Va Disability Payments To Vietnam Veterans And Share Who Received Them 2018
Most Vietnam veterans did not receive disability compensation from VA. Those who did received an average of $18,100.
The Vietnam War ran from August 1964 to January 1973.
Shaded area denotes the largest three-year cluster of veterans who served in the Vietnam War . Veterans in that cluster probably served from 1966 to 1969, when forces were largest.
The Department of Veterans Affairs provides tax-free disability compensation to veterans with medical injuries or conditions that were incurred or aggravated during active-duty military service.
CBO did not adjust the data to account for characteristics other than age.
Vietnam veterans who received disability payments from VA were likely to be in the lower half of the income distribution for all men in the age range that CBO analyzed. In addition, they had less income from other sources than veterans who did not receive VA payments, mainly because they were less likely to be employed and because those who were employed had lower earnings. However, on average, their disability payments made up that difference, increasing the average total income of veterans who received those payments above the average income of veterans who did not.
When Should You Take Social Security Benefits
Many people take Social Security benefits as soon as they are eligible to begin receiving them, which for many Americans is age 62. But just because you can begin receiving Social Security benefits doesnt mean you should take them right away.
For example, you can increase your Social Security payments by delaying when you receive them. Here are a few things to think about concerning when to begin receiving Social Security Benefits.
Delaying when you take Social Security Benefits can result in higher payments. In general, you can begin receiving Social Security Benefits at age 62, but in many cases, its worth delaying your start date for receiving Social Security payments if possible.
This is because the Social Security Administration uses a sliding scale based on the year of your birth to determine your normal retirement age and the amount of money you will receive. Taking Social Security Benefits at age 62 may cause you to only be eligible to receive a partial payment.
Income From Retirement Plans For Vietnam Veterans And Nonveterans And Share Who Received It 2018
Vietnam veterans were much more likely than nonveterans to receive income from retirement plans, but those who received payments took in less on average than nonveterans.
The Vietnam War ran from August 1964 to January 1973.
Shaded area denotes the largest three-year cluster of veterans who served in the Vietnam War . Veterans in that cluster probably served from 1966 to 1969, when forces were largest.
Retirement plans include defined-benefit and defined-contribution plans from companies, unions, and federal, state, and local governments individual retirement accounts Keogh plans and any other type of pension, retirement account, or annuity.
CBO did not adjust the data to account for characteristics other than age and veteran status.
A much bigger share of veterans than nonveterans received payments from retirement plans. The gap was about 30 percentage points for the youngest men but shrank to about 17 percentage points by age 66 . The finding suggests that, in addition to having greater access to retirement plans, Vietnam veterans began drawing income from their retirement plans earlier than other men.
As CBOs 2008 analysis of earnings showed, more veterans than nonveterans were likely to have held jobs that included a defined benefit or defined contribution plan. For example, about 20 percent of Vietnam veterans had a government job, compared with 15 percent of nonveterans.36
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Pay Attention To Social Security Statements
Over the years you have probably noticed an annual social security statement arriving in your mailbox. The Social Security Administration no longer mails these statements. But you can register for a free online account at SSA.gov where you can view your annual earnings statement, as well as projected Social Security Benefits when you reach retirement age.
It is important to pay attention to the information contained on this statement. Carefully review your statement each year to ensure the earnings that have been reported are correct.
This history of your earnings play an important role in determining your Social Security benefits. If you notice errors on the statement, it is your responsibility to report these mistakes to ensure the correct information is being used to determine your benefits. Correcting an error in your lifetime earnings could significantly increase social security benefits.
Draftees And New Enlisted Personnel During The Vietnam War
Number of Personnel
Although the Department of Defense drafted civilians during the Vietnam War, draftees accounted for fewer than one-quarter of those who served.
The Vietnam War ran from August 1964 to January 1973. The Department of Defense estimates the number of new enlisted personnel it will need each year to maintain specific force levels. The values shown here apply to new enlisted personnel without prior military service.
Less than 25 percent of the personnel who served during the Vietnam War were drafted the others were volunteers. Service members generally reflected Americas young male population. In 1965 and thereafter, a majority of the armed forces were White males with high school diplomas, age 35 or younger. Men who had joined the military before the war began and served during the Vietnam conflict were likely to be more educated than the average service member and to complete a military career.
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Am I Receiving Extra Social Security Credit For My Military Service
Social Security rules are complicated and change often. For the most recent Ask Larry columns, check out maximizemysocialsecurity.com/ask-larry.
Boston University economist Larry Kotlikoff has spent every week, for over two years, answering questions about what is likely your largest financial asset your Social Security benefits. His Social Security original 34 secrets, his additional secrets, his Social Security mistakes and his Social Security gotchas have prompted so many of you to write in that we feature Ask Larry every Monday. Find a complete list of his columns here. And keep sending us your Social Security questions.
Kotlikoffs state-of-the-art retirement software is available here, for free, in its basic version. His new book, Get Whats Yours the Secrets to Maxing Out Your Social Security Benefits, was published in February by Simon & Schuster.
Below, Larry explains the file-and-suspend and spousal benefit strategy to Paul, which got Paul and his wife an extra $50,000 in benefits.
Anonymous Sante Fe, N.M.: A retired military friend of mine brought to my attention that I may be due special extra earnings for active duty for training and inactive duty service in the armed forces reserves. I served in both of those capacities from March 1980 through July 1984 then went to inactive reserve status until Nov. 1986 when I received an honorable discharge.
What Are Social Security Extra Earnings And Can I Get Them
According to the Social Security Administration, “your Social Security benefit depends on your earnings, averaged over your working lifetime. Generally, the higher your earnings, the higher your Social Security benefit. Under certain circumstances, special earnings can be credited to your military pay record for Social Security purposes.
The extra earnings are for periods of active duty or active duty for training. These extra earnings may help you qualify for Social Security or increase the amount of your Social Security benefit. If you served in the military after 1956, you paid Social Security taxes on those earnings. Since 1988, inactive duty service in the armed forces reserves has also been covered by Social Security. Under certain circumstances, special extra earnings for periods of active duty from 1957 through 2001 can also be credited to your Social Security earnings record.
- From 1957 through 1967, they will add the extra credits to your record when you apply for Social Security benefits.
- From 1968 through 2001, you dont need to do anything to receive these extra credits. The credits were automatically added to your record.
- After 2001, there are no special extra earnings credits for military service. The information that follows explains how you can get credit for special extra earnings and applies only to active duty military service earnings from 1957 through 2001.
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Military Veterans May Be Entitled To Extra Earnings
As mentioned above, servicemembers who have served on active duty between 1940 and 2001 are entitled to extra earnings that will boost their Social Security benefits. It is important that men and women who have served during these periods check to make sure credits have been added to their record. This happened automatically for military members who served between 1968 and 2001, but it is still a good idea to confirm you are receiving the full benefits for which you are entitled.
Cbos Approach To Analyzing Veterans Income
To quantify the income of Vietnam veterans and nonveterans, CBO analyzed ACS data from 2008 and 2018.20 The ACS is among the largest of the Census Bureaus surveys, reaching about 2 million households each year, and is designed to represent the entire U.S. population. Households in the ACS survey provide information on demographics, employment status, education, disabilities, and military service, among other topics. More than 75,000 male veterans who said they served during the Vietnam War were interviewed for the 2018 ACS.21
CBO chose the ACS after examining the Current Population Survey and the Survey of Income and Program Participation. The ACS covers more veterans than those surveys and is about as accurate, CBO concluded.
To determine VAs disability payments, CBO analyzed administrative data from VA, partly because VAs disability compensation is mingled with several other types of income in a residual category on the ACS.
CBO examined five sources of regular income: earnings, Social Security, retirement plans, investment income, and disability payments from VA. Onetime payments such as inheritances or home sales were excluded.22 The first four income sources CBO studied were common to all men the fifth, disability compensation, could only be received by veterans.
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Will Your Social Security Benefits Be Taxed
The government has established income thresholds to determine who pays taxes on benefits and those who will not. If half of your Social Security income, investment earnings, pension payments, tax-exempt interest and other wages surpass the threshold, you may find yourself owing taxes on benefits. The thresholds are determined by your filing status and may result in you owing taxes on 50% 85% of your benefits.
Increase Social Security Benefits By Delaying Your Payments
Good things come to those who wait. In general terms, you can increase Social Security benefits by waiting a few years to begin receiving them. If you accept your benefits after reaching your normal retirement age, youll get the full amount due to you with no reduction. You can even get additional Social Security credits be delaying your benefits start date after your normal retirement age. You will receive an additional percentage on your monthly Social Security check with each month you delay until you reach age 70.
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Military Service Years 1940 1956
One of the biggest concerns people have is regarding their time served between 1940 and 1956. Social Security taxes werent automatically taken out of military paychecks at that time. But the government has worked out a plan that will credit you with earnings of $160 for each month you served during those years. This applies to service from September 16, 1940, through December 31, 1956, as long as you meet certain requirements:
- You must have been honorably discharged after you had served a minimum of 90 days: or
- You were injured or were disabled in the line of duty and were released or
- Youre still active or
- You apply for survivor benefits because the veteran passed away during active duty.
There are other things that will be taken into consideration so be sure to ask the Social Security office for details.
In Which We Check Into Some Fun Facts About Social Security From A Facebook Meme Saying The Government Should Stop Messing With Retirement Benefits
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A Facebook meme making the rounds in 2017 lists several purported “fun facts” about Social Security aimed at countering arguments that the United States’ government-run retirement program needs to be scaled back in order to balance the federal budget:
Social Security Fun Facts:
* Social Security and Medicare are paid for with a separate tax. They add NOTHING to the national debt.
* Social Security has a $2.5 trillion SURPLUS.
* Congress has “borrowed” trillions from Social Security to pay for government spending.
So when the GOP says we need to cut Social Security in order to balance the federal budget… they’re lying.
Were it only so clear and simple. Unfortunately, many aspects of the Social Security system are misunderstood by the public and misrepresented by politicians, so it behooves us to put simplistic statements like these to the test.
Background
First, a little history: The concept of Social Security grew out of the perceived necessity to address economic changes brought about by the industrial revolution and the increasing urbanization of American life in the early 20th century, writes former Social Security Administration historian Larry DeWitt:
Company pensions came into existence in the late 1800s, but for most Americans working in the new industrial economy they were not an option:
Per the wishes of its greatest champion, Franklin D. Roosevelt, Social Security was conceived from the outset as a self-financing program:
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Social Security Payments To Vietnam Veterans And Nonveterans And Share Who Received Them 2018
Vietnam veterans claimed Social Security earlier and received about the same amount as nonveterans.
The Vietnam War ran from August 1964 to January 1973.
Shaded area denotes the largest three-year cluster of veterans who served in the Vietnam War . Veterans in that cluster probably served from 1966 to 1969, when forces were largest.
Social Security payments include retirement, disability, and survivors benefits, as well as payments made by the U.S. Railroad Retirement Board.
CBO did not adjust the data to account for characteristics other than age and veteran status.
Veterans average annual Social Security payment was $17,900, much higher than nonveterans $13,900 average payment. That is generally explained by the fact that more veterans than nonveterans received Social Security benefits. A larger share of veterans than nonveterans had turned 66 by 2018, the age at which they were eligible for full Social Security benefits.33 In addition, many veterans claimed Social Security benefits earlier than nonveterans .
When only men who received Social Security payments were considered, a small difference persisted, but only at certain ages and levels of income. Veterans who received payments collected, on average, $20,800 nonveterans collected $20,000, about $800 less.
Earnings Of Vietnam Veterans And Nonveterans And Share Who Worked 2018
Most men over age 65 no longer worked. Among those who did, Vietnam veterans earned less than nonveterans.
The Vietnam War ran from August 1964 to January 1973.
Shaded area denotes the largest three-year cluster of veterans who served in the Vietnam War . Veterans in that cluster probably served from 1966 to 1969, when forces were largest.
Earnings refer to wages, salaries, and self-employment income. Working individuals are those with nonzero earnings.
CBO did not adjust the data to account for characteristics other than age and veteran status.
The gap between veterans and nonveterans earnings for those who worked occurred partly because a large share of less-educated nonveteranswho probably had lower-wage jobshad left the workforce by 2018. Their departure raised the average wage for nonveterans who kept working. In addition, just half of working veterans were employed full time, compared with 62 percent of working nonveterans.
Because most men between the ages of 63 and 78 were not working, the average earnings among all of them were much lower: $14,900 for veterans and $28,200 for nonveterans. For men age 71, the difference was smaller: those averages were $12,400 and $18,800, respectively. However, earnings were becoming a smaller share of total income for all men in retirement.
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How Did Cbo Analyze Income
CBO used data from the Census Bureaus 2018 American Community Survey to estimate income from different sources for Vietnam veterans and nonveterans ages 63 to 78. The ACS is one of the biggest surveys that the Census Bureau administers, reaching roughly 1 in 40 U.S. households each year. CBO relied on the ACS because it samples a large number of veterans, and its data on income information are about as accurate as data from other national surveys that also report veteran status.
CBO examined the selected group of veterans and nonveterans at two points in time: 2008 and 2018. In 2008, most were still working but near the end of their careers. CBO calculated earnings in that year because earnings are closely linked to retirement income. At the second point, 2018, most of the group were no longer working. CBO did not quantify the potential effects of different factors such as education and work experience that strongly influence the amount and sources of income.
At the second point in time, 2018, CBO focused on four sources of income common to veterans and nonveteransearnings, Social Security, investments, and retirement plans. For veterans, the agency also calculated income with and without disability compensation paid by VA. In 2018, about 1.3 million Vietnam veterans ages 63 to 78 received that compensation because of medical conditions or injuries incurred during their military service. CBOs estimates of VAs disability payments relied on data from both the ACS and VA.
The Dd: A Vital Document For Those Discharged From The Military
The DD214 is a vital document and should be treated with the same care Social Security cards, marriage licenses, and birth certificates are. If you do lose your DD214, a copy can be requested. Since the form is so critical in accessing benefits, its a good idea to check now: do you have the form? If not, consider requesting it now before it becomes an emergency for yourself or your loved ones.
Interested in more information on Veteran death benefits and memorialization? Click the button below to download our complete guide.
I would like to take this opportunity to commend the… Read More
I would like to take this opportunity to commend the wonderful staff of Neptune Society for the excellent manner all of you performed before and after the passing of my wife, Dawn.
Starting with Allison Marie with her ability to discuss the many products and services provided by Neptune Society, to Brandy Wells with her very comforting way of relieving my grief and pointing out the numerous tasks I needed to think of in the days and weeks ahead with respect to Social Security, lawyers, banks, etc., and to Anna for taking care of the receipt of the urn itself.
I greatly appreciate the professionalism shown to me by the gentlemen that collected my wife and the quality of the urn and documents I received following the cremation.
Sincerely,
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