¢ Day 45-70: The Office of Personnel Management (OPM) sends out the first retirement letters. OPM will send you the Civilian Service Annuity Number (CSA#) six to ten weeks after your retirement date, which you will need any time you contact them. Later, they’ll send you a letter with an online password to set up future communication.

â€¢ Day 45-70: The Office of Personnel Management (OPM) provides an interim retirement check. You’ll get your first annuity check when you get your first letters, but it’ll only be for 60-80% of your estimated annuity. This is only to keep you afloat while they process your paperwork, which should arrive between six to ten weeks after your retirement date.

â€¢ Day 90-120: The Office of Personnel Management (OPM) delivers your complete retirement check. When OPM has finished processing your papers, they will issue you a check for the entire amount of your annuity. This pays you the balance due from the interim check, minus insurance and taxes. This entire check may take three to six months to appear.

Contact Information:
Email: [email protected]
Phone: 6232511574

Medicare in 2022 – What We Should Expect

September 3, 2022 /by bill hoff

Medicare is a health insurance program of the United States government that subsidizes healthcare services. The plan provides coverage for individuals 65 or older, those younger than 65 who meet certain eligibility criteria, and those with certain diseases.

Medicare comprises several plans, each providing coverage for a particular aspect of medical care; however, some require the insured to pay a premium. Medicare gives consumers more options in terms of costs and coverage, but it also makes it harder for people to sign up for the program.

Medicare Changes in 2022

According to a report by the Kaiser Family Foundation, the typical Medicare beneficiary will have access to 39 different Medicare Advantage plan options in 2022, more than in recent years. The expected changes would consist of the following:

Improved Alzheimer’s Drug Coverage

According to the Alzheimer’s Association in the U.S., the disease affects approximately 6 million Americans. It has grown to be a serious issue for the medical industry because it is among the most widespread illnesses that affect people of all ages.

An effort was made to control and help those afflicted by it by the government. For instance, CMS announced that they plan to submit a proposal for a monoclonal antibody drug that could help fight Alzheimer’s disease.

The government is still testing the drug and needs more real-world data before it can be sold to the public. The Food and Drug Administration Authority has approved the use of AduhelmTM as the only treatment for Alzheimer’s disease.

Improved TeleHealth Services

Medicare has over 44 million beneficiaries, making it one of the largest health-related programs in the U.S. The program is designed to cover a large population. It offers some of the most comprehensive treatment plans currently available to patients. As a result, many Medicare beneficiaries have limited mobility or are in poor health, making it difficult for them to access hospital facilities in their area. Sometimes the journey is so strenuous and exhausting that some people prefer to stay home and postpone their doctor’s appointments. It was a significant issue for people during the recent covid outbreak.

Fortunately, Medicare has addressed this issue by providing more telehealth care services to its patients. Telehealth services enable medical professionals to treat COVID-19-related or other medical conditions from the comfort of their own homes, offices, or other locations.

Reduction of Insulin Cost

The price of insulin has historically been a significant burden on the finances of older adults. Many older Americans rely on insulin, which puts their lives at risk if they don’t have it. According to statistics, one in every five Medicare beneficiaries has diabetes. Unfortunately, many people continue to lack adequate access to insulin.

The Part D Senior Savings Model was introduced by the Centers for Medicare and Medicaid Services in 2021, marking the beginning of the process by which the Medicare program would begin to address this concern for senior citizens. This model limits insulin costs to $35 per month.

Since its expansion in 2022, the Medicare Part D Senior Savings Model now assists more people enrolled in the Medicare program. The program has expanded to include all 50 states, the District of Columbia, and Puerto Rico so that everyone can get the same insulin doses at the same price.

Medicare Advantage Changes

Another popular option for Medicare beneficiaries in the U.S. is the Medicare Advantage plan (Part C). People must be aware that there may be numerous changes soon regarding this plan.

The Medicare Advantage Plan (Part C) price has dropped from $21.22 to $19, making it a viable option in 2022. Coupled with the monthly premium for Part B, beneficiaries are responsible for paying an additional premium because of the benefits it provides to users and because the program benefits patients in various ways. The following are some of the most popular advantages of signing up for the Medicare Advantage Plan:

· Amplification devices for the deaf

· Availability of gyms and exercise facilities

· Assistance during an emergency

These plans are easily accessible to people who have a plan subscription. In 2022, experts estimate that the number of people enrolled in Medicare Advantage plans will rise to 29.5 million. People with chronic conditions may also qualify for a 19% to 25% reduction in the monthly premium for their Medicare Advantage plans.

How Do I Sign Up for Medicare?

Once you are eligible for Social Security benefits at age 65, you will be automatically enrolled in Medicare Part A, which covers hospital costs, and Medicare Part B, which covers doctor visits. You are automatically enrolled in these programs without taking any additional steps. On the other hand, you will be required to sign up for additional Medicare-related services. You must enroll in Medicare Part D to receive coverage for prescription drugs. You can apply for this through the Social Security Administration’s website, even if you do not currently receive benefits from Social Security. This should be done within seven months, around your 65th birthday. This window includes the three months preceding your 65th birthday, your birthday month, and the three months following your birthday month.

To qualify for Medicare Supplement Insurance, also known as Medigap, you must enroll in Medicare yourself. This enrollment period begins the month after you reach the age of 65 and are enrolled in Medicare Part B. If you sign up during that period, the private insurers offering Medigap plans are required to accept you.

It’s possible to switch Medicare plans at any time during the year if you miss the initial open enrollment period or decide to enroll later.

Contact Information:
Email: [email protected]
Phone: 2178542386

Getting Started with Medicare

August 27, 2022 /by marvin dutton

Medicare is a health insurance program for those over the age of 65 and those under age 65 who have specific disabilities. You can sign up for Medicare at least three months before your 65th birthday. If you’re new to Medicare, you might be unsure where to begin. What you need to know is summarized below.

Medicare is Divided into Four Sections

These four components operate together to offer comprehensive coverage, although each part is responsible for different services.

Medicare Part A: covers inpatient hospitalization, hospice care, skilled nursing facility care, and home health care. For the most part, this Medicare category is free.
Part B Medicare: covers outpatient services like doctor visits, X-rays, and lab tests. Part B coverage is paid for monthly.
Medicare Part C (Medicare Advantage): this allows you to combine your Medicare coverage into a single plan. Hospital and doctor care and prescription drug coverage may be included in these plans. You normally pay a monthly premium for Part C coverage, plus a deductible or copayment if applicable.
Part D: Prescription drug coverage is provided under Part D of Medicare. This coverage is available as a stand-alone plan or as part of a Part C plan that includes prescription coverage. For Part D coverage, you must pay a monthly premium and a deductible or copayment.

Parts A and B Are Available Without Charge

For the most part, Part A is free. Unless you or your spouse have never worked and paid Medicare taxes, you usually don’t have to pay a monthly payment for Part B. If you’re unsure if you’re eligible for premium-free Part A, contact your Human Resources department if you’re still employed or the Social Security Administration if you’re retired.

If you’re still working at age 65, Medicare is secondary to employment coverage. (If you get health insurance via your employer, you won’t have to do anything until you retire or your job-based coverage stops.) Parts A and B should be signed up for three months before your 65th birthday or eight weeks after you retire (whichever comes first).

Medicare Supplement Insurance Provides Additional Protection

You can get supplemental insurance, generally known as Medigap, in addition to the four categories of Medicare. Some costs not covered by Medicare, like deductibles and copayments, are covered by Medigap plans.

Medicare Advantage Plans Can Also Provide Coverage

You can acquire coverage through a Medicare Advantage plan if you don’t want to buy a Medigap policy. These plans are offered by private insurance companies that have a Medicare contract. All Original Medicare services must be covered by Medicare Advantage plans (Part A and Part B). They can, however, provide additional benefits such as prescription medication coverage, dental coverage, and vision coverage.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementiong a sound plan for your retirement. We are commited to helping you achieve your goals. Visit us at M. Dutton and Assoiciates.COM. Tel. 212-951-7376: email: [email protected].

A 6% COLA Increase is Now Possible

August 25, 2022 /by mickey elfenbein

Following a 0.5 percentage point increase in the inflation index used to compute the COLA in April, the COLA count stands at 6% through seven months of the counting period for the January 2023 federal retirement cost of living adjustment.

Unless inflation changes direction throughout the rest of the measuring period, the count is on track to surpass the 5.9% rise received in January for those retiring under CSRS and 4.9% for those retired under FERS who are eligible for COLAs (generally not until reaching age 62).

That was the most significant increase since the 8.7% paid in 1982 when the FERS system existed.

COLAs go into effect on December 1 of each year and are applied to annuity payments the following month. COLAs for persons who have been retired for less than a year are prorated according to their retirement date. If you retire in January, your first adjustment will be for 11/12ths of the COLA amount in January of the following year. It will be 10/12ths if you retire in February, and so on. COLAs in the future will be for the whole amount.

COLA According to the Consumer Price Index

The COLA is calculated using the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI/W) average from one year to the next. Benefits are frozen but not lowered if the inflation rate is negative. Also, the beginning point for the following COLA count remains the same in that circumstance.

Note: COLAs for Social Security follow the same methodology, except a full Social Security COLA. Even if you’ve been receiving benefits for less than a year, you’ll get a COLA.

Contact Information:
Email: [email protected]
Phone: 6122163911

Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.

The PLANADVISER Vision Awards – 2022

August 21, 2022 /by marvin dutton

Following the publication of the 15th-anniversary issue in print, the editorial staff at PLANADVISER Magazine took some time to stop and consider the enormous changes that have transpired in the retirement plan services sector over the previous few decades. Following this time of introspection, many lessons were learned, including newfound respect for the efforts of prominent individual leaders and change-makers. They have played a significant role, if not the most influential, in defining the retirement plan industry of 2022.

The Vision Awards are planned to recognize and honor people in the industry who have pushed for good change and made significant contributions to improving retirement outcomes for United States workers. WIPN is an acronym for We Inspire, Promote, and Network.

The Old WIPN

WIPN was founded in 2009 as the Women in Pensions Network and has since grown into a well-established 501(c)6 non-profit organization comprising a network of more than 5,500 retirement industry professionals organized in local chapters throughout the United States. WIPN’s members are united in their goal of increasing the presence of women, people of color, and other underrepresented groups in the financial industry in the United States, and their efforts are bearing fruit.

Early Days of WIPN

The members of WIPN have included women at all career levels, from entry-level positions to senior management, who represent the many segments of the retirement industry since its inception. These include recordkeepers, third-party administrators, delegated control investment officers, broker/dealers, RIAs, ERISA attorneys, asset managers, and financial advisers. In 2021, the group changed its name to WIPN – WE Inspire, Promote and Network, to better reflect its mission. This shift saw WIPN expand its membership to include men working in the retirement industry and reaffirm its commitment to the promotion of networking opportunities, the development of mentoring programs, and the pursuit of equal employment opportunities and promotion practices in the industry.

Reason Behind the Shift

Those in charge of WIPN say the decision was based on a vision and understanding that true representation and equality in the retirement plan services industry will only be achieved through a collective effort that includes everyone working in the industry today, regardless of their ethnicity or sexual orientation, and that this change was necessary. WIPN is the first to admit that their work is far from over, but their past, present, and future work proves the enormous influence that visionary professionals can have on the retirement plan market.

Associations

Former Assistant Secretary of Labor for Employee Benefits and current Director of the Employee Benefits Security Administration, Bradford Campbell, has been a partner at Faegre Drinker since 2007.

The Current Assertions

There is little doubt that the Pension Protection Act (PPA) of 2006 has significantly influenced defined contribution plans, elevating them from their previous status as an accessory retirement benefit to their current position as one of the primary pillars of the United States retirement system. As it is popularly known among industry professionals, the PPA was instrumental in ushering in the present age of automatic enrolment and asset-allocation funds.

Brad Campbell was a prominent figure in developing the PPA and other critical ERISA retirement and health reforms during his years in government. His regulatory and policy choices have substantially influenced the ERISA plans’ structure and administration.

The qualified default investment alternative and enrollment safe harbor framework, which was developed and issued during Campbell’s tenure as Assistant Secretary of Labor for Employee Benefits, continues to make automatic enrollment and the use of pre-diversified investments in defined contribution plans possible. He also played a crucial role in orchestrating the implementation of the Pension Protection Act’s (PPA) significant reforms to pension legislation, which resulted in the publication of approximately 30 regulations and important guidance papers. The retirement plan clients and other ERISA fiduciaries who rely on Campbell’s policy vision to administer compliant and successful retirement plans continue to benefit from his policy vision today.

Contact Information:
Email: [email protected]
Phone: 2129517376

Less Than 200 Employees Are Interested In The SSA’s Early Retirement Offer

August 16, 2022 /by rick viader

In 2021, the Social Security Administration (SSA) resumed its tradition of providing early retirement to qualified employees. However, preliminary figures indicate that the agency had very few takers.

According to emails obtained by Federal News Network and confirmed by the agency, the SSA offered a round of early retirement prospects earlier this autumn.

This year, approximately 6,800 SSA employees were eligible for early retirement. To date, around 175 employees, or little more than 2% of those eligible, have accepted the offer, according to an email sent by an agency spokesperson to Federal News Network.

Employees eligible for the early retirement offer had until November 26 to notify their supervisor of their intention to accept the offer. According to an agency spokesperson, they must depart the agency by December 31, when the SSA’s early retirement permission from the Office of Personnel Management (OPM) expires.

In recent years, SSA has offered early terminations on multiple occasions. The agency normally announces an early-out option once a year, which “lets us rebalance resources to meet the changing service demands of the American people,” said an SSA spokesperson.

However, unlike in previous years, the Biden administration’s vaccination requirement adds a new dimension to the opportunity. Federal employees had until November 22 to get fully vaccinated or file a medical or religious exemption request, and most SSA employees complied with the vaccine mandate.

However, the timing of this year’s early-retirement window gave individuals eligible for an early departure some flexibility concerning complying with the vaccination obligation, according to the SSA.

All employees are expected to meet the vaccination requirement. However, they have reached an agreement with labor partners that any employee who notifies the management in writing of their intention to retire/separate by December 31, 2021, won’t be subject to enforcement of the requirement, the SSA spokesperson said.

According to data provided by the Office of Management and Budget last week, at least 90.3% of the SSA workforce has received at least one vaccine dose, and 97.7% of the agency’s employees were either partially vaccinated or had a medical or religious exemption request pending or approved.

The SSA’s offer doesn’t include additional monetary incentives, as has become usual with early retirements from agencies in recent years.

Employees need to have 20 years of creditable service and be at least 50 years old to be eligible for early retirement or have at least 25 years of service time at any age.

Employees have to be serving under a non-time-limited appointment, have been continuously on SSA’s rolls since at least 31 days before November 20, 2020, and employees cannot be the subject of an involuntary separation decision due to misconduct or unsatisfactory performance, according to the SSA’s early retirement notice, obtained by Federal News Network. In addition, Civil Service Retirement System (CSRS) workers must have worked in a CSRS post for at least one year out of the one year immediately before retirement. This last condition does not apply to employees of the Federal Employees Retirement System (FERS).

To maintain their federal health insurance coverage upon retirement, eligible personnel must have been covered by the Federal Employees Health Benefits (FEHB) program for at least the final five years of their government service.

The Office of Personnel Management (OPM) will grant pre-approved waivers to employees who have been continuously covered under the FEHB program since the beginning date of the agency’s latest early out authority (December 16, 2020) and retire through voluntary early retirement during the early out period, as stated in the SSA notices.

Early retirement was made available by the Social Security Administration (SSA) in 2012, 2014, 2017, and 2019. Around 3-4% of those eligible accepted the early retirement option in the past.

Around 27% of the SSA staff will be able to retire by 2022, as stated by a 2019 Government Accountability Office report.

Contact Information:
Email: [email protected]
Phone: 9568933225

How to Appeal a Federal Insurance Claim Denial

August 15, 2022 /by marvin dutton

The Federal Employees Health Benefits Program (FEHB) can aid you and your family in meeting your healthcare needs. Federal employees, retirees, and their dependents have access to the most comprehensive health care options in the country.

Federal insurance claims can sometimes be denied. Denial occurs when your federal employment insurance program informs you that your medication or therapy will not be covered. It is quite irritating and frightening if you are obliged to pay for the entire cost of treatment. However, you can fight against the denial of a federal insurance claim.

Initially, examine if the service is included, restricted, or exempted in your plan’s brochure. Further, go through the section of your brochure that deals with the disputed claims. Concisely, this section will instruct you to contact the plan and clarify the reasons why you believe the services should be covered (consider the appropriate brochure coverage provisions). You will also be instructed to request that the plan review your claim.

If the plan denies the claim once more, read the plan’s conclusion letter carefully and double-check your plan’s brochure. If you continue to disagree with the plan’s judgment, the disputed claims portion of your brochure will explain how to contact the Office of Personnel Management and request a claim reassessment.

The Office of Personnel Management (OPM) is adopting provisional measures to amend the Federal Employees Health Benefits Acquisition Regulation to include a new contract provision (FEHBAR). The clause clarifies for both FEHB carriers and covered people the conditions in which OPM may decide about a covered person who requests OPM to reconsider a health benefits plan’s denial of a claim if the plan has either confirmed its denial once the covered individual requested reconsideration or has failed to answer to the covered individual’s request for reconsideration as provided by OPM’s regulations.

Claimants may seek court review of benefit denials under the FEHB program in certain instances, according to the provision. The objective of these interim regulations is to make it clear that covered persons who want to file a legal claim over rejection of an FEHB benefit must do so through OPM. The interim regulations also define the administrative review procedure that must take place before legal action may be taken in court.

In most cases, OPM will respond to your inquiry within five days. OPM will offer you a final response within 60 days once the evaluation is completed. If it requires more time or you need to do moreÃ¢â‚¬â€œfor example, email more informationÃ¢â‚¬â€œthey will contact you within 14 business days of receiving your request and tell you what you need to do next, if anything. The Office of Personnel Management will not decide over the phone until the review is finished and a written copy of the final decision is delivered.

If you are unhappy with the outcome of the OPM review, you may be entitled to file a lawsuit in federal or state court, depending on your state’s rules. If required, seek legal advice.

If your claim is refused, you have 60 days to request reconsideration, and the carrier will answer within another 60 days. Suppose the reconsideration judgment denies the benefit again. In that case, you have 60 days to submit an appeal with a committee comprised of persons appointed by the John Hancock life insurance business, as well as others, if mutually agreed upon with the OPM. Within 60 days, the appeals body will make a ruling.

If the committee sustains the denial, you have the option of requesting an appeal to an independent third party chosen by OPM and the carrier. The request would have to be submitted within 60 days, and a decision would have to be made within another 60 days.

You may seek judicial review of a final rejection of eligibility for benefits or a claim in federal district court after exhausting this appeals procedure. The amount of compensation would, however, be restricted to the benefits that would have been receivable. Actions against the Office of Personnel Management or the third-party adjudicator are also prohibited, as are suits based on state or municipal law or regulations.

Contact Information:
Email: [email protected]
Phone: 2129517376

How Social Security Recipients Can Avoid Losing Benefits

August 14, 2022 /by aaron steele

One of the best aspects of Social Security is that you have a say when applying for benefits. You are entitled to your entire monthly pension at full retirement age or FRA. Depending on your birth year, you’ll reach 66, 67, or somewhere in between.

You can, however, apply for Social Security outside of FRA. You can sign up as early as age 62, but filing before FRA will result in a lower reward.

On the other hand, if you wait until after FRA to file, your monthly benefit will increase by 8% for each 12-month period you wait. And the benefit lasts until you’re 70 years old (meaning, you can no longer grow your benefits past age 70, but any boost you lock in will be yours to enjoy permanently).

Meanwhile, working, as well as collecting Social Security payments, are both viable. Your earnings will have no bearing on your benefits once you attain FRA. However, if you work and receive benefits before reaching FRA, you will be subject to an annual earnings-test restriction.

However, a new proposal on the table would boost the earnings-test limit. If it succeeds, seniors on Social Security might have a lot more flexibility â€” and possibly avoid losing out on benefits they would prefer to receive.

Is it possible that the earnings-test limit may be raised?

Seniors on Social Security can earn up to $1,630 per month or $19,560 per year before their payments are affected this year. If your wages surpass the maximum for this year, Social Security will deduct $1 for every $2 earned.

On the other hand, Rep. Bill Posey recently filed the Senior Citizens Inflation Relief Act, which calls for an immediate rise in the earnings-test ceiling for the years 2022 and 2023. If passed, the existing earnings-test maximum of $1,630 per month would be increased to $2,046.67 per month or $24,560 per year. (It’s worth mentioning that the earnings-test ceiling is higher for seniors achieving FRA this year.)

The rationale for this adjustment would be to provide seniors with more income-generating possibilities at a time when inflation is on the rise. Even during more modest periods of inflation, the elderly regularly struggle to keep up with living expenditures. However, costs are currently skyrocketing for both workers and elders. Rep. Posey’s idea is to provide temporary relief, so seniors do not have to rely on expensive loans to make ends meet.

A Real Lifeline

Some seniors are astonished to hear that their Social Security payments are affected by their earnings if they file before achieving FRA. The good news is that under the earnings test, withheld payments aren’t lost; they’re just repaid once FRA kicks in. However, for elders who require money right now, this is insufficient.

Increasing the earnings-test limit could provide much-needed relief to many seniors today. As a result, seniors should hope that Posey’s concept catches on and becomes a reality.

Contact Information:
Email: [email protected]
Phone: 3604642979

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Medicare is Not A Free Service

August 9, 2022 /by marvin dutton

In a video interview, the founder and President of Sensible Money, Dana Anspach, outlined the parts of Medicare and the costs connected with Part B and Part D.

Medicare Part A, sometimes known as hospital insurance, is free if you have worked in the United States for several years. “If you’re qualified for Social Security benefits, you’re usually also eligible for free Medicare Part A,” Anspach explained.

Other services and supplies are covered by Medicare Part B, which has a monthly cost that fluctuates depending on your income.

There’s also Part D, which covers medicines and is free if your income is low enough but has a cost after surpassing certain thresholds.

Amount of Income-Related Monthly Adjustment

In 2022, the regular Part B premium will be $170.10. According to Medicare.gov, most consumers pay the basic Part B payment.

Suppose your modified adjusted gross income (MAGI), as reported on your IRS tax return two years ago, exceeds a specific threshold. In that case, you’ll have to pay the usual premium plus an income-related monthly adjustment (IRMAA). IRMAA is a fee added to your insurance premium.

“Like so many other aspects of retirement, it’s more complicated than you might assume,” Anspach explained. “First, the Social Security office uses data from two years ago to establish your premium amount, so if you enroll in Medicare for the first time in 2022, they will use data from your 2020 tax return.”

Let’s say you’re 65 in 2022, and your MAGI from 2020 is less than $182,000 if married filing jointly or $91,000 if single; in this scenario, your Part B premiums will be $170 per month, and Part D will be free, according to Anspach. (To determine your MAGI, subtract any tax-exempt interest income from your adjusted gross income (AGI).)

Your premiums will now be greater if your MAGI surpasses additional threshold values. “This is known as means-testing, and the IRMAA is the technical name. According to Anspach, your premium amounts are communicated to you via a letter from the Social Security Administration called an Initial Determination Letter.

Singles with a MAGI of more than $142,000 or married with a MAGI of more than $284,000, for example, will pay $442 per month for Part B and $52 per month for Part D.

A MAGI of more than $500,000 for singles and $750,000 for marrieds attracts the highest premiums of $578 for Part B and $78 for Part D.

According to Anspach, you will receive a quarterly invoice for these premiums if you are not yet enrolled in Social Security. If you participate in the Social Security program, your premiums are withheld from your monthly payment.

Premiums for Part B

Requesting a Re-Determination of the Initial Decision

Anspach also described how recipients might ask the Social Security Administration for a revised first determination, as MAGI is affected by a list of life-changing events; however, your situation must be on the list to make this request.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bill in Senate to Equalize the COLAs to Both FERS and CSRS Federal Retirees

August 9, 2022 /by mark heinrich

Legislation to standardize the yearly rise in annuity payments that retired federal employees receive across retirement systems was proposed by a group of five Democratic senators in May.

Sen. Alex Padilla, a Democrat from California, introduced the Equal COLA Act (S. 4221), which would guarantee that federal retirees in the Federal Employee Retirement System and the Civil Service Retirement System both receive the same annual percentage cost of living rise each year.

The CSRS now determines the cost-of-living adjustments based on the yearly change in the third quarter worker consumer price index under regulations that date back to 1986. However, FERS COLAs are calculated by extrapolating from that adjustment; therefore, retirees under FERS will get the full COLA if the CSRS sees a rise of less than 2%. FERS participants will only get a 2% raise if the adjustment is between 2% and 3%. Moreover, FERS retirees would get that increase, minus 1%, if the CSRS COLA is 3% or higher.

For example, as inflation increased this year, CSRS retirees earned a 5.9% increase on their defined benefit annuity payments. However, the rise for FERS members was only 4.9%. That was the situation for the January 2022 COLA, which was 5.9% under the CSRS but 4.9% under the FERS, and it probably will be the case once again unless the legislation is altered, for the January 2023 COLA, which is expected to be even greater.

The bills would not, however, address another distinction between the two systems: whereas FERS retirees are not eligible for COLAs until after turning 62 unless they are disabled or have retired in accordance with a mandatory retirement requirement, CSRS retirees receive full COLAs regardless of age.

Although more than 95% of federal employees now employed are covered by the FERS system, most of those currently retired, or roughly 55%, did so through the CSRS system.

Ken Thomas, national president of the National Active and Retired Federal Employees Association, claims that when consumer prices increase by more than 2%, retirees under the Federal Employee Retirement System (FERS) may not always get the full cost-of-living adjustment (COLA). This is a result of a fundamentally unfair policy. That is not the same as how COLAs are determined for both Social Security beneficiaries and Civil Service Retirement System pensioners (CSRS).

By giving full COLAs to FERS retirees and establishing parity between FERS COLAs and CSRS and Social Security COLAs, the Equal COLA Act would enable federal retirees to keep the value of what they have legitimately earned during years in public service.

Contact Information:
Email: [email protected]
Phone: 9187441333

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402

Member FINRA www.finra.org / SIPC www.sipc.org

Broker Check http://brokercheck.finra.org/

How Does Working Longer Affect Your Social Security Benefits?

August 9, 2022 /by mark heinrich

If you’re like most retirees, you’ll be living off your Social Security payments in your golden years. More than half of older Americans rely on Social Security for at least 50% of their income, and 25% rely on it for 90% of their income, according to the Center on Budget and Policy Priorities (CBPP).

You may also have to work longer hours. Since data collection began in the 1960s, the percentage of American employees between the ages of 62 and 65 has been at its highest. People over 65 now are twice as likely as they were in 1985 to be employed, with roughly 20% continuing to do so (though there was a slight downturn during the pandemic).

As a result of the first set of facts, I believe that maximizing your Social Security payments is critical for your retirement. Many of you may be curious about how working longer affects your benefits and how to make the most of those earning years, given the rising trend of Americans staying in their current jobs for extended durations.

Working Past ‘Retirement’ and Social Security

Delaying Social Security payments for extended periods is common among persons working more hours. Social Security payments might be increased by postponing the date they are paid to you. To put it another way, the larger your benefit, the longer you wait to get your benefits (until age 70, at which point they stop growing).

Increasing your benefits by postponing credits and increasing the earnings figures used in benefit calculations is an additional advantage that may go unnoticed if you work longer. Your monthly Social Security payout is calculated based on your 35 highest-earning years (until age 70). As long as you continue to work and contribute to Social Security, your earnings record will continue to grow. You’ll get more rewards if you earn more money later in life than you did earlier.

Some Pros to Working Longer

You can boost your Social Security payments if you continue working past the more customary retirement age of 65.

There would also be an increase in any future spousal benefits.
You may be able to keep up your sharpness. Several studies have shown that those who continue to work have a greater mental acuity level. This research demonstrates that the social networks and mental demands of employment are most likely to blame for this phenomenon.
If your spouse is covered by your plan and is not eligible for Medicare, you may be able to save money by utilizing your employer’s healthcare instead of Medicare. A Medicare enrollment can be tricky, but Medicare.gov states: “Generally if you have work-based health insurance via the company you are now employed by (or the company your spouse is currently employed by), you do not have to sign up for Medicare while you are still working. There is no need to join up until you quit working (or until you lose your health insurance if that is the case).” You may want to hold out on Part B but join up for Part A because it’s free. Exceptions do exist. A health savings account (HSA) is unavailable if you have any Medicare coverage, including only Part A.

Contact Information:
Email: [email protected]
Phone: 9187441333

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402

Member FINRA www.finra.org / SIPC www.sipc.org

Broker Check http://brokercheck.finra.org/

Is It Possible That The Social Security COLA Will Reach 9% in 2023?

July 29, 2022 /by mickey elfenbein

The boomer generation’s journey into retirement has not been easy, particularly regarding money and purchasing power. According to Mary Johnson, a Social Security Policy Analyst working with the Senior Citizens League, the purchasing power of the benefits received by people who retired before the year 2000 has decreased by 40% over the past fifteen years.

According to the most current report from the organization’s 2022 Social Security Loss of Buying Power Study, this represents the most significant decrease in purchasing power since the study’s inception in 2010.

The analysis indicates that the loss of 10 percentage points was solely the result of high inflation during this year. Since March 2021, home heating oil and gasoline prices have increased the highest among the ten usual expenditures for seniors that Johnson measures. Specifically, the cost of home heating oil has risen by 79%, while the price of gasoline has increased by 51%.

However, the price of food, as well as the premiums for Medicare Part B, have both increased. The most current estimate Johnson has provided for the Social Security cost-of-living adjustment (COLA), which is calculated using data on consumer prices, has the COLA for 2023 somewhere in the vicinity of 8.6%.

Efforts to Promote Change

There has been a recent uptick in the number of individuals arguing that the Consumer Price Index for the Elderly, often known as the CPI-E, should be utilized as the standard by which yearly cost of living adjustments (COLA) is calculated.

This includes Senators Bernie Sanders, I-Vermont, and Elizabeth Warren, D-Massachusetts, who, along with a group of Democratic senators, submitted a new measure on Thursday to repair Social Security. The Social Security Expansion Act proposes to modify the method used to calculate COLAs to the Consumer Price Index for All Urban Consumers.

The Social Security 2100 Act, sponsored by Representative John Larson, Democrat of Connecticut, likewise suggests changing the CPI-E. During his candidacy for the presidency, Vice President Joe Biden called for this move, in addition to other Social Security changes.

In addition to Social Security and senior advocacy organizations such as The Senior Citizens League, calls have been made for the CPI-E to be used instead of the CPI. The CPI-E was developed in 1987 by the United States Bureau of Labor Statistics (BLS) at the direction of Congress.

The Most Significant Concern of Retirees is Inflation

Even with that, it’s possible that it won’t be enough to keep up with the escalating prices. Treasury Secretary Janet Yellen recently issued a warning testimony before the Senate Finance Committee that the United States is currently experiencing unacceptably high inflation levels. She also stated that the White House would likely revise its forecast upward for U.S. inflation, which showed prices rising this year at nearly twice the rate seen before the pandemic.

The Lack of Savings is Making Things Worse

According to Johnson, the agony of this situation is exacerbated by the fact that many elderly and disabled people who receive Social Security benefits do not have significant savings or other resources to turn to when prices increase. According to surveys carried out by the Senior Citizens League over the previous two years, almost 45% of all seniors report having very little or no savings at all, which leaves them highly reliant on Social Security.

Contact Information:
Email: [email protected]
Phone: 6122163911

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

How to Predict the 2023 COLA and Avoid Being Surprised by a Lower Annuity Payment – Federal Retirement News

July 29, 2022 /by joe carreno

Last year, the entire cost-of-living adjustment (COLA) of 5.9% was the highest in 40 years. The COLA in 2023 is projected to wipe out that 40-year record, stirring the question of what the COLA for 2023 would be.

One COLA prediction for 2023 is 7.6%

The Senior Citizens League predicted a 5.3% COLA last year. But because inflation continued to rise, this turned out to be lower than the actual COLA amount of 5.9%. The COLA forecast for 2023 could be too low, given that inflation is still rampant and rising.

How To Calculate The COLA For 2023?

Here is how the 2023 COLA is calculated:

The Consumer Price Index (CPI-W) values are taken from the current year’s third quarter (Julyâ€“September).
These figures are then compared to the average CPI-W reading from the prior year’s third quarter (2021).
The average reading for this year’s (2022) third quarter is compared to the previous year’s third quarter (2021).
If the average CPI-W rises in 2022, beneficiaries will receive the difference, rounded to the nearest 0.1%, as an increase in 2022.
If the value is lower, no adjustment is made, suggesting deflation, which happened multiple times throughout Obama’s presidency.

While it’s quite improbable that there will be no COLA raise in 2023, the question is how much inflation will rise and what the final COLA estimate will look like then.

Calculating the Cost-of-Living Adjustment (COLA) for FERS Employees

The COLA calculation differs for employees under Federal Employees Retirement System (FERS) and Civil Service Retirement System (CSRS).

• If the CPI rises by less than 2%, the Cost-of-Living Adjustment (COLA) is equivalent to the CPI rise for FERS special benefits.

• The COLA is 2% if the CPI rises by more than 2% but not more than 3%.

• If the CPI increases by more than 3%, the adjustment is 1% lower than the CPI increase. The new figure is rounded to the nearest whole dollar.

• Except for disability, survivor benefits, and other notable provisions upon retirement, FERS special COLA is not provided until age 62.

How To Calculate the COLA for CSRS?

For Civil Service Retirement System (CSRS) employees’ benefits, the COLA percentage increase is typically applied to the monthly benefit amount before deductions are made. Payments are rounded to the nearest whole dollar.

How Will the COLA of 2023 Affect Your Annuity If You Retire in 2022?

Those wondering how to calculate their 2023 COLA should consider numerous factors, like the retirement system that applies to them, how many months since they started receiving retirement payments in the previous year, their age, and whether they are eligible for FERS special benefits, and so on.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.

We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.

Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

Being on Medicare Means No Money in a Health Savings Account

July 27, 2022 /by marvin dutton

Congress is discussing if a Health Savings Account (HSA) would be authorized for Medicare recipients.

However, it would alter a few of the advantages of HSAs for those over 65.

The Health Savings for Seniors Act (H.R. 7435) was recently filed in the House of Representatives and is a bipartisan effort to allow Medicare beneficiaries to contribute to HSAs once again. As more people use HSAs with their workplace health plans, the number of people eligible for Medicare at age 65 is expected to rise.

Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare insurance, noted that many customers who have opened HSAs assume they may continue contributing to the HSA after enrolling in Medicare.

What are the compromises made by the legislation? It would be impossible to pay Medicare premiums using HSA withdrawals, which are presently permitted. It would also abolish penalty-free withdrawals for non-medical costs for those 65 and older.

According to an estimate by financial consultancy Devenir, 32 million of these accounts will be by the end of 2021, an increase of 8% from 2020, with a total value of $98 billion. By 2024, the company expects that number to rise to 38 million accounts and $150 billion in assets.

Annual Contributions to HSAs

Individual HSA contributions are capped at $3,650, and family contributions are capped at $7,300 in 2022. (Next year’s limitations will be increased.) People over 55 can contribute an additional $1,000 yearly to their retirement accounts.

Withdrawals from HSAs are tax-free as long as they are used to pay for eligible medical expenditures, and contributions can be deducted from taxable income. According to a 2021 report from the Kaiser Family Foundation, over 28% of workers have such a plan, up from 17% in 2011.

A Health Savings Account (HSA) is only available to those with a high-deductible medical plan, and Medicare is not one of them. Health savings accounts (HSAs) can be used to pay medical bills, but beneficiaries cannot open a new HSA or make contributions to an existing one.

Medicare Part A (hospital coverage) and Part B (prescription drug coverage) can be signed up for at 65. However, many people continue to use their employer’s health plan in addition to Medicare (outpatient care). To continue making pretax contributions to an HSA, they must delay signing up for Medicare if the employer plan is high-deductible.

High-Deductible Health Plan for 2022

High-deductible health plans in 2022 must-have deductibles of at least $1,400 for an individual or at least $2,800 for family coverage and annual out-of-pocket payments (not including premiums) of no more than $7,050 (for an individual) and $14,100 (for a family), respectively (family plan). Out-of-pocket expenses are not included.

Medical Savings Accounts (MSAs), comparable to Health Savings Accounts (HSAs), are available under the Medicare program, although just 5,600 beneficiaries were enrolled in health plans that utilized them in 2019.

Some Medicare beneficiaries may choose a high-deductible Medicare Advantage Plan that includes one of these MSAs. Individuals cannot make contributions to these accounts. However, you can take tax-free withdrawals from the plan to pay for medical expenditures, which may fluctuate yearly depending on the insurer.

Contact Information:
Email: [email protected]
Phone: 2129517376

Social Security Differences by Gender

July 18, 2022 /by mickey elfenbein

While the numbers for your “average” Social Security recipients are reported regularly by the Social Security Administration (SSA), the statistics can vary depending on many factors. From gender to years spent within the labor force and lifespan and overall earnings, the Social Security Administration (SSA) computed the data differently. By pulling the numbers from the Department of Labor (DOL), Social Security Administration (SSA), and Bureau of Labor Statistics (BLS), we can determine the most vital figures by gender.

The existence of a gender-based pay gap is a historical fact based on the available data, with men and women earning vastly different salaries. Because Social Security benefits are dependent upon a citizen’s lifetime earnings, the pay gap continues in retirement through Social Security payouts. A report released by PayScale noted that, in 2022 alone, women earned 82 cents for every dollar their male counterparts earned.

The income earned by an individual, regardless of gender, plays a vital role in the final determination of qualifying Social Security benefits. On average, men have higher incomes than women, which means their Social Security retirement benefits will also be higher. Furthermore, men have a higher level of participation in the workforce than women, meaning fewer women participate in Social Security contributions overall.

On average, women continue living longer lives than men, producing unique data within the Social Security system. As such, women make up more than 55% of Social Security benefit recipients, whereas men make up 45% or less. Over the course of a lifetime, this information helps even out payout balances. While men receive a higher payout, women receive payouts for a more extended period.

These differences can be dramatic, with retired male citizens earning $1.7k per month on Social Security, compared to women receiving an average of $1.3k. With more women taking on part-time work than men, it’s easy to see how these rates are so different from one another. Ultimately, these payout differences equate to a 24% difference across the board, further highlighting the issues associated with gender-based pay gaps in the United States.

Contact Information:
Email: [email protected]
Phone: 6122163911

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

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