How to Qualify for Social Security
Learn when you can start collecting social security., Determine your financial requirements., Discover the benefits and drawbacks of taking social security at age 62., Calculate the advantage of waiting to full retirement age—and beyond.
Step-by-Step Guide
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Step 1: Learn when you can start collecting social security.
The most common method of qualifying for social security benefits is reaching “retirement age”.
But that term is a little misleading, because there isn’t one set age at which everyone starts receiving social security.
Normally, you can start collecting anywhere from age 62 to age
70.
If you’re a widow or widower, you can begin receiving Social Security benefits at age 60 (age 50 if you’re disabled).In order to qualify for social security benefits, you’ll need to have earned a certain number of “credits” prior to collecting.
Credits are based on the amount of money you earned in a year. (This has to be money that was subject to social security withholding.) The Social Security Administration (SSA) decides how much you need to earn to receive a credit, and the maximum number of credits you can get in one year is four.If you were born in 1929 or later, you need 40 credits (equivalent to 10 years of work) to qualify for social security benefits. -
Step 2: Determine your financial requirements.
You’ll have to assess just how quickly you’re going to need—or want—your social security benefits.
For some people, life circumstances pretty much mandate taking social security as soon as possible.
Others may have the luxury of waiting, but they’re just not sure if it’s worth it to hold off.
In order to make that decision, you have to know what options are available to you. , The amount of your monthly social security check will depend not only on how much you’ve paid into the system over the years, but also on when you start collecting.
As indicated above, usually the earliest you can collect social security retirement benefits is age
62. 62 isn’t considered “full retirement age”.
If that's when you start collecting, you’re only going to receive around 70-80% (depending on your birth year) of what you’d get at full retirement age (now between 66 and 67,depending on when you were born.)Check here for a “full retirement age” chart.
That 70-80% figure is where you’ll stay, even when you finally reach full retirement age.Of course, the benefit of collecting at age 62 is that, even though you’re getting a smaller amount, you’ll be receiving it for a longer period of time (four to five years) than someone who waits to reach full retirement age. , If you have the ability to delay collecting your benefits, it could work to your advantage in the long-run.
By waiting until full retirement age you’ll get a bigger monthly check, and you’ll continue to get that amount going forward.
But if you wait until after full retirement age to collect, you’ll get a healthy 8% increase for each year you delay receiving benefits until age 70, which is when the law says you have to start collecting. -
Step 3: Discover the benefits and drawbacks of taking social security at age 62.
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Step 4: Calculate the advantage of waiting to full retirement age—and beyond.
Detailed Guide
The most common method of qualifying for social security benefits is reaching “retirement age”.
But that term is a little misleading, because there isn’t one set age at which everyone starts receiving social security.
Normally, you can start collecting anywhere from age 62 to age
70.
If you’re a widow or widower, you can begin receiving Social Security benefits at age 60 (age 50 if you’re disabled).In order to qualify for social security benefits, you’ll need to have earned a certain number of “credits” prior to collecting.
Credits are based on the amount of money you earned in a year. (This has to be money that was subject to social security withholding.) The Social Security Administration (SSA) decides how much you need to earn to receive a credit, and the maximum number of credits you can get in one year is four.If you were born in 1929 or later, you need 40 credits (equivalent to 10 years of work) to qualify for social security benefits.
You’ll have to assess just how quickly you’re going to need—or want—your social security benefits.
For some people, life circumstances pretty much mandate taking social security as soon as possible.
Others may have the luxury of waiting, but they’re just not sure if it’s worth it to hold off.
In order to make that decision, you have to know what options are available to you. , The amount of your monthly social security check will depend not only on how much you’ve paid into the system over the years, but also on when you start collecting.
As indicated above, usually the earliest you can collect social security retirement benefits is age
62. 62 isn’t considered “full retirement age”.
If that's when you start collecting, you’re only going to receive around 70-80% (depending on your birth year) of what you’d get at full retirement age (now between 66 and 67,depending on when you were born.)Check here for a “full retirement age” chart.
That 70-80% figure is where you’ll stay, even when you finally reach full retirement age.Of course, the benefit of collecting at age 62 is that, even though you’re getting a smaller amount, you’ll be receiving it for a longer period of time (four to five years) than someone who waits to reach full retirement age. , If you have the ability to delay collecting your benefits, it could work to your advantage in the long-run.
By waiting until full retirement age you’ll get a bigger monthly check, and you’ll continue to get that amount going forward.
But if you wait until after full retirement age to collect, you’ll get a healthy 8% increase for each year you delay receiving benefits until age 70, which is when the law says you have to start collecting.
About the Author
Brian Gray
Creates helpful guides on hobbies to inspire and educate readers.
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