5 Facts You Should Know About Social Security Retirement Benefits
June 29, 2023
Social security can be a confusing topic and each person’s social security strategy will be different depending on their circumstances, life expectancy, economic situation, etc. The decision about when to file can impact the rest of your life and make a difference worth thousands of dollars. for your lifetime. Here are some helpful facts, tips and resources to help you better understand Social Security benefits.
- Your Full Retirement Age (FRA) is when you are eligible to receive unreduced benefits This is based on the year you were born. It is gradually increasing over time as people live longer.
2. Your social security benefits may be reduced if you are still working
- If you meet the FRA and are still working, $1 will be deducted from your benefits for every $2 you exceed the total income limit.
- For FRA calendar years, $1 will be deducted from your benefits for every $3 you exceed the total income limit.
- There will be no deductions from your benefits during the FRA month
3. You can receive social security benefits from the age of 62 – However, the benefit amount you receive before FRA will be slightly lower each month. this chart It helps you know how much your benefits will be reduced if you decide to take benefits early.
4. You can pay income tax on social security benefits –
- These income limits can be adjusted annually. For the year 2023 it will be:
- Up to 50% for individual filers with total income between $25,000 and $34,000; up to 85% for total income over $34,000
- For joint filers – up to 50% if total income is between $32,000 and $44,000; up to 85% if over $44,000
5. You can receive benefits based on your spouse’s income record –
- You can apply for both your own Social Security benefits and spousal benefits, and receive whichever is higher.Spousal allowance is usually about 50% of her FRA allowance for a spouse
- If you have been married for at least 10 years and are 62 years of age or older, you may also receive benefits based on your ex-spouse’s income records.
can create free account online Here you can track your wage history for accuracy, see projected benefits, and claim benefits.
When you are ready to apply for benefits, you have three application options:
Here are some additional resources and helpful articles to check out.
When people get Social Security depends on their individual needs, goals, economic situation and life expectancy. For help determining the best strategy when applying for Social Security, contact MainStreet Financial Planning. We are happy to help you get the most out of your Social Security benefits.