Social Security Info
According to the Social Security Administration these are things to think about as you consider your options.
As you approach the age when you can receive Social Security retirement benefits, you have options to consider and decisions to make. Before making your retirement decision, we hop you consider all your options.
There are important questions you need to ask yourself. At what age do you want to begin receiving benefits? Do you want to stop working and receiving benefits? Do you want to work and receive benefits at the same time? Or do you want to work and delay receiving benefits?
When you continue working beyond full retirement age your benefit may increase because of your additional earnings. If you delay receiving benefits, your benefit will increase because of the special credits you will receive for delaying your retirement. This increased benefit could be important to you later in your life. It also could increase the future benefit amounts your family and survivors could receive.
Each person’s retirement situation is different. It depends on circumstances such as health, financial needs and obligations, family responsibilities, amount of income from work and other sources. It also may depend on the amount of your Social Security benefit.
About The Options
Retiring At Full Retirement Age–To retire you must have earned 40 credits. See the table below to determine your full retirement age:
Year of Birth Full Retirement Age
1937 or Earlier 65
1938 65 and two months
1939 65 and four months
1940 65 and six months
1941 65 and eight months
1942 65 and ten months
1943-1954 66
1955 66 and two months
1956 66 and four months
1957 66 and six months
1958 66 and eight months
1959 66 and ten months
1960 67
Note: Refer to previous year if you were born on January 1st
Early Retirement
If you’ve earned 40 credits, you can start receiving Social Security Benefits at 62 or any month between 62 and full retirement age. However, your benefits will be permanently reduced based on the number of months your receive benefits before you reach full retirement age. If you retire before your full retirement age of 65, your benefits will be reduced:
20% at age 62
13.5% at age 63, or
6 2/3 % at age 64
If your full retirement age is 66, they will be reduced
25% at age 62
20% at age 63
13 1/3% at age 64, or
6 2/3% at age 65
Receiving Retirement Benefits While You Work
You can work while receiving monthly benefits. And it could mean a high benefit that can be important to you later in your life and increase the future benefits your family and survivors could receive.
The Social Security Administration will review your records with you each year to see whether the additional earnings will increase your monthly benefit. If there’s an increase, they will send you a notice of your benefit amount. Earnings after the month you reach full retirement age won’t reduce your Social Security benefits. However, if you receive benefits before reaching your full retirement age, your benefit amount will be reduced.
* In the year you reach full retirement age, $1 in benefits will be deducted for each $3 you earn about the annual limit ($31,800 in 2005) until the month your reach full retirement age. After that, your benefits will not be reduced, no matter how much you earn.
* In the years before you reach full retirement age, $1 in benefits will be deducted for each $2 you can earn above the limit ($12,000 in 2005).
If you lose benefits because of work, your benefit will be increased later to account for the months you didn’t receive a benefit before reaching full retirement age.
Delaying Retirement
You may decide to continue working beyond your full retirement age without choosing to receive benefits. If so, your benefit will be increased by a certain percentage for each month you don’t receive benefits between your full retirement age and 70. This table shows the rate your benefits increase if you delay retiring:
Year of Your Birth Yearly Increase Rate
1935-1936 6.0%
1937-1938 6.5%
1939-1940 7.0%
1941-1942 7.5%
1943 or later 8.0%
Applying For Social Security Retirement Benefits and Medicare
It’s best to contact Social Security three months before the month in which you want to file for retirement benefits to discuss the options that are available to you. In some cases, your choice of retirement month could mean additional benefits for you and your family.
Even if you don’t plan to receive benefits because you’ll continue working, you should sign up for Medicare three months before reaching age 65 regardless of when you reach full retirement age. Otherwise, your Medicare medical insurance (Part B) could be delayed and you could be charged a higher premium.
How to apply for Retirement Benefits?
You can file your retirement claim on the Internet at www.socialsecurity.gov/planners or by calling 1-800-772-1213 between 7 a.m. and 7 p.m. Monday through Friday to file your claim. In addition to the information above you will need:
* Your Military Discharge papers if you had military service.
&your spouse’s birth certificate and Social Security number and your marriage certificate if he or she is applying for benefits; and
*Proof of U.S. citizenship or lawful alien status if were not born in the U.S.
You will need to mail or deliver original documents or copies that been certified by the issuing office to a Social Security office.
Need More Information?
You also have options for getting information about Social Security and retirement. When you visit the Social Security website, www.socialsecurity.gov, click on the Benefits Planners to estimate your Social Security Benefits, find answers to frequently asked questions about Social Security, and learn about factors that could affect your benefits and much more. And you can get information about Social Security by visiting a local Social Security office or by calling 1-800-772-1213.
You can print these print publications from the Social Security Website:
* Retirement (Publication No. 05-10035)
* How Your Retirement Benefit is figured (Publication No. 05-10070)
* How Work Affects Your Benefits (Publication No. 05-10069)
Always check with your Social Security Office to be advised of any changes to the information presented on Happily Retired website.