Social Security Retirement Benefits

Social Security Retirement Benefits

Whether you are a new retiree or have been receiving social security retirement benefits for years, there are some important things to keep in mind. Some of these things include your spouse’s benefits, COLAs, early retirement, and how working during your retirement years may decrease your benefits.

Early retirement

Several studies have shown that early retirement benefits are not necessarily a boon. Although they are a good way to collect a monthly benefit, early retirees are also at a disadvantage. They are especially vulnerable to poverty and low-wage jobs. They may also be at risk for health complications.

The Social Security Administration has a system in place to reduce benefits for people who work more than 45 hours a month before their full retirement age. Benefits are reduced by 5/9 of one percent of the monthly benefit amount for each month before the normal retirement age. The full retirement age is 67 for people born in 1960.

Some people may want to retire early and continue working in other jobs. Others may choose a healthier lifestyle. Still others may not want to delay Social Security benefits.

Spousal benefits

Spousal benefits as part of social security retirement benefits are available to qualified taxpayers. It’s important to know your options when it comes to claiming benefits. These benefits can be claimed as early as age 62. However, there are certain guidelines to follow to maximize your payout.

For most people, the full retirement age is 66 or 67. However, the age varies …

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Social Security Retirement Benefits

Social Security Retirement Benefits

Whether you’re a retired worker or you’re just starting to think about retiring, you’ll need to consider the social security retirement benefits you’ll receive. Here are some tips to help you decide what benefits you should expect.

Calculating your PIA

PIA or the Primary Insurance Amount is an important element in the calculation of retirement annuities. It is the basic benefit that you will receive if you are eligible for Social Security retirement benefits. The amount of your PIA is calculated by applying the Social Security Act formulas to your earnings. There are many formulas, but the two most common are the Average Indexed Monthly Earnings and the Special Minimum PIA formula.

The Social Security benefits formula is based on average monthly earnings during     35 years of highest earnings. The benefits are adjusted for inflation each year by the consumer price index. Benefits also increase after you retire. PIA increases are paid when the appropriate index shows a three percent increase during the third   calendar quarter of the year.

Reducing your benefit if you start receiving benefits early

Whether you’re considering retiring in the near future or you’re still in the rat race, the Social Security Administration has got you covered. For most, that means you’ll enjoy an early retirement benefits package of sorts. In addition to the standard retirement benefits, you’ll also be treated to a healthy dose of tax perks if you’re lucky. You can expect to see your Social Security benefit trimmed by up to 5 percent …

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