Forget for a moment that without major changes, benefits to both programs will be cut. Put aside the proposed changes put forth in Washington.
If you are eligible for Social Security and Medicare, once you start drawing benefits, they will continue for as long as you live. Many people are afraid they can outlive their retirement benefits, but Social Security promises to pay for as long as you live. Many die young and never collect, while some people will beat average life expectancy and draw benefits into their late 90s.
Yes, you can lose Social Security Disability if you are no longer disabled or earn too much money. Yes, you can lose spousal Social Security if you divorce and your marriage hasn’t lasted 10 full years, and you can lose benefits on your ex-spouse if you remarry. You can lose widow’s benefits if you remarry before age 60.
Many people think that you can lose a Social Security retirement benefit if you earn too much money and draw prior to your full retirement age. This is sort of true – if you start benefits at age 62. In 2023, you can have earned income of only $21,240. If you earn over that amount, for every $2 you go over, your Social Security will be reduced by $1. If you earn too much, you may not receive any Social Security at all. This isn’t a true tax or penalty, because if you live long enough, you could get the overage they held back.
Sylvia Gordon is co-founder of The Medicare Family, headquartered in Noblesville, where she educates thousands on Medicare and Social Security in all 50 states. You can learn more at TheMedicareFamily.com.