Monday, May 16, 2022

How Old Are You When You Get Social Security

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How to Get More Social Security When You Retire

Old Age Security pension amounts January to March 2022

Maximum monthly payment amountTo receive the OAS your annual income must be

Find out more about Old Age Security payment amounts.

The Old Age Security pension is reviewed in January, April, July and October to reflect increases in the cost of living as measured by the Consumer Price Index. Your monthly payment amount will not decrease if the cost of living goes down.

Social Security Retirement Age : If You Are A Widow/widower

If you are a widow or widower, you can receive Social Security retirement benefits as early as 60. If you have not reached your full retirement age, and you are still working and earn more than the earnings limit, your benefits will be reduced. Once you reach full retirement age, no more reductions will apply, regardless of how much you work and earn. Those working will want to consider waiting until their full retirement age to begin widow/widower benefits.

One option available to widows/widowers is to file a restricted application, which means you can begin one type of benefit, such as a survivor benefit then when you reach 70, you can switch over to your retirement benefit amount if it would be larger.

What Is Social Security

Social Security is the blanket name for several federal benefit programs that tens of millions of Americans depend on for a monthly stipend. The Social Security Administration pays benefits to eligible seniors, their dependents and survivors and people with certain medical conditions. Though there is some overlap between these groups, the support programs intended for each are separately administered and each has its own eligibility requirements.

Also Check: How Many Years Earnings Is Social Security Based On

Can I Work After Full Retirement Age

Beneficiaries are free to continue working while taking their Social Security benefits, no matter what age they start taking those benefits. However, working and taking Social Security benefits before reaching full retirement age may affect your benefits.

If you start taking Social Security early but keep working, youre subject to whats called an earnings test. For every $2 you earn over $18,960, you will see $1 withheld in Social Security benefits. And in the year you reach full retirement age, this limit changes to $1 in benefits for every $3 you earn above $50,520 up to the month of your birthday.

Once you reach full retirement age, though, you can keep every dollar of your Social Security benefits, no matter how much income you bring in. Your future benefits will also be adjusted to include the money that the earnings test previously factored out.

Working After Full Retirement Age Faq

How Much Can You Earn Without Losing Your Social Security ...

Retirees may work while collecting Social Security benefits, but those younger than their FRA will be subject to the retirement earnings test .

Under this test, if your earnings exceed a certain limit , you will temporarily forfeit some or all of your benefits. Once you reach full retirement age, your benefit is recalculated and you may receive most of that money back.

Also Check: When Do I Get My Social Security

Claiming Social Security Early Reduces Benefits

You can claim your Social Security retirement benefits as early as 62 but you will receive a smaller amount if you do that. How much your benefits will be reduced depends on your age when you claim Social Security. For example, lets say you are eligible for 100% of your benefits at age 67, which is the full retirement age for anyone born in or after 1960:

  • If you claim Social Security early at age 62, your benefit will be reduced by 30%
  • If you claim early at age 63, your benefit will be reduced by 25%
  • If you claim early at age 64, your benefit will be reduced by 20%
  • If you claim early at age 65, your benefit will be reduced by 13.3%
  • If you claim early at age 66, your benefit will be reduced by 6.7%

Under this example, if you were eligible for $1,000 a month at your full retirement age of 67 then the benefit would be reduced to $700 a month if you claimed at 62 $750 if you claimed at 63 and so on, according to the Social Security Administration. The reduction is calculated each month, not on a yearly basis, so every month you wait after age 62 will mean a slightly bigger Social Security check.

Calculate My Social Security Income

These days thereâs a lot of doom and gloom about Social Securityâs solvency – or lack thereof. And regardless of whether you think Social Securityâs future is secure, the fact remains that you shouldnât plan on living exclusively off your Social Security benefits. After all, Social Security wasnât designed to make up a retireeâs entire income.

Still, many people do find themselves in the position of having to live off their Social Security checks. And even if you have other income sources in retirement, Social Security can make up a significant part of your retirement income plan. That’s why itâs important to know all the rules surrounding eligibility, benefit amounts, taxation and more.

Do you need help managing your retirement savings? To find a financial advisor near you, try our free online matching tool.

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Should You Take Social Security At Full Retirement Age

There are tons of factors to consider in deciding when to start your Social Security benefits.

For people with serious health problems, it might make sense to start benefits early. Someone who was disabled before full retirement age and can no longer work might consider forgoing a higher monthly benefit to start collecting monthly Social Security benefits immediately. Meanwhile, maximizing Social Security benefits is a strategy thats most relevant for people who expect to live longer than average.

Consider a hypothetical beneficiary who lives to 79, which is the average American life expectancy:

If they started collecting Social Security at age 62, with a $1,400 monthly payment, they would receive a lifetime total of $285,600 in benefits.

If they waited until their full retirement age, theyd receive a $2,000 monthly benefit, for a lifetime total of $300,000.

If they waited as long as possible to claim benefitsto age 70they would get a monthly benefit of $2,600, or a lifetime total of $280,000.

For this hypothetical American, no matter when they choose to start receiving Social Security benefits, the differences in lifetime total benefits isnt very large. Deciding when to start Social Security isnt always as simple as aiming to maximize your monthly payment.

A Child May Be Eligible For Benefits Based On A Parent’s Work Record

Heres How Much Money Youll Get From Social Security

    Social Security is usually associated with monthly payments to retirees. But there is another important facet to Social Security benefitsproviding financial assistance to children. Children may qualify for benefits if a parent is retired, disabled, or diseased.

    Children who are disabled may be eligible for Supplemental Security Income , a separate program that’s also run by the Social Security Administration . Here’s the lowdown on who qualifies for what.

    Read Also: Social Security At 66 Years Old

    Tax Considerations For Social Security Benefits

    How do these tax considerations affect when you should apply for Social Security benefits? At todays , they may not have much of an impact on most people. Still, tax rates and income thresholds can change, so its worth remembering that you will lose less of your Social Security to taxes if you are in a lower marginal tax bracket when you begin to collect.

    You should also note that if you decide to return to work, even part-time, and arent yet at your FRA, your Social Security benefits may be temporarily reduced. The reduction is $1 for every $2 of earned income over $18,960 in 2021 . During the year when you reach your FRA, your benefits will be reduced by $1 for every $3 in income over $50,520 in 2021 until the month when you become fully eligible. That money isnt lost, however. The SSA will credit it to your record when you reach your FRA, resulting in a higher benefit.

    Do Survivor Benefits Increase After Full Retirement Age

    If you are the surviving spouse who is claiming benefits based on your deceased partner’s work record, there is no benefit to waiting until after FRA to claim your benefits. You do not earn delayed retirement credits, so your benefit will not increase.

    However, if you are the higher-earning spouse, delaying your claim for benefits until after FRA can result in your widow receiving more monthly income, as your widowed partner will receive the higher of the two monthly benefits you were each receiving.

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    If You Are Still Working And Receiving Old Age Security Payments

    If you are still working and your income is higher than $79,054 , you will have to repay part of your Old Age Security pension payment. Delaying your first payment can let you keep more of your pension.

    If you are planning on receiving the Guaranteed Income Supplement and your income is less than what you reported on your tax form last year, contact us.

    What If I Delay Taking My Benefits

    How Do You Get A Social Security Card

    If you retire sometime between your full retirement age and age 70, you typically earn a “delayed retirement” credit . For example, say you were born in 1955 and your full retirement age is 66 and 2 months. If you started your benefits at age 68, you would receive a credit of 8% per year multiplied by approximately two . This makes your benefit ~15% higher than the amount you would have received at age 66.

    That higher baseline lasts for the rest of your retirement and serves as the basis for future increases linked to inflation. While it’s important to consider your personal circumstancesit’s not always possible to wait, particularly if you are in poor health or can’t afford to delaythe benefits of waiting can be significant.

    If you decide to wait past age 65, you may still need to sign up for Medicare. In some circumstancesyour Medicare coverage may be delayed and cost more if you do not sign up at age 65.

    Effect of late retirement on benefits

    1.Represents Full Retirement Age based on DOB Jan. 2, 1955

    2.PIA = The primary insurance amount is the basis for benefits that are paid to an individual

    To review your situation, your annual Social Security statement will list your projected benefits at age 62, full retirement age, and age 70, assuming you continue to work and earn about the same amount until age 62, full retirement age, or age 70 before retiring. If you need a copy of your annual statement, you can request one from the Social Security Administration .

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    When Does A Senior Citizen On Social Security Stop Filing Taxes


    The IRS typically requires you to file a tax return when your gross income exceeds the standard deduction for your filing status. These filing rules still apply to senior citizens who are living on Social Security benefits. If Social Security is your sole source of income, then you don’t need to file a tax return.

    Millions Of Americans To Get $1657 Social Security Payments Today See If Youre Getting Cash

    • 8:18 ET, Feb 16 2022

    MILLIONS of seniors are getting Social Security payments worth up to $1,657 today.

    Those born between the 11th and 20th of the month will get the benefit.

    Retirees get SS payments worth up to $1,657 on average this year as the amount increased in line with the 5.9 percent cost-of-living adjustment rise.

    The benefits increased by $92 from 1,565 and seniors can start claiming the cash between the ages of 62 and 70.

    Those between the ages of 66-67 could get up to $3,345 per month.

    But some seniors could get the maximum SS amount of $4,194 if they meet certain criteria.

    Retirees must wait until 70 before claiming the benefit and they mustve worked in Social Security approved jobs for at least 35 years.

    Read Also: What Are Social Security Earnings

    How To Claim Social Security At 65

    If you are eligible for Social Security benefits of any kind, you can apply in several ways. The SSA offers online enrollment through its website, where seniors and their surviving spouses and dependents can download and submit application forms.

    Seniors can also apply for Social Security over the phone by calling 772-1213 325-0778). In 2020, Social Security offices may be closed to the general public in response to the COVID-19 pandemic, though most offices do remain open for in-person visits by appointment only.

    Special Rule As You Approach Full Retirement Age

    Should you take your Social Security benefits at age 62?

    If you are already receiving your retirement benefits, a special higher earnings limit applies in the calendar year you turn your full retirement age . If you will reach full retirement age in 2021, you can earn up to $4,210 per month without losing any of your benefits, up until the month you turn 66. But for every $3 you earn over that amount in any month, you will lose $1 in Social Security benefits. Beginning in the month you reach full retirement age, you become eligible to earn any amount without penalty.

    If you are self-employed, you may receive full benefits for any month during this first year in which you did not perform what Social Security considers “substantial services.” The usual test for whether you worked substantial services is whether you worked in your business more than 45 hours during the month . In other words, if you work in your business more than 45 hours in a month, Social Security may reduce your benefit.

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    Options For Approval When The Grids Say Not Disabled

    Even if the grids say you should be denied benefits, you can still win your claim by showing your limitations actually prevent you from doing the kind of work the SSA says you can do.

    One way to win is to prove you cannot even do a sit-down job. For instance, if the SSA denied you benefits because you had a sedentary RFC, a college education, and transferable job skills, you could appeal and prove that your inability to use your hands and fingers don’t allow you to do any sit-down jobs. For more information, see our article on not being able to do sedentary work.

    If the grids say that you have transferable skills but your functional limitations prevent you from using them, you can “reverse” the grid’s determination. For more information, see our article on proving you don’t have transferable job skills.

    You can also be approved if you can show that you have a combination of exertional and non-exertional limitations that prevent you from working. For instance, if you have an RFC for light work, but you can’t stoop or reach overhead, you won’t be able to do many light jobs. Non-exertional limitations also include mental limitations such as difficulty with memory or understanding directions. For more information on how to win a claim using this strategy, see our article on combining exertional and non-exertional limitations to show disability.

    How To Receive Benefits

    You can apply for benefits by calling 800-772-1213 or by visiting your local Social Security office. The family must present the child’s birth certificate, the parents’ Social Security numbers , and the child’s Social Security number. Additional documents may also be required. In relevant cases, the applicant must provide a parent’s death certificate and/or evidence of disability from a doctor.

    If you are taking care of a child and are receiving Social Security benefits for that reason, the child’s benefits may stop at a different time from your own. For example, if your child is not disabled, your benefits will end when the child turns 16 years old. If the child is disabled and you have responsibility for them, your benefits may continue. For these types of specific circumstances, its best to contact the Social Security Administration for guidance.

    If your child is disabled, the Social Security Administration offers a Disability Starter Kit that can help you navigate the process of applying for benefits.

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    How To Calculate Social Security Benefits

    Lets say your FRA is 66. If you start claiming benefits at age 66 and your full monthly benefit is $2,000, then youll get $2,000 per month. If you start claiming benefits at age 62, which is 48 months early, then your benefit will be reduced to 75% of your full monthly benefitalso called your primary insurance amount. In other words, youll get 25% less per month, and your check will be $1,500.

    That reduced benefit wont increase once you reach age 66. Rather, youll continue to receive it for the rest of your life. It may go up over time due to cost-of-living adjustments , but only slightly. You can do the math for your own situation using the Social Security Administration Early or Late Retirement Calculator, one of a number of benefit calculators provided by the SSA that can also help you determine your FRA, the SSAs estimate of your life expectancy for benefit calculations, rough estimates of your retirement benefits, individualized projections of your benefits based on your personal work record, and more.

    Although the cost-of-living adjustments announced each year are usually only slight increases, Social Security benefits will increase by 5.9% in 2022, marking the largest increase since 1982.

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