Social Security, Medicare & Benefits: What Many Seniors Miss

Are You Getting the Right Social Security Benefit?

The average Social Security check is about $1,800 a month, but many people receive far less — sometimes because they filed for the wrong type of benefit.

When filing online or in person, a claim specialist may not walk through every option. Before filing, consider:

• Should this be a retirement claim, a disability claim, or both?
• Is a spousal or survivor benefit available instead?

This matters because once a person reaches full retirement age (which varies by birth year), filing for disability is no longer an option. People already on disability are automatically switched to retirement at that point — the check amount stays the same, but the window to claim disability closes.

Social Security calculates benefits using the highest 35 years of earnings, not just the last few years. If that 35-year average is low, a person may also qualify for Supplemental Security Income (SSI) to bring monthly income up to the SSI threshold (roughly $900, though the exact amount changes each year). Being on SSI also makes a person automatically — or "categorically" — eligible for other programs like Medicaid and food assistance.

Working While Collecting Social Security

Many people do not realize they can work while receiving Social Security retirement benefits. For 2024, the annual earnings limit before full retirement age is $22,320. Social Security withholds $1 for every $2 earned above that amount.

In the year a person reaches full retirement age, the limit rises significantly (to $59,520 for 2024), and the withholding rate drops to $1 for every $3 over the limit.

One important rule many people miss: earnings only count from the month benefits begin, not from the start of the calendar year. Someone who starts collecting in July, for example, is only subject to the monthly earnings limit from July onward — not for January through June.

For people on disability benefits, the rules are different:

• A trial work period of nine months allows a person to test returning to work and earn any amount without losing benefits.
• After that, an extended period of eligibility lasts another 36 months, during which benefits stop and restart based on monthly earnings.
• The monthly earnings limit for disability in 2024 is $1,110. Consistently earning right at the limit can raise a red flag with Social Security, so staying a bit under is advisable.
• The Ticket to Work program, contracted through Social Security, can help people on disability navigate a return to work safely.

Protective Filing: How to Protect Your Back Pay

A lesser-known rule called protective filing can mean the difference between receiving months — or even years — of back pay or receiving nothing.

The moment someone contacts Social Security to ask about retirement, disability, or survivor benefits — whether by phone or in person — that contact date is recorded as a protective filing date. If the actual application is not completed until months later, benefits can still be paid back to that original contact date.

For example: someone who calls Social Security in January but does not complete their application until April may be entitled to benefits starting in January. Always ask Social Security to check for a protective filing date when applying, especially if there was an earlier call or visit that did not result in a completed claim.

Medicare: Costly Mistakes to Avoid

Medicare becomes available at age 65, or after two years on Social Security disability. Understanding the rules around each part can save significant money.

Part A (Hospital Insurance)

• Part A is free for most people and is generally worth enrolling in.
• Exception: anyone who contributes to a Health Savings Account (HSA) should know that enrolling in Part A stops future HSA contributions. Withdrawals are still allowed, but no new money can go in. Social Security employees often do not mention this, so ask before enrolling.

Part B (Medical Insurance)

• Part B costs about $170 a month in 2024.
• Anyone who has health insurance through current employment — their own or a spouse's — can delay Part B without penalty. Retiree coverage and COBRA do not count.
• Once that current work coverage ends, there is an eight-month window to enroll in Part B without penalty.
• Stopping Part B after already enrolling carries a permanent penalty of 10% for every 12 months without coverage. That penalty lasts for life.
• Veterans who rely on VA health care sometimes drop Part B to save money. This is a personal choice, but the penalty applies if Part B is needed again later — for example, after moving away from a VA facility.

Programs exist to help low-income Medicare beneficiaries pay for Part B premiums. These are covered in more detail in the Medicare Savings Programs section.

Energy Assistance, Housing, and Other Programs

Low Income Home Energy Assistance Program (LIHEAP) This federal program helps low-income households pay energy bills. For 2024, a single-person household with income under approximately $21,870 may qualify; a two-person household under approximately $29,580 may also qualify (amounts are before taxes). Anyone already receiving SSI, SNAP (food stamps), or TANF is automatically eligible. The easiest way to apply is to call the local energy or utility company directly and ask about the energy assistance program.

Section 8 Housing (Housing Choice Voucher) Affordable housing is one of the biggest challenges for low-income seniors. Section 8 wait lists can stretch for years, but applying is still worthwhile. Housing authorities sometimes maintain reserved spots for people with disabilities, veterans, or those with urgent medical needs. Budget cycles also affect availability — new funding can open slots unexpectedly. Always apply, even if the wait seems discouraging.

Habitat for Humanity For homeowners who need repairs — a ramp, a new window, an air conditioner — Habitat for Humanity may be able to help. Local chapters accept calls and can assess repair needs at no cost to qualifying homeowners.

Libraries Public libraries offer free internet access, which is essential for managing benefits online. Some libraries also lend portable Wi-Fi devices. Getting a library card supports local library funding.

A Note on Government Shutdowns and Social Security

During a federal government shutdown, Social Security continues to operate almost entirely as normal. Benefit checks still go out, and people can still file claims and visit offices.

The one exception: new Social Security cards are generally not issued during a shutdown. Very limited exceptions may apply — for example, for a military enlistment or a documented job offer. If a card is urgently needed during a shutdown, it is worth calling the local Social Security office to ask.