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Social Security Facts

March 18, 2021

In this video, we are going to discuss some important Social Security facts and how they may be able to increase your lifetime benefit. First, social security benefits are calculated based on the 35 years in which you earn the most money. If you don’t work for at least 35 years, zeros will be factored into the calculation which decreases your payout. Next, increasing your income from a side job will increase the amount you receive from social security and retirement. Earnings of up to $137,700 in 2020 are used to calculate your retirement payments. Another important factor in receiving your full benefit is working until your full retirement age which is 66 or 67 for most current workers to get your full payment. Monthly payments are permanently reduced for people who sign up for social security before their retirement age. Another way to increase your social security benefit is to delay claiming the benefit until age 70. After your full benefit retirement age, payments will increase by about 8% for each year you delay claiming social security up until age 70. After age 70, there’s no additional benefit for waiting to sign up for social security.

Social security benefits offer some important consideration for spouses and ex spouses. For example, spouses may claim benefits based on their own work record or up to 50% of the higher earners benefit, whichever is higher. Additionally, if you are married for at least 10 years, you can also claim social security benefits based on the ex spouses work record. Maximizing survivor’s benefits is also very important. When the first spouse passes, the surviving spouse can inherit the deceased spouse’s benefit payment if it is more than his or her current benefit. Retirees can boost the amount the surviving spouse will receive by delaying claiming social security. And last but not least, make sure your work counts. Create a my social security account and download your social security statement annually to check that your earnings history and social security taxes paid had been recorded correctly by the social security administration. Make sure you are getting credit for the taxes you are paying into the system. For more information on how to enhance your lifetime social security benefit, please call our office today.