Social Security Made Simple(r)
By Carla Christian
Ahh, Social Security. When you’re ready for the simpler days of retirement, you still have some complicated decisions to make. Your choices now can affect your finances for the rest of your lifetime, so it’s wise to get expert financial advice about your personal situation.
Following are answers to some of the most common questions about Social Security retirement benefits.
What is Social Security?
Officially known as the Old-Age Survivors and Disability Insurance (OASDI), Social Security is a federal insurance program that provides monthly retirement benefits and disability income to qualified people.
How do I qualify?
You must be 62 or older and have paid into Social
Security through payroll deductions for at least 10 years.
When can I collect?
You can begin collecting benefits at age 62, but your benefits will be reduced. You’ll receive 100 percent of benefits when you reach full retirement age (FRA — see explanation below). If you wait to collect after your FRA, up to age 70, your benefit amount will increase each year.
Will I automatically get Social Security?
No. You must file a claim to activate benefits.
How much Social Security will I get?
The amount of your benefits is based on the top
35 years of your earned income.
How should I decide when to collect?
Consider your personal health and finances when choosing your Social Security strategy. What is your health status, and how many years do you think you’ll collect benefits? Do you have savings or other sources of income? Do you plan to continue working? If so, how much will you earn?
Get more tips & info on Social Security in future issues.
/side
Know your Full Retirement Age
Birthdate FRA (Full Retirement Age)
1943-1954 66
1955 66 + 2 months
1956-1959 66 + 4 months
1960 or later 67