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Last week we presented Part 1 of our interview with Mr.Stanley Tomkiel III. Stanley Tomkiel is the author of two books on Social Security, namely Social Security Benefits Handbook and The Social Security Answer Book. Both the books are packed with lots of useful information in simple English.  You can read Part 1 of this interview here. Today we present you the second and concluding part of this interview.

Boomer411: Some of the questions and answers in your book imply that at times people do not claim or under-claim their Social Security Benefits. Is this correct? If yes, can you please elaborate on how and in what cases this happens most often.

ST: I have seen that many people do not claim all the benefits that they are entitled to.  Usually this occurs in the age frame from 62 to 66 because many people believe that you have to be completely retired in order to collect any Social Security benefits, and that’s not the case.  If your earnings in a given month are very low, regardless of the annual income and regardless of whether you have retired, you may be able to get a benefit for that month. 

If you have low annual earnings for a given year you may be able to collect some or even all of your benefits for the year.  Even if you are working above the yearly earnings limit, currently $13,560, it doesn’t mean that you can’t collect any benefits, only that there will be a reduction in benefits payable.  If you are under Full Retirement Age, which is now 66, you lose $1.00 of Social Security benefits for every $2.00 you earn over the limit.  So for example if you earn $25,000.00 this year, that’s $11,440.00 over the limit, so $5,720.00 must be withheld from your Social Security benefits.  But if your benefits are say, $900.00/mo, that comes to $10,800.00 for the year, (as long as you are over 62 for each month).  Only $5,720.00  needs to be withheld, so you can collect the difference, which is $5,080.  Most folks I know could put that money to good use rather than let the government keep it. 

And for the year you attain age 66, the annual limit jumps to $36,120, only the earnings in the months before the month you attain age 66 are counted, and the offset goes from 2 to 1 to 3 to1.  This means that a worker making even $100,000 a year could collect some benefits even if not retired.  And beginning with the month you turn 66, your earnings don’t count at all, and you get your benefits even if you’re making a million dollars a year! 

Also there is the monthly test that you can use in one calendar year.  You get to choose which year it will be.  Under this monthly earnings test, even if your annual earnings are too high to prevent the payment of any benefits, nevertheless you can receive a benefit for any month in which your earnings are below the monthly earning’s limit, which is 1/12 of the annual earnings test. If you are laid off for a period, or you take a long vacation, or become ill, or you just don’t feel like working, if your earnings in a given month are below the monthly limit then you can receive a Social Security monthly benefit for such months, no matter how high your annual earnings.

Another case where benefits are lost is in the case of a divorced wife or husband.  If you’re divorced at least two years from a SS covered worker, you can receive a spouse’s benefit even if the worker is still working, as long as he or she is age 62.  This is called “deemed entitlement.”  

Many people don’t realize how to take advantage of these rules.   Sadly, they lose those benefits. 

Boomer411: Approximately, what is the rough amount in dollars that might go unclaimed per year? What is one category of benefits that is usually ignored or the most unclaimed/under-claimed? If someone forgot to claim, can they go back and make a claim for retroactive benefits?

ST: I cannot approximate the amount of dollars that might go unclaimed in a year because I’m not an economist but some numbers will give you an idea of what we are talking about.  There are now 50 million beneficiaries in the United States and the Social Security Administration paid $585 billion in benefits in 2007.  In 2008 that will be closer to $600 billion.  That comes to approximately $50 billion a month; so even a very small percentage of such high numbers is very significant.  About 4 million claims are made each year. 

To put it on a personal level the average Social Security benefit is somewhere around $1,000.00 for a worker and $500.00 and change for a spouse; same for a child.  I’ve seen people lose several months’ worth of benefits because they missed a filing deadline or were unaware that they could have received something.  So, if you don’t know all the rules and don’t make the right moves, you stand to lose thousands and thousands of dollars. 

Unfortunately there are limits on retroactivity of applications, so if you file late, you can lose out.  The retroactive period for an application depends on the type of benefit.  The application of a retired worker under full-retirement age has no retroactivity if it would result in the payment of a reduced benefit.  For a retired worker who is above full-retirement age the retroactivity can be as much as six months.  Same for most survivor benefits.  For disabled workers and their dependents however, there is a 12 month retroactivity period.

One of the most important things a person can do if he or she is approaching social security time is to file a ‘Protective Filing Statement’ with the local SS office.  This can be done by mail.  Such a statement will protect the filing date without having to make the actual application.

Boomer411: In your intro to chapter 1 in the book, it says, ‘The general intent for retirement benefits was originally to provide a replacement for income lost due to age and its attendant restrictions on earning capacity. In recent years, this has been modified to become an age entitlement program’. Can you please elaborate on this?

ST: Sure.  Originally, if a beneficiary was working, his or her benefits were reduced or completely withheld because the program was designed to replace earnings lost due to retirement.  They still call the benefits Retirement Benefits.  Then the law was amended quite some time ago to allow those age 72 or older to keep all their benefits even if they were still working, no matter how much they earned.  In the 80’s this was lowered to age 70, then in 2000 this was lowered again to age 65, which at that time was Full Retirement Age.  FRA is now 66.  So retirement benefits are paid regardless of earnings once the person reaches Full Retirement Age, which doesn’t have anything to do with being retired, only with being age 66.  So instead of replacing earnings lost due to retirement, the SS program pays benefits based on age, so I call it an age entitlement program now.

Boomer411: Can you tell us about the hardest question that you were asked in your role as an SSA claims representative? And how you approached/answered it?

ST: Oh yes.  It has nothing to do with rules or forms or required documents.  The hardest question has always been: “How can I live on that?” when I would tell a retiree how much his benefit was going to be.  Sadly, the Social Security program has been oversold to many people over the years as if it would provide for a comfortable retirement income.  It was never intended to do so, being intended only to be about 1/3 of a retirement income, with another 1/3 from private pensions, and 1/3 from personal savings.  I felt as if I had hit the poor retiree in the head with a two-by-four!  Sadly, I had no answer.  The answer should have been asked long before retirement age.

Boomer411: Why should a Baby Boomer read your books? What other information can be found in the books?

ST:  Well, I have two books out, The Social Security Answer Book and The Social Security Benefits Handbook.  In the Answer Book, I compile hundreds of questions from real people, and give specific answers.  I have organized the questions by topic, so for example, if a reader wants to look at questions about Survivor Benefits, or Wife’s Benefits, they are grouped together.  I think that sometimes people don’t even know how to formulate a question because they are unfamiliar with basic concepts and terms.  So the Answer book helps not only by giving answers in straightforward words, but also to help people know how to ask questions by seeing what others have asked. 

The Social Security Benefits Handbook is more like a reference source rather than a read-through type of book.  It contains a statement of the rules and procedure of SS in layman’s language, so people unfamiliar with technical terms should be able to find out specific information.  It covers not only the applications rules and procedures, and how benefits are calculated, but also so-called “post-entitlement” issues, such as what to do if you are overpaid and the government wants money back, what you must report to SS, what happens if a check is missing or not received, and so forth. 

Folks getting close to age 62 should be familiar especially with the application process and the earnings limits rules so they can make sure they don’t miss out on receiving all the benefits coming to them.

And of course, readers can e-mail me questions which I will post on my blog along with my answers.

This concludes our interview with Mr.Stanley Tomkiel III. To learn more about Mr.Stanley and his works or to submit your own social security question to him, please visit the following links.
www.Tomkiel.com
www.SocialSecurityBenefitsHandbook.com
www.SimpleSocialSecurity.blogspot.com

Today in our series on interviews, we present you our interview with Mr.Stanley Tomkiel III. Stanley Tomkiel is the author of two books on Social Security, namely Social Security Benefits Handbook and The Social Security Answer Book. Both the books are packed with lots of useful information in simple English.  This is the type of information that every retiree should be aware of, but sadly there are a lot of misconceptions still prevalent among many. So we wanted to showcase Mr.Stanley’s work for our readers and hopefully it will help some people. So without further ado, we present you our interview with Mr.Stanley Tomkiel…

Boomer411: Mr.Stanley, can you please tell our readers about yourself? And what motivated you to write the book ‘The Social Security Answerbook’?

ST: I’m a lawyer in New York City.  I was born and raised in Westchester and educated in Catholic schools all the way through College.  I went to law school at Western New England College School of Law in Springfield, Massachusetts.  I’m married with two grown children and I’m the proud grandfather of two grandchildren. 

After college I worked for the Social Security Administration as a claims representative in field offices in New Jersey, Connecticut and Massachusetts.  My job was to interview people applying for SS benefits, gather the necessary information and documents then to make decisions by applying the SS regulations. 

I realized how many people had misconceptions about Social Security, and also that there was a lot of erroneous information being spread in the media.  It seemed most people were confused by the SS rules. After I left the Social Security Administration, I went into private law practice. And again I encountered the same situation: confusion and misunderstanding, misconceptions and bad information.

So in 1984 I published the first edition of the Social Security Benefits Handbook.  The Handbook has been updated throughout the years and it is now published by Sphinx Publishing, a division of Sourcebooks.  The publisher suggested that I also write The Social Security Answer Book because I receive so many questions from people.  The Social Security answer book is a compilation of typical questions that I have received over the years.  I have organized the questions and answers into topical chapters.  I tried to distill down these questions to the most common and important ones, so my answers will have the most practical and widespread relevance.   Because Social Security information changes, even from year to year, I put up a website to keep the information in my books up-to-date.  This is the Social Security Benefits Handbook Online Edition at www.SocialSecurityBenefitsHandbook.com.

Boomer411: Please tell our readers about your blog, ‘Simple Social Security’ and how it might be useful to Baby Boomers?

ST: I receive questions about SS from people all over the country, so I post these questions with my answers on my blog, Simple Social Security at SimpleSocialSecurity.blogspot.com

Boomer411: Tell us about your law practice?

ST: First let me say that although I am a Boomer, I have no plans on retiring!  I practice personal injury law as a partner in Tomkiel & Tomkiel with offices in Manhattan and Yonkers, NY.  I began practicing law with my father in 1979, and now my son is a lawyer and my partner, the third generation.   I used to handle Social Security cases myself, but because I am so busy with personal injury cases, I now make referrals for people who need lawyers for their Social Security claims. 

Boomer411: In your opinion, do people in their 30’s and 40’s have any hope of taking advantage of the Social Security benefits in its current form when they retire? Also, what can a person in this age group do to better prepare themselves for a good retirement?

ST: I am as sure as someone can be about the future, that people now in their 30’s and 40’s will receive Social Security benefits, but I would be very surprised if the system is the same as it exists now.  Since it was founded in 1937 Social Security has seen many, many changes.  Most of these changes in the first decades expanded the program and increased benefits that are payable.  In the last few decades, that direction has changed, with one important exception (the elimination of the “retirement test”). 

The most recent significant change is the gradual   increase in full retirement age from age 65 to age 67 (it is currently age 66).  I expect that in the future that will rise even higher because current monthly benefits are paid from current workers’ payroll taxes.  The Baby Boom generation was not exactly prolific, so the number of workers as a ratio to the number of beneficiaries is declining and will continue to decline.  It is now about 3.3 to 1, i.e., about three workers pay the taxes that fund the benefits of one worker.  And as people live longer, with fewer young people paying taxes, that ratio is expected to drop to 2.1 to 1 by 2034.

So I would say that in the future, unless people immediately start having very large families it will be absolutely necessary to cut back the amount of benefits being paid from the system.  And there may be a switch at some point to a private Social Security account system perhaps integrated with the government-run programs. 

The best thing that young people should do about retirement planning  is to realize that the government’s role in providing their retirement income is going to decrease significantly, so they must be prepared to rely on their own resources. 

And that means to save and invest, whether it be in stocks, bonds, real estate, or babies!  Hey, if you have five or six children who can help fund your retirement, that’s a lot cheaper than the expected 2.1 ratio.  Now maybe we need a tax credit for people who support their parents in their old age, instead of having the government take the workers’ money in taxes and then giving it to their parents in benefits.  Why not cut out the middleman?  Just a thought.

This concludes Part 1 of the interview. Stay tuned for the second part of this interview in which Mr.Stanley shares valuable information on situations when people usually leave money on the table and how one can make sure to get all the money he or she is entitled to from uncle Sam and more.

We all know that we have two parts to our brains. Our left brain that is analytical in nature and our right brain is the source of our creative juices. Some are more left brained while some others are more right brained. But how much do we know or realize the capabilities that our brain gifts us with? How much do we understand the capabilities of each of these parts?

I can almost hear you say, why should I care?

Yes, Why should you care?

If learning about this helped you live your life more holistically, if learning about this helps you relieve some of your stress-points, if learning about this changes who you are for the better that you always wanted to become, wouldn’t you care?

Judith Auslander of Wise Heart Coaching (commercial break: Judith has joined the privileged group of Boomer411 trustees. So watch for her web site/article recommendations on Boomer411) shared this insightful video, titled ‘My Stroke of Insight’.

Click here to watch the video, titled ‘My Stroke of Insight’.

In this video, Dr. Jill Bolte Taylor, neural anatomist shares her own experience in an engaging, gripping conversation with us. To keep the element of surprise, I am not revealing her experience. But I am very positive that it will touch you and stimulate you to look at your life differently; it sure touched me. Be sure to sit down, relax and watch the video with a calm and open mind for maximum learning.

As you watch this, think about how annoyingly left-brain oriented, as a society, we have become. What a wonderful gift it would be to our lives to find that Nirvana, that inner joy to resonate throughout our lives?

After you watch the video, scroll down and answer this question…

Who has the power or control to let that life force, that inner joy to resonate throughout our lives or not?

Do post your comments/thoughts on the same.

We are delighted to introduce you to our new guest columnist, Rita Robison. Rita is a consumer writer and runs the blog, Boomers Survive and Thrive Guide and she also writes a Boomer Consumer blog on the Seattle Post-Intelligencer. As times are tough these days, financially speaking, and stretching those few dollars is a really good idea, we requested Rita to pen a guest column for our readers on a weekly basis and share her insights with our audience. Rita has gracefully accepted our request. Thank you Rita. Let’s hear more about Rita in her own words…

Since 1977, I’ve been fortunate to be able to be a consumer writer.

My columns have appeared in The Anchorage (Alaska) Times, The (Tacoma, Wash.) News Tribune, The Spokesman (Spokane, Wash.) Review, and The Olympia (Wash.) News.

My favorite job was being a consumer action column writer for The Anchorage Times. I answered questions from readers. My column was called Tell It to Bud – Bud stood for ombudsman.

I love doing consumer research. It’s fun to do all the interviews it takes to get a story. I’ve obtained quotes from the White House, tracked down Ralph Nader, and convinced Elizabeth Kubler Ross that she should take the time for an interview.

Knowledgeable specialists in retirement, heart disease, stress management, insurance, housing, relationships, hearing aids, dentistry, foot care, finances, aging, and dying have also provided information for my columns. Writing consumer columns for newspapers has brought me much joy. I’ve been able to research issues of importance to readers.

Here are 15 items that are among the key things that I’ve learned during my years as a consumer columnist:
-  The importance of having a living will.
-  How to decide whether to buy long-term care insurance.
-  Tips for the new retirement – the go-go, slow-go, and no-go phases.
-  What consumer books and green gifts make good presents for the holiday season.
-  How to handle credit card debt and collection agencies.
-  What to do about clutter.
-  How to buy cell phones, long-distance phone service, and computers.
-  How to avoid accidents in the home.
-  What you need to do to be prepared for emergencies.
-  How to pick out a charity.
-  How to select contractors and roofers.
-  How to buy a manufactured home.
-  The benefits and drawbacks of Medicare Advantage, a way to combine Medicare and supplemental policies under one private company that manages a person’s Medicare benefits.
-  The benefits of massage.
-  Stress reduction techniques.

Now I’m a blogger for boomer consumers. My blogs are:
- The Survive and Thrive Boomer Guide – http://boomersurvive-thriveguide.typepad.com.
- Boomer Consumer, a reader blog for the Seattle (Wash.) Post Intellingencer – http://blog.seattlepi.nwsource.com/boomerconsumer/.

I’m pleased that Boomer411 has asked me to be a weekly guest blogger. I’m looking forward to having a conversation with you on how consumers can take action during these trying economic times. 

In our series on interviews with authors, today we present you our interview with Jacky Hood. Jacky is an author, enterpreneur and an avid biker. Jacky has written a book about expanded careers and working as a means to stay fit and healthy into old age and thus to stay young. Let’s hear more from Jacky…

Boomer411:  Jacky, can you please tell our readers about yourself? What excites you about this book ‘Happy About Working To Stay Young: Expanded Careers for Boomers and Seniors’? or what motivated you to write it?  

Jacky: My career is in high technology. I have worked as an engineer and manager and now I am a management consultant and college instructor. There was a big slump in high tech from 2001-2005. People in their 40s, 50s and 60s kept saying “I’ll never again find a job. I’m too old.” This angered and amused me because I knew of many people gainfully employed and making career advancements decades older than these people. So I collected success stories, created a workshop called “Third Stage of Your Career”, and then built the book from the workshop.

Boomer411: Please tell us about your blog and your other works and interests, including biking

  Jacky: My blog touches on technology, art, politics, careers, and sports. I’ve always enjoyed individual sports and fitness activities: running, ballet, jazz dancing, Swedish gymnastics, squash, bicycling and hiking. I bicycled across North America and hiked extensively in the Alps when I lived in Europe. Now I hike in the hills near San Francisco as well as the Sierra Nevada and Rocky Mountains. Someday I will hike in the Himalayas.

Boomer411: Why should someone closer to retirement consider working past retirement? Having waited so long for this moment, now when it is almost within reach, why should the Boomers give it all up, ditch the benefits of free time and consider working in retirement and possibly increase or continue their stress?

Jacky: There are four primary reasons to work for pay:

• health,
• wealth,
• making a difference and
• the impending worldwide shortage of skilled workers

Men who retire at 50 do not live as long as those who retire at 60. Working people have plenty of time to travel, be with their grandchildren, and enjoy their hobbies. Doing these things 100 hours/week would be like eating dessert all the time. Stress is healthy; people with no responsibilities lose their sense of self-worth and become depressed.

Boomer411: Are there any cases in which retirement from working or a job would make sense or be recommended over continuing to work?

Jacky: Of course! One can be productive and healthy without a paid job. It just takes more planning and self-discipline and a financial situation that permits it. Some non-profits treat volunteers like employees and allow them to do meaningful work, not just menial tasks. They have performance reviews and promotions. Other non-paid people pour their lives into their gardens or other creative hobbies. Unfortunately far too many retired people simply watch television.

Boomer411: With so many options and choices around, how should one approach in deciding what they should do in their second half of their lives? What factors should one consider in deciding on their new career?

Jacky: If a person loves his or her job and opportunities exist in that field, there is no reason to change careers. That doesn’t mean becoming stale; there are always new projects, new clients, new markets, and new challenges. If a Boomer wants to do something different, a very important question is “Where do you want to live?” Geography makes a huge difference in the quality and cost of living and geography dictates job and career opportunities. Nurses, teachers, and computer programmers are needed everywhere. However, there are no farmers in Manhattan and no five-star chefs in small prairie towns. Also, a person should consider growth fields like medical care, rather than declining industries like travel agencies that have been replaced by the Internet.

Boomer411: How can employers help/change their job offers, benefits to attract and retain this additional and valuable pool of employees?

Jacky: Employers simply need to reach out to Boomers and Seniors just as they reach out to minorities and women. They need to recruit at the colleges and universities that attract older adults. At the college where I teach, the average age is 40. There are as many 60 year olds as 20 year olds. Across the country, there are private and public outplacement firms full of Boomers and Seniors in transition or seeking new opportunities. The western world has been borrowing from the developing countries but those countries are also facing declining populations of people under 40. Employers need to discover a nation within a nation: 100 million Boomers and Seniors who are energetic, educated, skilled and experienced.

Boomer411: One of the claims in your book is “The first two weeks on the job set the pattern. Demonstrate that you can leave at 4pm and still make a strong contribution. Junior workers put in 80 hours one week then need 80 hours the following week to correct mistakes”.

If someone near retirement age has been an average performer until now and is having trouble adjusting to the new technology, changed work environment, how does he or she go about navigating this dynamic business landscape and then differentiate himself or herself to be more valuable?

Jacky: The new technologies such as Web 2.0 and multi-function mobile devices improve productivity. It makes no more sense to eschew them than to ignore telephones and photocopiers. The changed work environment including global remote teams, telecommuting, and flexible work structures are exactly what the anti-establishment beatniks and hippies were promoting 40-50 years ago. We invented this egalitarian environment; why should we long for a return to rigid hierarchies and slow-paced bureaucracies? It’s ironic that the sex-drugs, rock&roll generation that wore long hair and beards is complaining about shaved heads and bare midriffs! Nobody expects a middle-aged person to wear eyebrow rings and tattoos, but your ideas will be considered stale if you are still wearing clothing and hairstyles that are 20 years out of date.

Boomer411: What resources would you recommend to someone looking to change their career?

Jacky: I recommend reading about Johnny Appleseed. He planted apple trees that are still growing 300 years later. Be sure that your next career move allows you to make a lasting contribution, one that will survive beyond your lifetime. Build a product or a company, write a book, make a movie, or mentor a new generation. To focus yourself on making this type of lasting contribution, build a physical or electronic career portfolio. These are no longer just for artists. Here is a book and some web sites that will get you started:
The Career Portfolio Book by Beverly J. Irby and Genevieve Brown
http://www.bcjobs.ca/re/career-centre/career-tools/career-planning/career-portfolios
http://www.smu.edu/career/portfolio.htm
http://careerservices.uvic.ca/tutorials/career-portfolio.html
http://www.visualcv.com/
http://www.quintcareers.com/job_search_portfolio.html

Boomer411: To find out more about Jacky Hood and her ventures and interests, use the links below and learn more.
http://www.bigtent.info
http://www.bigtent.info/blog1
http://www.chalkinstitute.org
http://www.fielddaysolutions.com
http://www.tapapm.org

You can find out more information on Jacky’s book from the publisher and also order, here

You can read reviews of the book here/order from Amazon.com

This concludes our interview with Jacky Hood. Please do stay tuned as we bring you more such interviews.