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Social Security... Page 3
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How Much Will I Receive in
Benefits?
Generally, the longer you wait to retire and the higher your lifetime of earnings, the
more you will receive in Social Security benefits. The size of your benefit is directly
related to your earnings and the number of years you have paid into the system. If your
family is your career, you'll receive up to 50% of your husband's benefits. If you worked
during this time, you'll receive any personal benefits or 50% of your husband's benefits,
whichever is greater.
If you choose to retire early at age 62, you will lose 20% of your full benefits. Is it
worth it? That depends. You'll first have to compare what your benefits will be at age 62
and then at age 65. By retiring at age 62, you'll receive three more years worth of
benefits -- at a reduced scale. The question you have to answer then: How long will it
take to make up those extra benefits if you retire at 65? Five. Ten. Fifteen Years. You
also have to consider other factors such as life expectancy, job status, and personal
savings.
What if I Keep Working after
Retirement?
If you decide to keep working after age 65 (retired) and earn too much, your benefits will
be reduced. Between age 65 and 70, you'll lose $1 in benefits for every $3 you've earned
over $15,500. Under age 65, you'll lose $1 for every $3 over $9,600. Remember, you lose
benefits on earned income only. Investments, personal savings, and retirement income from
pensions or IRAs are not included. If you're 70 or older, and still working, no limits are
imposed on your earnings.
What Can I Do Now?
Every three years, you should request a copy of your Earnings and Benefits Statement from
the Social Security Administration. This statement shows your earnings history and how
your benefits are accruing. Estimates are given for ages 62, 65, and 70 -- but this will
likely change when the retirement age increases in future years. You need to make sure
your information is correct, up-to-date, and that your annual earnings have been credited
to your statement. To order a statement, you will need to fill out an SSA Form 7004 and
mail it to the Social Security Administration. You can get a copy of this form by calling
1-800-772-1213, or if you would rather fill it out online, go to the Social Security
Administration's web site. Expect your statement to
arrive in the mail approximately 4-6 weeks after your initial request.
Retirement Calculators:
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• How much will Social Security provide?
• What if
Social Security no longer exists?
• What will my income be after I retire?
• What happens if tax laws change? |
