THE INS AND OUTS OF APPLYING FOR SOCIAL SECURITY BENEFITS
Pundits spend a good deal of time advising Americans about the best age to claim Social Security — at 62, at full retirement age, at 70, and the like. But they hardly ever discuss the nuts and bolts of applying for Social Security benefits. They should. The seemingly simple act of completing an application for retirement or spousal or disability benefits isn’t always as straightforward as you might think. “I had a client once who described this as ‘the most complicated and bureaucratic process known to mankind,’ ” says Robin Brewton, chief operations officer for Social Security Solutions. Here’s what experts say you need to know.
START THREE MONTHS BEFORE YOU WANT PAYMENTS
“It doesn’t take that long to clear a claim — no way,” says Andy Landis, author of Social Security:
The Inside Story. “But (starting the process early) allows time to iron out any wrinkles that come up, like finding your military discharge form or other documents. Then it’s clear sailing to your first payment.”
Others suggest the same. If you want benefits to start on your 66th birth month, go to the Social Security office three months prior to your birth month, says Ted Sarenski, the CEO of Blue Ocean Strategic Capital. “Social Security will only give retroactive benefits six months prior, so in no case go to them more than six months past your birth month if you intend to begin benefits on your birth month.”
MOST CLAIMS ARE DONE ONLINE THESE DAYS
You really don’t have to apply for benefits in person anymore. Just go to www.ssa.gov and click on the “retirement” box for retirement, spousal or Medicare claims. “There are great instructions and tips there,” Landis says. “Then it takes maybe 20 minutes to complete the application.”
Other experts agree that online is the best way to apply for Social Security. “I am a firm believer in applying online for benefits,” says Kurt Czarnowski, a principal with Czarnowski Consulting.
You can, of course, still apply in person. But if you choose this route, don’t walk into your local office cold. “You might face a oneor two-hour wait, or worse,” Landis says. Instead, call 1-800-7721213 to set up an appointment, for a phone or in-office claim. Of note, the Social Security Administration (SSA) generally doesn’t publish phone numbers of local offices.
WORD TO THE WISE
The SSA’s phones are staffed from 7 a.m. to 7 p.m. in whatever time zone you’re in.
“But they’re swamped midday, from about 10 a.m. to 3 p.m.,” Landis says. “Instead, call near either end of the day, like 8 a.m. or 5 p.m. If the recording says it will be a long wait, just hang up and call back at a better time.”
TWO “GOTCHA” QUESTIONS
When you file, there are two questions that seem to trip people up, Brewton says. One: “If you are eligible for both a retirement benefit and a spouse’s benefit, do you want to delay receipt of retirement benefit?” And two: “When do you want benefits to begin?”
So many consumers are confused by the first question, Brewton says. “Some don’t know that they may be eligible for multiple benefits; others just simply don’t understand the question,” she says, noting the question applies only to those who are still eligible to “restrict the scope of the application to spousal benefits only,” or what some refer to as filing a restricted application. This applies only to those born on or before Jan. 1, 1954.
“Those wanting to receive only spousal benefits must answer ‘yes’ to this question,” she says. “If you answer ‘no,’ your own retirement benefits begin.”
The second question is a “gotcha” because, Brewton says, the field is pre-populated with the earliest possible date for someone to start benefits.
“For those who are filling out the application up to four months in advance of when they want benefits to start, they’ll need to change the date in the field,” she says. “If a consumer has carefully crafted a claiming strategy, particularly if it is coordinating retirement and spousal or divorced spouse benefits, the wrong date can cost thousands of dollars and ruin the strategy.” USE THE COMMENT SECTION
Would-be Social Security beneficiaries should always use the comments section near the end of the application to clearly spell out what their intentions are, Brew- ton says. “If they’re trying to file a restricted application, they should say so. If they want to collect divorced spouse benefits at full retirement age and switch to their own later, they should say it in the comments. This is documentation of your intent in the event an error occurs in processing.”
Also, Brewton recommends asking someone to sit with you while you file — a friend, spouse or family member.
“It will help you get a second set of eyes on the questions and your answers,” she says.
MAKE A MISTAKE?
If you discover you made a mistake during the filing process, the sooner it is addressed the better. Unfortunately, a correction isn’t easy to pull off and requires substantial documentation, Brewton says. “I recommend that clients who file in person or on the phone get the name of the person who assisted with the filing and have that person read the questions and answers back to the consumer,” she says.
Brewton recommends documenting conversations with dates and times. “I do believe that, given the number of Social Security beneficiaries, actual errors are few,” she says. But they do happen from time to time, and they can be significant.
Ultimately, Brewton says, the best defense against errors is a good offense — a smart claiming strategy that is written down.
“If a consumer doesn’t feel heard by the SSA, or if the SSA is trying to convince them that a claiming strategy isn’t possible, the best bet is to walk away and get professional assistance. You can always file later,” she says.
FILING FOR SOCIAL SECURITY DISABILITY IS THE HARDEST
Those filing for Social Security Disability Insurance tackle it in stages, starting online at www.ssa .gov.
“The SSA needs to know all your doctors and hospitals that have information about your medical condition,” Landis says.
But here’s a trick of the trade that will save you a ton of work: “If one doctor or hospital has all your records, just list that source and say they have everything,” Landis says. “Then be prepared to wait — it takes months to decide a disability claim. The sooner you start, the sooner it will be done.”
FILING A SURVIVOR CLAIM?
Most claims can be filed online. Not this one. If you’re filing a survivor claim (widow, widower or surviving child), you can’t do it online, Landis says. Start by calling 800-772-1213 for a claims appointment.
WHAT CAN YOU EXPECT AFTER YOU FILE?
You should be aware of and plan for the fact that Social Security benefits are paid one month in arrears, Czarnowski says. “For example, say someone retires at the end of June and intends to start collecting Social Security benefits effective with the month of July,” he says. “That person won’t receive his/her first payment until August.”
Also note, Czarnowski says, that anyone born between the 1st and the 10th of the month is always paid on the second Wednesday of the month; anyone born between the 11th and the 20th of the month is always paid on the third Wednesday of the month; and anyone born between the 21st and the end of the month is always paid on the fourth Wednesday of the month.
“And by ‘paid’ I mean that their payment is ‘direct deposited’ into their bank account on that date,” he says. “This is something that people need to understand and anticipate, and in my experience, many of them don’t.”
EXAMINE YOUR DOCUMENTS
Sarenski suggests examining your “introductory” letter and all other correspondence immediately upon receiving it in the mail from the SSA.
“It is best to correct any errors as soon as you know of them,” he says.