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How To Apply For Social Security Benefits At Age 62

Supplementing Your Social Security Income

ð´Can I Apply For Social Security Retirement Benefits In Advance of Age 62

For many retirees, the income they receive from Social Security is not enough to live off of: According to AARP, the estimated average Social Security monthly benefit in 2022 is $1,657. If you haven’t started saving for retirement it’s essential to start early so you can take advantage of the power of compound interest .

If your company offers an employer-sponsored 401 with matching contributions, you should prioritize receiving the match because it’s essentially free money.

You might also consider opening an individual retirement account, either a traditional IRA or a Roth IRA, both of which have unique tax benefits.

With a traditional IRA, individuals invest pretax income and don’t pay taxes until they withdraw their earnings. With a Roth IRA individuals invest after-tax money so their withdrawals are tax-free. A Roth IRA is considered a good option for those who anticipate being in a higher income tax bracket in retirement: Rather than paying higher taxes later on, you’ll pay taxes on your contributions upfront.

A Roth IRA, however, is not available to everyone. For 2022, the income limit for single-filers is $144,000 and for married couples filing jointly it’s $204,000. Companies like Vanguard, Wealthfront, Betterment, and Fidelity Investments all provide traditional and Roth IRA options.

Tax Considerations For Social Security Benefits

How do these tax considerations affect when you should apply for Social Security benefits? At todays , they may not have much of an impact on most people. Still, tax rates and income thresholds can change, so its worth remembering that you will lose less of your Social Security to taxes if you are in a lower marginal tax bracket when you begin to collect.

You should also note that if you decide to return to work, even part-time, and arent yet at your FRA, your Social Security benefits may be temporarily reduced. The reduction is $1 for every $2 of earned income over $18,960 in 2021 . During the year when you reach your FRA, your benefits will be reduced by $1 for every $3 in income over $50,520 in 2021 until the month when you become fully eligible. That money isnt lost, however. The SSA will credit it to your record when you reach your FRA, resulting in a higher benefit.

Order your copy of the print edition of Investopedia’s Retirement Guide for more assistance in building the best plan for your retirement.

How Can I Apply For Social Security At Age 62

Your Social Security eligibility begins during the first full month in which you are age 62, which is the month after your birthday in most cases. You can apply for Social Security four months before that date. For instance, if you turn 62 in May, you can apply in February to begin receiving benefits from Social Security in June.

There is an important exception to this guideline. People with birthdays that fall on the first or second day of the month can begin receiving benefits during the month in which their birthday falls. For these individuals, an example would look like this:

You can apply for Social Security online or visit your local Social Security Administration office to apply for benefits.

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To Wait Or Not To Wait

Consider taking benefits earlier if . . .

  • You are no longer working and can’t make ends meet without your benefits.
  • You are in poor health and don’t expect the surviving member of the household to make it to average life expectancy.
  • You are the lower-earning spouse, and your higher-earning spouse can wait to file for a higher benefit.

Consider waiting to take benefits if . . .

  • You are still working and make enough to impact the taxability of your benefits.
  • Either you or your spouse are in good health and expect to exceed average life expectancy.
  • You are the higher-earning spouse and want to be sure your surviving spouse receives the highest possible benefit.

What To Consider Before Filing For Social Security

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A larger benefit check sounds great, but there are tradeoffs, and soon-to-retire folks should consider multiple issues before they decide one way or the other on when to file. If you really want to consider all the avenues, then youll have to think about your finances and longevity two issues that people have a hard time grappling with.

But heres the key trade-off: you can file early and take a reduced benefit, expecting that a shorter life span will mean you receive more now, or you could file at full retirement age or later and claim a bigger check, and eventually live long enough to claim more than the first approach.

Social Security is like longevity insurance, says Brent Neiser, a Certified Financial Planner and former chair of the Consumer Advisory Board at the Consumer Financial Protection Bureau. Its a stream of payments that will not stop throughout your life, so delaying your benefits to keep those payments as large as possible forms a helpful base to your retirement plan.

Neiser urges those who have not saved enough for retirement to use whatever means possible to postpone their Social Security benefits until after their full retirement age to help boost their future income.

You can use personal savings to help bridge the gap, but ideally you should plan to work a little longer , Neiser says.

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Collecting Social Security Before Or After Your Full Retirement Age

If you begin collecting Social Security at age 62 and your full retirement age is 66, the check you receive will be about one-quarter less than the amount you would have received at full retirement age. If you are the sole breadwinner in your household, your spouse could be negatively affected as well. If you begin collecting before your full retirement age, the amount of money your spouse would receive after your death decreases.

Early Benefits Can Still Pay Off

However, taking early benefits can still pay off despite the reduced monthly check. But youll want to be sure you budget for a reduced benefit.

No one can predict how long youll live, but if youre facing a potentially significant reduction in life expectancy and are short of income, taking Social Security early may be appropriate, Neiser says.

Married women are also good candidates for claiming early benefits because they are likely to outlive their husbands. Those widows then become eligible to receive the greater of either their benefit or their late husbands benefit.

However, this scenario works only if the husband does not claim his benefits early. By not claiming early benefits, the husband effectively increases the monthly benefit his wife eventually receives. So, youll want to calculate how filing early will affect your spousal benefit here.

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When A Spouse Dies

When one spouse dies, the surviving spouse is entitled to receive the higher of their own benefit or their deceased spouses benefit. Thats why financial planners often advise the higher-earning spouse to delay claiming. If the higher-earning spouse dies first, then the surviving, lower-earning spouse will receive a larger Social Security check for life.

When the surviving spouse hasnt reached their FRA, they will be entitled to prorated amounts starting at age 60. Once at their FRA, the surviving spouse is entitled to 100% of the deceased spouses benefit or their own benefit, whichever is higher.

What Are The Rules For Collecting Social Security At Age 62

5 GOOD REASONS to File for Social Security at Age 62

Following are the guidelines:

  • If you are under the age of 24 and have earned six work credits in the three years preceding your disability, you may be eligible.
  • If you worked half-time between the age of 21 and the time you became incapacitated, you might be eligible.

FOR EXAMPLE, if you become incapacitated at the age of 27, youd require 12 work credits from the previous six years .

In general, the amount of work credits stated in the chart below is required. In the ten years preceding your disability, you must have earned at least 20 of the credits.

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The Basics Of Social Security

First off, every eligible worker can begin receiving Social Security benefits at age 62, but you’ll get a reduced monthly payment if you don’t wait until you’re at full retirement age. Your monthly payment will depend a few things, including your income throughout your working years, how much you paid into the Social Security system and at what age you claim benefits. Benefits are adjusted yearly based on the cost of living.

Full retirement age depends on the year you were born:

  • If you were born between 1943 and 1954, full retirement age is 66
  • If you were born between 1955 and 1959, full retirement age is between 66 and 67, depending on your birth year
  • If you were born after 1960, full retirement age is 67

The Social Security website provides a calculator to help individuals understand how much their benefit will be reduced if they collect early. For example, if you were born in 1960 and wanted to collect as soon as you hit age 62, you’d receive 70% of your full retirement age payout. But if you waited until age 64 you’d get 80% of the full benefit.

By delaying the receipt of your benefits past full retirement age, you’ll earn even more than the full benefit for every year after full retirement age and before you hit age 70, you’ll collect 8% more each year.

  • If you’re full retirement age is 66, you can earn up to 132% of your full benefit by waiting until you’re 70
  • If you’re full retirement age is 67, you can earn up to 124% of your full benefit by waiting until you’re 70

What If I Delay Taking My Benefits

If you retire sometime between your full retirement age and age 70, you typically earn a “delayed retirement” credit for your own benefits . For example, say you were born in 1960, and your full retirement age is 67. If you start your benefits at age 69, you would receive a credit of 8% per year multiplied by two . This means your benefit would be 16% higher than the amount you would have received at age 67.

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Explore How The Age You Start Collecting Social Security Affects Your Retirement Benefits

The calculator bases your benefit estimate on current formulas from the Social Security Administration. Your answers are anonymous. Because we do not access or use your Social Security earnings record, these are rough estimates.

Your estimated benefits:

Select claiming ages on the graph to see how your estimated benefit changes.

Claiming at age Age 67 is your full benefit claiming age.

Compared to claiming at your full benefit claiming age.

Social Security retirement benefits are not designed to be your sole source of retirement income, but waiting even one month will increase your benefits.

How Do I Apply For Retirement Benefits

Social Security Information

To apply for retirement benefits, please visit www.ssa.gov/retire. In order to be eligible for retirement benefits, you must have enough credits have paid into Social Security and be fully insured under the Social Security system. The amount you receive depends on how much you earned when you were working. You can also delay applying for Social Security retirement. If you do so, your extra income may increase your benefit amount, and you will receive a credit. To find out more, please call the SSA at 1-800-772-1213.

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When Can I Start Collecting Social Security

The minimum age to claim benefits is 62. If you are turning 62 and need the income from Social Security to support yourself, you can start claiming your benefits now. However, if you have enough other income to keep you going until you are older, you may want to delay increasing the size of your monthly benefit.

What Is The Average Social Security Benefit At Age 62

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According to the Social Security Administration , if you were born between 1943 and 1954, your full retirement age is 66. By claiming at the age of 62, a hypothetical $1000 retirement benefit would be reduced by 25% and you would only receive $750 per month. A $500 monthly spousal benefit would be reduced to $350.

The greater the gap between age 62 and FRA, the higher the percentage of reduction in retirement benefits. For those born in 1960 or later, retirement benefits are reduced by 30% and spousal benefits are reduced by 35%. This means a $1000 retirement benefit would be reduced to $700 per month.

According to the SSAs 2021 Annual Statistical Supplement, the monthly benefit amount for retired workers claiming benefits at age 62 earning the average wage was $1,480 per month for the worker alone. The benefit amount for workers with spouses claiming benefits was $2,170 at age 62.

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Although claiming before FRA allows you to collect retirement benefits for a longer period of time, your benefit amount will be significantly reduced. The SSA says that if you delay your benefits until after FRA, you will be eligible for delayed retirement credits that would increase your monthly benefit.

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How To Apply For Social Security Disability Benefits At Age 62

You must apply for SSD benefits as soon as you develop a disability that qualifies you for receiving disability benefits. You can apply either in the online mode or the offline mode. For applying in online mode, you must follow a few easy steps-

  • Navigate to the Apply for Benefits page on the SSA website. Agree to the Terms of Service that follow and click âNext
  • Review the âGetting Readyâ section and ensure that you have everything needed to apply for benefits.
  • Choose âStart A New Application.â
  • Ask the questions mentioned in the Application.
  • Create your personal Social Security account and sign in.
  • Complete the Application process.

You can file for SSI benefits at the same time as you file for SSDI benefits. On completing the online application process, a Social Security representative will contact you.

You can also apply in the offline mode if you are not comfortable in applying over the internet. As such, you have the following options-

Applying With Your Local Office

If you are not comfortable with the online service, you can find the phone number for your local Social Security Office by using the Office Locator on SSA website. The toll-free âOfficeâ number is your local office. It will assist you with your application for SSD benefits.

Pension At : Will The Corona Crisis Affect Future Pension Contributions

7 GOOD REASONS to File for Social Security Benefits at Age 62

The economy suffered during the corona pandemic.

The economic crisis also left its mark on the workforce: many workers were sent on short-time work or even lost their jobs.

But what effects does this have on future pensions?

Short-time work has only a minor influence on the amount of pensions.

The basis is 80 percent of the salary that is lost due to short-time work.

The contributions to the pension insurance are increased accordingly.

The situation is similar with unemployment.

If employed persons receive unemployment benefit I, contributions are made to the insurance based on 80 percent of the salary with which the pension contributions were calculated.

Workers should be especially careful with part-time jobs.

With a half position, only half of the contributions flow into the pension fund.

Although the years in part-time count as contribution years, the pension amount is lower.

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Although You’ll Receive Reduced Checks By Claiming Early You Can Still Receive Thousands Of Dollars Per Month

The age at which you file for Social Security benefits will have a major impact on the amount you receive each month. While you can receive larger monthly payments by delaying benefits, many workers choose to file as early as possible at age 62. That can be a smart strategy in many cases, and there are several advantages to claiming early.

You can still earn a substantial amount in benefits by claiming early, too. In 2022, the maximum you can collect by filing at age 62 is $2,364 per month — which is significantly higher than the $1,557 per month average benefit amount. Here’s what it takes to achieve the maximum monthly payments.

Image source: Getty Images.

How To Apply For Social Security Benefits At Age 62

  • If you are planning to retire at age 62, Social Security benefits can help to fund this dream. Here are some facts about early applications for Social Security.

Early retirement is a dream for many people. Social Security benefits can be an important way of achieving that dream. Understanding the application process and the consequences of early retirement on your Social Security benefits can help you make the most practical decisions about this source of income in retirement.

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Can You Apply For Social Security At 62 And Still Work

Work credits are the units of measurement for their work. Based on your annual wages, you can get up to four work credits per year. Each year, as general salary levels rise, the amount of earnings required for a labor credit increases.

You must have earned an average of one work credit for each calendar year between the age of 21 and the year you turn 62 or become crippled or blind, up to a maximum of 40 credits, to be eligible for most types of benefits .

Regardless of your age, you must have a minimum of six work credits.

You must have worked long enough and recently enough under Social Securitys rules to be eligible for benefits based on a disability other than blindness.

The number of work credits youll need to qualify for disability payments is determined by your age at the time of your disability.

In most cases, youll need 20 work credits acquired in the ten years preceding your disability. Younger workers, on the other hand, may just need a few credits to qualify.

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