Getting access to your Social Security benefits is an important part of planning for retirement. Social Security provides monthly income to retired and disabled workers and their family members. While you’ve been paying into the system through payroll taxes during your working years, you’ll need to take some steps to start receiving your Social Security retirement benefits.
When can I get Social Security retirement benefits?
You can start receiving your Social Security retirement benefits as early as age 62. However, your benefit amount will be reduced if you start getting benefits before your full retirement age. Your full retirement age depends on when you were born:
| Year of Birth | Full Retirement Age |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
You can delay starting your benefits beyond your full retirement age. Your benefit amount will increase by a certain percentage for each month you delay benefits, up to age 70.
How do I apply for Social Security retirement benefits?
You can apply for Social Security retirement benefits online, by phone, or in person. Here are the steps to take:
- Decide the month you want your benefits to start. You can apply up to 4 months before you want your benefits to begin.
- Review your Social Security statement to confirm your eligibility and estimated benefit amount.
- Gather the documents and information you’ll need, including your Social Security number, birth certificate, W-2 forms, self-employment tax returns, and bank information for direct deposit.
- Apply online at www.ssa.gov, call 1-800-772-1213, or make an appointment to visit your local Social Security office.
- The Social Security Administration will process your application and let you know if any additional information is needed.
After approval, you’ll receive a letter showing your benefit amount and approximate payment dates. Your first payment may take 1-3 months to arrive based on when you applied.
How much will my Social Security benefit be?
Your Social Security benefit amount depends on:
- Your average lifetime earnings – Your top 35 earning years are adjusted for inflation and averaged to determine your basic benefit, or “primary insurance amount.”
- Your age when benefits start – As mentioned above, claiming early before your full retirement age reduces your benefit.
The Social Security Administration calculates your primary insurance amount using a formula that gives lower-income workers a higher return than higher-income workers. In 2023, the average Social Security retirement benefit is $1,827 per month.
You can view your latest statement on your my Social Security account to see an estimate of your personal retirement benefit. Your statement contains your own earnings history and projected payouts based on different claiming ages.
How will my benefits be paid?
You’ll receive your Social Security benefits through electronic direct deposit into your bank account. Direct deposit is a safer and more reliable way to receive your benefits rather than relying on mailed checks.
To set up direct deposit, you’ll need to provide your bank name, account number, and routing number when you apply for Social Security. The money is usually deposited on the second, third, or fourth Wednesday of each month depending on your birth date.
Do Social Security benefits increase over time?
Social Security benefits are adjusted each year to account for inflation. These “Cost-of-Living Adjustments” (COLAs) mean your benefit is likely to increase most years.
The size of the COLA depends on the rate of inflation. For example, the 2023 COLA was 8.7%, one of the largest increases in decades due to the high inflation during 2022. In years when inflation is low, the COLA could be just 1-2% or even 0%.
Over time, COLAs aim to help Social Security benefits keep pace with rising prices so seniors can maintain their purchasing power.
Will Social Security run out?
Due to demographic trends, including increased longevity and lower birth rates, there is concern about the long-term funding of Social Security. The most recent Social Security Trustees report projects that the reserves that help fund the program will be depleted by 2035.
However, even after 2035, Social Security is projected to be able to pay around 80% of scheduled benefits from ongoing payroll tax revenue. There are several proposals to address the long-term solvency of Social Security, such as:
- Increasing payroll taxes paid by workers and employers
- Raising the full retirement age beyond 67
- Changing the COLA formula
- Increasing the limit on taxable wages
It’s likely that Congress will address Social Security’s funding issues well before 2035 to maintain benefits for future retirees. Various solutions are being debated.
Can I work and still get Social Security?
Yes, you can work and still receive Social Security retirement benefits. However, your benefits could be reduced if you are below your full retirement age.
If you are under full retirement age for the entire year, $1 in benefits will be deducted for every $2 you earn above the annual limit. For 2023, that limit is $21,240.
In the year you reach full retirement age, your benefits will be reduced by $1 for every $3 you earn above a different limit ($56,520 for 2023) until the month you reach full retirement age. Once you reach full retirement age, your benefits are no longer reduced based on your earnings.
Will my spouse receive benefits based on my work record?
Yes, your spouse may be eligible for benefits based on your earnings history. Here’s how spousal benefits work:
- Your spouse can receive up to 50% of your benefit amount at their full retirement age.
- Your spouse can start reduced spousal benefits as early as age 62.
- Your spouse can receive spousal benefits even if they have never worked.
- The spousal benefit is in addition to any benefit your spouse earns through their own work history.
If you have been married at least 1 year and are already receiving Social Security, your eligible spouse must apply in order to receive a spousal benefit.
Can my dependent children or parents get benefits?
In addition to spouses, dependent family members may be eligible for Social Security benefits based on your earnings record. These include:
- Children under 18 – Unmarried dependent children can receive up to 50% of your benefit amount.
- Children 18-19 – Full-time students can continue receiving benefits based on your record through age 19.
- Disabled children – Unmarried children who became disabled before age 22 can receive benefits at any age if they remain disabled.
- Dependent parents – Parents dependent on you for at least half of their support may qualify for benefits at age 62 or older.
Family members must apply and meet certain requirements to receive benefits based on your work record. The total amount that can be paid each month to your family members is capped.
Can I receive Social Security benefits if I’m divorced?
If you were married for at least 10 years before getting divorced, you may qualify for Social Security benefits based on your former spouse’s earnings record. Here’s how it works:
- You can receive the same spousal benefits described above based on an ex-spouse’s record if you are 62 or older.
- Your benefit as a divorced spouse does not affect the amount your ex-spouse or their current spouse may receive.
- You can receive divorced spouse benefits even if your ex-spouse is not yet receiving benefits.
The 10-year marriage rule does not apply if your ex-spouse is deceased. In that case, you can collect widow/widower’s benefits as early as age 60 if you are unmarried.
Can I get Social Security if I never worked?
It’s possible to get Social Security benefits even if you have limited or no income from formal employment. For example:
- A spousal benefit based on your husband or wife’s work record.
- A widow/widower benefit if your spouse who worked dies.
- Benefits as a divorced spouse from an eligible ex-spouse.
In these cases, you will need to have been married for 10 years to qualify for spousal or divorcee benefits.
What if I change my mind after applying for benefits?
You have a one-time option to withdraw your application for Social Security within 12 months of first receiving benefits. You can then restart your benefits later to earn delayed retirement credits.
Withdrawing your application lets you:
- Pay back all the benefits received so far
- Start benefits again at a later date
- Potentially increase your future monthly benefit
You only have 12 months from the start of benefits to withdraw your claim. This move allows you to earn delayed credits up to age 70 and receive a higher monthly benefit.
What happens to my Social Security benefits when I pass away?
If you are receiving Social Security benefits when you pass away, a one-time death payment of $255 will be made to your surviving spouse. Additional survivor’s benefits may also be paid to family members who were dependent on your Social Security, such as:
- Widows and widowers age 60+ (age 50+ if disabled)
- Surviving minor children
- Dependent parents
- Surviving divorced spouse from a marriage of at least 10 years
To be paid, your survivors must apply for benefits and meet certain eligibility criteria. The total amount paid each month is limited for a family.
Can Social Security benefits be taxed?
Yes, you may have to pay federal income taxes on your Social Security benefits depending on your total income.
Here are some key points:
- You won’t pay taxes on more than 85% of your Social Security benefits.
- If your total income is between $25,000 and $34,000 as an individual or $32,000 to $44,000 if married filing jointly, up to 50% of your benefits may be taxable.
- Above those thresholds, up to 85% of your benefits may be taxable.
“Total income” includes your adjusted gross income, non-taxable interest, and half your Social Security benefits. Whether your benefits are taxed also depends on your filing status.
You may also have to pay state income taxes on your benefits. Check with your state’s tax agency to find out if your benefits will be taxed at the state level.
Can I receive Social Security benefits while living overseas?
It is possible to collect U.S. Social Security retirement benefits even if you live outside the United States and its territories. Here are a few key points about receiving benefits overseas:
- Benefits can generally be deposited directly into your foreign bank account.
- Benefits are normally unaffected if you become a legal resident of another country.
- There are rules that impact which family members may receive benefits abroad.
- Some countries have “totalization agreements” with the U.S. that may affect benefit amounts.
You’ll need to periodically prove you are still alive through mail-in forms or in-person meetings at U.S. embassies or consulates. Notify the Social Security Administration when you move abroad to avoid issues.
Can I collect a pension and Social Security at the same time?
Yes, you can collect both a pension from your employer and Social Security retirement benefits at the same time. However, two provisions may impact your benefits:
- Windfall Elimination Provision (WEP) – Reduces Social Security benefits for workers who receive a pension from a job not covered by Social Security.
- Government Pension Offset (GPO) – Reduces spousal or survivor benefits if receiving a pension based on federal, state or local government job not covered by Social Security.
The WEP and GPO mainly impact government employees who did not pay into Social Security from their jobs. If your pension is from a job where you paid Social Security taxes, your benefits are usually not reduced by these provisions.
Should I choose my own retirement date, or take spousal/survivor benefits?
Married couples have some important choices when coordinating their Social Security claims. In many cases, the highest household benefit is obtained by:
- The higher-earning spouse delaying benefits to age 70 to earn delayed retirement credits.
- The lower-earning spouse claiming their own benefit at full retirement age, then switching to spousal benefits when the other spouse claims.
However, every situation is unique depending on incomes and life expectancy. Working with a financial advisor can help maximize your lifetime benefits.
Do I have to stop working completely to get Social Security?
No, you do not need to stop working altogether to claim Social Security benefits. Many people claim benefits while still employed either full or part-time.
As mentioned above, your benefits may be temporarily reduced if you are under full retirement age and earn over the annual limits. But your monthly benefit amounts will increase once you reach full retirement age.
Some reasons you may want to claim Social Security before completely retiring include:
- Replace lost income if you retire or cut back your hours.
- Paying for rising health care costs before Medicare eligibility at 65.
- Financial challenges due to recession or medical expenses.
- Lock in benefits in case they are reduced in the future.
Claiming Social Security does not prohibit you from having earned income. You can use benefits to supplement your other retirement income sources.
Conclusion
Understanding how to get your Social Security retirement benefits is key to maximizing this important source of retirement income. While Social Security replaces only about 40% of pre-retirement income, it provides a steady stream of inflation-adjusted income that can help cover essential costs during your later years.
Consider your options carefully for when to claim benefits. Coordinate with your spouse to optimize your household benefits. Seek advice from financial professionals to help you make the Social Security decisions that fit your unique situation.