As with all things, change is inevitable. There are also corrections to be considered, as well. The First Edition of A Social Security Owner’s Manual is no exception to either of these rules. Listed below you’ll find, in order of occurrence, each of the updates that we’ve discovered so far.
Let me know if you find anything that needs updated!
page xi – it should be Foreword (come on, really?? How did I screw that up?)
page 16 – The Note at the bottom of the page should be corrected to read as follows:
Note: 2008 was an unusual year – this was the first year since the bend points came into use where the AWI figure actually reduced from the previous year. As a result, the bend points actually reduced from 2009 to 2010. Also, since 2009’s AWI figure was not greater than the 2007 figure (although it was still an increase over 2008) the bend points for 2011 also were lower than the bend points for 2009, although still an increase over 2010.
page 18 – the chart, updated with 2012’s bend points, looks like this:
Just so you’ll know (and thanks to reader JH for pointing out this omission), the bend points for 2011 were: First Bend Point – $749; Second Bend Point – $4,517
For 2012, the bend points were: First Bend Point – $767; Second Bend Point – $4,624
The calculation in the last sentence of the last paragraph should be explained in this fashion:
The increase is because you did not receive benefits for 16 months during the period between 62 and 66 (4 months each year when they withheld your benefit), which equates to a 7.22% increase in benefits when multiplied by the reduction factors explained earlier: 5/12% per month for the months greater than 36 before FRA, plus 5/9% per month for the remaining 4 months in your total: 12 months times 5/12% equals 5%; plus 4 months times 5/9% equals 2.22%; for a total of 7.22% increase.
page 67 – under Calculating the COLA, the second sentence should read “Changes to the index measure the fluctuations in those prices over time.” Also, the calculation for COLA is done in October, not December as is written in the next sentence.