About Applying for Social Security Bene ts
rity pays benefits “in arrears,” meaning your benefit is paid in the month follow- ing the month earned. So, for example, if you apply for your benefits to start in January, your January benefit will be paid in February. The exact date of your payment depends on the day of the month you were born: if you were born between the 1 st and 10 th of the month, you get your payment on the second Wednesday; if you were born between the 11th and 20 th of the month, payment is made on the third Wednes- day; if you were born after the 20 th of the month, your payment will be received in your bank account on the fourth Wednes- day of every month. You can apply for your benefits in person by visiting your local Social Secu- rity office, over the phone, or online at ssa.gov/retire . Applying online is, by far, the most efficient method. To apply online, you will first need to set up your personal “my Social Security” online account, which is easy to do at ssa.gov/myaccount . I suggest you create your online account now, even if you don’t plan to claim your SS for a while yet. Once you have your online account set up, you can see your estimated bene- fit amounts at different ages, which can help you decide when to claim. Since you are still working, you should be aware that if you claim at any time prior to reaching your full retirement age (FRA), you will be subject to Social Security’s earnings test. If you will be 65 in December 2022, your FRA is 66 ½, and that is the point at which you will get 100 percent of the Social Security benefit
you’ve earned from a lifetime of working. If you claim any earlier, your benefit will be permanently reduced, and the Social Security “earnings test” will apply. The earnings limit for 2023 is $21,240. If you are collecting Social Security before your FRA and exceed the earnings limit, they will take away benefits equal to $1 for every $2 you are over the limit. In the year you reach your FRA (2024), your earnings limit will be about 2 ½ times more than the normal annual limit and the penalty will be less, and once you have reached your FRA, there is no longer a limit to how much you can earn. For clarity, you can also wait and claim after your FRA and gain a higher benefit (your benefit will grow up to age 70). So, how can you make the process “rela- tively seamless”? Create your online “my Social Security” account in advance and verify that your lifetime earnings as recorded by Social Security are accu- rate. Then, when you’re ready to claim, simply go to ssa.gov/retire and follow the instructions. The online applica- tion process is quite intuitive, and you should have no trouble even if you have limited computer skills. Social Security will contact you if they need more infor- mation after you apply online. Of course, you can also apply whenever you’re ready by calling Social Security to make an appointment to apply over the phone, but applying online is much more efficient. Signed, Russell Gloor This article presents the opinions of the AMAC Foundation Staff and is intended for informa- tion purposes only. It does not represent legal or financial guidance.
Dear Rusty, I will be turning 65 in December 2022 and will most likely continue working until July of 2024 at my current job. It is possible I could leave a year earlier. With that being said, when should I submit paper- work to start collecting Social Secu- rity benefits? Is there anything I should know previous to applying that will make sure the process is relatively seamless? Signed, Ready to Retire Dear Ready to Retire, Social Security recommends you apply for benefits two to three months before you wish your benefit payments to begin, but you can apply up to four months prior. When you apply, you will specify your desired benefit start month on the application, and that is when your bene- fits will start. Be aware that Social Secu-
Have a Social Security question? Contact us at SSAdvisor@AMACFoundation.org or 888-750-2622
Volume 17 Issue 1 • 25
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