Quick Social Security Facts

Quick Social Security Facts

  • Your benefit increases an average of 6-7% per year from 62 to Full Retirement Age (FRA).
  • Your benefit increases 8% per year from FRA to 70.
  • You do not receive any delayed retirement credits past 70, so there is no reason to wait past 70 to start taking benefits.
  • Your Social Security benefits, even spousal benefits, may be affected if you are eligible for a pension based on earnings not covered by Social Security.
  • You receive 1 credit for each $1,160 of earnings (for 2013), up to a maximum of 4 credits per year.
  • You need 40 credits (10 years of work) to qualify for Social Security retirement benefits.
  • If you do not have 40 credits, you may be entitled to benefits on your spouse’s record.
  • 50% of your benefits will be taxable if your combined income* is between $25,000-34,000 if filing as single, and between $32,000-44,000 if filing a joint return.
  • 85% of your benefits will be taxable if your combined income* is more than $34,000 if filing single, and more than $44,000 if filing a joint return.
  • If you take Social Security benefits before your FRA and continue to work, your benefits may be reduced.
  • Social Security stopped issuing paper statements in 2011 for those under age 60. However, workers will receive a statement at age 25. Otherwise, you are now required to create an account online to access your Social Security statement.
  • Filing a “restricted” application can allow you to collect ½ of your spouse’s benefits, while allowing benefits on your own record to accrue delayed retirement credits.
  • Filing and suspending allows your spouse to collect ½ of your benefits, while allowing benefits on your own record to accrue delayed retirement credits.
*Combined income = your AGI + non-taxable interest + ½ of your Social Security benefits

Please see the Social Security Administration’s website for more information – http://www.ssa.gov/

This article was published when Cynthia Meyers of Cynthia Meyers CFP® was with Financial Telesis. Cynthia Meyers has not been with Financial Telesis since 8/11/14 and has no further affiliation with that organization.