EPISODE 19- Understanding Social Security with Debbie Hodgson

In this episode of the Team Senior Podcast, host Jamie Callahan welcomes back Medicare and Social Security expert Debbie Hodgson to shed light on one of the most important questions retirees face: When and how should I start collecting Social Security benefits?

Debbie explains:

• The ages when people most often begin drawing benefits—and why
• How waiting until age 70 can increase your payout
• Why it’s important to check your earnings history on ssa.gov
• Options for spousal and survivor benefits that many families don’t realize exist
• The pros and cons of applying online, by phone, or in person
• How to plan ahead in your 50s to maximize your future benefits

Social Security is complicated, but you don’t have to figure it out alone. Debbie’s expertise and straightforward advice make it easier to understand your options and make confident decisions about retirement income.

📞 For help navigating Medicare or Social Security, you can reach Team Senior at (541) 295-8230.

Transcript

Team Senior Podcast - Social Security Benefits with Debbie Hodgson

Hi, this is Jamie Callahan with the Team Senior Podcast. Our goal is to simplify aging. Society grooms us to plan for retirement, but what about life beyond retirement—where the rubber meets the road? Perhaps you've had a stroke or you've been diagnosed with cancer, or maybe you're forgetting things and now you have dementia.

That's our area of expertise, and we are here to share our insights. And now, the Team Senior podcast.

Jamie: Hello everyone. This is Jamie Callahan. We are back in the studio today, and we have Debbie Hodgson with us. She is a Medicare expert in my opinion, but she is also maybe the only—or one of few—Social Security analysts that is located here in Southern Oregon.

Debbie, can you introduce yourself and tell us a little bit about what a Social Security analyst does?

Debbie: Awesome. Thank you. My name's Debbie Hodgson. I am a local agent who has gone through special training for Social Security. I'm not an employee of Social Security, but I am part of an organization that trains individuals on how the Social Security system works and how to advise people on maximizing their benefits.

Jamie: That's such a tremendous value-add here in Southern Oregon. We have so many people in our area. If you rewind six or eight years ago, I remember the federal government releasing a statistic saying they were worried because by the year 2022, something like 20% of the population would be over 65. But we've been over that here in Southern Oregon for a long time—a very long time.

At what age can somebody start collecting retirement benefits through Social Security?

Debbie: Age 62 is the age where a person can apply if they're ready. It's very important to know that if you're still working, it's important to understand how your Social Security benefits will affect your income. What I do is I have access to software where I can take your earnings register through Social Security and put it into a program that helps you calculate how to maximize your benefit—when you want to actually start withdrawing and maybe when you don't want to start withdrawing.

Jamie: So what are the most common ages that people enroll for Social Security, and why?

Debbie: A lot of times it's at age 65 when they're eligible for Medicare and have to start paying the Part B premium—it can come right out of the Social Security income. Full retirement age for individuals who were born in 1960 and later is now 67, where if they're still working, it doesn't affect their Social Security income.

Jamie: My understanding is if you draw at a later age, you can draw more money. Is that correct?

Debbie: Yes. Up to the age of 70, your Social Security benefit will increase. If you start drawing at age 65, you might be withdrawing maybe 70% instead of 100% of your income. But then you have to calculate how much income you're leaving on the table. You have to look at your health, your family history—maybe you're at high risk of not living past retirement age. A lot of people just start drawing at their full retirement age and use that money if they need it for their critical expenses.

Jamie: When you start withdrawing at 65 years old, for example, and you are granted a rate, your Social Security is going to pay you this amount. If you start withdrawing at 65, the rate doesn't change when you turn 70—it's only more if you start withdrawing when you turn 70. Exactly?

Debbie: Exactly. If you delay withdrawing, yes.

Jamie: Got it. So when should someone start preparing to apply for Social Security? How long does the process typically take?

Debbie: The process itself doesn't take too long. It might be more complicated if you are still working, but I suggest that people set up a password on ssa.gov and start looking at their account in their mid-fifties. They can see what their benefit looks like now, and the system will show them a graph or chart where they can estimate—like the software I have access to—future earnings and how it affects your Social Security if they want to really be planning.

Jamie: That's fascinating and definitely valuable information. I feel like I'm going to go right home and create an account for myself.

Debbie: You should look at it.

Jamie: So tell me, is it better for somebody to apply online, by phone, or in person? What do you recommend?

Debbie: I recommend online. Everything is so electronic. The application process is pretty simple when you go to ssa.gov—right on the homepage it says "apply for benefits," whether you're going to apply for Medicare, Social Security benefits, your income benefits, or if you're thinking about applying for disability benefits. That takes a long time.

Jamie: I just want to clarify some things. If you call the Social Security office today, my understanding is that they're going to encourage you to apply online and then make an appointment to come in. But I've heard mixed information about our local Social Security office. And Debbie, I know you've heard some mixed information too. I'm not clear as to whether or not they are helping people in person to apply anymore. The biggest challenge comes when we look at the folks that need Social Security—I know from experience that many of them don't have access to apply for something like this online. Is that something that you can help them with?

Debbie: I can definitely help them with that. If they have an investment advisor—a financial advisor—those folks usually can help them with the process and talk to them. If I help somebody look at what their benefits are now, or at full retirement age, or at age 70, I usually suggest that they talk to their financial advisor if they have one, because they may have other retirement plans that they need to coordinate with. That will help them decide when to start drawing.

Jamie: That makes excellent sense. So my understanding is—to put it all in one place—you want to apply for your Social Security benefits online. If you don't have the ability to apply online, you're going to reach out to somebody that's likely going to be either your financial advisor or maybe Debbie, who's a Social Security analyst here in Southern Oregon, or maybe a designated responsible person in your life, like an adult child or a friend that's already gone through the process. And then if they are taking appointments, you may go into the Social Security office to talk about this further. My last understanding was that the Social Security office is not helping people apply for benefits in person anymore.

Debbie: Probably more if there's a complicated case, if there are errors, if maybe online it will show an individual how to question if they don't feel that their benefits are correct. That's when I believe the Medford office would be good to help them through verifying all the details and making changes.

Jamie: When people have to go to the Social Security office, we always share: either make an appointment—and sometimes it's difficult jumping through all the hoops to get somebody on the phone—or if you don't have an appointment, go in the spring, summer, or fall and get there about an hour before they open, because you're going to be standing outside in a very long line before they even open.

So before we close here, because we have run out of time, will you share with us things that maybe we haven't covered that you feel are very important for people to know?

Debbie: One of the things: when you set up your password on ssa.gov and you log in, it will show you the earnings history. Sometimes there are missing years—maybe an employer didn't pay or file their taxes. You want to verify that your income that's posted on the site is correct, or your Social Security benefit may be wrong.

Jamie: Oh my goodness, I bet this is an area you can also help with. So again, I want to encourage people to know that you don't have to remember all of this, but when we have someone like Debbie right here in our own backyard in Southern Oregon who has the ability to help you through this entire process... What she's saying is that if an employer didn't make their contribution to Social Security, that's not going to count towards what you would receive in Social Security benefits when you apply. So it's really important to get all of that sorted out, probably before you start drawing on your Social Security.

Debbie: There's also the possibility that somebody could qualify for survivor benefits or spousal benefits. So it's always good to make sure that you are getting the most out of Social Security that you qualify for.

Jamie: Let's just quickly touch on that, because I don't know if there's a standard way that you can answer the question, but my very elementary understanding of the way spousal benefits work for spouses when they're both living... I don't really know much about when a spouse passes away, but in a marriage, if you have a spouse that earns more than the other spouse, is it true that the spouse that earns less can ask for a raise that is equivalent to 50% of what the higher-earning spouse receives?

Debbie: That's correct.

Jamie: That's amazing. I don't think a lot of people know that.

Debbie: Probably not.

Jamie: So if you are a husband that's receiving $1,800 a month in Social Security and you are the wife that's only receiving $300, in theory, the wife could ask for a raise and receive $900 in Social Security?

Debbie: Yep. There are certain conditions that have to be in effect, but you definitely want to look into that because that is a big part of—like you said, people don't understand that they could be getting half of their spouse's benefit. And it depends on if the spouse has already applied or not too. There are a lot of differences. There are a lot of rules.

Jamie: And this is what makes what you do so extremely valuable. Thank you. So I can't say it enough times—if you have any questions or you need to get in touch with Debbie, Debbie's real easy to reach. Her name is Debbie Hodgson. If you look up Atrio Insurance, you'll easily be able to find her. But if for any reason that doesn't help you connect the dots around how to get in touch with Debbie, just call Team Senior. We're happy to get you connected.

Debbie: Definitely. And I'm not an employee of Atrio—I just work with them a lot.

Jamie: Okay. Well thank you, Debbie, so much for being here today. We are very grateful for you taking the time.

Debbie: Appreciate that.

Jamie: And I hope everybody has a great rest of the day. Thank you so much.

Thank you for listening to the Team Senior podcast. We're here every week sharing new and relevant information. Remember that we're just a phone call away. Team Senior can be reached at 541-295-8230. Again, 541-295-8230. Until next time, this is Jamie Callahan.