Social Security is an important support system for millions of Americans, but myths and misinformation can make it difficult to make decisions for beneficiaries.
So, here are 25 key points to help you better understand this system and maximize your benefits.
How Do Social Security Benefits Work?
Below are 25 tips to help you understand how Social Security benefits work in the United States:
- It doesn’t matter if you qualify for other types of aid; the first thing you will always receive will be your own benefit. It’s like your financial base.
- If you were married for more than 10 years, you qualify for ex-spousal benefits (even if your ex hasn’t claimed them!). And yes, this applies even if they haven’t talked about it for a long time. There had to be something good about marriage!
- If you decide to start receiving your benefit before your full retirement age (67 years old), you will be accepting a cut that will be permanent. Is it worth losing up to 30% by not waiting? 4. Social Security calculates your benefit based on your 35 highest-earning years adjusted for inflation. If you have years of low earnings, they could affect your monthly check.
- When we talk about spousal benefits, these are calculated based on your partner’s original insured amount, not what he or she is actually receiving.
- You can claim survivor benefits from age 60. You don’t need to wait until you turn 62.
- To get a monthly benefit, you must be 62 years old for the entire month. If your birthday is in the middle, you’ll have to wait until the next month.
- If you’re already receiving benefits when you reach 65, you don’t have to do anything. Medicare enrolls you on its own. Just check your coverage to avoid surprises.
- Even if a divorce agreement says otherwise, you can’t give up your Social Security rights. If the marriage lasted more than 10 years, the law protects you. 10. If you have a pension from another government system, you may choose to receive 100% of your Social Security benefits first and activate the other pension later.
- If you have children under age 19, you may consider taking your benefits early to support their needs.
- If you receive disability benefits, they automatically convert to retirement benefits when you reach your FRA.
- When your partner dies, you cannot receive both benefits. Instead, you receive the one with the highest value.
- In order for you to qualify for spousal benefits, your partner must already be receiving his or her own.
- If someone dies, the benefits for that month will be recovered by Social Security. You cannot keep them.
- In some states, common-law marriages are recognized by Social Security. Laws vary widely, though.
- If you change your mind within the first 12 months of applying for benefits, you can return what you received and cancel your application. 18. If you get married after age 60, you can still receive survivor benefits from your deceased spouse.
- Creating your account on ssa.gov is the first step to reviewing your earnings history and correcting errors.
- At age 70, your benefit maxes out. It doesn’t make financial sense to wait any longer to receive it.
- The surviving spouse receives the highest benefit between the two of you, while the other disappears.
- If you already receive spousal benefits, these will automatically change to survivor benefits when your partner dies.
- Military retirement benefits do not affect Social Security benefits. You can receive both without any problems.
- If you live outside the US, you will receive periodic questionnaires to confirm your eligibility. It is essential to respond to them to avoid interruptions.
- Apply for your benefits at least 2-3 months before the date you want to start receiving payments. This prevents unnecessary delays.
