• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Retirement Planning » Bad News for Social Security Recipients

Bad News for Social Security Recipients

June 24, 2016 by John Potter

Bad News for Social Security RecipientsMisconceptions abound when it comes to retirement programs for senior citizens. Before you look into the subject, you may believe that a comfortable retirement is waiting for you. Medicare will cover all health needs and income from Social Security will be adequate to live on.

In reality, Social Security payouts are not very robust. The exact amount that you receive will be calculated based on the 35 years during which you earned the most amount of money.

Only a certain amount can be taxed for Social Security purposes. In 2016, the maximum amount that can be taxed is $118,500. If you paid taxes on the maximum earnings throughout your entire working career, you would qualify for the maximum benefit. This year, the maximum Social Security benefit is a rather modest $2663.

The average Social Security benefit for a single recipient in 2016 is just $1341.  For a couple, the average combined benefit is $2212.

Each year, the Social Security Administration has the ability to raise the benefits to account for inflation. This is called the cost of living adjustment or COLA. This year, there was no adjustment to increase the benefits that Social Security recipients are receiving because there was little fluctuation in the consumer price index.

Health Care Expenses

As you can see from these figures, unless you are capable of living a very spartan existence, your Social Security benefit alone is probably not going to be enough to allow you to retire. Plus, you have to consider the limitations of Medicare.

The Medicare program will provide a source of basic health insurance, but there are also out-of-pocket expenses that . There is a deductible for inpatient hospital stays, and there can be co-payments for long stays.

Medicare Part B is the portion of the program that pays for visits to doctors and outpatient care. You have to pay a monthly premium for this coverage; the premium is deducted from your Social Security payout.  Most people are currently paying approximately $106 per month, but the exact amount of the premium is based on your income level.

There are also premiums, co-payments, and deductibles that go along with the prescription drug portion of the program.

In addition to these out-of-pocket expenses, there is a very big gap in the coverage. Medicare does not pay for long-term care, and most seniors will need living assistance eventually.

Contact Our Firm

If you would like to develop a plan that leads to a safe and secure future, contact our firm to set up a no obligation consultation: Charlotte NC Elder Law Attorneys.

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Retirement Planning

Other Articles You May Find Useful

retirement planning
Will You Pay Taxes on Retirement Income?
Social Security reform
Social Security Benefit Increase Is Possible
SECURE Act IRA
IRA News: SECURE Act 2.0 May Become a Reality
retirement planning 3
What Is the 2021 Social Security COLA?
retirement planning
Understand Government Retirement Benefit Programs
The Potter Law Firm
Answering a Common Social Security Question

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT