Navigating Social Security Benefits for Seniors

Social Security is a federal program that provides retirement, disability, and survivor benefits to eligible individuals and their families. It is funded by payroll taxes and is designed to provide financial security for seniors and others who are no longer able to work or who have lost a loved one.

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 (which varies depending on your birth year). If you delay starting benefits past your full retirement age, your monthly benefit amount will increase up to age 70.

Your Social Security benefit amount is based on your lifetime earnings. The Social Security Administration (SSA) calculates your average indexed monthly earnings (AIME) and applies a formula to determine your primary insurance amount (PIA), which is the monthly benefit you would receive at your full retirement age. If you start benefits before or after your full retirement age, your monthly benefit amount will be adjusted accordingly.

Yes, you can work and receive Social Security retirement benefits at the same time, but your benefits may be reduced if you earn more than a certain amount ($18,960 in 2021). If you are under your full retirement age for the entire year, your benefits will be reduced by $1 for every $2 you earn above the limit. If you reach your full retirement age during the year, your benefits will be reduced by $1 for every $3 you earn above a higher limit ($50,520 in 2021) until the month you reach your full retirement age.

If you delay starting your Social Security retirement benefits past your full retirement age, your monthly benefit amount will increase up to age 70. For each year you delay, your benefit amount will increase by a certain percentage (8% per year for those born in 1943 or later). This can be a smart strategy if you are able to continue working or have other sources of retirement income.

You can apply for Social Security retirement benefits online, by phone, or in person at your local Social Security office. To apply, you will need to provide personal information such as your Social Security number, birth certificate, and employment history. The SSA recommends that you apply for benefits at least three months before you want your benefits to start.