There are many benefits to entering your senior years and retiring that aren’t limited to store discounts and memories of the journey. The silver lining to retiring is the ability to access your Social Security benefits to help you start living the rest of your life on your terms. While 97% of elderly receive social security benefits many individuals are not aware of retirement age or how to access their benefits. Learn how you can access your Social Security retirement entitlements and start enjoying your freedoms.
What are Social Security Benefits?
Social Security was established more than 80 years ago to provide income benefits for retired individuals. Workers and employers pay into social security each pay period via a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $142,800 (in 2021), while the self-employed pay 12.4 percent. Social Security benefits provide income for qualified retirees and disabled individuals, as well as for their spouses, children, and survivors. These benefits mean regular monthly payments, that are also adjusted with inflation to provide elderly with financial independence once retired.
How Are Benefit Amounts Determined?
Social Security benefits are based on your lifetime earnings. An individual must accrue 40 credits/worked at least 10 years to qualify for benefits. The benefit amount someone receives is based on their earnings history, the year they were born, and the age when they start to claim Social Security. These earnings are adjusted or “indexed” to account for changes in average wages since the year the earnings were received. The Social Security Administration calculates your average indexed monthly earnings during the 35 years in which you earned the most. However, spouse/ex-spouses that have never worked or not gained enough work credits, can still receive benefits based on their spouse’s/ex-spouses work record.
When Can You Access Retirement Benefits?
Retirement age is determined by your date of birth. You can access your benefits as early as 61 years and 9 months, however since benefits are based on the income your received during your work history, it’s important to work for as long as you can. The full retirement age is 65 to 67 (depending on when you were born), however if you maintain good health and would like to continue working until age 70, your benefits amounts will increase. You may choose to retire before your full retirement age and continue to work part time. Your Social Security retirement monthly benefit will be adjusted but has the potential to increase when you reach retirement age because you are continuing to pay into the Social Security system.
How Do You Access Your Social Security Benefits?
Unfortunately, accessing your Social Security benefits is not an automatic process and requires you to formally file a claim. It can be a very time-consuming, confusing, and overwhelming process. Fortunately, Help Me Help You, Benefits Access Support (BAS) advocates are social security experts that are dedicated to doing all the work for you to achieve the best outcome possible. Start your free case review at www.helpmehelpu.org/bas and one of our multi-lingual (English and Spanish speaking) BAS advocates will contact you within 24 hours to help file your claim and answer any questions.