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Q: When can I begin receiving Social Security benefits?
A: You are eligible to receive Social Security benefits starting at any time after age 62. The earlier you start taking benefits, the longer the government has to pay them, so the lower the monthly benefit; the later you start taking benefits, the higher the monthly payment.
Q: What does Social Security define as "full retirement age," and how much are benefits reduced if I apply earlier?
A: Full retirement age is 65 for workers born on or before January 1, 1938. Such a worker who started receiving benefits at 62 accepted a 20 percent reduction in monthly benefits. For workers born after that date, full retirement age is gradually raised until it reaches age 67 for workers born on or after January 1, 1960. As the law stands today, such a worker who chooses to receive benefits starting at age 62 instead of 67 will accept a 30 percent reduction in monthly benefits to make up for the five years of additional payments. Such a worker who applies later than age 67 and up to age 70 will receive increased benefits to compensate for the shorter payment period.
Q: What is the maximum monthly benefit for workers who retire at full retirement age?
A: In 2007, a worker retiring at full retirement age (65 and ten months) can expect to receive a maximum monthly benefit of $2,116.
Q: What is the reduction in benefits for those who retire at age 62?
A: For a worker born in 1944, full retirement age is 66. If that worker retires in 2007, at 62, benefits are reduced by 25 percent.
Q: Do my Social Security benefits remain the same for as long as I receive them?
A: No. Adjustments are made each year based on changes in the cost of living (inflation), so the adjustment may be different each year. For 2007, the cost-of-living adjustment (COLA) is 3.3 percent.
Q: If I continue to work after I start receiving Social Security benefits, how much can I earn before my benefits are affected?
A: If you are under full retirement age when you start collecting Social Security, $1 in benefits will be deducted for each $2 you earn above $12,960 for 2007. In the year you reach your full retirement age, $1 in benefits will be deducted for each $3 you earn above $34,440. After that year, you get full benefits no matter how much you earn.
Q: Is a divorced person entitled to benefits based on his or her spouse's Social Security record?
A: A person can receive benefits as a divorced spouse on a former spouse's Social Security record if he or she:
In addition, the former spouse must be entitled to receive his or her own retirement or disability benefit. If the former spouse is eligible for a benefit, but has not yet applied for it, the divorced spouse can still receive a benefit if he or she meets the eligibility requirements above and has been divorced for at least two years.
Q: In retirement, will IRA withdrawals reduce my monthly Social Security benefits?
A: Non-work income (from such sources as pensions, annuities, investments, capital gains and other government benefits) will not affect your Social Security benefits. The Social Security Administration only counts your earned wages or, if you are self-employed, net profit.
Q: How can I find out my estimated Social Security benefits?
A: Social Security sends you an estimate of your benefits each year, about three months before your birthday. For an estimate meanwhile, contact Social Security by telephone at (800) 772-1213, TTY # (800) 325-0778 or online and request a Social Security Statement, Form SSA-7004. This document includes a record of your earnings on which you have paid Social Security taxes during your working years and a summary of the benefits that you and your family may be eligible for. It also explains how to qualify for your benefits. After making your request, you can expect to receive a response by U.S. mail in two to four weeks.
Q: What are the benefit amounts a husband or wife may be entitled to receive?
A: A spouse receives one-half of the retired worker's full benefit unless the spouse begins collecting benefits before full retirement age. In that case, the amount of the spouse's benefit is permanently reduced by a percentage based on the number of months before he/she reaches full retirement age.
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