Monday, May 16, 2022

When Can You Sign Up For Social Security

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If You Work While Getting Social Security

How To Sign Up For My Social Security Account Online

Yes, you can work full or part-time while also getting Social Security retirement benefits. However, if you have not yet reached your full retirement age, and if your net income from working is higher than the annual earnings limit, your annual benefits will be reduced. Beginning in the month you reach full retirement age, Social Security will stop reducing your benefits no matter how much you earn.

During any full calendar year in which you are under full retirement age, Social Security deducts $1 from your benefit payments for every $2 you earn above the annual net income limit. The income limit changes every year. In 2017, the income limit was $16,920.

C You Can Continue Working And Not Receive Your Retirement Benefits

If you decide to continue working and not start your benefits until after full retirement age, your benefits will increase for each month you do not receive them until you reach age 70. There is no incentive to delay filing for your benefits after age 70. Continuing to work may also increase your benefits, because your current earnings could replace an earlier year of lower or no earnings, which can result in a higher benefit amount.

If you are not receiving your Social Security benefits when you turn 65, you will need to apply for Original Medicare three months before you turn 65. If you dont sign up for Medicare Part B when youre first eligible at age 65, you may have to pay a late enrollment penalty for as long as you have Medicare coverage.

However, if you or your spouse are still working and covered under an employer-provided group health plan, talk to your personnel office before signing up for Medicare Part B. Once the covered employment ends, you may be eligible for a Special Enrollment Period to sign up for Part B. If so, you wont have to pay a late enrollment penalty.

What Is Full Retirement Age

The size of your monthly Social Security benefit depends on a few factors, including how much you earned over the years, the year you were born, and the age when you start claimingdown to the month.

Youll receive your full monthly benefit if you start claiming when you reach what Social Security considers your full retirement age , sometimes also referred to as normal retirement age. FRA was 65 when Social Security began, but it has been raised to 67 for anyone born in 1960 or later. To find your FRA, see the chart below.

Finding Your Full Retirement Age
67

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Report The Death Of A Social Security Or Medicare Beneficiary

You must report the death of a family member receiving Social Security or Medicare benefits. The Social Security Administration processes death reports for both. Find out how you can report a death and how to cancel benefit payments. In addition to canceling SSA and Medicare benefits, find out what other benefits and accounts you should cancel.

Why You May Have To File Before Age 67

Can I sign up for Medicare and not Social Security ...

A survey conducted by the Employee Benefit Research Institute a couple of years back found that 48% of workers end up retiring sooner than planned. The reasons for being forced into retirement early could run the gamut from health issues to layoffs to other life circumstances.

But either way, you may have to file for Social Security before age 67 if your income situation takes a turn for the worse and you wind up needing that money to stay afloat. Just know, however, that for each month you sign up for benefits ahead of FRA, they get reduced on a permanent basis.

The earliest age you can sign up for Social Security is 62. If your FRA is 67 and you’re forced to file as early as possible, you’ll be looking at a 30% hit to your benefits.

It’s for this reason that saving aggressively for retirement in an IRA or 401 plan is a good bet. Having more income to tap could spare you a world of financial worries if you’re forced to claim benefits at an earlier age than anticipated.

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At What Age Is Social Security No Longer Taxed

At 65 to 67, depending on the year of your birth, you are at full retirement age and can get full Social Security retirement benefits tax-free. However, if youre still working, part of your benefits might be subject to taxation. The IRS adds the figures for your earnings and half your Social Security benefits.

If Health Problems Force You To Retire Early

Sometimes health problems force people to retire early. If you cannot work because of health problems, you should consider applying for Social Security disability benefits. The amount of the disability benefit is the same as a full, unreduced retirement benefit. If you are receiving Social Security disability benefits when you reach full retirement age, those benefits will be converted to retirement benefits.

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How To Apply For Social Security

If you’re approaching retirement age, you may have some idea of when you’d like to start receiving Social Security benefits. However, you may not know how the application process works or when you need to apply in order to start receiving benefits at a specific time. Here’s what you need to know about how to apply for Social Security, what information you’ll need to gather, and when to fill out the application.

Three ways to applyWhen it comes time to apply for Social Security retirement benefits, you have three options. You can use the Social Security Administration’s online application process, which should take no more than 30 minutes as long as you’ve gathered all of the required information and documentation .

You can also choose to apply by phone, or at your local Social Security office if you’d rather have someone there to assist with the process. Whichever method you feel most comfortable using, your application will be reviewed and processed as soon as all necessary documentation and information is received. And, the Social Security Administration will notify you if it turns out you could qualify for higher benefits on your spouse’s record, or if other family members can receive benefits on your work record.

Bear in mind that Social Security benefits are paid in the month after they are due. So, if you start your benefits on your 62nd birthday, you won’t start receiving payments until the following month.

Do I Need To Be On Social Security To Get Medicare Coverage

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Many seniors sign up for Social Security prior to securing Medicare coverage but doing so is by no means a requirement.

    Q: Do I need to be on Social Security to get Medicare coverage?

    A: Millions of seniors rely on Medicare for health benefits in retirement, and depend on Social Security as a key income source. But while the two programs are interrelated, participation in one doesnt necessarily hinge on being signed up for the other.

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    Make Your Decisions Independently

    Collecting Social Security is by no means a prerequisite to getting Medicare. In fact, its often advisable to sign up for Medicare as soon as youre eligible but wait on Social Security to avoid a reduction in benefits, or boost them as much as possible.

    The only downside to signing up for Medicare alone is having to make your premium payments directly, as opposed to having them deducted from your Social Security benefits, but its a small price to pay for the upside of a higher lifetime income stream.

    Maurie Backman has been writing professionally for well over a decade, and her coverage area runs the gamut from healthcare to personal finance to career advice. Much of her writing these days revolves around retirement and its various components and challenges, including healthcare, Medicare, Social Security, and money management.

    What Is The Future Of Social Security

    If you’re skeptical about the future of Social Security or wary of potential changes such as means testingwhich could reduce or eliminate benefits for the wealthy, or an increase in the full retirement ageyou may be tempted to start benefits early, under the assumption that it’s better to have something than nothing. The 2021 annual report from the Social Security Trustees, released in August 2021, projects that the Social Security Trust Fund has enough resources to cover all promised benefits until 2034. Then, absent a change from Congress, the trustees project that benefits would need to be cut for all current and future beneficiaries to about 78% of scheduled benefits. The 2021 report includes the trustee’s best estimates of the impact from the pandemic, which were not reported on last year.

    Over the longer term, changes such as later benefit dates or means testing may be considered.

    In any situation, if you’re particularly concerned about the future prospects for Social Security, that’s a good reason to save more, and earlier, for your retirement.

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    If I’m 65 And Enrolled In Medicare Why Might I Wait To Sign Up For Social Security

    One final thing: Even if youre not working at age 65, signing up for Medicare before Social Security could make sense. Imagine youve retired and need health coverage, but you have enough money in savings to tide yourself over for a few years so you can let your Social Security benefits grow. In that case, enrolling in Medicare which you should almost certainly do at age 65 prior to Social Security could be a smart move.

    Since being on Social Security is not a prerequisite to enrolling in Medicare, many people choose to delay their Social Security retirement benefits for up to a few years after their Medicare coverage begins. If you sign up for Medicare first, youll need to pay your monthly Part B premiums yourself, whereas Social Security recipients have those premiums deducted directly from their benefits.

    But if you sign up for Medicare Easy Pay, youll have the cost of those premiums deducted directly from a savings or checking account so that you dont have to think about them or worry about being late. Once youre collecting Social Security, youll have the option of paying Medicare Advantage or Part D plan premiums directly to your insurer or having them deducted from your Social Security.

    State And Local Disability Programs

    Can I sign up for Medicare and not Social Security ...

    If you live in California, Hawaii, New Jersey, New York, and Rhode Island, you may have state-funded disability programs available to you, dependent upon your circumstances. Some other states have assistance programs that offer monetary support to low-income residents who are also faced with serious medical issues. Paid medical leave is available in Washington, D.C., and other locations have unique programs as well. The exact resources available to you vary by state, but you should investigate all your options.

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    When Does It Pay To Enroll In Medicare Before Social Security

    You might assume that it pays to sign up for Social Security prior to Medicare, but in many cases, it actually pays to enroll in Medicare first.

    Unless youre disabled, you wont be able to enroll in Medicare prior to age 65. And unless youre continuing to work and receive employer-sponsored coverage, theres no benefit to delaying your Medicare enrollment more than three months after you turn 65.

    So in almost all cases, your Medicare enrollment window will correspond closely with your 65th birthday, and the coverage you receive under the program wont vary based on when you enroll. But the age at which you sign up for Social Security will dictate what your monthly benefits under Social Security amount to.

    Your Social Security benefits are calculated with a formula that uses your average inflation-adjusted monthly wage over your 35 highest-paid years in the workforce. Your resulting monthly benefit will be available to you in full once you reach whats known as full retirement age. That age is currently between 66 and 67, depending on your year of birth.

    If you file for Social Security prior to full retirement age, your benefits will be reduced for each month you claim them early. You can also delay your Social Security benefits past full retirement age and boost them by 8% a year in the process, up until age 70, which is generally considered the latest age to claim Social Security.

    How Will Your Decision Affect Your Spouse

    can either receive their own Social Security benefit, if they worked long enough to qualify, or a spousal benefit. This is up to 50% of their partner’s benefit at their FRA. Signing up early not only reduces your own benefit it also reduces the spousal benefit your partner qualifies for. Unfortunately, delaying benefits past your FRA doesn’t boost your partner’s checks.

    Coordinating with your spouse is key to getting the most household benefits possible. Sometimes that means having one person sign up early. When one partner has earned significantly more over their lives than the other, it’s more important for the higher earner to delay. Sometimes, it’s advantageous for the lower earner to sign up right away.

    Their benefit can provide the couple with some supplementary income, which can enable the higher earner to delay. Then, when the higher earner signs up, the Social Security Administration will automatically switch the lower earner over to a spousal benefit if it’s worth more than what they qualify for on their own. This can result in more money for the household overall.

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    D You Can Stop Working And Not Begin Receiving Your Retirement Benefits

    We calculate your benefits based on your highest 35 years of earnings. If you stop working before you have 35 years of earnings, or you have low earnings for some years, this will affect your benefit calculation. However, if you wait to start benefits after you reach full retirement age, your benefits will increase for each month you do not receive them until you reach age 70. There is no incentive to delay filing for your benefits after age 70.

    If you are not receiving your Social Security benefits when you turn 65, you will need to apply for Original Medicare three months before you turn 65. If you dont sign up for Medicare Part B when youre first eligible at age 65, you may have to pay a late enrollment penalty for as long as you have Medicare coverage.

    Do You Have To Sign Up

    Medicare: Signing Up with the Social Security Administration

    If you receive Social Security benefits at least 3 months before you turn 65, in most cases you will automatically receive Medicare Part A and Part B on the first day of the month when you turn 65. If your birthday falls on the first day of the month, your Medicare Part A and Part B coverage will begin on the first day of the previous month.

    You will automatically receive Medicare Part A and Part B if you have received Social Security disability benefits for at least 2 years. If you reside in Puerto Rico, you will automatically be enrolled in Medicare Part A, but will have to sign up for Medicare Part B in order to receive it.

    If you are not receiving Social Security benefits at least four months before you turn 65, you will have to sign up with Social Security in order to receive Medicare Part A and Part B coverage. To sign up you can apply online at SSA.gov. Additionally, when you receive coverage, you can decide to receive Part C or Part D for additional coverage.

    You will receive coverage at different times depending on the exact situation. If you enroll one to three months before you reach 65 years of age, you will receive Medicare benefits the month that you hit 65. If you enroll the month you reach 65, you will receive Medicare one month after. If you enroll one month after you reach 65, you will receive Medicare two months after. If you wait two to three months after you reach 65, then you will have Medicare three months after the month you enrolled.

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    Could The Government Take Back Some Of Your Benefits

    There are two main ways people can lose some of their Social Security benefit back to the government. The first is the Social Security Earnings Test. Those who are still working while claiming Social Security under their FRA could run into this.

    If you’ll be under your FRA all year, the government will withhold $1 from your Social Security checks for every $2 you earn over $19,560 in 2022. If you’ll reach your FRA in 2022, you’ll lose $1 for every $3 you earn over $51,960 if you hit this amount before your birthday.

    The good news is that money isn’t gone forever. When you reach FRA, the government recalculates your benefit to account for the money it previously withheld. As a result, your future checks will be larger. But they’ll still be smaller than they would have if you’d delayed your benefits until your FRA from the start. If you think the Earnings Test could pose a problem for you, you may be better off delaying benefits until you quit your job or reach your FRA.

    The other way you can lose benefits is through taxation. That’s a little beyond the scope of this article, but if interested, here’s a look at how federal and state governments tax Social Security benefits. If you believe you could owe benefit taxes, you may also want to consider putting off your benefits until you’re fully retired and your income is lower.

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