Basics of Social Security Retirement Benefits

Basics of Social Security Retirement Benefits

Retirement benefits comprise a core and fundamentally critical component of the Social Security regime overall — Social Security operates as a government-protected tax credit that pays into a shared benefits pool for American workers. It is intended as a safety net for those wage-earning Americans (and their dependents) who do not have other means of supporting themselves, and are struggling with limited financial resources. Social Security retirement benefits can initially seem rather simple.

One might think that every worker is entitled to receive their benefits at retirement age. In reality, however, there are many complications and legal/financial concerns that have to be considered in the context of the rules and of your particular circumstances. -Which of my family members qualify for retirement benefits? -When should I claim my retirement benefits? -How do my earnings affect my retirement benefits? For a clear understanding of how Social Security retirement benefits work, you have to learn the basics. Let’s take a look. Retirement Benefits To qualify for Social Security retirement benefits, you’ll have to work a minimum number of years. You cannot qualify for benefits until you satisfy this requirement.

The amount of working-years required before you qualify for retirement benefits depends on your year of birth. These working-years do not have to be consecutive, however. For example, you can work for five years, take some time off, then work another five years, and still qualify for retirement benefits. Amount of Retirement Benefits Retirement benefits vary on the basis on one’s lifetime earnings. As such, the benefits payout for two people can be substantially different, depending on the type of careers they had, the length of their careers, and how consistent their working-years were. Finally, the total amount of retirement benefits a person is entitled to is modified by their chosen retirement age. A worker who decides to retire early (e.g. at 62 years of age) will have their benefits payout reduced significantly.

 When to Claim Benefits Your standard Social Security retirement benefit can be claimed at full retirement age. What constitutes “full retirement age” depends on the year of your birth, but generally begins at age 66 (for those born from 1943-1954) and goes up to age 67 (for those born from 1955-1960). Importantly, you don’t have to claim the retirement benefits you’re entitled to at full retirement age. If you need or want the money sooner, you can choose to claim your retirement benefits before you reach full retirement age (62 years of age, at the earliest).

Your benefits will be reduced by a significant percentage as a result, however. If you are still working, or have the income to survive reasonably well until later, you can hold off for a few years after full retirement age and get an 8 percent increase in benefits year-on-year until age 70. For example, if you can wait until age 70 to claim your benefits, you will be entitled to a 32 percent increase in total benefits for the rest of your life.https://www.youtube.com/channel/UCfDXGdzdCaeHX1897XYJeaw/videos

 Whether you choose to claim your benefits early, late, or right on time is a decision that depends greatly on your total benefit entitlement and your current financial circumstances. Family Access Family members may also be entitled to retirement benefits on the basis of your own. Family members who can claim benefits include:

• Spouses — including ex-spouses — who meet the minimum retirement age for benefits (age 62);
• Spouses of any age who are caregivers for your minor or disabled child;
• Your minor children and disabled children (even if your disabled child is older than age 18). Each family member may be entitled to different benefits.

Your unemployed spouse, for example, may be entitled to 50 percent of your full retirement benefit. To apply for retirement benefits, whether you’re a retired worker (or a qualifying family member), you can submit a Social Security Retirement Application online, call in, or visit your local Social Security Administration office. ABOUT THE AUTHOR: Mike Murburg Attorney Mike Murburg, P.A., has led a successful career litigating disability law claims for over thirty years. Areas of practice include Social Security disability claims, state and private disability claims, veteran’s administration claims, and railroad retirement disability claims, among others. At the Law Office of Mike Murburg, clients are treated with the respect and professionalism they deserve. The firm values a high level of attorney-client engagement, as well as transparency.
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