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when should you collect social security benefits

by Cheyanne Hamill Published 3 years ago Updated 2 years ago
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  • You can collect Social Security as early as age 62, but your benefits will be permanently reduced. 1
  • The longer you can afford to wait after age 62 (up to 70), the larger the monthly benefit. 1
  • Doing a breakeven analysis can help you determine when you would come out ahead by delaying benefits.
  • Spouses can also claim benefits as early as age 62, based on their partner’s work record. 2

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

When can you start collecting Social Security?

To claim Social Security spousal benefits, you’ll need to meet certain criteria, including being at least age 62 in most cases. Your spouse or ex-spouse also must be living. Keep in mind that the criteria for spousal benefits varies depending on whether you’re married or divorced.

How much can I earn while on social security?

  • Be aware that we are talking about Social Security income limits for retirement benefits, not disability or SSI.
  • The earnings limit on Social Security is not the same as income taxes on Social Security. ...
  • The earnings limit does not apply if you file for benefits at your full retirement age or beyond. ...
  • The earnings limit is an individual limit. ...

What is the best way to collect Social Security?

These include:

  • Your date and place of birth
  • Your Social Security number
  • If you are not a United States citizen, you will need your permanent resident card number
  • Name of current spouse and the name of any prior spouse (if you were married for more than 10 years or if the marriage ended in death). ...

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How to decide when to take Social Security retirement benefits?

  • If you were born on January 1 st, you should refer to the previous year.
  • If you were born on the 1 st of the month, we figure your benefit (and your full retirement age) as if your birthday was in the previous month. ...
  • You must be at least 62 for the entire month to receive benefits.
  • Percentages are approximate due to rounding.

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What is the best age to start collecting Social Security benefits?

When it comes to calculating the best age for starting to collect your Social Security benefits, there's no one-size-fits all answer. As a rule, it's best to delay if you can. If you're in good health and don't need supplemental income, wait until age 70.

Is it better to take Social Security at 62 or 67?

The short answer is yes. Retirees who begin collecting Social Security at 62 instead of at the full retirement age (67 for those born in 1960 or later) can expect their monthly benefits to be 30% lower. So, delaying claiming until 67 will result in a larger monthly check.

Is it better to collect Social Security at 66 or 70?

If you start receiving retirement benefits at age: 67, you'll get 108 percent of the monthly benefit because you delayed getting benefits for 12 months. 70, you'll get 132 percent of the monthly benefit because you delayed getting benefits for 48 months.

Is it better to take Social Security at 62 or 63?

Monthly Social Security payments are reduced if you sign up at age 63, but by less than if you claim payments at age 62. A worker eligible for $1,000 monthly at age 66 would get $800 per month at age 63, a 20% pay cut. If your full retirement age is 67, you will get 25% less by signing up at age 63.

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.

Why You Should Take SS at 62?

You Need To Pay Down Debt If you have high-interest debt, claiming Social Security early can help you pay the debt down. Depending on the interest rate you're paying, the 8% yearly boost to your benefits that you receive for each year you wait past full retirement age might not be worth the increased monthly benefit.

Can you collect Social Security at 66 and still work full time?

When you reach your full retirement age, you can work and earn as much as you want and still get your full Social Security benefit payment.

What is the average Social Security check at age 66?

$3,240At age 66: $3,240. At age 70: $4,194.

How much will I get from Social Security if I make $30000?

0:362:31How much your Social Security benefits will be if you make $30,000 ...YouTubeStart of suggested clipEnd of suggested clipYou get 32 percent of your earnings between 996. Dollars and six thousand and two dollars whichMoreYou get 32 percent of your earnings between 996. Dollars and six thousand and two dollars which comes out to just under 500 bucks.

How much Social Security will I get if I make $75000 a year?

about $28,300 annuallyIf you earn $75,000 per year, you can expect to receive $2,358 per month -- or about $28,300 annually -- from Social Security.

Can I draw Social Security at 62 and still work full time?

Can You Collect Social Security at 62 and Still Work? You can collect Social Security retirement benefits at age 62 and still work. If you earn over a certain amount, however, your benefits will be temporarily reduced until you reach full retirement age.

How much Social Security will I get if I make 20000 a year?

If you earned $20,000 for half a career, then your average monthly earnings will be $833. In this case, your Social Security payment will be a full 90% of that amount, or almost $750 per month, if you retire at full retirement age.

What does it mean to delay retirement benefits?

If you are the higher earner, delaying starting your retirement benefit means higher monthly benefits for the rest of your life and higher survivor protection for your spouse, if you die first.

Is it important to decide when to start receiving Social Security?

Choosing when to start receiving your Social Security retirement benefits is an important decision that affects your monthly benefit amount for the rest of your life. Your monthly retirement benefit will be higher if you delay claiming it.

How long do you have to wait to get Medicare if you are 65?

The Social Security Administration (SSA) also cautions that even if you delay receiving Social Security benefits until after age 65, you might still need to apply for Medicare benefits within three months of turning 65 to avoid paying higher premiums for life for Medicare Part B and Part D.

How much is a month of benefits at 62?

If, for example, you’d get $1,500 a month starting at age 62 or $2,000 a month starting at age 66, you will have received roughly the same amount in total benefits by age 77 or so. At that point the higher monthly benefits you’d get as a result of waiting will begin to pay off.

What happens if my spouse dies first?

If the higher-earning spouse dies first, the surviving, lower-earning spouse will receive a larger Social Security check for life. 7 . When the surviving spouse hasn’t reached full retirement age, they will be entitled to prorated amounts starting at age 60.

How much extra insurance do you get at 70?

If you wait until you’re 70 to start claiming benefits, you’ll get an extra 8% per year , or, in total, 132% of your primary insurance amount ($2,640 per month in the example above) for the rest of your life.

How much is my unemployment check at 62?

In other words, you’ll get 25% less per month, and your check will be $1,500. 1 .

Can a spouse get Social Security if they don't work?

Spouses who don’t qualify for their own Social Security. Spouses who didn’t work at a paid job or didn’t earn enough credits to qualify for Social Security on their own are eligible to receive benefits starting at age 62 based on their spouse’s record.

Do marginal tax rates affect Social Security?

At today’s marginal tax rates, they may not have much of an impact on most people. Still, tax rates and income thresholds can change, so it’s 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.

When do Social Security benefits start?

Key Takeaways. Social Security retirement benefits start as early as age 62, but the benefits are permanently reduced unless you wait until your full retirement age. Payments are for life. Social Security spousal benefits pay about half of what your spouse gets if that's more than you'd get on your own. Payments are for life.

How old do you have to be to get Social Security?

To get Social Security spousal benefits, you must be one of the following: At least 62 years old. Any age if you are taking care of your spouse's child who is also receiving benefits 7 . A divorced spouse who is at least 62, whose marriage lasted at least 10 years, and who remains unmarried 8 .

What is Social Security retirement?

Social Security Survivor Benefits. Social Security Disability Benefits. Most people think of Social Security benefits as a monthly payment 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.

How long can a child of a deceased beneficiary be on disability?

A child of a deceased beneficiary may qualify for continuing benefits for life if the person is disabled, or until they reach age 18 (or 19 if attending high school). 10 

What is the final category of Social Security benefits?

The final category of Social Security benefits applies if you suffer an injury or illness that leaves you unable to work. These benefits are paid from the Disability Insurance Trust Fund. 12 

What age can a dependent on Social Security receive benefits?

A surviving parent who was dependent on a Social Security recipient who has died may be eligible to receive benefits at age 62 or older. This benefit is for life. 10 

How many people will receive Social Security in 2020?

One of the largest government programs anywhere in the world, Social Security is expected to have paid out more than one trillion dollars to about 65 million Americans in 2020. 1 .

What are the advantages and disadvantages of taking your retirement benefits 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.

What happens if you delay your retirement?

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.

Is it better to collect your retirement benefits before retirement?

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.

What is the retirement age for Social Security?

Source: Social Security Administration. While the full retirement age used to be 65 , changes to the program have increased that age. For example, those born in 1955 now have to wait an extra two months beyond age 66 to claim their full benefit.

How much will Social Security be less if you were born in 1961?

Those are big hits for waiting just a few extra years. For example, if you were born in 1961 and file for benefits at age 62, your monthly benefit will be 30 percent less than if you had filed at your full retirement age of 67.

How much do you get a check for retirement in 2020?

If you reach full retirement age in 2020, the administration deducts $1 of your monthly check for every $3 you earn above $48,600 until the month you reach retirement age. You’ll also owe Social Security and Medicare tax on your earnings, even if you’re already receiving benefits.

How much will my retirement check increase?

So if your full retirement age is 66, then if you can wait two more years and claim benefits at age 68, you’ll increase your monthly check by 16 percent .

When will Social Security pay you a bonus?

In fact, Social Security will pay you a bonus if you wait until after full retirement age to claim your benefits. So there’s extra incentive to wait, if you can. Here’s what you need to know about taking Social Security and the trade-offs between claiming an early benefit and your full benefit.

Is there an age limit for Social Security?

When it comes to calculating a start date for Social Security benefits, however, there’s not an age that’s appropriate for everyone. Consider your own financial need, health and other retirement plans before making the call.

Can you get a reduction in your retirement if you have too much?

Earning too much at a job after you begin collecting your benefit can reduce your payout, but only if you have yet to hit full retirement age. However, when you hit full retirement age, your benefit will increase to account for any benefit that was withheld earlier due to working.

Select looks at factors you might not have considered when collecting Social Security

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What you need to know about Social Security

First off, let’s establish some basics about Social Security. The Social Security administration determines a worker’s benefit, known as the primary insurance amount (PIA), by using a calculation based on a worker’s 35 highest earning years, says Kiner.

1. Social Security benefits may be subject to income tax

If you’re collecting Social Security benefits at or past full retirement age, your benefits may be subject to federal income tax. For workers with other sources of retirement income, up to 85% of their benefits may be taxable.

3. You may be able to suspend your benefits in order to maximize how much you receive

Once you’ve started collecting Social Security retirement benefits, you’re not necessarily locked into receiving benefits for the rest of your life. If you’ve reached full retirement age and wish you would have waited longer to receive a greater percentage of your benefits, you have the option of suspending your benefits .

Apply for Retirement Benefits

Starting your Social Security retirement benefits is a major step on your retirement journey. This page will guide you through the process of applying for retirement benefits when you’re ready to take that step. Our online application is a convenient way to apply on your own schedule, without an appointment.

Ready To Retire?

Before you apply, take time to review the basics, understand the process, and gather the documents you’ll need to complete an application.

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