You’ve thought about it. You’ve talked about it. You’ve planned for it. Well, if you’re at least 62 years old, now you can go for it. You’ve broken the age barrier and you can file for Social Security.
To be eligible for a benefit you have to be age 62 and worked at least 10 years at jobs where you received Social Security credits. You have several options for applying for your monthly check. You can apply online, by telephone or by going to your local Social Security office. The question you have to answer is whether you should apply at 62, because your age when you apply determines how much you’ll receive.
For most workers today, full retirement age (FRA) is 67, but it can be as young as 66 for those born between 1943 and 1954. However, if you apply before your FRA, the government penalizes you with a permanently reduced payout. Applying for benefits early reduces your check by:
- 5/9 of 1% per month for the first 36 months of early claiming
- 5/12 of 1% per month for any additional months of early claiming for month 37 and beyond
When you claim Social Security at 62, you incur the maximum penalty of 25% if you have a FRA of 66, or 30% if your FRA is 67. For example:
- If you were born after 1960, your full retirement age is 67.
- If you start your benefits at age 62, a $1,000 monthly benefit would be reduced to $700.
- And if you are married, your spouse’s monthly benefit would drop from $500 to $350.
Click on your year of birth in the table below to see the month-by-month reduction of benefits and estimated benefits amounts when you claim before your FRA.
| Year of birth | Full retirement age (FRA) | Months between age 62 and full retirement age | Wage Earner, A $1000 retirement benefit would be reduced to | Spousal, A $500 spouse’s benefit would be reduced to |
| 1943- 1954 | 66 | 48 | $750 (reduced by 25%) | $350 (reduced by 30.0%) |
| 1955 | 66 and 2 months | 50 | $741 (reduced by 25.83%) | $345 (reduced by 30.83%) |
| 1956 | 66 and 4 months | 52 | $733 (reduced by 26.67%) | $341 (reduced by 31.67%) |
| 1957 | 66 and 6 months | 54 | $725 (reduced by 27.50%) | $337 (reduced by 32.50%) |
| 1958 | 66 and 8 months | 56 | $716 (reduced by 28.33%) | $333 (reduced by 33.33%) |
| 1959 | 66 and 10 months | 58 | $708 (reduced by 29.17%) | $329 (reduced by 34.17%) |
| 1960 and after | 67 | 60 | $700 (reduced by 30%) | $325 (reduced by 35.00%) |
On the other side of the coin, you can increase your monthly benefit if you wait past your FRA to collect Social Security. The government rewards you for waiting by adding delayed credits to your Social Security benefit amount.
Delayed credits are calculated for each month you wait beyond your full retirement age to age 70. You get an extra 2/3 of 1% for each month you delay after your birthday month, adding up to 8% for each full year you wait until age 70.
Click on your year of birth in the table below to see a month-by-month increase of benefits and estimated benefits amounts when you claim after your full retirement age.
| Increases for delayed retirement | ||||
| Year of Birth(see above for applicable FRA) | Monthly/12-Month rate of increase | 12-Month rate of increase | Claim benefits at age 67/at age 70 | Claim benefits at age 70 |
| 1943-1954 | 2/3 of 1% | 8.0% | you’ll get 108% (12 month delay) | you’ll get 132.0% (48 month delay) |
| 1955 | 2/3 of 1% | 8.0% | you’ll get 106.7% (10 month delay) | you’ll get 130.7% (46 month delay) |
| 1956 | 2/3 of 1% | 8.0% | you’ll get 105.3% (8 month delay) | you’ll get 129.3% (44 month delay) |
| 1957 | 2/3 of 1% | 8.0% | you’ll get 104% (6 month delay) | you’ll get 128.0% (42 month delay) |
| 1958 | 2/3 of 1% | 8.0% | you’ll get 102.7% (4 month delay) | you’ll get 126.7% (40 month delay) |
| 1959 | 2/3 of 1% | 8.0% | you’ll get 101.3% (2 month delay) | you’ll get 125.3% (38 month delay) |
| 1960 and after | 2/3 of 1% | 8.0% | you’ll get 100% | you’ll get 124% (36 month delay) |
How much will you get?
You can estimate your Social Security benefit by creating a my Social Security account at ssa.gov, or calculate your benefits using the Social Security calculator.
When to expect your first check
Once you’ve applied, your first check will arrive the month after the one you pick in your application because Social Security always pays a month in arears. You can apply any time up to four months before the month you pick.
What you need to apply
The application process will be easier if you gather the required information ahead of time. The Social Security Checklist for Online Medicare, Retirement, & Spouses Applications is a helpful tool for knowing what you’ll need.
- Social Security number, original birth certificate or proof of U.S. citizenship or resident alien status
- Verification of your record of earnings
- Employer details for current year and prior 2 years
- Routing and account numbers for your bank account to set up direct deposit for benefit payment
- Employer name, start and end dates of employment
- Current and past marriage information:Your spouse/former spouse’s Social Security number and birth date, Date you got married/divorced and where you got married (city, state, country)
- U.S. Military Service:Type of duty and branch and service period dates. Military service papersif you served before 1968
Social Security’s birthday rules
Your birth date determines when you are eligible to apply for benefits. However, the Social Security Administration has some specific rules for those born on the 1st day of a month, January 1 and February 29. If you fall into any of these three categories, you will use a different date than your birth date to claim your benefits;
- If you were born on the first of the month, Social Security will figure your benefit (and your full retirement age) as if your birthday was in the previous month. This is the case if you were born on the first of the month from February to December, but not January.
- If you were born on January 1, your birth month is December, and your birth year is the year prior to your actual birth.
- If you were born on February 29, even though your birthday only comes once every four years, your benefits won’t be affected. So even though your actual date of birth doesn’t come every year, the month does, and the Social Security Administration counts February as your Birth Month.
Why you should have a “my Social Security” account
Setting up an online account with Social Security gives you access to important information and streamlines the application process. A my Social Security account is free, secure and can help you with many tasks. You can estimate your benefits, track your earnings history, and request a replacement Social Security card.
By claiming your account, you can help prevent fraud andidentity theftof your Social Security information and benefits. If criminals obtain your Social Security number, they may try to open a my Social Security account in your name and redirect your benefits to an account they control. But if you open your my Social Security account now, you can help prevent this scenario, since any individual can only have one my Social Security account open per Social Security number.
Through your account, you can print benefit verification letters often needed to demonstrate a steady source of income when applying for or renewing visas. You can also retrieve and print your SSA-1099/1042S tax statement to prepare your tax return, as Social Security is unable to mail replacement statements to a foreign address.
This information is presented for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy any investment products. None of the information herein constitutes an investment recommendation, investment advice or an investment outlook. The opinions and conclusions contained in this report are those of the individual expressing those opinions. This information is non-tailored, non-specific information presented without regard for individual investment preferences or risk parameters. Some investments are not suitable for all investors, all investments entail risk and there can be no assurance that any investment strategy will be successful. This information is based on sources believed to be reliable and Alhambra is not responsible for errors, inaccuracies, or omissions of information. For more information contact Alhambra Investment Partners at 1-888-777-0970 or email us at [email protected].
