The Social Security Administration announced in September that it will again mail estimated benefit statements to many workers every five years. While it is still encouraging all workers to create a personalized Social Security account online, the administration realizes some workers are not taking advantage of this aid. Creating and accessing your Social Security account online will allow you easy access to personal benefit statement at any time.

The Social Security statement is a valuable financial planning tool providing workers who are 18 and older with important information. This includes earnings, tax contributions, and estimates for future retirement, disability, and survivor benefits. The Social Security Administration began mailing annual estimated benefit statements to workers 25 and older in 1999. But to cut costs estimated at $70 million annually in printing and postage, the agency stopped mailing annual benefit statements mid-year in 2011.

Unfortunately, this budget cutting move was unpopular with workers. Acting Commissioner Carolyn Colvin stated “Renewing the mailing of the statement reinforces our commitment to provide the public with an easy, efficient way to obtain an estimate of their future Social Security benefits”.

Therefore, workers attaining ages 25, 30, 34, 40, 34, 50, 55, and 60 who are not receiving Social Security benefits and who have not registered for a My Social Security online account will receive a statement in the mail about three months before their birthday. After age 60, people not accessing their online account will receive a statement in the mail every year. The agency expects to mail nearly 48 million statements every year.

The personalized digital statements obtained online are identical to the paper versions. Currently, more than 14 million workers have created their personalized My Social Security account online but this is only about 11% of American workers.

When you create a My Social Security account you will need to provide your Social Security number, mailing address and a valid e-mail address. Individuals also must be able to answer questions only they are likely to know that matches the information on file with Social Security and their credit report.

Why information which might be on your credit report? This just adds an extra layer of protection when establishing your online personal account. This additional required information is called “out of the wallet” information because even if your wallet has been stolen and your data compromised, these questions would not be able to be answered from the stolen information.

The Social Security Administration makes every effort to protect your personal information from a potential fraudster. Another perk if you set up your online account is you will get a reminder each year to check your account to verify all the information is accurate and up-to-date. Another important thing to remember is all this information and the ability to access your personal benefit anytime is free! Free is my favorite four letter word!

Submitted by Kathy Shrader

This is an excellent article concerned with family caregivers.  It was written by Krystal Steinmetz and initially posted September 17, 2014 on MoneyTalkNews.

“Caring for an aging loved one can take a toll physically and emotionally. But it also has a significant impact on your pocketbook, employment and retirement plans.

According to a new survey from Caring.com, 46 percent of family caregivers (people who take care of a friend or relative for free) spend more than $5,000 a year to care for a loved one, and many people spend much more. Caregiving costs, including medical bills, medications, in-home care and sometimes nursing homes, really add up. Caring.com wrote:

“Caregiving can be a startlingly expensive endeavor that most people aren’t financially prepared for,” said Caring.com CEO Andy Cohen. “But yet only 3 in 10 caregivers have spoken to their loved ones about how to pay for care. Having an open and honest conversation about finances is a sensitive, but necessary discussion to have.”

Caregiving can also impact current employment and future retirement plans. Because of the amount of time required to take care of their loved one, one-third of those surveyed said they devote at least 30 hours per week to caregiving, and 50 percent of caregivers said they had to change their work schedule, they miss work or they often show up late or leave early. Sixty percent of survey respondents said their caregiving duties have a negative effect on their job.

The financial strain of caregiving can put a dent in the money caregivers are able to save for retirement, leading some to work longer or invest less for retirement. Cohen said:

Family caregivers, especially baby boomers, run the risk of derailing their retirement plans if they don’t prepare for the costs associated with caregiving. Almost half of caregivers spend $25,000 on caregiving in just five years – that’s a significant chunk of money that could delay retirement by a couple of years.

If the financial burden isn’t difficult enough, many caregivers end up dealing with health issues of their own. “Many also struggled with health problems related to their caregiving, ranging from increased blood pressure to depression,” Forbes said.

Caring.com’s report was based on surveys of more than 1,300 caregivers. When I was in high school, I remember my dad and his sisters struggling to figure out how to care for their aging father, whose health was beginning to fail. My grandpa lived on his own, and his closest family was five hours away. They discussed caring for him themselves or moving him into an assisted-living center. In the end, my grandpa ended up passing away before any decision was made.” (Steinmetz, K., Sept.17, 2014, MoneyTalkNews).

Are you currently a family caregiver or do you anticipate becoming one? There are so many factors to consider beyond money when planning how to take care of a loved one. But one of the most important steps is to discuss arrangements, physical and financial, with the loved one you will be providing care. This will help pave the way and should help to relieve at least some of the potential stress.

Submitted by Kathy Shrader