Monday, May 16, 2022

When Do You Collect Social Security

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Benefit Amounts Vary Depending On Your Social Security Retirement Age

When should you collect social security?

    Your Social Security retirement age and the amount you receive varies depending on several factors. For example, the earliest age you can collect your Social Security retirement benefits is 62, but there is an exception for widows and widowers, who can begin benefits as early as 60. If you start collecting benefits early and continue to work, your benefits may be reduced.

    Here’s how this works with the basics on Social Security claiming ages from 60 to 70.

    How Often Are Social Security Disability Benefits Reviewed

    As a general rule, benefits are reviewed every 18 months, every 3 years, or every 7 years depending on your condition and your chances of improvement. Improvement of ones condition is not the only reason Social Security Benefits can be revoked. You might also lose your Social Security Disability benefits if you end up in prison.

    Before You Make Your Decision

    There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit will be reduced. Each person’s situation is different. It is important to remember:

    • If you delay your benefits until after full retirement age, you will be eligible for delayed retirement credits that would increase your monthly benefit.
    • That there are other things to consider when making the decision about when to begin receiving your retirement benefits.

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    Learn About Retirement Benefits

    We want you to know what Social Security can mean for you and your familys financial future. In this section, you can learn how Social Security works, whos eligible for retirement benefits, and what to consider before applying. Read on to understand how Social Security fits into your retirement plan.

    Can You Still Work While Receiving Social Security

    At what age can i collect full social security ...

    You can continue to work while you receive Social Security benefits. But there is a limit to how much you can earn and still receive full benefits. The earning limit may be adjusted each year.

    If you earn above the limit, Social Security will deduct a certain amount of your benefits each year.

    Social Security Benefits, Earning Limits and Penalties

    RETIREMENT AGE
    SSA deducts $1 from your benefits for every $3 you earn above the limit

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    Social Security Survivor Benefits For Spouses

    Surviving spouses can receive benefits based on the benefit amount that the deceased was receiving from Social Security at the time of death.

    • A surviving spouse can get reduced benefits as early as age 60. Full benefits are available at full retirement age. Benefits are for life.
    • A surviving spouse who has a disability can collect benefits as early as age 50. The benefit begins upon the death of the retiree and continues until the surviving spouse is age 65. At that point, they are eligible for the aged benefit.
    • Surviving spouses can get benefits at any age if they take care of their spouses child who is under age 16 or disabled and receives Social Security benefits.
    • Surviving divorced spouses who are age 60 or older can get survivor benefits if the marriage lasted at least 10 years. Divorced spouses dont have to meet the length-of-marriage rule if they take care of the former spouses child who is younger than age 16 or disabled.

    Spouses Who Dont Qualify For Their Own Social Security

    Spouses who didnt work at a paid job or didnt earn enough credits to qualify for Social Security on their own are eligible to receive benefits starting at age 62 based on their spouses record. As with claiming benefits on your own record, your spousal benefit will be reduced if you take it before reaching your FRA. The highest spousal benefit that you can receive is half of the benefit that your spouse is entitled to at their FRA.

    While spouses get a lower benefit if they claim before reaching their own FRA, they will not get a larger spousal benefit by waiting to claim after their FRAsay, at age 70. However, a nonworking or lower-earning spouse may get a larger spousal benefit if the working spouse has some late-career, high-earning years that boost their benefits.

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    Lost Or Stolen Federal Payments

    Report your lost, missing, or stolen federal check to the agency that issued the payment. It’s usually one of these paying agencies. If your documentation indicates it’s a different agency, and you need its contact information, look in the A-Z Index of U.S. Government Departments and Agencies.

    To get an update on your claim, contact the Treasury Department Philadelphia Financial Center at 1-855-868-0151, option 1.

    What Is A Social Security Card

    When Can I Start Collecting My Social Security

    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.

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    When Can You Begin To Claim Social Security Disability Insurance

    Those who are blind or have a disability could have access to potentially two different programs if they meet the criteria.

    Social Security Disability Insurance is available to those who are registered as disabled, and cant work due to their physical or mental disability that is expected to last for a year or more, or result in death. Recipients must satisfy certain work history requirements but family members can also be used to satisfy the requirements, which would be difficult for many to achieve who are born disabled.

    There is also Supplemental Security Income which provides financial assistance for people with disabilities, along with seniors, who have a limited income. Most states have their own support programs to assist people on SSI benefits.

    Youre Concerned Social Security Will Disappear

    Some people are concerned about potential Social Security changes in the future, such as higher retirement ages, lower benefits or higher taxes on benefits. As a result, they want to take the sure thing as soon as possible. In a 2017 Social Security summary, the government said Social Security trust funds will be depleted in 2034. Even then, however, annual Social Security taxes are projected to keep benefits at almost three-fourths of current levels.

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    It Depends On The Type Of Benefit And Other Factors

        Most people think of Social Security benefits as a monthly payment that you start getting in retirement and receive for the rest of your life. In fact, Social Security is an umbrella term for several federal benefits programs. One of the largest government programs anywhere in the world, Social Security is expected to have paid out more than $1 trillion to about 65 million Americans in 2020.

        There are three key groups of people who receive Social Security benefits: retired workers, survivors of retirees, and people with disabilities and their families. How long does Social Security last? It depends on the type of benefit.

        Fact #: Social Security Lifts Millions Of Elderly Americans Out Of Poverty

        Can You Collect Social Security If You Never Worked ...

        Without Social Security benefits, about 4 in 10 Americans aged 65 and older would have incomes below the poverty line, all else being equal, according to official estimates based on the 2019 Current Population Survey. Social Security benefits lift more than 15 million elderly Americans out of poverty, these estimates show.

        An important study that matches Census estimates to administrative data suggests that the official estimates overstate elderly reliance on Social Security. That study finds that in 2012, 3 in 10 elderly Americans would be poor without Social Security, and that the program lifted more than 10 million elderly Americans out of poverty.

        No matter how it is measured, however, its clear that Social Security brings millions of elderly Americans out of poverty and dramatically reduces the elderly poverty rate.

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        What If I Change My Mind

        If you receive Social Security benefits at a reduced rate, but then change your mind, you have the option of withdrawing your application and paying back to the government what you’ve already received . Then, you could restart benefits at a later date to take advantage of a higher payout. But you are limited to one withdrawal per lifetime.

        For example, let’s say you elected to receive early benefits at age 62, but then decided to go back to work at age 63. You could withdraw your Social Security application within the first 12 months of receiving benefits, pay back the years’ worth of benefits you received, go back to work, and then wait until a later age to restart your benefit checks at a higher level.

        For important details about repaying benefits please read the SSA publication If You Change Your Mind.

        The Meaning Of Retirement

        There is no such thing as officially retired. There is no legal definition, nor is there a legal designation.

        You just decide one day you dont want to work at the job or in the field to which you dedicated the first 30 or 40 years of your professional life. Often this coincides with your 65th birthday because thats when you qualify for Medicare.

        However, you can start taking Social Security benefits before 65, beginning at 62.

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        Are There Retirement Benefits For My Family Members

        Once you start collecting Social Security, other family members may be entitled to collect benefits as well, based on your work history. If youve been married for at least one year, your spouse may be entitled to collect spousal benefits. Under certain conditions, your children may also be entitled to benefits.

        There is a limit on the amount of benefits that family members receive on the earnings record of one worker. The limit varies between 150% and 188% of the workers PIA. If the total benefits owed to your spouse and children push your familys benefits above the limit, their benefits will be reduced proportionately to bring the total within the limit. Your benefits will not be affected. Any benefits payable to an ex-spouse arent included in the family maximum.

        Can You Collect Social Security If You Never Worked

        When Can I Retire and Collect Social Security? What’s The Best Age?

        It may seem logical that if you never worked and therefore never paid into Social Security that you would not be eligible to receive Social Security benefits. Well, thats not the case. In fact, there are several different scenarios in which a person can receive Social Security benefits without ever having paid into the system, or even worked, for that matter.

        Among the people eligible for Social Security without having worked are spouses and former spouses of people who are eligible for benefits, and survivors of beneficiaries along with their qualified children.

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        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.

        Workers With Too Few Social Security Credits

        To collect Social Security benefits, you must have met the minimum requirement of performing “enough work”.

        The Social Security Administration defines enough work as earning 40 Social Security credits.

        In 2022, an individual will earn one Social Security credit for every $1,510 in covered earnings.

        You can only get a maximum of four Social Security credits each year, and you must earn $6,040 to get the maximum of four credits.

        Therefore, to earn 40 credits you must work for at least 10 years.

        You are able to earn more than 40 credits. However, 40 credits is the minimum number you need to be eligible for Social Security benefits.

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        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.

        What Other Factors Should You Consider When Deciding To Collect Social Security

        When Should You Collect Social Security?

        Before you decide to collect Social Security based on your break even point, you should also consider how collecting early or delaying could impact the benefit your spouse receives.

        Since the Social Security formula benefit is based on an individual’s 35 highest earning years, women often collect less in benefits than men because of career breaks during motherhood and overall lower lifetime earnings. However, the Social Security spousal benefit erases some of the disparity in Social Security earnings between men and women.

        The spousal benefit is available to all spouses, regardless of whether the spouse has a work history or not . The spousal benefit is 50% of the higher earner’s benefit and in order for a spouse to receive the benefit, the higher-earner must be collecting their own benefit.

        The Social Security administration automatically determines whether an individual would earn more in Social Security benefits if they collected on their own work record versus their partner’s work record.

        For example, if the higher earner receives a $2,000 monthly benefit, the spouse is eligible to receive up to $1,000, depending on whether they choose to wait until full retirement age, says Kiner. For example, if someone collects the spousal benefit four years before full retirement age, their benefit will be 35% of the higher-earner’s benefits.

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        How Payments Are Paid

        There are two primary ways to receive your Social Security benefit checks:

      • Direct deposit to your bank account, or
      • Direct Express debit card. In 2013, the Social Security Administration stopped mailing out benefit checks in order to reduce expenses.
      • To set up a direct deposit you have three options:

        • Configure through My profile tab in your online Social Security account
        • Ask your bank to do it

        If you choose to receive through a Direct Express debit card, your benefits will be placed directly onto the card. From there, you can withdraw cash, make purchases or pay bills. To sign up, call Direct Express at 800-333-1795.

        What Is The Earliest Age You Can Claim Social Security 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 9 months old if you want the benefits to start no more than four months into the future. For survivor benefits, the rules are different, as typically you become eligible at 60.

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        There Are Social Security Survivor Benefits For Spouses And Children

        If your spouse dies before you, you can take a Social Security survivor benefit. However, that won’t be in addition to your own benefit. You must choose one or the other. If you are at full retirement age, that benefit is worth 100% of what your spouse was receiving at the time of his or her death .

        A widow or widower can start taking a survivor benefit at age 60. However, the payment will be reduced because it’s taken before full retirement age. If you remarry before age 60, you are not eligible for a survivor benefit. If you remarry after age 60, you may be eligible for a survivor benefit based on your former spouse’s earnings.

        Eligible children who are under age 18 or were disabled before age 22 can also receive a Social Security survivor benefit. It would be worth up to 75% of the deceased’s benefit.

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