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How Can I Find Out My Social Security Benefits Amount

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Can Your Pia Change After You Reach Age 62

How to Calculate Your Social Security Benefits

There are two things that affect your PIA after you reach age 62:

  • Higher earnings: Earnings in years between age 62 and 70 that are higher than one of the 35 highest earnings years previously used in the formula will change your AIME which is used in the PIA formula.
  • Inflation: Your PIA will be adjusted by the same cost-of-living adjustments applied to people who are already receiving Social Security benefits. You can see historical cost-of-living adjustment rates on the Social Security Administration’s website.
  • You may get the wrong answer when running your own calculations on when to begin Social Security if you simply take the numbers off your statement and do not properly apply inflation adjustments.

    Reporting Changes To Your Case

    You must report changes that may impact your benefits. The following reporting requirements apply to all SSP/SSPNA recipients:

    Your SSP and SSPNA eligibility as well as benefit amount is based on information received from the Social Security Administration as well as information reported to New York State .

    Your failure to report changes and/or to report any changes in a timely manner may result in a possible suspension, discontinuance, or reduction of your benefits. You may also have to repay benefits that you improperly received as a result of not reporting changes as required.

    What If I Continue Working In My 60s

    Many people whose health allows them to continue working in their 60s and beyond find that staying in the workforce keeps them young and gives them a sense of purpose. If this sounds like something youâd like to do, know that working after claiming early benefits may affect the amount you receive from Social Security. Why? Because the Social Security Administration wants to spread out your earnings so you donât outlive them. If you claim Social Security benefits early and then continue working, youâll be subject to whatâs called the Retirement Earnings Test.

    If youâre between age 62 and your full retirement age, and youâre claiming benefits, you need to know about the Earnings Test Exempt Amount, a threshold that changes yearly. For 2021, the Retirement Earnings Test Exempt Amount is $18,960/year . If youâre in this age group and claiming benefits, then every $2 you make above the Exempt Amount will reduce by $1 the Social Security benefits you’ll receive.

    Contrary to popular belief, this money doesnât disappear. It gets credited back to you – with interest – in the form of higher future benefits. You may hear people grumbling about the Social Security âEarnings Taxâ, but itâs not really a tax. Itâs a deferment of your benefits designed to keep you from spending too much too soon. And after you hit your full retirement age, you can work to your heartâs content without any reduction in your benefits.

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    If Your Income Changes

    Your income may change due to several factors. Find out how to determine your income.

    Contact us if you have a lower annual income due to retirement or if other pension benefits are reduced or stopped.

    In these cases, we can set your benefit payment by estimating your income for the current year instead of using last years income.

    What Else Affects Your Retirement Benefits

    Social Security Benefits  The Kid Picked Last for Dodgeball

    Everyones retirement is unique. Beyond deciding when to begin receiving retirement benefits, other factors that can affect your benefits include whether you continue to work, what type of job you had, and if you have a pension from certain jobs.

    Continuing To Work

    You can choose to keep working beyond your full retirement age. If you do, you can increase your future Social Security benefits. Each extra year you work adds another year of earnings to your earnings record. Higher lifetime earnings can mean higher benefits when you choose to receive benefits.

    Specific Types Of Earnings

    While Social Security earnings are calculated the same way for most American workers, there are some types of earnings that have additional rules:

    • Farm Work

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    Earn Ssa Work Credits In Some Countries

    You may not have enough credits from your work in the United States to qualify for retirement benefits. But, you may be able to count your work credits from another country. The SSA has agreements with 24 countries. If you earned credits in one of those countries, they can help you qualify for U.S. benefits.

    How Do You Calculate Your Own Social Security Payment

    Now that we have talked about the average Social Security check, you are probably wondering how you can determine how much your own personal benefit will be. That requires digging a little deeper into the question, How is Social Security calculated? There are several factors that go into calculating your specific payment.

    There are also many steps that go into the overall calculation. Youll need to calculate your average indexed monthly earnings , determine your bend points, factor in any adjustments to your primary insurance amount , and a few other things. This might seem overly complicated, but we plan to spell it out for you so that it is easy to understand. Take things one step at a time, and you are sure to reach a result that is very close to your actual payment amount.

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    Who Can Qualify For Social Security Benefits

    To qualify for Social Security retirement benefits, in most cases:

    • You must be 62+ years old, or disabled/unable to work, and
    • You must have sufficient credits earned throughout your working life.3

    To qualify for Social Security spousal retirement benefits:

    • You must be married to a retired worker , and
    • You must have a child under age 16 or a disabled child in your care, or
    • You are 62+ years old.2

    To qualify for Social Security disability benefits if you are under the age of 62:

    • You must be 18+ years old and unable to work due to physical or mental disability, and
    • Your condition is expected to last at least a year or may result in death.3

    You may still qualify for Social Security disability benefits without earning the required 40 credits, depending on the circumstances. Your lifetime earnings and benefits help determine your monthly disability benefit amount.

    To qualify for Social Security survivors benefits:

    • You must be a widow or widower who is 60+ years old , or
    • You must be a widow or widower caring for the deceaseds child who is under the age of 16 or disabled, or
    • You must be a surviving divorced spouse , or
    • A dependent parent who is 62+ years old, or
    • You must be an unmarried child of the deceased and are:
    • Under 18 years old , or
    • 18+ years old with a disability that occurred before you turned 22.3

    For Individuals Who Only Receive Ssp Benefits:

    How much your Social Security benefits will be if you make $30,000, $35,000 or $40,000

    If you receive only SSP benefits, you will report your changes directly to NYS SSP.

    Examples of changes that must be reported include, but are not limited to:

    • Change of residence and/or mailing address
    • Improvement of a disability
    • Income or employment changes
    • Change in countable resources that exceed $2000 for an individual, or $3000 for an SSI/SSP couple
    • Change in living arrangement or household composition, including the death of a household member or changes to who is living in the household. Please note that a change in who is in the household must be reported even if your address has not changed.

    The changes listed above must be reported to NYS SSP within ten calendar days of the date of the change.

    You should also tell NYS SSP about the following changes as soon as you know about them:

    • Changes in bank account information
    • Changes in your payee
    • Changes in who you wish to allow to receive information about your benefits

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    What If You Live Abroad

    Most U.S. citizens who live in foreign countries after they retire can receive Social Security benefits. However, the U.S. government will not send Social Security payments to those living in Cuba or North Korea. Additionally, Americans living in Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan must qualify for an exception in order to receive benefits while living abroad.

    Check Different Claiming Ages

    If you don’t like the benefit estimate you see for claiming at 62, try testing other claiming ages. You can also do this right from your account, using the slider below the benefit chart. Move the slider to age 63, for example, and you’ll see a new, higher benefit estimate. Move it again to 63 and 1 month, and the benefit goes up again.

    Here’s how the math works. You qualify for your full benefit at FRA. When you claim early, your benefit is reduced according to the number of months until you reach FRA. For the first 36 months, the monthly reduction is five-ninths of 1%. For any months beyond 36, the monthly reduction is five-twelfths of 1%. Delaying your claim for even one month translates to higher Social Security income, because you reduce the number of monthly reductions applied to your benefit.

    Read Also: At What Age Can I Claim Social Security

    How Much Are My 2022 Social Security Payments

    The 2021 average monthly benefit for all retired workers was $1,565. A 5.9% increase will raise the average benefit to about $1,657, which is about $100 a month. For disabled workers who receive Social Security benefits, they can expect an average increase of $76 per month.

    The average 2021 monthly benefit for SSI is $794 per month and is expected to increase to $841 for 2022, an increase of $47. About 3 million Americans who receive both Social Security and SSI benefits will also benefit from these changes.

    SSA will notify those who receive Social Security benefits and SSI about their new benefit amounts by mail and online starting in December.

    Apply For Social Security Survivor Benefits

    Social Security and Index Universal Life Services

    You may also be able to increase your monthly retirement paycheck using Social Security survivor benefits.

    If youre widowed and your deceased spouses benefit was higher than your retirement benefit, you are generally able to claim the higher of the two, says Brotman.

    Experts recommend higher-earning spouses wait as long as possible to claim benefits, since it can prepare a lower-earning spouse for a bigger benefit as a widow or widower. Unlike spousal benefits, which are based on the unadjusted PIA and when the nonworking spouse chooses to start benefits, survivor benefits are determined by the amount the earning spouse actually received if they die after starting benefits.

    When a couple is collecting benefits and one spouse dies, the surviving spouse typically receives the higher of the two benefit payments moving forwardbut not both, says Brotman. That means youll want to consider age disparity, life expectancy, the health of each spouse and the benefit amounts available for each spouse to try to maximize your benefits, both while youre both living and when one of you is widowed.

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    Work For At Least 35 Years

    The Social Security Administration uses your 35 highest-earning years to calculate your primary insurance amount , which is the monthly benefit amount you receive as of your full retirement age. If youve worked fewer than 35 years, Social Security uses zeroes in the calculation for the non-earning years.

    That means beneficiaries with fewer than 35 years of income can make a big difference in the size of their benefit by continuing to work and getting some of the zeroes replaced with positive income numbers.

    Brotman also suggests strategically increasing your yearly income, if possible, to help maximize your future benefits.

    The first $142,800 of income is subject to Social Security taxation and also used to calculate future benefits, he notes. If you are earning less than that figure, consider a second job or side hustle to increase your contributions into the system and youll be setting yourself up for a larger future benefit.

    If You’re Not Sure Why You Received A Payment

    If you receive a check or direct deposit payment from the Treasury Department and do not know what its for, contact the regional financial center that issued it.

    If you received a check, look for the RFCs city and state at the top center. Then contact that RFC to find out which federal agency authorized the payment. It will be one of these:

    If you received payment byelectronic funds transfer , or direct deposit, follow the directions under Find Information About a Payment.

    Use the Treasury Check Verification System to verify that the check is legitimate and issued by the government.

    Also Check: When To Get Social Security

    List Each Year’s Earnings

    Your earnings history is shown on your Social Security statement, which you can now obtain online.

    In the table below, sample earnings for a hypothetical worker born in 1953 are shown in Column C. Only earnings below a specified annual limit are included. This annual limit of included wages is called the “Contribution and Benefit Base” and is shown as Max Earnings in Column H in the table.

    Aarps Social Security Benefits Calculator

    3 Ways To Find Out Your Social Security Disability Check Amount

    The AARPs Social Security Benefits calculator can help you determine how much your monthly benefit will be, depending on when you begin to claim your benefits. It will also take into account the living expenses of the average retiree. The calculator also allows you to input income for yourself and your spouse. It also shows how much you can expect to receive in retirement.

    The calculator is best suited for individuals, though married couples with only one worker need to use it twice. The calculator will round up your full retirement age to the nearest whole year. However, there are some years with more specific retirement ages. Therefore, you may need to use more than one tool to determine the amount of your benefit. If you plan to claim your benefits with your spouse, you should visit AARPs website.

    The Social Security Administrations online Social Security Benefits Calculator is another option. This tool helps you calculate your monthly Social Security benefits based on your earning history. The closer you are to retirement, the more accurate the calculation is based on average earnings for men and women. However, the calculator isnt perfect, so use it cautiously.

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    How To Calculate Social Security Benefits

    This article was written by Jennifer Mueller, JD. Jennifer Mueller is an in-house legal expert at wikiHow. Jennifer reviews, fact-checks, and evaluates wikiHow’s legal content to ensure thoroughness and accuracy. She received her JD from Indiana University Maurer School of Law in 2006.There are 10 references cited in this article, which can be found at the bottom of the page. This article has been viewed 57,271 times.

    Understanding how much you’ll receive each month in Social Security benefits is a big part of retirement planning. The average is around $16,000 a year, but the actual amount you’ll receive depends on how much money you’ve put into the system. The Social Security Administration and other groups have online calculators that can help you estimate your benefits, but to calculate them more exactly you’ll have to calculate your average indexed monthly earnings to find your primary insurance amount. This amount must then be adjusted up or down to account for the age you decide to retire.XResearch source

    Your May Have To Pay Taxes On Social Security Benefits

    Most people know that you pay tax into the Social Security Trust Fund throughout your career, but some retirees don’t realize that you also have to pay tax on your Social Security benefits once you start taking them. Benefits lost their tax-free status in 1984, and the income thresholds for triggering tax on benefits haven’t been increased since then.

    It doesn’t take a lot of income for your Social Security benefits to be taxed. For example, a married couple with a combined income of more than $32,000 may have to pay income tax on up to 50% of their Social Security benefits. Higher earners may have to pay income tax on up to 85% of their benefits.

    You may also have to pay state income taxes on your Social Security benefits. See our list of the 12 States That Tax Social Security Benefits.

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    If You Have Lived In Canada Less Than 40 Years

    Not everyone receives the full Old Age Security pension. The amount you receive depends on the number of years you have lived in Canada.

    If you lived in Canada for less than 40 years you will receive a partial payment amount. Your payment amount is based on the number of years in Canada divided by 40.

    You can delay your first payment up to 5 years to get a higher amount.

    Example

    If you lived in Canada for 20 years

    If you lived in Canada for 20 years after age 18, you would receive a payment equal to 20 divided by 40, or 50%, of the full Old Age Security pension.

    Other Benefits Will Be Delayed If You Delay Your Old Age Security Payment

    Social Security Spousal Benefits: The Complete Guide

    If you are not in receipt of the Old Age Security pension:

    • you cannot get the Guaranteed Income Supplement
    • your spouse cannot apply for the Allowance

    Note: The Guaranteed Income Supplement and Allowance amounts dont increase when you delay receiving Old Age Security pension payments. You cannot receive the Guaranteed Income Supplement and your partner cannot receive the Allowance when you are not receiving the Old Age Security pension.

    When monthly increases are not applied

    If you decide to delay receiving the Old Age Security pension, you will not receive monthly increases during any month where you are:

    • in federal prison as a result of a sentence of 2 years or longer
    • outside Canada, have less than 20 years of residence in Canada and do not qualify under an international social security agreement

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