Applying for Social Security: Important Steps to Consider

Applying for Social Security is a significant step. After contributing to the program for years, it’s finally time to start receiving monthly benefits. But before you submit your application in June, there are a few important considerations to address. Tackling these three tasks can help you feel more confident in claiming your benefits.

1. Assess Potential Benefit Reductions

You can start claiming Social Security at 62, but it’s essential to know that this will permanently reduce your monthly payouts. For those born after 1960, you won’t qualify for full retirement benefits until age 67.

Sometimes, it makes sense to apply before reaching full retirement age. Yet, if you’re leaning toward that option, it’s wise to crunch the numbers to estimate the savings.

Be cautious not to let a smaller monthly payment disrupt your retirement plans. You might want to use this Social Security tool to see how your benefits could change based on your birthdate and when you decide to file.

2. Verify Your Income Records

Your Social Security benefits hinge on your highest earnings over a 35-year span. If there are inaccuracies in your earnings history, it could result in lower benefits.

That’s why it’s crucial to check your income statement for discrepancies. You can access it by creating an account at SSA.gov.

If you uncover any errors, gather necessary documents like W-2 forms and tax returns and reach out to the Social Security Administration to rectify them. It’s better to sort these issues out before benefits kick in rather than waiting until checks start arriving.

3. Discuss with Your Spouse

If you’re married, your Social Security decisions can impact your spouse, especially if you’re the higher earner. If you pass away first, your spouse may be eligible for a survivor benefit that mirrors your monthly payments. So, filing early and lowering your benefits could affect your spouse’s financial situation.

Even for couples with lower incomes, reassessing the filing strategy together can be advantageous. For instance, one partner might delay their claim to boost benefits while the other files earlier. A thorough conversation can lead to a plan that suits both of you.

It’s thrilling to think about receiving your monthly Social Security check. But before you file that application, ensure you understand the benefits you’ll receive based on your filing age, verify the accuracy of your wage history, and have a discussion with your spouse to align your strategies.