Bob Rosenblatt, Academy senior fellow and former Los Angeles Times Washington correspondent will report on the people and the maneuvers that led to this major expansion of social insurance. Boomers began to reach age 62 in The cost of Social Security will rise faster than tax income because the population over age 65 will grow faster than the working-age population. Both the baby boom generation and increasing life expectancy after age 65 contribute to an aging population.
The application process for retirement benefits is quick and straightforward, and there's little you need to do after you've applied, aside from keeping your bank account and address information current. Having said that, there's more to Social Security strategy than you may think.
The wrong moves could cost you tens of thousands of dollars in potential benefits, and here are three missteps to avoid.
Claiming too early if you're still working Americans who qualify can claim Social Security anytime between the ages of 62 and 70, and the vast majority of Americans claim at their full retirement age or sooner. In fact, 62 is the most common claiming age, by a significant margin.
And to be fair, Social Security is designed so that the average person will get roughly the same amount of benefits inflation-adjusted regardless of when they claim.
It's also true that once you've reached full retirement age, you are entitled to claim your entire Social Security benefit, no matter how much you earn from work.
However, if you've reached your full Social Security retirement age and are still working, it's also important to remember that your earnings can still boost your Social Security benefit. Specifically, the Social Security formula takes your highest 35 years of inflation-indexed earnings into account.
And, the later years of many American's careers are also some of their highest-earning years. Here's the key point: A year of relatively high earnings will replace the lowest of the 35 years of earnings used in the Social Security benefit formula.
If you're past full retirement age and are earning significantly more now than you were toward the beginning of your career, or if you have some gaps in your work record, holding off on claiming your Social Security retirement benefit could help boost your income in two ways.
Delaying a spousal benefit past full retirement age Thanks to Social Security spousal benefits, spouses who didn't work or earned comparatively little throughout their working life are entitled to much-needed retirement income. If your calculated Social Security retirement benefit is less than half of your spouse's, or if you don't qualify at all, a spousal benefit will kick in to make up the difference.
However, there are two very important points you need to know. First, unlike standard Social Security retirement benefits, spousal benefits don't get any bigger after full retirement age.
If your spouse's full retirement age is 67, and they wait until 68 to claim a spousal benefit, their monthly check won't get any bigger. Second, the key requirement to be eligible for a spousal benefit is that the higher-earning spouse must have claimed their own benefit already. If your spouse is entitled to a benefit on your work record, think twice before you delay retirement beyond their full retirement age.
Not checking your earnings record The Social Security Administration, or SSA, keeps track of your Social Security taxable earnings every year, and you can take a look at your earnings record on your latest Social Security statement.
Your Social Security statement is available on www.The Social Security Retirement program is designed to support Americans as they enter retirement age with benefit checks.
In the past, many individuals found they were unable to work due to old age and could no longer support themselves or (if applicable) their significant other. To solve this issue, the Social Security Administration created the retirement program.
Social Security's full-benefit retirement age is increasing gradually because of legislation passed by Congress in Traditionally, the full benefit age was 65, and early retirement benefits were first available at age 62, with a permanent reduction to 80 percent of the full benefit amount.
Social Security Benefits Do you know how working affects your benefits? Or how much taxes you will have to pay on social security?
Use these tips and resources to answer frequent questions and learn more about collecting social security benefits. The big news for Social Security in is a small pay hike for the program’s 61 million beneficiaries. The average monthly payment will go up by 2 percent: from $1, to $1, next year.
It. Social Security Reform: Current Issues and Legislation Congressional Research Service 1 Background Social Security reform is an issue of ongoing interest to policymakers.
In , Social Security program changes were discussed during negotiations on legislation to increase the federal debt limit and reduce federal budget deficits. History of Social Security in the United States Jump to including the Railroad Retirement Act. The Social Security Act's similarity with the Railroad Retirement Act caused Edwin Witte, Of particular concern was the issue of what would happen when people born .