Monday, May 16, 2022

How To Start Applying For Social Security

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I Need Income Now Why Wait To Claim Social Security

When You Should Apply for Social Security to Maximize Your Benefits!

Your claiming age matters a great deal. You can file as early as 62, but your annual benefit will be higher for every year you wait, until 70.

Social Security uses an actuarial formula tied to your full retirement age the point at which you can claim 100 percent of the benefit youve earned over the course of your working life. For example, if you turn 62 this year, your full retirement age is 66 and 8 months.

If you file before your full age, your benefit will be reduced as much as 6.7 percent annually, depending on when you claim. The bite is bigger than in the past because of changes enacted in 1983, when a gradual increase in the full retirement age from 65 to 67 was set in motion. Those increases, which still are being phased in, effectively set the bar higher for claiming a full benefit.

Filing at 62 this year means youll receive 72 percent of your full benefit, noted Richard W. Johnson, director of the program on retirement policy at the Urban Institute, compared with 80 percent for someone who was born in 1937 or earlier and retired at that age .

That lower income can really sting when you reach your 80s and out-of-pocket medical expenses and spending on home and residential care often surge, Mr. Johnson said.

Even a delay of a year or two past the full age can meaningfully increase benefits and mitigate your risk of falling short of income in retirement.

Apply For Benefits Online

You should apply for disability benefits as soon as you become disabled. Follow these easy steps to apply online for disability:

  • To start your application, go to our Apply for Benefits page, and read and agree to the Terms of Service. Click Next.
  • On that page, review the Getting Ready section to make sure you have the information you need to apply.
  • Select Start A New Application.
  • We will ask a few questions about who is filling out the application.
  • You will then sign into your mySocial Security account, or you will be prompted to create one.
  • Complete the application.

You can use the online application to apply for disability benefits if you:

  • Are age 18 or older.
  • Are not currently receiving benefits on your own Social Security record.
  • Are unable to work because of a medical condition that is expected to last at least 12 months or result in death and
  • Have not been denied for disability in the last 60 days.
  • Note: If your application was recently denied, our application is a starting point to request a review of the determination we made.

You may be able to file online for SSI at the same time that you file for SSDI benefits. Once you complete the online process above, a Social Security representative will contact you if we need additional information.

Financial Benefits Of Working Longer

Many people want to retire as soon as it is financially feasible to do so, but it’s crucial to consider the earning and investing power you may give up if you stop working full-time and take Social Security at 62. If you leave a job with good pay and benefits, it may be difficult ever to regain that level of compensation if you need or want to return to work later. Of course, not everyone can keep working, but it is something to consider if you are healthy and have the opportunity to stay in the workforce, in either a full-time or part-time capacity.

The compensation benefits of your job could also affect your Social Security. Some companies allow stock awards to continue to vest after retirement date, and even into years to follow. These payouts are considered income, and could cause your Social Security payment to be taxed, or taxed at a higher level than in years after the awards have fully distributed. Delaying Social Security payments until those other income sources have been reported for tax purposes is worth consideration.

But there’s even more to the story. As you approach retirement, you’re often at the upper end of your lifetime earnings trajectoryand of your ability to save more for retirement. In addition, if you can keep working, you can make “catch-up” contributions to a tax-deferred workplace savings plan like a 401 or 403 or a traditional or Roth IRA. Catch-up contributions allow you to set aside larger amounts of money for retirement.

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Where To Start When Applying For Social Security Disability

Did you know that just over 1 in 4 of todays 20 year-olds will become disabled before they retire? This statistic, provided by the Council for Disability Awareness, sheds light on the profoundness of disabilities in our society. As such, understanding how and where to apply for Social Security Disability Insurance is crucial in order to protect you.

How Old Must You Be To Apply For Benefits

How Do I Apply For A Replacement Social Security Card?

When you can apply for benefits will largely depend on your unique situation. The official retirement age is determined by the year in which a person was born.

For example, those born after 1960 have an official retirement age of 67. That being said, a person can begin receiving benefits when they are 62 years of age or at age 60 if they are a widow or widower who has not remarried.

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Can Someone Else Contact Service Canada On My Behalf

You can authorize a person to give information to and receive information from Service Canada on your behalf by signing in to My Service Canada Account or by completing the Consent to Communicate Information to an Authorized Person form . Both you and the person you are authorizing must sign the printed form and mail it to the Service Canada Centre closest to you. Mailing addresses are provided on the form.

This form does not allow the person to apply for benefits on your behalf, change your payment address, or request/change the withholding of tax.

If you cannot manage your own affairs, another person or agency may be appointed to act on your behalf. Visit Supporting Homeless Seniors Program: How to act as a third-party administrator.

Get Ssa Benefits While Living Overseas

U.S. citizens can travel to or live in most, but not all, foreign countries and still receive their Social Security benefits. You can find out if you can receive benefits overseas by using the Social Security Administrations payment verification tool. Once you access the tool, pick the country you’re visiting or living in from the drop-down menu options.

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Applying For Retirement Benefits

The earliest you can claim retirement benefits is age 62, although you can apply for benefits as soon as you are 61 years and 8 months old if you want the benefits to start no more than four months into the future.

Whether its earned benefits or spousal benefits, your benefit will be larger if you wait until at least your full retirement age to file.

For the most part, the act of applying for retirement benefits is simple. If youre applying online, it should only take between 10 and 30 minutes to complete the application.

What About Taxes On Social Security

How to Apply for Social Security Retirement Online

Keep in mind that Social Security benefits may be taxable, depending on your combined income. Your combined income is equal to your adjusted gross income , plus non-taxable interest payments , plus half of your Social Security benefit.

As your combined income increases above a certain threshold , more of your benefit is subject to income tax, up to a maximum of 85%. For help, talk with a CPA or tax professional.

In any case, if youre still working, you may want to postpone Social Security either until you reach your full retirement age or until your earned income is less than the annual limit. In no situation should you postpone benefits past age 70.

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Ways To Apply For Disability Benefits:

  • If you or your spouse worked for a railroad, call the Railroad Retirement Board at 1-877-772-5772.

Once your disability benefits start, well mail you a welcome package with your Medicare card.

Sign up for Part B if you live in Puerto Rico or outside the U.S.You get Part A automatically. If you want Part B, you need to sign up for it. If you dont sign up for Part B within 3 months after your Part A starts, you might have to wait to sign up for Part B and pay a monthly late enrollment penalty.

Check Out Social Security Claiming Strategies That Could Help Those In Or Near Retirement During This Time Of Recession Stock Market Volatility And Rising Unemployment

As the U.S. entered this recession, the unemployment rate hit a record high. Workers have been laid off or furloughed as businesses closed due to the coronavirus. With payrolls down, the benefits that Social Security offers could be more important than ever to a growing number of people near retirement whose incomes are being impacted.

Its impossible to know exactly how this recession will impact our economy long term, but we do know it might be impacting how retirees strategize their benefits. Depending on your unique situation, you might find yourself turning to one of these claiming strategies:

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What Is A Social Security Card

Your Social Security card is an important piece of identification. You’ll need one to get a job, collect Social Security, or receive other government benefits.

When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.

Applying At An Embassy Or Consulate

Pin on Medicare

If you are outside the U.S., youll need to work through the SSAs Office of Earnings and International Operations to file for benefits.

English speakers can to apply for benefits. The phone number you use will be based on the last two digits of your Social Security claim number. If youre applying for retirement or disability benefits, you can also apply for those online the same way you would from within the U.S.

The OEIO operates with the help of the Department of States embassies and consulates. To find the closest embassy or consulate providing these services, visit here.

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Why You Can Trust Bankrate

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.

Our reporters and editors focus on the points consumers care about most how to save for retirement, understanding the types of accounts, how to choose investments and more so you can feel confident when planning for your future.

Social Security Application Process

If youre ready to apply for Social Security benefits, youve probably already given some thought to things like when you want your benefits to start or what kind of documents you might need to apply. A lot of that will will of course depend on the type of benefits youre seeking.

Applying for retirement benefits, for example, is usually less complicated than applying for disability benefits. Still, it helps to know what to expect if you plan to apply for Social Security benefits. Here, well explain the application process for benefits for retirement, spousal and survivors benefits Social Security Disability Insurance , and Supplemental Security Income .

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What Documents Do You Need To Apply For Retirement Benefits

We request different documents depending on your circumstances. You can help by being ready to provide the information and documents listed below. You can also use our Checklist For The Online Medicare, Retirement, And Spouses Application to help you gather the information you need to apply.

Documents we may ask for include:

  • Your Social Security card or a record of your number.
  • Your original birth certificate, a copy certified by the issuing agency, or other proof of your age.We must see the original document, or copies certified by the agency that issued them. We cannot accept photocopies or notarized copies.
  • If you were not born in the U.S., proof of U.S. citizenship or lawful alien status. We must see the original document, or copies certified by the agency that issued them. We cannot accept documents if they have expired. We cannot accept photocopies or notarized copies.
  • A copy of your U.S. military service paper if you served before 1968. A photocopy is acceptable.
  • A copy of your W-2 form and/or self-employment tax return for last year. A photocopy is acceptable.

We will return all documents and photocopies unless specifically told otherwise.

Make Payments To The Federal Government

How to Apply for Social Security Disability

Learn how to use Pay.gov to make secure, electronic payments to government agencies from your checking or savings account. You can use the online service for VA medical care copayments, U.S. district court tickets, U.S. Coast Guard merchant mariner user fee payments, and more.

If you need help, contact Pay.gov customer service.

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When To Apply For Social Security

As stated above, you are eligible to apply for Social Security retirement benefits when you are 61 and nine months. You can start collecting benefits as soon as you turn 62.

However, just because you can, does not mean that you should.

The longer you delay starting your benefits, the more your monthly income will be. In fact, the difference in lifetime income between starting at age 62 and waiting until your maximum retirement age can be more than $100,000 and for many people much much more.

While you can start benefits at age 62, the Social Security Administration considers that early. Depending on your birth year, you do not reach what the SSA calls full retirement age until sometime between ages 66 and 67.

  • For every month prior to your full retirement age that you begin taking benefits, around 0.55% is deducted from your payout.
  • And, for every year that you defer your benefits, you will receive a larger amount when you finally do begin drawing Social Security. The amount of the bonus is dependent, once more, on your birth date. For example, someone born in 1944 has a full retirement age of 66. If they start benefits at age 69, they will receive eight percent more benefits for each year they delay.

Is There A Maximum Income I Can Earn While Receiving My Oas Pension

Yes. If your annual income is higher than the income threshold for the previous tax year, you may be subject to the OAS Recovery Tax, and you may have to repay part of your OAS pension. The OAS Recovery Tax requires that OAS pensioners repay their OAS pension at a rate of 15 percent of their income above a certain threshold.

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Deferring Your Old Age Security Pension

You do not have to start receiving your OAS pension when you turn 65. You can start receiving it any time after age 65. The longer you delay receiving it, the more money you will receive. Your monthly pension payment will be increased by 0.6 percent for every month you delay receiving it after age 65, up to a maximum of 36 percent at age 70.

If you choose to delay receiving your OAS pension after age 65:

  • you will not be eligible for the Guaranteed Income Supplement for low-income seniors during the period you are delaying your OAS pension
  • your spouse or common-law partner will not be eligible for the Allowance for the period you are delaying your OAS pension. The Allowance is a monthly benefit available to the spouse or common-law partner of an OAS recipient who is eligible for the GIS

To decide when to start receiving your OAS pension, you should consider your personal situation. It may affect other benefits that you, or your spouse or common-law partner could receive. You should take into account your:

  • current and future sources of income
  • employment status now and in the future
  • health
  • plans for retirement

What If I Take Benefits Early

When Do Social Security Benefits Start and End?

If you choose to receive your Social Security check up to 36 months before your full retirement age, be aware that your benefit is permanently reduced by five-ninths of 1% for each month.

If you start more than 36 months before your full retirement age, the benefit is further reduced by five-twelfths of 1% per month, for the rest of retirement.

For example, lets assume that you stop working at age 62. If your full retirement age is 66 and you elect to start benefits at age 62, the reduced benefit calculation is based on 48 months. This means that the reduction for the first 36 months is 20% and 5% for the remaining 12 months. Overall, your benefits would be permanently reduced by 25%.

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