Monday, August 8, 2022

When Can You Collect Social Security Benefits

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You Can Undo A Social Security Claiming Decision

Can You Collect Both Social Security Retirement and Disability Benefits?

There aren’t many times in life you can take a mulligan. But Social Security offers you the chance for a do-over. Say you claimed your benefit, but soon thereafter wish you had waited to take it. Within the first 12 months of claiming Social Security benefits, you can withdraw the application. You will need to pay back all the benefits you received, including any spousal benefits based on your record. But you can later restart your Social Security benefits at the higher amount youll earn by waiting.

Early claimers have another opportunity for a do-over: They can choose to suspend their Social Security benefit at full retirement age. Say you took your benefit at age 62. Once you turn full retirement age, you can suspend your benefit. You don’t have to pay back what you have received, and your benefit will earn delayed retirement credits of 8% a year. Wait to restart your benefit at age 70, and your monthly payment will get up to a 32% boost — which could erase much of the reduction from claiming early.

Claim Social Security Before 70 In This Situation

The single best reason to claim Social Security well before age 70 is if your claim for benefits enables a higher earning spouse to delay their claim for benefits.

Say you’re married and you and your spouse want to retire, but you need some money from Social Security to make that happen. If your spouse earned more than you, it would make sense for you to claim your benefits and let them wait to start theirs.;;

How To Apply For Benefits As A Divorced Spouse

You can apply for benefits online by going to SSA.gov, or making an appointment at your local Social Security office. To apply for benefits on a former spouse’s work record, you will need to have that person’s Social Security number or date and place of birth and parents names.

When you apply for spousal benefits as a divorced spouse, Social Security will assume you are also applying for benefits on your own work record, and you’ll be eligible for the higher amount of the two. If your benefit is lower, Social Security will first pay you an amount based on your record, then make up the difference between that and what you’re eligible for on your ex-spouse’s record.

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What Happens If You Claim After Your Fra

If you wait until youre age 70 to start claiming benefits, then youll get an extra 8% per yearor, in total, 132% of your primary insurance amount for the rest of your life. Claiming after you turn 70 doesnt increase your benefits further, so theres no reason to wait longer than that.

The longer you can afford to wait after age 62 , the larger your monthly benefit will be. Nevertheless, delaying benefits doesnt necessarily mean that youll come out ahead overall. You also need to weigh in some other factors, including your expected longevity and whether you plan to file for spousal benefits. You will also need to consider the tax, investment opportunity, and health coverage implications.

Myth: Why Bother Ill Just Be Denied

Can Children Receive Social Security Benefits? Attorneys WV

Not true for everyone, says William Jarrett, a spokesperson for the Social Security Administration. While Jarrett says standards are strict, and the process is rigorous, the SSA wants to be certain the person is truly disabled and unable to work. And the rejection rate is high, he says.

The;allowance rates for disability claims;in fiscal year 2013, the most recent data available, was around 33 percent, he says. That means 33 percent of the applications received in fiscal year 2013 were approved.

In my experience, people rarely get it the first time they apply, says Melissa Proudian, an attorney in Fresno, California, whose primary focus is on Social Security;disability cases. But if youre denied the first time around, you can appeal.

And if the administration determines that you have a true, severe disability, they pay out.

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The Ssa Giveth And The Ssa Taketh Away

Getting approved for benefits had come as such a relief. James had heard horror stories of how it takes some applicants months or even years to get approved.

He qualified for benefits because his condition is permanent. It affects his speech and fine motor skills. He says those deficits, combined with the stereotypes about people with disabilities, have left him unable to secure a full-time job despite having a masters degree in instructional technology.

If you receive SSI or SSDI, did not file taxes in 2019 and did not receive a stimulus check this year, you can still use the IRS Non-Filer Tool until Nov. 21, 2020.;

So James does gig work because not working at all goes against his nature. Thats not who I am, he says.

But navigating Social Securitys work-related rules is very, very frustrating.

Disability benefits experts say discrimination, confusion regarding the rules and fear of benefits being cut at any time are all too common. And thats despite the official Social Security position that people on disability should work to their fullest potential.

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How Can I Increase My Monthly Retirement Benefits

If you can wait until after your full retirement age to collect benefits, your benefit amount will increase each month until you turn 70. These monthly raises, called “delayed retirement credits,” can boost your benefits by as much as 124% of your PIA if you have an FRA of 67 and you wait until age 70 to collect. Maximizing your Social Security benefits can help close a gap between the money youve saved and the income you want in retirement.

Percent of PIA collectable by Age3

Collect at Age 67

100%

Collect at Age 70 or Later

124%

*Assumes FRA of 67

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Survivors Benefits If You Are Divorced

An ex-spouse is eligible to receive the same benefits as a current spouse if they were married to the deceased worker for at least 10 years and are not currently married. However, if the living ex-spouse remarries before age 60, they forfeit their right to their deceased former spouses Social Securityunless that subsequent marriage ended in death, divorce, or annulment. If the living ex-spouse remarries after age 60, this rule doesnt apply.

How much a spouse or former spouse receives depends on several factors including when they file for benefits and whether they are still working and earning money.

Spouses And Social Security

Can I Collect Social Security Benefits and Work at age 62?

You can claim Social Security benefits based on your spouse’s work record. If claiming spousal benefits provides more, claiming before your FRA on a spouse’s record means you’ll lose even more than claiming on your own recordthe benefit reduction for a spouse is up to 35% while the reduction for claiming your own benefit is up to 30%. For instance, if you’re the spouse of Colleen in the above example and you are the same age, you’d be eligible for only $650 a month at age 6235% less than the $1000 a month you would get at your FRA of 67.

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Your decision to take benefits early could outlive you. If you were to die before your spouse, they would be eligible to receive your monthly amount as a survivor benefitif it’s higher than their own amount. But if you take your benefits early, say at age 62 versus waiting until age 70, your spouse’s survivor Social Security benefit could be up to 30% less for the remainder of their lifetime.

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How Are My Social Security Benefit Amounts Calculated

The calculations are complicated. The amount of any benefit is determined by a formula based on the average of your yearly reported earnings since you began working.

But to complicate matters further, Social Security computes your average earnings differently depending on your age. If you reached age 62 or became disabled on or before December 31, 1978, Social Security averages the actual dollar value of your total past earnings — and bases the amount of your monthly benefits on that amount.

If you turned 62 or become disabled on or after January 1, 1979, Social Security divides your earnings into two categories: Earnings from before 1951 are credited with their actual dollar amount, up to a maximum of $3,000 per year; and from 1951 on, yearly limits are placed on earnings credits, no matter how much you actually earned in those years.

Social Security Entitlement Requirements

Many people who are eligible for Supplemental Security Income may also be entitled to receive Social Security benefits. In fact, the application for SSI benefits is also an application for Social Security benefits. We often need to obtain additional information from the person before we can award Social Security benefits.

The following sections provide information on who may be entitled to Social Security benefits.

TO BE ELIGIBLE FOR SOCIAL SECURITY BENEFITS AS A WORKER YOU MUST BE:

    Age;62 or older, or disabled or blind; and

    “Insured” by having enough work credits.

For applications filed December 1, 1996, or later, you must either be a U.S. citizen or lawfully present alien in order to receive monthly Social Security benefits.

HOW MUCH WORK DO YOU NEED TO BE”INSURED”?

We measure work in “work credits”.; You can earn up to four work credits per year based on your annual earnings.; The amount of earnings required for a work credit increases each year as general wage levels rise.

To be eligible for most types of benefits , you must have earned an average of one work credit for each calendar year between age;21 and the year in which you reach age;62 or become disabled or blind, up to a maximum of 40;credits. A minimum of six work credits is required, regardless of age.

The rules are as follows:

Born After 1929
40

WHO CAN RECEIVE BENEFITS ON YOUR EARNINGS RECORD?

If you are receiving retirement or disability benefits, your spouse may qualify if he or she is:

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How Will My Retirement Benefits Be Taxed

Approximately one-third of people who collect Social Security benefits are required to pay income taxes on these benefits. Individuals with higher total incomes must include up to 85% of their benefits as income for federal income tax purposes, designated by special step-rate thresholds. However, the taxation thresholds for your benefits arent currently indexed for inflation.

How Your Social Security Benefits Are Calculated

Can You Collect a Social Security Spousal Benefit Plus a ...

Your Social Security benefits are based on the 35 calendar years in which you earned the most money. If you have fewer than 35 years of earnings, each year with no earnings will be factored in at zero. You can increase your Social Security benefit at any time by replacing a zero or low-income year with a higher-income year.

There is a maximum Social Security benefit amount you can receive, though it depends on the age you retire. For someone at full retirement age in 2021, the maximum monthly benefit is $3,113. For someone filing at age 70, the maximum monthly amount is $3,895.

You can estimate your own benefit by using Social Security’s online Retirement Estimator.

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When Can I Start Collecting Social Security

The minimum age to claim benefits is 62. If you are turning 62 and need the income from Social Security to support yourself, then you can start claiming your benefits now. However, if you have enough other income to keep you going until you are older, then you may want to delay to increase the size of your monthly benefit.

Waiting Until Later Is Ideal But Life Can Get In The Way

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Its best to wait until youre 70 to start taking Social Security retirement benefits even if it means tapping into your retirement assets at the bottom of a bear market. Why? Because the guaranteed, risk-free 8% annual Social Security benefit increase is an unbeatable deal.

And yet in 2018 only 6% of women and 4% of men waited until they turned 70 to claim benefits. Most advisers and financial columnists wag their fingers at people who take Social Security as soon as they qualify at age 62. Yet some 31% of women and 27% of men tapped into Social Security at that age in 2018. Its hard to say no when somebody is offering you a pot of money right now.

There are some bad reasons to do this, such as because all your friends are doing it or because youd better grab the benefits before Social Security runs out of money. I suspect that before that happened, Congress would raise payroll taxes for high-income people rather than cut benefits for one of the nations largest, most active voting blocs.

But there are some decent reasons to start taking benefits early, and the recession in the wake of the COVID19 pandemic has dramatically highlighted one of them: many people dont have much choice. Well get into that later.

Sometimes you just gotta do what you gotta do.

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If You Were Born Between 1943 And 1954 Your Full Retirement Age Is 66

You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount.

The chart below provides examples of the percentage of your full retirement benefit amount you and your spouse would receive from age 62 up to your full retirement age.

Collecting Social Security And Unemployment

Can I collect Social Security Retirement and Social Security Disability?

Full unemployment insurance benefits are available for eligible workers who are collecting social security in most states. In the past there were exceptions;in some states;where the amount of unemployment compensation was offset by some of the social security benefits that were received.

Eligibility requirements to qualify for unemployment compensation vary from state to state. In most states, you can collect both full unemployment benefits and social security. Check with your state unemployment office for details.

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Question: Can You Collect Your Own Pension And Social Security Benefits

Teachers in some states benefit from the states independent pension plan, while other states offer only coverage in partnership with Social Security. Teachers in the latter states have an easy answer to the question of double-dipping into pension and Social Security. Theyre simply the same thing, so double-dipping is not possible.

Teachers who may find the rules more confusing are:

  • Those who teach in states with independent pension plans
  • Those whove worked in a capacity besides teaching and have paid into Social Security through that work
  • If you fall into either of these buckets, you may be eligible to receive benefits. However, you must first qualify. Qualifying is based on earning income credits. For every $1,300 you earn, you get one income credit. But you can only earn up to four credits per year. Forty total credits are required to qualify for Social Security benefits, which means youd need to earn four credits per year for 10 years to be eligible. There is no partial benefit, its all or nothing.

    How Retirement Benefits Work

    Social Security replaces a percentage of your pre-retirement income based on their lifetime earnings. The portion of your pre-retirement wages that Social Security replaces is based on your highest 35 years of earnings and varies depending on how much you earn and when you choose to start benefits.

    When you work, you pay taxes into Social Security. We use the tax money to pay benefits to:

    • People who have already retired.
    • People who are disabled.
    • Survivors of workers who have died.
    • Dependents of beneficiaries.

    The money you pay in taxes isnt held in a personal account for you to use when you get benefits. We use your taxes to pay people who are getting benefits right now. Any unused money goes to the Social Security trust fund that pays monthly benefits to you and your family when you start receiving retirement benefits.

    Additional Information

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    If You Were Born In 1957 Your Full Retirement Age Is 66 And 6 Months

    You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount.

    The chart below provides examples of the percentage of your full retirement benefit amount you and your spouse would receive from age 62 up to your full retirement age.

    Social Security And Disability Eligibility

    How Much Can I Expect to Receive in Social Security ...

    Also known as Supplemental Security Income , you can receive Social Security retirement benefits as long as youre at least 62 years old and have at least 40 work credits. Work credits are earned when you pay Social Security taxes on income you earned from a job or from self-employment. Youll be eligible to earn these benefits at the early retirement age or the full retirement age. The full retirement age varies depending on when you were born. For instance, the full retirement age is 66 if you were born from 1943 to 1954, according to the Social Security Administration . Full retirement age is 67 for anyone born after 1960, but you can opt for early retirement benefits at age 62.

    For disability, the age requirements are quite different.; You only need to be at least 18 years of age to qualify, and SSA guidelines require you to prove that:

    • You cant do the work that youve done before
    • You cant adjust to other work because of your medical condition
    • Your disability has lasted or will last for at least one year or result in death

    For example, if you are working in 2020 and making more than $1,260 a month, you wont be considered disabled.

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