Peter Drummond asked:


If you have been feeling the crunch of finding ways to curb your spending on an already fixed income, then you will be delighted to know that your Illinois social security benefits will increase beginning in January.

The Social Security Administration announced on Thursday, October 16 that social security benefits will increase by 5.8 percent in January 2009. It’s easy to see why most social security recipients will welcome this change. Illinois social security benefit payments have not seen an increase since 1982, well over 25 years ago. Illinois social security recipients may see as much as an additional $63 in their monthly checks. Whether retirees receive Illinois social security checks as an Electronic Funds Transfer or by a paper check, they will find it a bit easier to breathe with an added bonus.

Although many people have felt the strain of increased food and gas prices as well as gas and electricity prices, this Illinois social security increase may lessen the pain of those rising costs. Illinois social security retirees have felt the pressure of having to resort to using their savings accounts as well as reaching into their retirement funds to pay for exorbitant basic monthly bills in addition to medical bills. Retirees and those on disability have felt the pain of rising prices more than most and hopefully the Illinois social security benefit increase will offset some of that sting.

With the market’s unpredictable fluctuations and overall economic unease apparently here to stay, many Illinois social security recipients worry that their retirement plans will also be affected. Furthermore, the Congressional Budget Office predicts that Americans’ retirement plans have actually lost as much as $2 trillion over the past year and a half. This is, indeed, something to worry about and why it’s important to leave some of that 5.8 percent increase from Illinois social security paychecks in the bank.

Due to the Cost of Living Adjustment (COLA), Illinois social security retirees would have seen an even higher increase if it wasn’t for the dip in energy costs at the end of summer. Over the past 15 years, COLA has been much lower, so Illinois social security recipients should be thankful for this higher increase next year. However, the increase may not be enough to recover from recent months’ influx of daily living costs. The highest COLA occurred in 1980 with a 14.3 percent boost, which is nearly three times greater than the one beginning in January 2009. Illinois social security benefits have had an annual adjustment since 1975. If you need more information how this increase will affect your benefits, contact an Illinois social security attorney.

If you currently have Medicare, your Illinois social security benefit increase will not, for most retirees, be affected by higher premiums. However, those who are making more than $170,000 a year will see an increase in their premiums. This may be a relief to those earning below $170,000; however, if you’re in the latter category then your questions can be answered through an Illinois social security lawyer.

 

Whether you receive Illinois social security benefits, SSI, or disability benefits, everyone will see an increase in their monthly payments. Furthermore, if you are married you may see as much as $100 more combined a month.

Politicians and other public policy experts have predicted that social security benefits will eventually run dry and it may be sooner than the 78 million baby boomers who are soon to retire had expected. Although the social security trust fund may run out of funding by 2041, Illinois social security retirees and those who will be retiring in the next ten years will actually pay more into the fund than it collects beginning in 2017.

With nearly 170 million workers paying into the system with social security taxes next year, approximately 10 million of those workers will be paying higher taxes resulting from the COLA increase.

So does this mean that now is the right time to start receiving your Illinois social security benefits? That may depend on several things. Illinois social security recipients, along with those who are planning on starting to receive their social security payments within the next year, should ask an Illinois social security attorney any questions they have concerning their benefits, Medicare payments, social security disability payments and other factors that will affect their payments beginning in January.



Caffeinated Content

Meghan DiTolla asked:


For a number of years, people have been talking about how the Medicare and Social Security system are potentially not sustainable in its current incarnation.  This will come as dire news to anyone looking to secure Social Security disability payments.  Right now there is a backlog for approvals as well.  In short, the Social Security disability system is not as stable or efficient as it could be.

This is yet another reason to work with a Social Security disability attorney, as a lawyer will be able to navigate this very tough and complicated process and ensure that your future SSD payments are not delayed.  In 2008, the average amount of time to process a Social Security disability application was 480 days.  Now imagine trying to receive benefits without an attorney: if you file information incorrectly, you could be looking at double that amount of time.  Worse yet, it could mean no claim at all, regardless of the amount of time it takes.

The stimulus package could help this scenario, but that is no reason to think you can go it alone.  Though there may be new measures in place to speed up the process, there are still a record number of people filing a SSD claim.  Close to 800,000 people filed a claim in 2008.  The SSD workload is set to increase significantly in the coming years.

The Economic Recovery Bill

The economic recovery bill has a number of provisions that will help the Social Security claim process go more smoothly:

$500 million to help the Social Security Administration process the increasing influx of disability applications. $400 million to improve the computer capability of the SSA – currently utilizing outdated technology. $4.2 million to help people with certain disability receive additional SSI income.

All told, the system should hopefully be better.  Again, it must be stressed that a Social Security attorney is still necessary.  Even if the SSD application process goes more smoothly, it’s still going to mean a long haul for most applications – possibly a year or more.  What this means ultimately is that when you hire a Social Security attorney the process will now go faster, which is very good news.  But you will still need to gather all relevant medical information, accurately dot the “i’s” and follow complicated regulations, so hiring representation is your best avenue towards getting benefits as quickly as possible.

Given the fact that new processes are going to come about via the stimulus package, it is even more necessary to hire an attorney who keeps up with all developments in the Social Security system.  California, in particular, has a large backlog of SSD applicants, given its high population relative to other states.  So while it is very good news measures are being taken to fix a sometimes cumbersome system, you will need an advocate to help you correctly file your application whenever new changes go into effect.  It’s important to remember also that new regulations can occur on a state level as well, in addition to a federal level, so California has particular laws to help SSI applications get processed.



Website content

Joseph Kenny asked:


In order to address the routine concerns of many, regarding the payment of bills post-retirement or disability, a federal benefits program was designed in the United States, in 1935, known as the Social Securities Act. The program known as the social security program provides disability, retirement, unemployment and survivor benefits and Medicare. The benefits offered aim at providing financial support to the citizens of the U.S., who fall under the categories specified within the paradigms of the program.

The Social Security Act of 1935 introduced the social security system in the US. The system caters to the financial needs of the retired citizens, who have contributed to the social security trust fund for at least 10 years. It also provides benefits to the survivors, in event of the employee’s death. The other benefits offered cover disability and unemployment.

It is essential for the person to make the regular required contribution to the Social Security Trust Funds through the payroll taxes, to be eligible. By virtue of the provisions of the Federal Insurance Contributions Act or FICA, every worker’s income is subject to a tax payment of 12.4% on the first $94,200 earned during the year. Half of this amount or 6.2% is paid by the employer, while the other 6.2% is deducted from the salary of the employee. The amount is given to the government. Self-employed people are responsible for paying the full 12.4%. This amount is used fund the social security system.

The system has been designed to benefit those who make the necessary contributions for a period of ten years. There is a credit system incorporated in the scheme and you can earn a maximum of four credits per year. This means that irrespective of the higher limit of your actual earnings and consequently the quantum of your contribution to the fund, your earnings would entitle you to receive four credits.

The amount of the monthly social security check that you would receive after retirement would be calculated on the basis of your 35 highest income-generating years. You need to apply, to start receiving you social security benefits. The best time to do this would be a few months before your actual retirement date.

The social security program attempts to pay the retired citizens a pre-determined sum of money, to cover their basic needs. It works as a kind of insurance for the retired people, helping them to cope with financial difficulties, post-retirement.

It is a form of insurance that covers the surviving spouse and children, in case of the employee’s death. If the spouse is between 62 to 65 years, 70 to 99 percent of the benefits are payable. Dependent parents and unmarried children under 18 years are entitled to receive the benefits too.

Disability that prevents employment opportunity is also considered for benefits under the social security system. Physical and mental disabilities are also covered and the payment starts five months after proving the disability to the authorities.

Under the social security system, unemployment benefits are available to those whose unemployment is due to circumstances beyond their control. The program is designed to provide financial relief to the citizens of the U.S. at crucial times.



Create a video blog