Social Security Might Owe You Big Money – Don’t Miss Your Chance to Claim!

Race Day Live A new law, called the Social Security Fairness Act, is changing the way benefits are calculated. This means millions of people who were previously ineligible for benefits might now qualify for extra money. However, if they never applied, they won’t get these payments.

More than 3 million retirees will see an increase in their Social Security checks. The law eliminates two previous rules – the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) – that reduced benefits for people with certain public pensions. These rules had cut payments by nearly half for some retirees, costing them thousands of dollars.

Who Is Affected by the Change?

The WEP reduced benefits for those who worked in jobs that didn’t pay into Social Security, while the GPO affected spousal and survivor benefits.

This meant that many retirees, especially those with pensions from teaching, firefighting, or other public service jobs, received lower Social Security payments.

Under the new law, these reductions are removed. However, retirees who never applied for Social Security due to these rules may still miss out on benefits unless they take action.

Many Eligible Retirees Might Miss Out

Jonathan Swanburg, a certified financial planner and president of TSA Wealth Management, warns that many retirees may not realize they qualify. Those who never filed for Social Security before might be entitled to thousands of dollars in retroactive payments.

“There is a real chance they’re going to miss the people who never filed for their own Social Security,” he said. “The change could mean tens of thousands of dollars in benefits.”

For example, under the old rules, a widow might have lost $30,000 in benefits if her husband passed away. Now, she could receive the full amount, which could be life-changing.

How Public Pension Holders Are Affected?

Jeremy Finger, a certified financial planner and CEO of Riverbend Wealth Management shared a case where one of his clients was hit by both WEP and GPO.

She had a teacher’s pension, which reduced both her own Social Security benefit and her survivor benefits. With the new law, she now qualifies for the full amount.

Even if retirees didn’t pay into Social Security during their main career, they may still qualify if they worked in other jobs that contributed to the program.

Why You Should Check Your Benefits Now?

Financial planner Scott Bishop, managing director of Presidio Wealth Partners, is advising his clients to check their Social Security status. He says that people who were previously ineligible for benefits should now reapply to see if they qualify.

Even those who are not yet old enough to claim Social Security should be aware of these changes. For example, a retired firefighter or teacher who left their job early might now choose to work a little longer in another job that contributes to Social Security. By doing so, they could qualify for additional benefits in the future.

To receive Social Security, you must be at least 62 years old and have earned at least 40 work credits. Workers can earn up to four credits per year, depending on their income.

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The Social Security Administration’s Role

The Social Security Administration (SSA) has confirmed that retirees who never applied for benefits may need to submit a claim now.

According to their official statement, “The date of your application might affect when your benefits begin. Filing sooner might help you get a higher benefit amount.”

While the law is already in effect, there is no official timeline for when retirees will see changes to their benefits. However, the SSA has promised that benefits will be paid retroactively to eligible individuals.

“Since the law’s effective date is in the past, SSA must adjust some people’s past benefits as well as future benefits,” the agency explained. However, this process is expected to take time, as many cases require manual review.

How to Make Sure You Get Paid Correctly?

If you believe you may be eligible for increased benefits, here’s what you should do:

Check your Social Security account online to see if any updates are available.
Apply with the SSA if you never applied before.
Review your earnings history to ensure your benefits are calculated correctly.
Contact a financial planner for guidance on what steps to take next.

Swanburg warns that errors may happen during this process. “I would suspect when the Social Security Administration goes through the process, it may not be correct for everyone,” he said. That’s why it’s important to double-check your information and take action quickly.

With the Social Security Fairness Act now in effect, millions of retirees could receive thousands of dollars in extra benefits.

But those who never applied before need to take steps to ensure they get the money they’re owed. Checking your Social Security status and filing an application as soon as possible could make a big financial difference.

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