This section highlights some of the questions seniors have regarding the latest scams, identity theft, taxes, Medicare, Social Security, Senior Support Services, and other topics.
Question: Will there be an increase in my Social Security benefits in 2025?
Answer: YES, the Social Security Administration (“SSA”) announced a 2.5% increase in benefits due to the 2025 Cost of Living Adjustment (“COLA). This was reflected on your 2025 Social Security benefits. This boosted the average retiree's monthly payout (average = $1,733 in 2023) by approximately $50. This increase compares to the 3.2% cost of living increase in 2024 and a 8.7% increase in 2023.
Question: When should I receive all my 2025 Income Tax Forms?
Answer: Keep an eye out for these documents stating "IMPORTANT TAX INFORMATION". You should receive most of your forms like your Social Security statement (SSA-1099), 1099-R’s , W-2 (if you had a job last year), bank interest statements (1099-INT), Dividends (1099-DIV), etc. by February 2nd, 2026. But, if you sold any securities (e.g. common stock, bonds) during the year, the brokerage houses have until February 16th, 2026 to get the forms in the mail to you. BUT... don't be overly concerned if you haven't received all your documents by the above due dates. Sometimes the documents get delayed a few days. And… brokerage houses often issue corrected/updated statements after those dates.
Question: I've heard that New Jersey's Estate Tax went away? Is that true?
Answer: This is true! New Jersey eliminated its Estate Tax in 2 steps. Beginning January 1, 2017, the exemption increased from $675,000 to $2,000,000 ($2 Million). Beginning January 1, 2018, the New Jersey Estate Tax was totally eliminated. But, keep in mind, there is still a New Jersey Inheritance Tax that is imposed on certain recipients of the inheritance. Direct lineal heirs (e.g. parent, grandparent, spouse, child (including legally adopted and/or mutually-acknowledged child), grandchild (but NOT step-grandchild), great-grandchild, stepchild, civil union partner, domestic partner) are considered CLASS A beneficiaries and are exempt from the NJ Inheritance Tax. CLASS C includes a brother or sister of the decedent, spouse or surviving spouse of a child of the decedent, civil union partner or the surviving civil union partner of a child of the decedent). The first $25,000 is not taxed with tax rising from 11% to 16% depending on the amount inherited. CLASS E includes Qualified Charity, Religious Institution, Education/Medical Institution, Non-Profit, State of NJ or political subdivision. CLASS D is anyone (e.g. friend) not included in CLASS A, C, or E and is taxed at 15% for the first $700,000 and then 16% thereafter. (Note: There is no CLASS B Beneficiary Class as it was eliminated in 1963.)
Question: What is the earliest I can start to collect Social Security?
Answer: Normally, if you are not disabled, you may opt to take early Social Security (with reduced benefits; see next question) at age 62. Your full retirement age ("FRA") depends on your date of birth. It used to be 65 years old but, based on the fact that Americans are living longer, and in an effort to stabilize the Social Security platform for future generations, Congress is steadily increasing the FRA. For example, the FRA has increased to 67 years old for Americans born in 1960 and thereafter.
Question: OK. I can start to collect at age 62, BUT is this the BEST TIME to start my benefits?
Answer: Normally, assuming you are in good general health, the longer you can hold off before commencing your Social Security benefits, the better off you'll be financially. That's because if you start collecting at age 62, the Social Security Administration reduces your benefits by a set percentage for each month BEFORE YOU REACH YOUR FULL RETIREMENT AGE ("FRA"). This makes sense because you'll be receiving benefits for 3 to 5 years longer than someone who waited until their FRA. The maximum reduction at age 62 will be 25% for people who reached age 62 in 2013 and 30% for people born after 1959. For example, someone born in 1960 (whose FRA is 67 years old) that starts collecting Social Security at age 62 will have their monthly benefits reduced by a full 30%. If they waited until they were 63 to begin collecting, their benefits would be reduced by 25%, if 64 by 20%, if 65 by 13.3%, if 66 by 6.7%. So you can see, it makes financial sense to hold off commencing your Social Security benefits IF you can afford to AND IF you're in good health! You can delay starting your Social Security benefits until you reach Age 70. The benefit of delaying your collection of Social Security is that you will receive 8% more each year from your FRA year (e.g. 67) until you reach age 70 (an extra 24% per month).
Question: What are the details of New Jersey’s Property Tax Relief Programs, including the new ‘STAY NJ’ program??
Answer: Certain NJ residents, those over the age of 18 (for the ANCHOR program) and age 65 or older (for possibly all three programs), as well as disabled residents, may be eligible for one or all of three NJ Property Tax Assistance Programs. The programs are: the NJ ANCHOR Program, the NJ Senior Freeze Program, and ‘Stay NJ’. There is a SINGLE application, called the “PAS-1” you must file (either by computer OR by mail) by October 31, 2025. TIP: Please file as SOON as possible to ensure the NJ Division of Taxation receives your application well before the deadline. Filing early will also get you your benefits earlier as they are paid on a rolling basis according to submission date…
Here is the website with more information and the requirements for each property tax relief program.
https://www.nj.gov/treasury/taxation/relief.shtml
TIP: There are two additional benefits to filing your PAS 1 online (using a computer). If you file online, you will receive a confirmation number proving you successfully filed AND you may choose to set up DIRECT DEPOSIT of your benefits. The Direct Deposit option is NOT available if you file by MAIL due to confidential banking information (bank routing number and account number).
UPDATE AS OF JULY 22, 2025 - Several of my clients have informed me they have received their NJ Senior Freeze benefits, either by check or by direct deposit, over the past two days. As stated before, the benefits will be paid out on a rolling basis according to when an individual successfully filed their PAS-1.
Question: What are the most important next steps when a Senior loses their spouse or loved one?
Answer: This is a particularly stressful time for all concerned. The Funeral Director can provide useful suggestions and assistance during this time of need. They often will take on the task of notifying the Social Security Administration of the death. They typically provide (for a per-certificate fee) multiple copies (5-10) of the Death Certificates. Death certificates are required to claim life insurance benefits, transfer assets, probate the Will (if necessary), etc. Contact all former employers of the decedent as the family may be eligible to receive death benefits. Notify administrators of Life Insurance policies. Did decedent serve in U.S. Military? If so, he/she may be eligible for military benefits. Have safe deposit box? Review all assets to determine if held jointly vs individually. Individually-owned assets may require probating of the Will whereas, if all assets were jointly-owned by spouses, probation of the Will may not be required. It is also recommended that the spouse review all their financial holdings to ensure they have proper and updated beneficiary designations, both before AND following the death of a loved one. This is to ensure the assets go to the intended parties, and to the extent possible, are not tied up in the legal probate process.
Question: When MUST I enroll in Medicare?
Answer: You MUST enroll in Medicare within a 7 month window beginning three (3) months BEFORE you turn 65 years old, the month of your birthday, and three months after. If you enroll after this timeframe, you will be required to pay a late enrollment penalty for the rest of your life! You must enroll in Medicare once you turn 65 years old EVEN IF YOU ARE NOT YET COLLECTING SOCIAL SECURITY BENEFITS.