Question: Who is eligible for Social Security benefits?

Answer: In order to be eligible for Social Security benefits, you must have earned enough credits by working and paying Social Security taxes. The number of credits required depends on your age at the time you become disabled or retire. Generally, you need 40 credits, with a maximum of four credits earned per year. You can check your eligibility by visiting the Social Security Administration’s website or contacting your local Social Security office.

Question: How are Social Security benefits calculated?

Answer: Social Security benefits are calculated based on your average earnings over your lifetime. The Social Security Administration uses a formula that takes into account your highest 35 years of earnings, adjusts them for inflation, and then calculates your average indexed monthly earnings (AIME). The AIME is used to determine your Primary Insurance Amount (PIA), which is the amount you would receive at your full retirement age. Your PIA is then adjusted based on whether you choose to claim benefits early (reducing the amount) or delay claiming (increasing the amount).

Question: Can I work and receive Social Security benefits at the same time?

Answer: Yes, you can work and receive Social Security benefits at the same time. However, if you have not reached your full retirement age, your benefits may be reduced if you earn more than a certain amount. This is known as the earnings limit. For 2021, the earnings limit is $18,960 per year if you have not reached your full retirement age. If you earn more than this limit, $1 will be deducted from your benefits for every $2 you earn above the limit. Once you reach your full retirement age, there is no limit on how much you can earn while receiving benefits.

Question: When can I start receiving Social Security benefits?

Answer: You can start receiving Social Security retirement benefits as early as age 62, but your monthly benefit amount will be reduced if you start before your full retirement age. Your full retirement age depends on the year you were born. For example, if you were born in 1959, your full retirement age is 66 and 10 months. If you choose to delay claiming benefits, your monthly benefit amount will increase up until age 70.