Social Security Benefits FAQs

The Social Security Retirement system has been around since the 1930s and is based on contributions workers make into the system. While you are employed, you pay into Social Security and then you receive benefits later, when it’s your turn to retire. On your paycheck, the contributions will appear as the Federal Insurance Contributions Act (FICA) taxes.

To qualify for Social Security benefits when you retire you must accumulate sufficient credits, based on your earnings, over the course of your working years. The amount you need to earn to accumulate a credit has increased over the years to keep up with inflation. For 2022, you get one credit for every $1,510 you earn, up to a limit of four credits per year. Once a credit is earned it remains on your record forever. If you were born after 1929, you need 40 credits to receive Social Security retirement benefits.

Yes. You may be eligible for retirement benefits based on your spouse’s work history if you are a widow or widower. The earliest you can start survivor benefits is age 60. If you also qualify for benefits based on your own work record, you can switch to those benefits if they are higher after you reach age 62.

Yes. You may be eligible to receive Social Security Retirement benefits based on the work history of your ex-spouse if you were married for at least ten years, you are not now married, and you are at least 62 years old. If your own benefit amount would be higher, you will receive your own benefits; however, if you would receive a higher benefit based on your ex-spouse’s work history you are entitled to that amount.

The soonest you can start receiving payouts from Social Security Retirement is age 62 and the latest is age 70; however, you may choose to begin anywhere in that eight-year span. The longer you wait to start getting payments the more your monthly payments will be when you start receiving them and they will stay that amount forever. Conversely, if you start taking your benefits earlier, your monthly payment will be less for the rest of your life.

Starting your benefits early or late will significantly impact how much you receive each month. If you start your benefits early (prior to age 66 or 67 for those born after 1960), Social Security reduces the monthly payment by 5/9 of 1 percent for each month before full retirement age, up to 36 months, and 5/12 of 1 percent for each additional month. By way of example, if you were born in 1960, meaning you will turn 62 in 2022, your retirement benefit amount would be reduced by 30 percent if you retire early at age 62. Conversely, your retirement benefit amount is increased by eight percent for every year you delay receiving benefits, up to age 70. For most people, that means your benefit amount could be increased by 24 percent by retiring at age 70 instead of age 67.

Yes. You can find out how much you have paid to date as well as get an estimate of what your benefit will be by navigating to the Social Security Administration’s website. You can access information showing how much you have paid into Social Security Retirement every year as well as use the Retirement Estimator tool to get an idea what your retirement benefit will be when you retire.

Throughout your working years, your retirement plan and your estate plan may have been separate plans. As you near retirement age, however, those two plans should be merged to ensure that they work in harmony with one another. When you retire, your income will undoubtedly change. Knowing how much to expect from Social Security is an important part of budgeting for retirement and may impact what you decide to do with other assets as you near retirement age.

The easiest way to apply for benefits is online through the Social Security Administration website. You can also apply by phone by calling 1-800-772-1213 or by contacting your nearest SSA field office.