As you come closer Consider retirement and applying social Security Benefits, you have to take many steps. You want to research your benefit options, be aware of what to expect and get everything ready before starting the process. The steps to apply for social security include:
- Consider the time of your application.
- Collect all necessary documents.
- Create my social security account.
- Fill out a social security application.
Follow these guidelines to save time and provide maximum social security benefits for yourself.
1. Consider the time of your application
The timing of your application may affect the amount you receive in benefits. If you wait Full retirement age To collect payment, which is the age set by the Social Security Administration based on your date of birth, you will receive the full amount of your benefits. Filing for benefits before this age can reduce the monthly payment amount. For example, if your full retirement age is 67 years and you start receiving retirement benefits when you are 62, then the monthly payment can be reduced by around 30%. If you wait and choose to receive benefits later, the amount will increase to 70 years of age each year. For example, if you have a retirement age of 66 years and you start paying by the age of 70, the amount will be 132% of the benefit you were eligible for at age 66.
Keep in mind that when you start this process Social security payment Will not start immediately. In Iselin, New Jersey, a certified financial planner and owner of Tenon Financial, Andy Panco says, “You should generally get benefits at least two months in advance.” Are designed to benefit Paid for last month. If you apply in January, your benefits may start in February and payment will be made in March.
You may have social security payments Subject to taxes. “Keep in mind that 85% of Social Security income is taxable if your income exceeds $ 34,000,” says Syed Nishat, partner at the Wall Street Alliance Group in New York. “If income is between $ 25,000 to $ 34,000, the tax is at 50% of the profit.” Talk to an advisor or tax planner before applying for social security to see how much you can expect to pay in taxes after benefits begin.
2. Gather all the necessary documents
Once you think about the timing of your benefits, you will want to gather all the documents you will need. While most documents can be easy to assemble, it can be helpful to keep everything in one place. That way, when you fill in the application, you can do so on time.
The documents you need to implement for social security include:
- social Security card.
- Birth certificate.
- Proof of US citizenship.
- A copy of your military service papers (if you did military service before 1968).
- A copy of the W-2 form or self-employment tax return from the previous year.
- Any marriage, divorce and death certificate.
- To submit bank information.
- Social security number and date of birth of a spouse (if Application for fickle benefits) Belongs to.
3. How to apply for social security online
You have to set one Online social security account If you do not already have one. My Social Security account allows you to track your lifetime history that has been reported to the Social Security Administration and check to make sure the data is accurate. “If any of your reported annual income is incorrect, then your final Social Security benefit will be wrong,” Panco says. For any errors, you can notify the Social Security Administration of the mistake and state which corrections should be made.
You may be able to fill out an application for Social Security retirement benefits through your online account. Pankaj says, “Certain types of benefits, such as claiming benefits as the surviving spouse of a deceased spouse, cannot be filed online.” For these claims, visit your local social security office or call the Social Security Administration.
4. Fill a Social Security Application
You can fill an application for social security benefits at your local social security office. You can also call to file for benefits or to fill an online application. “In the age of COVID, it’s best to apply online at ssa.gov,” says John Hill, president of Gateway Retirement in Rock Hill, South Carolina. Be prepared to share the documents you have collected and review your social security details. This record shows an account of your annual earnings, and you want to make sure that it is correct, because the profit you will receive will be based on this history.
You can expect to receive Social Security benefits based on your earnings history. Even if you are not eligible for benefits based on your work record, you may be eligible for benefits based on someone else’s record. For example, you may be able to apply for Social Security benefits through your spouse or ex-spouse.
The Social Security Administration applies a formula to determine the amount you receive. This calculation looks at your 35 highest-earning years and averages the amount earned during that time. It also adjusts the amount to account for changes in average wages that occurred after earning income.