Christina Miller & Associates Disability Firm

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There Is A Lot More to This Than Just Winning Cases….

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Ok, so winning cases is pretty darn important.  However, I consider my advice and experience concerning coordinating benefits for a client just as important.  Why?  Well, oftentimes people walk into my office wanting to appeal a disability determination or to ask questions about early retirement without knowing the ins and outs of how and why someone would choose one option over the other.  Our initial consultation is much more than the filing of an appeal or the starting of a case.  It is a discussion in which we review your options, plan for your future, and determine the best course of action needed to ensure all financial and medical bases are covered.

Let me give you an example.  I sat down for a consultation with a 63 year old gentleman earlier this week.  He is disabled and cannot work any longer due to progressive medical conditions.  He came to see me to discuss Social Security disability.  Our discussion ultimately led us to determine that his best course of action was to pursue early retirement benefits on his ex-wife’s record, state disability benefits based on years of paycheck deductions he had made and a claim for benefits from a private, long term disability plan that he had been paying for and forgot he even had!  We also started a disability case, but these other benefits will keep this man financially afloat while we work on the case.

The moral of the story?  Before filing for any form or disability or retirement benefits, consult with an accredited professional who knows his (or her) stuff!

With that, here are some thought provoking facts concerning retirement and disability benefits that may get you thinking:

  1. If you are divorced, you may be eligible to draw retirement benefits on the record of a higher paid spouse, even if he/she has remarried. To do this, you should first determine what your benefit rate would be based on your record and then consider what your benefit rate would be on your ex-spouses’ record.  If his/hers is higher and if you are unmarried, over age 62 and were married at least 10 years, you should have no problem pursuing benefits on your record, as well as, an additional amount based on your spouses’ record thus yielding you the higher benefit. There are some more complicated issues here involving deferred retirements, outside pensions, additional marriages, annulments and death.  If your situation involves something more complicated, come see me.
  2. If you are married, even if you have never worked, you may be eligible for spouse’s retirement benefits once attaining age 62, if your spouse is drawing retirement or disability benefits.
  3. Are you the caretaker or guardian for someone and also a widow/widower? In many situations, auxiliary or survivor’s benefits may be paid to more than just spouses and biological children.  Benefits may also be paid for stepchildren, grandchildren, adopted children and adult disabled children.
  4. If you are disabled, auxiliary benefits may be payable to your spouse, divorced spouse, children, disabled adult children and sometimes other family members.
  5. You can draw early retirement benefits and still pursue a disability case. If you win, your benefits increase to the full disability rates.  If you lose, you remain locked into the early retirement rates.
  6. There are a whole host of disability related benefits that you may qualify for and not even know it. Most people pay into the California State Disability Program.  You may have a year’s worth of benefits saved up!  Other folks qualify for Family and Medical Leave under the US Department of Labor.  Consider these programs.
  7. Many folks are disabled but are not ready to stop working. In these cases, you may be eligible for programs through the California Department of Rehabilitation.  These are free programs specifically designed to get folks with disabilities back to work!
  8. If you are disabled due to a worker’s compensation injury, you may be eligible for supplemental job displacement benefits. These benefits often include job counseling, retraining and related services to help disabled folks return to the workforce.

In a nut shell, there is a lot to consider when making a serious life decisions involving disability and retirement issues.   Do your homework and make sure you are in capable hands!

Social Security – Retirement Myths

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With so much information and misinformation floating around, it should come as no surprise that people are often left frustrated and confused when trying to find clear answers to  some of the their questions concerning Social Security retirement benefits.  What follows are 5 of the most common questions (fueled by misinformation) that I get on this topic, followed by my best effort to provide straight, concise answers.

Q.  Am I required to start collecting retirement benefits when I reach my full retirement age?

A:  No.  You are advised to wait until you reach your full retirement age to begin drawing your retirement benefits in order to ensure that you receive the full benefits that you are entitled to based on your earning record, however you are not required to draw at this age.  You have the option of waiting and accruing additional credits at a rate of 8% per year for each year you wait, until you reach the age of 70.  Once you reach 70, draw!  There are no additional benefits past this point.

Q.  Are my benefits calculated based on the last few years of my income?

A:  No.  Generally speaking, to be eligible for retirement benefits, you must have earned at least 40 credits.  You can earn one credit per quarter of the year you worked.  That means, you can earn up to 4 credits per year and must do so for roughly 10 years.  If you worked more than that, great.  The SSA will take your 35 highest income quarters (adjusted for inflation) and use those to calculate your benefit rates.

Q.  I am planning on retiring early at age 62 or 63.  If I draw retirement benefits at this age, will the amount increase once I hit my full retirement age of 65 or 66?

A.  Unfortunately, no.  If you choose to draw retirement benefits early (before your full retirement age based on the year/month of your birth), then your retirement benefit rate will be permanently reduced by 25%-30%.  If you are earning a limited income, this amount can change to allow for the income.  With that said, if you are pursuing a disability claim, you can draw early retirement benefits at the reduced rate while you pursue your claim.  If you win your disability claim, your benefits will be raised to the full disability rate (same as the retirement rate).   However, if you lose your disability claim, you remain locked into the early retirement benefit rate.

Q.  I made good money while I was working, my retirement benefits from the SSA should be enough for me to live on in retirement.  Right?

A.  Wrong.  The average monthly benefit for retirement is around $1400.00.  This amounts to less than $17,000.00 per year.  Healthcare alone for a senior can average half that amount alone.  Retirement benefits should be factored into an overall retirement plan, but they should not be the sole source of income for anyone.

Q.  Do I need to worry about healthcare?  I thought Medicare would cover most of what I need.

A.  Medicare has many parts.  Part A and B cover many of your needs but there are additional holes that will need to be filled involving expensive prescription drugs, dental care, etc.  You will likely need to purchase a Part D plan and dental insurance separately.

Did I miss any of your questions?  If so, do not be afraid to ask!

Who In Their 30s and 40s Can Think About Retirement?

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I just love when the SSA issues press releases about preparing for retirement. I often share these updates with friends and young clients and get responses that involve emojis laughing hysterically. I get it. In our 20s, we are trying to finish school and get a good job. In our 30s, we are trying to start families, advance in our careers and purchase homes. In our 40s we are just trying to keep up with busy careers, mortgages, commitments, payments, etc. Once all of that seems under control, we worry about our children’s college tuition and our bucket lists! Romantic European vacation, anyone? We often put our long term future last on our list of financial worries. For many of us, it seems very far off.

So, I am proposing a challenge to those in their 30s and 40s! That challenge is simple. Do two small things to start thinking about your long term future. Ready for the list? It is easy, I promise.

1. Create an account via the Social Security website. Visit www.ssa.gov. Once there, select “my Social Security”. Setting up an account only takes a few minutes and gives you instant access to several important pieces of information. The SSA used to mail out statements concerning this information. Now, these statements are only mailed to those over the age of 60 who have not created an electronic account. Talk about a scary cut back. This change means that you are no longer reminded to review the information reported to the Federal Government concerning your earnings. It also means that you are not advised of your current benefit rates should you become disabled or reach retirement age. Create this account to ensure that your reported income for previous years is accurate and to establish a general awareness of what your benefit rates would be should you become disabled or reach retirement age. If you do find an error, you will need to contact your local SSA office and get it corrected. Trust me; it is a lot easier to correct an error the year it was reported than 20 years after it was made. If there are no errors, take a look at your benefit rates in connection with retirement ages. Think about that monthly income and whether or not you can consider early retirement, retirement at full retirement age (presently 67) or retirement at age 70. The system also provides data concerning survivor’s benefits and Medicare. Check it out, lots of good stuff to chew on.

2. This step involves just thinking and talking. That is it! On average, Social Security retirement benefits are only about 40% of a person’s pre-retirement earnings. Use this information to get the conversation started with your spouse. Are one or both of you paying into a retirement plan? Will one or both of you get a retirement through your place of employment? Very generally speaking, what do you think your monthly household income will need to be when you hit full retirement age? Will the mortgage be paid off? Will the kids be done with school? I want you to simply open up the discussion. You do not need to have all the answers today but starting a dialogue helps you get there. With that said, this discussion does not have to be one of stress and worry. Remember to discuss the fun things that you would like to do when you retire! Make sure your financial plan involves covering expenses associated with your dreams of post retirement travel, hobbies, etc.

With all of that said, if you are serious about getting things on track, contact a financial planner. They have the tools and resources to help you get prepared for your retirement. If you have questions about disability and retirement in relationship to one another, call me. I can ensure that your benefits from any and all sources of disability are well coordinated so that your long term future is secure.