Social Security

How to Claim Social Security Spousal Benefits: A Step-by-Step Guide

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How to Claim Social Security Spousal Benefits: A Step-by-Step Guide

When it comes to retirement planning, Social Security is a major piece of the puzzle. In fact, about 70.6 million Americans received Social Security benefits in 2022. Millions of American people collected spousal benefits.

Yet many seniors miss out on the income they deserve because the rules are confusing. Questions about eligibility, filing dates, or the effect of divorce or death can feel overwhelming. That’s where we come in.

At The Best Senior Services, we believe seniors should have clear, reliable information. Our team connects you with licensed representatives who guide you through retirement planning and Social Security decisions.

This guide breaks down Social Security spouse benefits into simple, easy-to-follow steps.

 

Understand the Basics of Social Security Spouse Benefits

Spousal benefits help married couples share in retirement income. They allow one spouse to receive up to 50% of the other spouse’s benefit at full retirement age.

Here are the basics:

  • You must be married for at least one year in most cases.
  • You can claim benefits even if you never worked outside the home.
  • Benefits are based on your spouse’s work record.

This option provides security for households where one spouse may not have earned enough credits to qualify for full benefits.

 

Know the Requirements for Spousal Social Security Benefits

Not everyone qualifies automatically. You must meet the requirements for spousal Social Security benefits:

  • You must be at least 62 years old.
  • Your spouse must already be receiving retirement or disability benefits.
  • If divorced, the marriage must have lasted at least 10 years.
  • If widowed, survivor benefits may apply.

These rules are sometimes called Social Security spousal benefits eligibility. Understanding them helps you avoid surprises when applying.

 

Steps on How to Apply for Spouse Social Security Benefits

Applying for Social Security can feel intimidating, but breaking it down into small steps makes it much easier. Here’s a simple guide to help you through the process.

Step 1: Gather Your Documents

Before you start, make sure you have the right paperwork. This usually includes your birth certificate, marriage certificate, proof of U.S. citizenship or legal residency, and your spouse’s Social Security number. You may also need tax documents or military service records, depending on your history. Having everything ready saves time and prevents delays.

Step 2: Decide How You Want to Apply

You have three options:

  • Online at SSA.gov – the fastest and most convenient.
  • By phone – call the Social Security Administration to set up an appointment at 1-800-772-1213
  • In person – visit your local Social Security office if you prefer face-to-face support.

Choose the method that feels most comfortable for you.

Step 3: Complete the Application

You’ll answer questions about your marriage, your spouse’s work history, and your own income or employment status. Be honest and thorough—mistakes can cause processing delays.

 

Step 4: Submit and Confirm

After you submit, you’ll receive a confirmation notice. The SSA may contact you if they need more information. Always keep copies of your application and any documents you provide.

 

Step 5: Wait for Approval and Payment

Approval times vary, but most applications are processed within a few weeks. Once approved, your benefits will be automatically deposited into your bank account each month.

Pro Tip: Apply several months before you want your benefits to begin. This gives the SSA time to process everything and ensures your payments start on schedule.

By following these steps, applying for spouse Social Security benefits becomes much less stressful. A little preparation goes a long way toward a smooth experience.

 

Common Social Security Rules for Spouses

The Social Security rules for spouses affect how much you receive. Some key rules include:

  • Claiming before full retirement age reduces your benefit permanently.
  • You cannot receive both your own benefit and the full spousal benefit; you get the higher of the two.
  • If your spouse has not yet claimed benefits, you may need to wait.

These rules can be tricky. That’s why many seniors choose to consult with a licensed advisor.

 

The Challenges Seniors Face

Here’s the truth: the Social Security system can be overwhelming.

  • Complicated forms: Many seniors feel lost when filling out applications.
  • Confusing rules: Filing early, late, or at full retirement age all have lasting effects.
  • Conflicting advice: The internet is full of mixed messages about the “right time” to file.

Too often, seniors make mistakes that cost them thousands in lifetime benefits.

At The Best Senior Services, we help cut through the confusion. We provide reliable information and connect you with licensed representatives in your area. You don’t have to face this challenge alone.

 

Pro Tips to Maximize Your Spousal Benefits

Here are strategies that go beyond the basics:

  • Delay filing when possible: Waiting until full retirement age ensures the maximum 50% spousal benefit.
  • Coordinate with your spouse: Sometimes it makes sense for one spouse to delay benefits while the other files early.
  • Revisit your plan: Life events like retirement, divorce, or health changes can affect your strategy.

These tips aren’t one-size-fits-all. That’s why personalized guidance matters.

 

The Hidden Costs of Filing Mistakes

Mistakes with Social Security can be costly:

  • Filing too early may reduce your income for life.
  • Incomplete forms can delay your benefits.
  • Misunderstanding the rules may cause you to miss out on thousands of dollars.

These hidden costs are why so many seniors choose to work with trusted advisors. One conversation can prevent years of financial stress.

 

How The Best Senior Services Can Help

At The Best Senior Services, we know that Social Security decisions affect your financial security for the rest of your life. That’s why we focus on education, clarity, and trust.

Here’s what we do:

  • Provide reliable, easy-to-understand information.
  • Connect you with licensed representatives in your area.
  • Offer guidance not just on Social Security, but also Medicare and other financial services.

We’re here to make sure you never feel alone in this process.

 

Talk to Us for Your Social Security Spouse Benefits Guidance

Claiming Social Security spouse benefits doesn’t have to be confusing. By understanding the rules, preparing the right documents, and avoiding common mistakes, you can protect your retirement income. At The Best Senior Services, we believe education leads to better decisions. That’s why we’re dedicated to connecting seniors with licensed professionals who care. Your next step is simple: get the information you need and the guidance you deserve. Contact The Best Senior Services today to start planning with confidence.

 

FAQs

What are Social Security spouse benefits?

Spouse benefits allow a husband or wife to claim up to 50% of their partner’s Social Security retirement benefit. It helps provide income security for couples, especially if one spouse didn’t work enough to qualify on their own.

Who is eligible for spousal benefits?

You must be at least 62 years old and married for at least one year to qualify. Your spouse must already be receiving retirement or disability benefits.

Can I apply for spouse Social Security benefits if I never worked?

Yes. If you don’t have enough work credits, you can still receive benefits based on your spouse’s record. This makes it easier for stay-at-home spouses to have income in retirement.

What are the requirements for divorced spouses?

If you were married for at least 10 years and are currently unmarried, you may qualify for Social Security divorced spouse benefits. Your ex-spouse does not need to know about your application.

How does the death of a spouse affect benefits?

Widows or widowers may qualify for survivor benefits. You can begin receiving reduced benefits as early as age 60 or full benefits at your full retirement age.

How do I apply for spouse Social Security benefits?

You can apply online at SSA.gov, by phone, or by visiting your local Social Security office. Make sure to gather your marriage certificate, birth certificate, and your spouse’s Social Security number before applying.

Will claiming spousal benefits reduce my spouse’s benefit?

No. Your spouse will continue to receive their full retirement benefit. Spousal benefits are calculated separately and do not reduce what your partner receives.

Can I collect both my own retirement and spousal benefits?

No, you’ll only receive the higher of the two. If your own benefit is larger, you’ll receive that amount instead of a spousal benefit.

What happens if I claim before full retirement age?

If you apply early (as early as age 62), your spousal benefit will be permanently reduced. Waiting until full retirement age ensures you receive the full 50%.

Do remarriage rules affect spousal benefits?

Yes. If you remarry, you usually cannot collect benefits on your former spouse’s record. However, if that later marriage ends, you may become eligible again.

Wise Wallets, Happy Hearts: Financial Tips for Seniors in 2024

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Financially, going through the golden years is a joyous adventure. But managing finances can feel like a tricky puzzle.

 

Don’t worry – TBSS is here to make it easy for you! In 2024, as you navigate your retirement journey, understanding your finances is vital to a happy and stress-free life.

 

Think of this guide as your friendly roadmap, designed to unravel any worries about your finances. From retirement accounts to healthcare and Social Security, we’re here to simplify the complexities.

 

Managing your finances with helpful financial tips can be straightforward and enjoyable with The Best Senior Services.

 

1. Adapt to Evolving Retirement Accounts

In 2024, the retirement account landscape has seen some noteworthy updates. This directly impacts seniors.

 

Staying informed about these changes is crucial for optimizing your retirement savings and ensuring a financially secure future.

 

Let’s break down the critical updates and strategies tailored to seniors.

Latest Updates in Retirement Accounts

Seniors should be aware of changes in contribution limits, withdrawal rules, and eligibility criteria.

 

For example, the annual contribution limits for Individual Retirement Accounts (IRAs) and 401(k)s may be adjusted. Additionally, it is vital to understand any modifications to Required Minimum Distributions (RMDs).

 

Why? It affects when and how much you must withdraw from your retirement accounts.

 

Clear and Actionable Tips for Seniors

  • Review Your Asset Allocation: Regularly reassess your portfolio. This is to ensure it aligns with your risk tolerance and retirement goals. Adjustments may be necessary as you approach retirement to prioritize capital preservation.

 

  • Explore Health Savings Accounts (HSAs): If eligible, consider contributing to an HSA. HSAs offer triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. They are a powerful retirement savings tool.

 

  • Take Advantage of Employer Matches: If you’re still working, maximize your employer’s contribution to your retirement account. Contribute enough to receive the whole match. It’s essentially free money that can significantly boost your savings.

 

  • Stay Informed about Tax Law Changes: Tax laws can impact retirement savings strategies. Stay abreast of legislative changes affecting your retirement accounts and adjust your approach accordingly.

 

2. Strategize Financial Investment Approaches for Seniors

In 2024, seniors will have many investment opportunities tailored to their unique needs, allowing them to navigate the market confidently.

 

Let’s explore senior-friendly investment approaches that align seamlessly with the current financial landscape.

Aligning with Market Conditions

Understanding the market dynamics is critical for senior investors. The market can be unpredictable.

 

However, specific sectors and investment vehicles tend to be more stable. Consider diversifying your portfolio with blue-chip stocks, dividend-paying companies, and bonds.

 

These options can provide a steady income stream and a cushion against market volatility.

 

Low-Risk Investment Options

Seniors often prioritize capital preservation. Low-risk investment options can play a crucial role in achieving this goal.

 

Treasury bonds, certificates of deposit (CDs), and high-quality municipal bonds are low-risk instruments. They offer stability and reliable returns.

 

3. Consider Health Care Costs in Retirement

Navigating healthcare costs poses distinctive challenges for seniors. Hence, proactive planning is vital in ensuring a secure and healthy retirement.

 

The unique blend of aging-related health concerns and the evolving healthcare landscape demands thoughtful consideration.

 

Seniors often face escalating healthcare costs due to increased medical needs and prescription expenses.

 

The potential for unexpected health issues further complicates financial planning. As Medicare policies evolve, staying abreast of updates is crucial to manage these costs effectively.

 

Tips on Navigating Healthcare Costs

 

Begin by exploring the intricacies of Medicare coverage. Understand its different parts and the supplemental options that are available.

 

Review your Medicare plan regularly to ensure it aligns with your evolving healthcare needs. Investigate prescription drug plans for potential savings and consider generic alternatives.

 

Embrace a proactive approach to health by investing in preventive care. It can mitigate potential health issues and reduce long-term expenses.

 

Investigate health savings accounts (HSAs) for tax-advantaged ways to save for medical expenses, including those not covered by Medicare.

 

 

4. Maximize Social Security Benefits

Staying abreast of recent changes in Social Security policies is crucial for seniors aiming to maximize their benefits.

 

Social Security policies can undergo adjustments, impacting the benefits seniors receive. Stay informed about any policy changes related to benefit calculations, retirement age, or cost-of-living adjustments.

 

Be aware of how these modifications might influence your Social Security income. Then, adjust your strategy accordingly.

 

Practical Tips for Social Security Optimization

To optimize Social Security income, explore spousal and survivor benefits, especially if you’re married.

 

Coordinating your claiming strategy with your spouse can result in a higher household income. Additionally, if you continue working while receiving Social Security, be aware of earnings limits that may temporarily reduce your benefits.

 

Understanding the nuances of claiming strategies, such as filing and suspending or restricting applications, can be advantageous.

 

These strategies allow you to maximize benefits. You can also maintain flexibility in your retirement plans.

 

Engage with a financial advisor specializing in Social Security or a Registered Social Security Analyst to receive personalized guidance based on your circumstances.

 

Remember, the decision to claim Social Security benefits is a significant one. A well-thought-out strategy can contribute substantially to your financial security in retirement.

5. Craft Estate Planning for Seniors

Estate planning is a cornerstone for seniors, ensuring a seamless transition for themselves and their loved ones.

 

Estate planning includes crucial elements involving the creation of wills, trusts, and thoughtful beneficiary designations.

 

A will specifies the distribution of assets, guardianship for dependents, and the appointment of an executor.

 

Trusts offer additional layers of control and privacy, especially for complex estates. Carefully choosing beneficiaries ensures assets pass smoothly and according to your wishes.

Empowering Seniors to Protect Their Legacy

Empowerment lies at the core of effective estate planning.

 

Seniors can actively secure legacy by openly communicating wishes, detailing end-of-life preferences, and documenting financial affairs.

 

Regularly reviewing and updating estate plans align with evolving circumstances. By taking these proactive steps, seniors protect their legacy and offer their loved ones a roadmap for the future.

 

Practical Advice on Expense Management

Managing expenses in retirement requires a thoughtful approach. Start by distinguishing between needs and wants.

 

Prioritize essential costs like housing, healthcare, and groceries. Consider downsizing if applicable, as it can significantly reduce housing expenses.

 

Leverage senior discounts and explore cost-effective alternatives for hobbies and entertainment. This can help you make the most of your budget.

Creating a Sustainable Retirement Budget

Crafting a sustainable budget involves balancing income and expenses to ensure longevity.

 

Evaluate your income sources, including Social Security, pensions, and additional investments. Create a spending plan that aligns with your income while allowing for flexibility. Always include an emergency fund in your budget.

 

It’s essential to handle unexpected expenses without derailing your financial stability.

 

Strategize Your Finances Early

Seniors hold the key to financial empowerment through strategic retirement planning. Implement these tips on retirement accounts, investments, Social Security, budgeting, and estate planning.

 

Seek the guidance of professionals, ensuring your path to a secure and fulfilling retirement is well-charted. Your financial well-being is not just a destination.

 

It is a continuous voyage. So, embark on it confidently, armed with knowledge, strategies, and financial tips, with The Best Senior Services.

Questions About Social Security You Need to Ask

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Social security income is a widely used income source and public pension system President Franklin D. Roosevelt created in 1935. The Social Security Administration provides sustained benefits to the retired and the disabled every month.

The Social Security Administration, SSA, currently employs 60,000 Americans. This makes it one of the largest federal agencies in the nation and has been operating for more than 85 years.

Fun Social Security Facts:

  • The first-ever social security check was cashed in 1940 for $22.54. Now the average retired individual makes ~$1,500 a month.
  • The Social Security Administration conceived social security numbers, and now those nine digits track us from the day we are born until our last.
  •  In 2020, 65 million Americans were paid social security benefits.

In 2020, 9 out of 10 people aged 65 and older received social security benefits; 57% of retirees claim that social security accounts as a significant source of income. The money you put into social security will be there for when you lose a spouse, become disabled, or retire.

Americans rely on social security payments every month. Meanwhile, many questions are floating around the topic because social security is more complex than federal income tax.

In this article, we’ll explore a few pressing questions about social security so that you can better understand the purpose of the agency and how their work affects you.

 

When am I eligible for social security benefits?

People wonder if they should claim social security benefits at age 62, 66, or 70 or assume that everyone retires at age 65. However, with at least ten years of work history, everyone is eligible for benefits at age 62; that doesn’t mean you should retire and claim benefits the moment you turn that age. There are many factors that you must consider when deciding when to retire.

First, you will want to keep track of your social security statement, which you can find here. Because everyone makes mistakes, you can avoid miscalculations if you track your payment history with your statement.

The SSA is not in the business of giving out advice; therefore, it is the responsibility of the public to understand and consider the benefits that the government offers its citizens. You can learn all about your social security benefits from a local social security specialist with The Best Senior Services.

Factors that must be considered:

  1. Age
  2. Marital Status
  3. Marital History
  4. Health
  5. Spousal Considerations
  6. Retirement Assets
  7. Employment Status
  8. Years Spent Working
  9. Tax Situation
  10. Home Equity
  11. Survivor Needs
  12. Children
  13. Disabilities
  14. Need for Income

 

Terms that you should know:

Full Retirement Age: FRA – this is the age that the SSA considers the age at which you receive your full benefit, based on your birthday. Here is the birth year breakdown:

Birth Year Full Retirement Age
·       1937 and prior 65
·       1938 65 and 2 months
·       1939 65 and 4 months
·       1940 65 and 6 months
·       1941 65 and 8 months
·       1942 65 and 10 months
·       1943-54 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

 

Average Indexed Monthly Earnings: AIME – monthly pay for the most profitable 35 years of your work history.                                                  

What Benefits Can I Receive from Social Security?

Your benefits are calculated using a formula that averages your top-earning 35 years, taking cost of living adjustments into consideration, and divides that by 420. The result is then adjusted for inflation, and that number is your AIME. Your AIME is then run through a series of calculations called bend points to determine your benefits finally.

The average American salary is around $50,000; at that income, a retiree could expect $1,890 at full retirement age.

When Should I Start Claiming Benefits?

There is a positive correlation between the number of years waiting to retire and the percentage of eligible funds. When you postpone retirement, you can earn considerably more in benefits.

If your full retirement age is 66 and you wait till you are 70 to retire, you will make 32% more in benefits.

On the other side of that coin, there is a negative correlation if you retire early. If your full retirement age is 66 and you retire at 63, you will lose 20% of your full benefits.

74% of Americans today have chosen to retire early and assume reduced benefits. Retirement benefits were being paid out to 65 million people in 2020. Keep in mind that the cost of living adjustment is around 2.6% a year; this increases each year.

How much do I pay for Social Security?

Everyone pays 6.2% of their salary each year into social security. Your employer matches what you pay into Social Security. The Social Security Administration then distributes these taxes to beneficiaries across America.

Are there spousal benefits?

Yes, you do not have to have any earning history to qualify for spousal benefits, as long as your husband or wife has at least ten years of earning record.

The Best Senior Service is here to ensure you get the most benefits out of your retirement.

Medicare vs. Social Security: What YOU Need to Know

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By now, you’re probably familiar with both the social Security and Medicare programs that you may be offered as you reach your retirement. These are both great financial aids for you and your older years. As you look at your options pertaining to the two of them, you may begin asking yourself what the large difference between the two is and whether having one will affect your chances of gaining the other. There are a lot of questions you have to address with insurance and financial programs, but it all starts with discovering the basics.

 

So, what is the difference between Social Security and Medicare?

 

In this article, we’re going to cover:

  • What they do for you
  • Similarities
  • How one may affect the other
  • Things to keep in mind

 

What they do

Medicare is a health insurance plan that is offered to seniors or those who qualify through their disability. It’s broken up into four parts that tailor to the recipient’s needs: Parts A, B, C and D. Generally, a recipient is 65 years old and has a specified period of time in which he or she can enroll in Medicare.

 

Social Security is a benefit program that is run by the federal government. Generally, the earliest a recipient is able to start collecting his or her Social Security benefits is at 62 years old, assuming he or she meets the other specified qualifications.

 

To be eligible for Social Security, you must be working and paying the Social Security taxes. Although you do not have to be a U.S. citizen to qualify for Social Security, you must work in order to earn the benefits. This is translated into having 40 credits, which you can gather as you pay the Social Security tax on your earnings. You can earn up to four credits per year, equating to 10 years’ worth of work.

 

To be eligible for Medicare, you must have been working long enough to be able to receive Social Security benefits. You must also be a citizen of the United States. The final qualification for Medicare doesn’t apply to everyone, but it may apply to you. You may also be eligible for Medicare if you or your spouse is a government employee who hasn’t paid into Social Security but has been paying payroll taxes for Medicare.

 

You may have already known about the basic functions that the two offers, but you may still be wondering about what makes the two similar. Let’s dive into that.

 

The similarities between Social Security and Medicare

The first similarity is one we briefly touched on earlier, and that is that the two are federally funded. It’s also important to note that the two aren’t exclusive to those who are approaching retirement age. The two programs also provide benefits to those who have disabilities.

According to the federal government, you can qualify for Medicare below the age of 65 if you:

 

  • Have been entitled to Social Security benefits for at least 24 months. These months do not have to be consecutive.
  • You receive a disability pension from the Railroad Retirement Board and meet certain conditions.
  • You have Lou Gehrig’s disease. This is formally known as amyotrophic lateral sclerosis.
  • You have permanent kidney failure.

 

According to the Social Security Administration (SSA), you can qualify for Social Security benefits as a child if you are unmarried and:

 

  • Younger than 18.
  • 18-19 years old and a full-time student (no higher than grade 12).
  • 18 or older that began before the age of 22.

 

In special cases, benefits can also be awarded to stepchildren, grandchildren, step-grandchildren or adopted children if they:

 

  • Have at least one parent who is disabled or retired and eligible for Social Security benefits.
  • Have a parent who has passed away after working long enough to earn enough credits at a job where he or she has paid Social Security taxes.

 

The final core similarity between the two is the enrollment. Believe it or not, you must enroll for both programs through the Social Security Administration. On the SSA’s website, you can apply for retirement, disability, and Medicare benefits, as well as check the status your applications or appeals.

 

How one may affect the other

Although the two programs offer different things to recipients, there are a couple of ways in which the two programs work in tandem. Here are some examples:

 

  • If you’re already receiving Social Security, you will have automatic enrollment into Medicare Part B. You can receive Social Security benefit as early as 62, but you cannot enroll in Medicare until three months prior to your 65th birthday. So, if you began collecting your Social Security early, you will be enrolled into Medicare Part B when you are first eligible.
  • Medicare premiums can be deducted from your Social Security benefits. Part A of Medicare is free for most people, but you are expected to pay premiums for Part B, your medical coverage. However, you can deduct your Part B premium from your Social Security payment. Let’s say you receive $1,800 a month from Social Security, and your Medicare Part B premium is $200 a month. That means you will receive $1,600 as your payment.

 

Things to keep in mind

Many people confuse Medicare with Social Security, and it’s easy to do so. Noting the similarities and differences between the two is important to know because that core understanding will help you maximize your plans to your benefit. But there are also a few other things you need to keep in mind while you consider the relationship between the two.

 

First, you can begin your Social Security benefits anytime between 62 and 70. And, unlike Medicare, it’s encouraged – if you are healthy and able – that you receive your payments as close to 70 as you can, because that way, you will earn a higher paycheck. With Medicare, however, it is important to enroll during that initial enrollment period, which begins three months before you turn 65 and lasts until three months after you turn 65. Otherwise, you face permanent penalties.

 

You also want to keep in mind the fact that you do not have to be receiving Social Security benefits to enroll in Medicare, nor do you need to be enrolled in Medicare to receive Social Security benefits.

 

If you are not enrolled in Medicare, then it is important to determine what the important enrollment dates are. You are first eligible for Medicare when you are just about to turn 65. If you do not enroll during your initial enrollment period, then there is still time. You can enroll during the Annual enrollment Period, which is held annually from October 15 through December 7.

If you have any remaining confusion about how Social Security and Medicare share a relationship, let us help you. At The Best Senior Services, we specialize in educating seniors about programs that apply to them and their loved ones and connecting them to a local licensed agent who will help seniors get what they need at their best interest. Don’t delay any longer. Call us at 855.979.8277, or visit our website today.

The BIG Mistakes Seniors Make with Social Security

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It’s probably time for you to start thinking about your retirement. And, if you are thinking about your retirement, it’s time to ask yourself the hard questions. What is my income going to look like? How much do I have saved? How is my health?

 

The great thing about Social Security (SS) is that it’s designed to help you when you retire. But, sometimes, people jump the gun on claiming their benefits as soon as they turn 62, the year you can start receiving these payments. As a result, mistakes are made and many who do this wish that they had delayed getting these benefits.

 

This article is designed to explain some of the common mistakes that people make with Social Security, and how you can avoid them. We will also delve into the best things you can do to make the most out of your Social Security benefits.

 

 

Mistakes you need to avoid

 

  1. Exceeding the earnings limit. An earnings limit mainly applies to those who receive Social Security benefits but continue to work. This applies to those who are below the retirement age, or at the full retirement age. Let’s say that the full retirement age is 66. As of 2021, if you are the full retirement age and still working, your benefits will be reduced by $1 for every $3 you earn over $50,520. However, the penalties are much greater if you are younger than 66. As of 2021, if you are younger than the full retirement age and earn over $18,960, your benefits will be reduced by $1 for every $2 you earn over that amount.
  2. Collecting benefits just because “you can.” Many people opt to receive SS benefits as soon as they can for no reason other than they don’t want to wait to get them. Your circumstances may call for you to receive benefits earlier, based on your health or current income. In that case, talk with a licensed specialist to help you make the best decision going forward. But, if you’re able to delay your benefits, you will want to consider doing that instead. It will help you in the long run.
  3. Thinking you qualify for Social Security because you’ve turned 62. Although you do need to be 62 before you can begin collecting benefits, not everyone is eligible for these benefits as soon as the hit that age. You must work for at least 40 quarters of your work history in order to be eligible. While working, you’re eligible to receive up to four quarters a year. Assuming you earn all four quarters a year, that means you have to work 10 years before you can earn all 40 quarters required for Social Security. The required minimum of money that you have to earn per quarter is $1,470. Check with the Social Security Administration (SSA) or a specialized agent to discuss your work history and ensure you’ve earned all 40 credits.
  4. Thinking your benefits will continue to increase when you pass 70. Once you reach the age on 70, delayed retirement benefits cease to increase. If you wait until you are 63 to pull Social Security benefits, your reduction of benefits is around 25%. But, if you pull at age 64, the reduction isn’t as harsh, and is only 20%. When you receive your benefits at 70, you get an 8% increase in your benefits. If you wait until 72, it’s still only 8% and will not rise any further.
  5. Thinking everyone gets the same payment on Social Security. This simply is not true. Social Security will look at your 35 highest years of work earnings to determine how much you will be receiving in your SS benefits. Think of it this way: the more money you earn, the more money you put toward Social Security. And the more money you put toward SS, the more you will receive on your benefits. Not everyone will get the same payment back from the SSA when they decide to file.
  6. Failing to understand how Social Security is taxed. How SS is taxed is based upon your provisional income, AKA your adjusted gross income. This means that the SSA evaluates how much you’ve earned excluding your benefits. Social Security can be anywhere between 50% to 85% taxable. And that is from the federal government alone. Thirteen of the 50 states also charge a state income tax in Social Security. These states are:

 

    • Colorado
    • Connecticut
    • Kansas
    • Minnesota
    • Missouri
    • Montana
    • New Mexico
    • North Dakota
    • Rhoda Island
    • Utah
    • Vermont
    • West Virginia

 

When considering the time to file for your benefits, speak with a specialist to define how your SS may be taxed.

 

  1. Not realizing all of the benefits in which you are eligible. You’re eligible for more than you think. For example, if you’re divorced, you can qualify for up to 50% of your ex’s SS benefits. You are only eligible if you were married for more than 10 years, you haven’t remarried, and your divorce was finalized at least two years ago. Benefits can also be paid to your unmarried children, but again, they must meet a certain amount of qualifications. According to the SSA, they must be “younger than 18; between ages 18 and 19 but in elementary or secondary school as full-time students; or age 18 or older and disabled (the disability must have started before age 22).”
  2. Failing to understand spousal benefits. Yes, it’s possible that you are eligible to receive your significant other’s SS benefits if he or she is the primary earner. But how much you receive in payments is dependent on if the earner files for Social Security, not This means that the primary earner can file earlier or later, but you must be 62 before you start collecting the benefits.

 

How to get the most out of your Social Security

Now that you’re aware of what some of the common mistakes are, you can now figure out the ways that you can get the most out of your Social Security. This may seem like a difficult task, but trust us, it’s simple.

  • Delay, and then delay some more. This is worth repeating again: delay collecting your benefits as much as you can. You will earn more money by doing this.
  • Get the maximum social security benefit. Now, we acknowledge that this one may be a little easier said than done. If you wait until you are 70, the highest amount you can claim per month in 2021 is $3,895. If you wait until you are 66, the highest amount you can claim is $3,148 per month. If you claim early, at 62, the highest amount you can claim is $2,324 per month. So, how do you get to be able to claim the maximum amount? You can do it by working for 35 years, or until you are the full retirement age.
    • Work at least 35 years, or until you are of full retirement age. We know that there aren’t many people who are jumping for joy at the thought of having to work for 35 years. But there’s a reason why it’s this amount of time. When calculating how much you will receive on Social Security benefits, the SSA evaluates the 35 years in which you’ve earned the most. And, not to mention, these 35 years do not need to be consecutive. If you need a year to take a break from working, then you’ve earned that right.
  • Use an online calculator. Let’s say you’ve already worked at least 35 years and you’re thinking about collecting your Social Security now. There are multiple programs online that will demonstrate how you can get the most out of your SS benefits.
  • Suspend payments. You can do this between the time you’re at full retirement age between age 70. You can suspend your Social Security payments for as many months as you want, and when they restart, they’ll be higher. However, be careful when doing this. As soon as you suspend your payments, then your spousal and/or child payments will also suspend.
  • Understand the ins and outs of Social Security. This seems like a doozy, but don’t let it scare you. It starts with knowing the basics: your SS earnings history. After that, you can research more about how Social Security works by visiting its website or speaking with a specialist.

 

Keep in mind

If you are also receiving 401(k) or 403(b) payments after your retirement, these payments will not affect your Social Security benefits. However, it’s possible that you will generate enough of an income from the two services that you will be taxed or taxed at a higher rate.

 

The thought of collecting money just because you’ve met a certain number of requirements in your lifetime is exciting, and it’s understandable why people don’t want to waste time in getting it. However, being too quick to accept Social Security benefits without thinking all of your options through is the worst mistake you can make. Evaluate the circumstances you’re in and how collecting Social Security benefits at your current age would impact you.

The Best Senior Services can help you avoid making unnecessary mistakes with Social Security. We dedicate ourselves to educating you and other seniors so that you make well-informed decisions that are best for you. To get into contact with a licensed agent who shares this same goal, visit our website today or call us at 855.979.8277.