Signing up for Social Security
According to the Social Security Administration, you should
apply for Social Security benefits approximately three months before your
retirement date. To apply for Social Security benefits, you can fill out an
application online or call or visit your local Social Security office. You can
also call the SSA at (800) 772-1213 to discuss your options or to get more
information about the application process.
| | Social Security Retirement Benefit Basics
Social Security benefits are a major source of retirement
income for most people. Your Social Security retirement benefit is based on the
number of years you've been working and the amount you've earned. When you
begin taking Social Security benefits also greatly affects the size of your
benefit.
How do you qualify for retirement benefits?
When you work and pay Social Security taxes (FICA on some
pay stubs), you earn Social Security credits. You can earn up to 4 credits each
year. You need at least 40 credits (10 years of work) to be eligible for
retirement benefits.
How much will your retirement benefit be?
The Social Security Administration (SSA) calculates your
primary insurance amount (PIA), upon which your retirement benefit will be
based, using a formula that takes into account your 35 highest earnings years.
At your full retirement age, you'll be entitled to receive that amount. This is
known as your full retirement benefit. Because your retirement benefit is based
on your average earnings over your working career, if you have some years of no
earnings or low earnings, your benefit amount may be lower than if you had
worked steadily.
Your age at the time you start receiving benefits also
affects your benefit amount. Although you can retire early at age 62, the
longer you wait to begin receiving your benefit (up to age 70), the more you'll
receive each month.
You can estimate your retirement benefit under current law
by using the benefit calculators available on the SSA's website,
ssa.gov.
You can also sign up for a my Social Security account so that you can
view your online Social Security Statement. Your statement contains a detailed
record of your earnings, as well as estimates of retirement, survivor, and
disability benefits. If you're not registered for an online account and are not
yet receiving benefits, you'll receive a statement in the
mail every year, starting at age 60.
Retiring at full retirement age
Your full retirement age depends on the year in which you
were born. If you retire at full retirement age, you'll receive an unreduced
retirement benefit.
If you were born in: | Your full
retirement age is: | 1956 | 66 and 4 months | 1957 | 66 and 6 months | 1958 | 66 and 8 months | 1959 | 66 and 10 months | 1960 or later | 67 |
Note:
If you were born on January 1 of any year, refer to the
previous year to determine your full retirement age.
Retiring early will reduce your benefit
You can begin receiving Social Security benefits before your
full retirement age, as early as age 62. However, if you begin receiving
benefits early, your Social Security benefit will be less than if you wait
until your full retirement age to begin receiving benefits. Your retirement
benefit will be reduced by 5/9ths of 1% for every month between your retirement
date and your full retirement age, up to 36 months, then by 5/12ths of 1%
thereafter. This reduction is permanent — you won't be eligible for a benefit
increase once you reach full retirement age. However, even though your monthly
benefit will be less, you might receive the same or more total lifetime
benefits as you would have had you waited until full retirement age to start
collecting benefits. That's because even though you'll receive less per month,
you might receive benefits over a longer period of time.
Delaying retirement will increase your benefit
For each month that you delay receiving Social Security
retirement benefits past your full retirement age, your benefit will
permanently increase by a certain percentage, up to the maximum age of 70. For
anyone born in 1943 or later, the monthly percentage is 2/3 of 1%, so the
annual percentage is 8%. So, for example, if your full retirement age is 67 and
you delay receiving benefits for 3 years, your benefit at age 70 will be 24%
higher than at age 67.
Monthly benefit example
The following chart illustrates how much a monthly benefit
of $2,000 taken at a full retirement age of 67 would be worth if taken earlier
or later than full retirement age. For example, as this chart shows, this
$2,000 benefit would be worth $1,400 if taken at age 62, and $2,480 if taken at
age 70.
This hypothetical illustration is based on Social Security
Administration rules. Actual results will vary.
Working may affect your retirement benefit
You can work and still receive Social Security retirement
benefits, but the income that you earn before you reach full retirement age may
temporarily affect your benefit. Here's how:
- If you're under full retirement age for the entire year,
$1 of your benefit will be withheld for every $2 you earn over the annual
earnings limit ($23,400
in 2025)
- A higher earnings limit applies in the year you reach full
retirement age, and the calculation is different, too — $1 of your benefit will
be withheld for every $3 you earn over $62,160
(in 2025)
Once you reach full retirement age, you can work and earn as
much income as you want without reducing your Social Security retirement
benefit. And keep in mind that if some of your benefits are withheld prior to
your full retirement age, you'll generally receive a higher monthly benefit at
full retirement age, because after retirement age the SSA recalculates your
benefit every year and gives you credit for those withheld earnings.
Retirement benefits for qualified family members
Even if your spouse has never worked outside your home or in
a job covered by Social Security, he or she may be eligible for spousal
benefits based on your Social Security earnings record. Other members of your
family may also be eligible. Retirement benefits are generally paid to family
members who relied on your income for financial support. If you're receiving
retirement benefits, the members of your family who may be eligible for family
benefits include:
- Your spouse age 62 or older, if married at least 1 year
- Your former spouse age 62 or older, if you were married at
least 10 years
- Your spouse or former spouse at any age, if caring for
your child who is under age 16 or disabled
- Your children under age 18, if unmarried
- Your children under age 19, if full-time students (through
grade 12) or disabled
- Your children older than 18, if severely disabled
Your eligible family members will receive a monthly benefit
that is as much as 50% of your benefit. However, the amount that can be paid
each month to a family is limited. The total benefit that your family can
receive based on your earnings record is about 150% to 180% of your full
retirement benefit amount. If the total family benefit exceeds this limit, each
family member's benefit will be reduced proportionately. Your benefit won't be
affected.
For more information on retirement benefits or the
application process, contact the Social Security Administration at (800)
772-1213 or visit ssa.gov. |