The Social Security Act was signed into law on August 14, 1935, and it didn’t take long for people to start asking questions about the program. While Social Security might seem straightforward at first—contribute during your working years and receive income upon reaching a certain age—the reality is a bit more intricate. The Social Security Handbook (ssa.gov) contains 27 separate sections on the topic. To keep things manageable, I’ve addressed some of the most frequently asked questions about Social Security.
Frequently Asked Questions
1. Who is eligible for Social Security?
To qualify for retirement benefits, you must have accumulated enough work credits based on your earnings record. You can earn one work credit per quarter, up to a maximum of four per year. To be eligible for retirement benefits, you need at least 40 credits, which equates to 10 years of consecutive work.
2. What are Social Security Spousal Benefits?
If you don’t have enough credits to qualify for benefits on your own record, or if your own benefit is relatively small, you might be eligible for spousal benefits. Your spouse must already be receiving benefits for you to qualify on their work record. If your spouse isn’t receiving retirement or disability benefits, you’ll need to wait until they do. The spousal benefit can be as 50% of your spouse’s full retirement age benefit.
3. At what age can I start taking Social Security?
You can begin receiving benefits as early as age 62, but your monthly benefits will be permanently reduced if you start before your Full Retirement Age (FRA). For those born in 1960 or later, FRA is 67. Delaying benefits past FRA up to age 70 increases your monthly payments due to delayed retirement credits.
4. When should I elect to start receiving Social Security?
The best time to start receiving benefits depends on your personal circumstances, such as your employment status, financial needs, health and longevity expectations. Working with a financial advisor can help you model different scenarios and their impact.
5. What about Medicare and Social Security?
If you’re nearing age 65 but haven’t started receiving Social Security, you still need to enroll in Medicare during your initial enrollment window: 3 months before and after your 65th birthday. Missing this window could lead to late enrollment penalties and coverage gaps.
6. How much Social Security will I get?
Your benefit is based on your highest 35 years of earnings, adjusted for inflation. In 2025, the maximum taxable earnings limit is $174,900, and the maximum possible monthly benefit at Full Retirement Age is $3,964 (up from $3,822 in 2024). You can create a “my Social Security” account at ssa.gov to estimate your benefits and verify your earnings history.
7. Do I owe Taxes on Social Security?
Yes. If you have income (wages, interest, dividends, and other taxable income) in addition to your benefits, you may owe taxes:
- Single filers:
- $25,000–$34,000 in combined income: up to 50% of benefits may be taxable
- Over $34,000: up to 85% may be taxable
- Married filing jointly:
- $32,000–$44,000: up to 50% of benefits may be taxable
- Over $44,000: up to 85% may be taxable
“Combined income” includes adjusted gross income (AGI), nontaxable interest, and 50% of your Social Security benefits.
8. Can I file and continue to work?
Yes, but be mindful of earnings limits if you claim before FRA:
- In 2025, if you are under FRA, you can earn up to $23,280 (up from $22,320 in 2024) before your benefit is reduced.
- For every $2 earned over the limit, $1 is withheld from your benefits.
- In the year you reach FRA, the earnings limit is $62,880 (up from $59,520 in 2024).
- For every $3 earned over the limit, $1 is withheld, but only until the month you reach FRA.
- After reaching FRA, there is no limit on earnings.
9. Do I have to choose the same options as my spouse?
No. You and your spouse can claim benefits independently based on your unique ages, earnings records, and life expectancy. Strategic planning may increase your household’s total lifetime benefits.
10. How do I apply for Social Security Retirement Benefits?
You can apply for retirement benefits up to four months before you want to start receiving them. Even if you’re delaying benefits, you should sign up for Medicare at age 65. Apply for benefits online through your My Social Security account. If your application cannot be processed, you’ll receive instructions on how to contact Social Security by phone or in person.
Social Security is a foundational element of most retirement plans. The choices you make—especially in your 60s—can significantly affect your long-term financial well-being. It’s essential to review your benefits annually and work with a financial advisor to make informed decisions based on your goals and circumstances.
Sources:
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