If you have been paying into Social Security throughout your career, you’ll receive Social Security benefits once you retire. It can be difficult to understand all aspects of Social Security benefits so it is important to understand how it works before you reach retirement. Having a good understanding of Social Security benefits can help you qualify for larger payments and avoid reductions and withholdings. In this blog, we’re going to go over some of the most frequently asked Social Security questions. Continue reading for the answers.
At what age can I start receiving Social Security benefits?
You can start receiving Social Security benefits at the age of 62, but the age that you can start receiving your full Social Security depends on the year you were born.
- If you were born in 1937 or earlier, the claim age is 65.
- If you were born between 1943 and 1954, the claim age is 66.
- If you were born in 1060 or later, the claim age is 67.
If you sign up for benefits before your claim age, your monthly payments will be smaller than they would be if you waited until age 70.
At what age can I apply for Social Security?
You can submit an application for Social Security at the age of 61 years and 9 months old for payments to start as early as age 62 years old. An application can be filed over the phone, online at ssa.gov, or in person at a Social Security office.
How much will I receive in my Social Security benefits?
There are several factors that come into play when the Social Security office decides on the amount of your benefits. You can get a personalized estimate by creating a My Social Security account at ssa.gov/myaccount and looking at your statement. Your statement will tell you how much you will most likely receive if you continue working at your current salary until your claimed age, age 62, and age 70.
What is the Social Security wage limit?
If you continue to work in retirement and receive Social Security benefits at the same time before your full retirement age, some of your benefits can be temporarily withheld. For 2022, the wage limit for receiving Social Security benefits while working before your full retirement age is $19,560. Once you reach full retirement age, your Social Security wage limit is $51,960 for 2022.
Will my Social Security benefits be taxed?
The taxes incurred on your Social Security benefits depend on several factors. If the sum of your adjusted gross income, nontaxable interest, and half of your Social Security benefit exceeds $25,000 for single people or $32,000 for couples, you could owe federal income tax on your Social Security benefits. If your income sources are over $34,000 for single people or $44,000 for couples, up to 85% of your Social Security benefits could be taxed.
If you need assistance with receiving Social Security benefits and organizing your finances after retirement, our advisors at Mooney Lyons can help. We will be able to walk you through the process and make sure you are in a good financial situation in your golden years. Contact us today to get started!