To paraphrase Winston Churchill, Social Security’s benefit formula is “a riddle wrapped in a mystery inside an enigma.” At least, that is what it seems like to those trying to understand how much their monthly benefit will be when they claim. Of course, it’s fairly easy to get the dollar number directly from Social Security, but the logic behind why some people get more than others seems elusive to many.
One recent financial professional grew impatient explaining that, yes, higher earners get more, but benefits are still weighted in favor of lower-earning beneficiaries, as discussed in this encore edition of a recent AMAC Foundation “Ask Rusty” article. To find out how SS benefits are calculated, click here to read the Ask Rusty article, or click here to listen to the audio podcast.
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Also, if you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of this program. All questions are answered quickly, at no charge. Learn more about it here…
Do my monthly benefits continue to increase beyond the age of 70 if I continue to work full time? I am told there are my different ways to claim your benefit and that one set up you may not change your method of payment. Is that true? What are the correct questions to ask and what answers do I need in order to claim the proper benefit? Thank you!
Bruce
When you apply for your Social Security benefits you should apply at least three months before you want them to start. Social Security pays one month behind, so you will receive your first payment the month after you start them.
When you continue to work beyond your full retirement age, your benefits are recalculated each year to determine if you are entitled to an increase in your benefits. Your benefit amount is based on your highest 35 years of earnings after they are adjusted for inflation through age 59. If your current earnings are higher than any of the 35 years used in your current amount, your benefit will increase.
You have three options for applying for your benefits. You may apply online using your My Social Security Account. If you do not have one you may create one. I have attached the link: https://www.ssa.gov/myaccount/?utm_medium=cpc&utm_source=bing&utm_content=ssa-login-
If you are not comfortable applying online, contact your local Social Security office and make an appointment to apply over the phone or in person. Do not delay taking your benefits beyond age 70, as they quit accruing delayed retirement credits.
Social Security no longer mails paper checks, so have your bank information for direct deposit available when you apply.
You may contact us by emailing [email protected] or calling (888)750-2622.
Sharon Kleczka, Social Security Advisor
AMAC Foundation
I reached FRA and am now taking SS while still working.
My wife’s SS is less than 50% of my SS benefits and is currently not working
Question: Any advantage for my wife to wait until she reaches FRA or can she start taking her SS now as 50% of mine?
She turns 65 in 3 months and reaches FRA at 66 11 months.
Thanks,
Scott Nikaido
Scott
For your wife to receive a benefit equal to 50% of yours she will have to wait until her FRA of 66 & 10 months. If she starts her Social Security benefits at age 65, she will only receive a benefit equal to approximately 42.36% of your FRA benefit amount.
You may contact us by emailing [email protected] or calling (888)750-2622.
Sharon Kleczka, Social Security Advisor
AMAC Foundation
My wife is nearing age 62 and her FRA is less than 50% of mine age 60. I am trying to determine if she can take a reduced benefit on her SSA beginning at age 62, and then convert at FRA to the spousal benefit with no reduction. I have seen writings that say receiving her reduced benefit early also reduces the spousal benefit, and I have seen writings that say the spousal benefit would not be reduced as long as she waits until FRA before converting. (I think not taking her own reduced benefit at age 62 would be a mistake as she will convert to a spousal benefit at FRA either way. I’m trying to be certain as a reduced spousal benefit is to be avoided above all else
)
jay
If your wife starts her own retirement benefits at age 62, she will only receive approximately 70% of her benefit. That becomes the amount her spousal benefit will be added to when you finally apply for your own retirement benefits. If she has reached her full retirement age (FRA) when you apply, she will receive her full spousal increase, but it will be added to her reduced retirement benefit, and her benefits will never equal 50% of your FRA amount.
Your wife will need to delay taking any benefits until she reaches her FRA to receive a benefit equal to 50% of your FRA benefit amount, regardless of when you start your own benefits.
You may contact us by emailing [email protected] or calling (888)750-2622.
Sharon Kleczka, Social Security Advisor
AMAC Foundation