Social Security Guide 2022

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SEPTEMBER 20, 2022 • BRADFORD PUBLISHING CO.

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WHILE INFLATION TAKES TOLL ON SENIORS, BILLIONS OF DOLLARS IN BENEFITS GO UNUSED

By Judith Graham

Kaiser Health News

Millions of older adults are having trouble making ends meet, especially during these inflationary times. Yet many don’t realize help is available, and some notable programs that offer financial assistance are underused.

A few examples: Nearly 14 million adults age 60 or older qualify for aid from the federal Supplemental Nutrition Assistance Program (also known as food stamps) but haven’t signed up, according to recent estimates.

Also, more than 3 million adults 65 or older are eligible but not enrolled in Medicare Savings Programs, which pay for Medicare premiums and cost sharing. And 30% to 45% of seniors may be missing out on help from the Medicare Part D Low-Income Subsidy program, which covers plan premiums and cost sharing and lowers the cost of prescription drugs.

“Tens of billions of dollars of benefits are going unused every year” because seniors don’t know about them, find applications too difficult to complete, or feel conflicted about asking for help, said Josh Hodges, chief customer officer at the National Council on Aging, an advocacy group for older Americans that runs the National Center for Benefits Outreach and Enrollment.

Many programs target seniors with extremely low incomes and minimal assets. But that isn’t always the case: Programs funded by the Older Americans Act, such as home-delivered meals and legal assistance for seniors facing home foreclosures or eviction, don’t require a means test, although people with low incomes are often prioritized. And some local programs, such as property tax breaks for homeowners, are available to anyone 65 or older.

Even a few hundred dollars in

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assistance monthly can make a world of difference to older adults living on limited incomes that make it difficult to afford basics such as food, housing, transportation, and health care. But people often don’t know how to find out about benefits and whether they qualify. And older adults are often reluctant to seek help, especially if they’ve never done so before.

“You’ve earned these benefits,” Hodges said, and seniors should think of them “like their Medicare, like their Social Security.”

Here’s how to get started and some information about a few programs.

GETTING HELP

In every community, Area Agencies on Aging, organizations devoted to aiding seniors, perform benefits assessments or can refer you to other organizations that conduct these evaluations. (To get contact information for your local Area Agency on Aging, use the Eldercare Locator, a service of the federal Administration on Aging, or call 800-677-1116 on weekdays during business hours.)

Assessments identify which federal, state, and local programs can assist with various needs — food, housing, transportation, health care, utility costs, and other essential items. Often, staffers at the agency will help seniors fill out application forms and gather necessary documentation.

A common mistake is waiting until a crisis hits and there’s no food in the refrigerator or the power company is about to turn off the electricity.

“It’s a much better idea to be prepared,” said Sandy Markwood, chief executive officer of USAging, a national organization that represents Area Agencies on Aging. “Come in, sit down with somebody, and put all your options on the table.”

Older adults who are comfortable

online and want to do their own research can use BenefitsCheckUp, a service operated by the National Council on Aging, at benefitscheckup. org. Those who prefer using the phone can call 800-794-6559.

AID WITH FOOD EXPENSES Some aging organizations are adapting to heightened demand for help from seniors by focusing attention on core benefits such as food stamps, which have become even more important as food inflation runs around 10%.

The potential to help seniors with these expenses is enormous. In a new series of reports, the AARP Public Policy Institute estimates that 71% of adults age 60 and above who qualify for the Supplemental Nutrition Assistance Program haven’t signed up for benefits.

In some cases, older adults may think benefits are too small to be worth the hassle. But seniors who lived alone received an average of $104 in food stamps per month in 2019. And at least 3 million adults 50 and above with very low incomes would receive more than $200 a month, AARP estimates.

To combat the stigma that some older adults attach to food stamps, AARP has launched a marketing campaign in Atlanta and Houston explaining that “food prices are rising and we’re all trying to stretch our grocery budgets,” said Nicole Heckman, vice president of benefit access programs at the AARP Foundation.

If the effort alters seniors’ perception of the program and increases enrollment, AARP plans to do a major expansion next year, she said.

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SEPTEMBER 20, 2022 • BRADFORD PUBLISHING CO.

UNUSED BENEFITS

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prescription drug plans, also known as Extra Help, are worth $5,100 annuAARP is also working closely ally, according to the Social Security with community organizations that Administration. Currently, some sehelp older adults apply for Medicare niors get only partial benefits, but that Savings Programs and low-income will change in 2024, when all older subsidies for Part D prescription drug adults with incomes below 150% of plans. It plans to expand this program the federal poverty level ($20,385 for a next year to as many as 22 states. single person in 2022) will qualify for The value of these health care bene- full Extra Help benefits. fits, targeted at low-income seniors, is Because these health care programs substantial. At a minimum, Medicare are complicated, getting help with Savings Programs will cover the cost your application is a good idea. Freed of Medicare’s Part B premiums: $170 suggested that people start by contacta month, or $2,040 annually, for most ing the State Health Insurance Assisseniors. For older adults with the low- tance Program in their state (contact est incomes, benefits are even broader, information can be found here ). Other with cost sharing for medical services potential sources of help are the Medialso covered. care hotline (800-633-4227) and your “Even if you think you might not state’s department of aging, which can qualify, you should apply because direct you to community organizathere are different rules across states,” tions that help with applications. A list said Meredith Freed, a senior policy of the state departments can be found analyst for KFF’s Program on Medihere. care Policy.

OTHER KINDS OF ASSISTANCE Low-income subsidies for Part D

AID WITH HEALTH EXPENSES

SEPTEMBER 20, 2022 • BRADFORD PUBLISHING CO.

Be sure to check out property tax relief programs for seniors in your area as part of a broader “benefits checkup” process.

Older adults with low incomes also can get assistance with high energy bills through the Low Income Home Energy Assistance Program. Your local utility company may also provide emergency relief to seniors who can’t pay their bills. It’s worth making a call to find out, advised Rebecca Lerfelt, the retired assistant director of a Chicago-area Aging and Disability Resource Center. These resource centers help people seeking access to long-term care services and are another potential source of assistance for older adults. You can find one in your area here.

For veterans, “this may be the time to take a look at using your VA benefits,” said Diane Slezak, president of AgeOptions, an Area Agency on Aging in suburban Cook County,

Illinois. “I run into a lot of people who are eligible for veterans benefits but not taking advantage of them.”

BARRIERS TO GETTING HELP Advocates for many programs note that agencies serving older adults are facing staff shortages, which are complicating the efforts to provide assistance. Low pay is a commonly cited reason. For example, 41% of Area Agencies on Aging report staff vacancies of up to 15%, while an additional 18% report vacancies up to 25%, according to Markwood. Also, agencies have lost significant numbers of volunteers during the covid-19 pandemic.

At the same time, demand for help has risen, and clients’ needs have become more complex because of the pandemic and growing inflation.

“All of this is being amplified by the financial strains older adults are feeling,” Markwood said.

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INFLATION MAY PUSH SOCIAL SECURITY COLA UP AROUND 10% IN 2023

By Georgina Tzanetos

Bankrate.com/TNS

With sustained inflation near a 40year high, Social Security could get a historic boost next year to help seniors keep up. The most recent estimate for a 2023 cost of living adjustment (COLA) is 9.6 percent, says Mary Johnson, Social Security and Medicare policy analyst for senior advocacy group the Senior Citizens League (SCL).

Consumer Price Index (CPI) reports to end the summer showed inflation up over the last 12 months, making it more difficult for people living on fixed incomes, like those from Social Security benefits, to make ends meet.

The 2023 COLA will be based on third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. Johnson says the announcement is expected around Oct. 13, after the release of the September CPI report. If inflation “runs hot” or higher than average, Johnson predicts the COLA could run up to 10.1 percent for 2023. Should it run lower than the recent figures, she says 9.3 percent might be more likely.

An adjustment of 9.6 percent would increase the average monthly Social Security retirement benefit of $1,656 by $158.98, says Johnson.

The prior COLA came in at 5.9 percent, and 9.6 percent this year would be enormous in terms of COLA rates in the recent past.

The CPI-W is the benchmark upon which monthly Social Security benefits increases are determined, but the Senior Citizens League has long advocated that the index is not representative of the way seniors live.

One often-cited gripe with the CPI-W is the weight it gives to things like gasoline – something urban wage and clerical workers might need to commute to work every day more so than retired seniors. The SCL says this figure underestimates the inflation experienced by Social Security recip-

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ients, since it does not give enough weight to expenses senior citizens have, such as healthcare or housing.

The league calls for the use of R-CPI-E, or the Consumer Price Index for the Elderly, in place of the CPI-W. The R-CPI-E is based specifically on the spending patterns of the elderly.

The group estimates that a senior who filed for Social Security with an average level of benefits over thirty years ago would have received about $14,000 more in retirement, had the R-CPI-E been used to calculate benefits.

COLA is a double-edged sword for low-income workers Those who receive low-income

assistance might be affected by higher COLA increases. Higher benefit amounts next year might hurt the eligibility of low-income assistance recipients to obtain that assistance.

According to SCL’s new Seniors Priority Survey, 37 percent of participants reported they received low-income assistance in 2021.

In 2022, roughly 14 percent of survey participants said their low-income assistance was actually reduced as a result of their increased Social Security benefit, and another 6 percent lost access altogether to at least one other program. Low-income assistance programs require recipients to stay under a certain income level to qualify for benefits. Last year’s COLA increase

of 5.9 percent was one of the largest in history and pushed many over the edge of eligibility.

Should the COLA increase even further in 2023, there may be a sizable portion of seniors in the lose-lose situation of being phased out of their low-assistance program thresholds, but still not covering inflation due to soaring prices.

Bottom line A significant COLA for Social Security is expected for 2023 in the face of persistent rising inflation. The increase will certainly be welcome, but seniors will be looking for a number to cover at least the difference between their monthly benefit and rising prices.

SEPTEMBER 20, 2022 • BRADFORD PUBLISHING CO.

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HOW MUCH DOES A FUNERAL COST?

HELP FOR OLDER ADULTS ON A BUDGET MAY BE A FEW CLICKS AWAY (BPT) — Food and gas prices continue to rise, on top of record-high housing costs in many cities across the U.S. If you’re an older adult who is already living on a tight budget, today’s inflation can be particularly difficult. Fortunately, there are programs available that can help you save money on health care, prescriptions, food, utilities and more.

One of the easiest ways to find out if you’re eligible for benefits is to visit the National Council on Aging’s BenefitsCheckUp.org. The free and confidential tool connects older adults, people with disabilities and caregivers to benefit programs. The site is easy to use, even for people with minimal digital experience.

“It only takes a few minutes to learn about all the programs available and how to apply,” said Ramsey Alwin, president and CEO of NCOA. “For example, there are Medicare programs that can boost your budget by helping with prescription drug costs, as well as premiums, deductibles and coinsurance.”

There are thousands of programs on BenefitsCheckUp, including: • The Supplemental Nutrition Assistance Program (SNAP), which can help you pay for healthy food.

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• The Medicare Part D Low Income Subsidy and Medicare Savings Programs, which can help people with Medicare afford their out-ofpocket health care expenses.

• The Housing Choice Vouchers and Public Housing Programs, which can help with housing costs.

• Supplemental Security Income, which provides cash for basic needs.

• The Affordable Connectivity Program, which provides discounted internet services.

• The Low-Income Home Energy Assistance Program, which can help you pay for home heating and cooling.

(BPT) — When a death occurs, it’s normal to wonder — and even worry — about the expense of memorializing a loved one, even though we are grieving. The costs of goods and services are making headlines every day recently. But, like planning a wedding or building a house, funeral costs include many variables, and the options for memorialization are endless, so it’s difficult to determine an exact price until you meet with a funeral professional.

According to a 2021 report by the National Funeral Directors Association (NFDA), the national median cost of a traditional funeral with a viewing is $7,848, not including cemetery or burial charges, while the national median cost of an adult cremation funeral with a visitation is $5,365. Some of these costs include: • Recovery of the loved one from home, hospital or hospice and into the funeral home’s care at any time, on any day • Transportation of the loved one to the funeral home • Metal casket • Urn • Funeral director and staff’s time • Access to the funeral home’s amenities, including chapels, visitation rooms, reception areas and more A funeral requires a great deal of

effort to organize, but in a very short timeframe. Few would attempt to plan a wedding in less than a week, yet the very things that go into wedding planning are all part of funerals: flowers, catering, music, transportation, venues, speeches, videos and event planning - not to mention completing paperwork for death certificates and obtaining permits for transportation, burial or cremation.

Funeral planning professionals are experts on helping you navigate your many choices. Will you want a traditional service, with a few meaningful hymns and a message from clergy, or do you want to honor your loved one with a celebration of life over a catered meal? Are there special touches that reflect your loved one’s unique life that you would like to incorporate into their memorial? These decisions will all impact the cost of the funeral, but you can download a free funeral pricing guide to get started.

Of course, the best way to manage funeral or cremation costs is to preplan and pre-arrange your own final arrangements. Not only does this alleviate a financial burden for your loved ones during a time when they are grieving, it also locks in today’s pricing and ensures that your exact wishes are met.

For more information, visit dignitymemorial.com.

Millions of older adults are eligible for, but not enrolled in these programs. In fact, NCOA estimates that $30 billion in benefits go unused each year simply because older adults don’t know about these programs — or how to apply.

BenefitsCheckUp.org will give you a personalized list of benefits you may be eligible for and the steps you need to apply, including links to the correct government agencies and applications. Just a few minutes could save you money every month.

SEPTEMBER 20, 2022 • BRADFORD PUBLISHING CO.

BEST TIME TO RETIRE 66 and 67 years old, to claim Social Security benefits, your payment will increase when you do start receiving benefits. But the increase in payments stops once you reach age 70, so if you turn 70 in the year you retire, you should wait until after your birthday to start receiving benefits. That helps reduce your taxes for that year and maximizes your payment, too.

Here’s more information about Social Security benefits and how going back to work after you’ve retired can impact your payments.

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you retire. It might not seem like it matters much, but those contributions can turn into a sizable sum after another 20 to 30 years of compounding.

Money invested when you’re in your 60s can help pay for end-of-life care in your 80s or 90s.

Bottom line

Choosing the best time of year to retire will depend on your specific circumstances. It’s important to remember that having a significant amount of earned income and drawing on retirement accounts could push you Other things to consider into a higher tax bracket. Don’t forget You’ll also want to think about how to account for income such as accrued you’ll pay for healthcare costs during vacation payouts or annual bonuses retirement. Many people neglect to you may be entitled to. account for medical expenses during If you participate in a defined benefit plan, double check on exactly how their golden years, despite it being a long you have to work to get credit significant cost for most people. for an additional year of service. You You might also consider maxing won’t want to leave money on the taout your contributions to your retirement accounts one last time before ble just as you’re headed out the door.

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