Social Security 101: What You Need to Know About Your Benefits

Social Security is a major part of retirement planning for millions of Americans, but understanding how it works can be confusing. Whether you’re approaching retirement or just want to plan ahead, this guide will walk you through the basics of Social Security in a simple and supportive way.

What Is Social Security?

Social Security is a federal program designed to provide financial support in retirement, as well as benefits for disabled individuals and survivors of deceased workers. It is funded through payroll taxes, meaning workers pay into the system throughout their careers and later receive benefits based on their earnings history.

For most people, Social Security is an important piece of their retirement income, but it’s not meant to replace all of your earnings. Instead, it works alongside personal savings, pensions, and other income sources to help cover living expenses.

Who Is Eligible for Social Security?

To qualify for Social Security retirement benefits, you must:

✔️ Be at least 62 years old (for early retirement benefits)
✔️ Have worked and paid Social Security taxes for at least 10 years (earning 40 credits)
✔️ Be a U.S. citizen or legal resident

Even if you haven’t worked long enough, you may still qualify based on a spouse’s work record. This includes current spouses, divorced spouses (if the marriage lasted 10 years or more), and widows/widowers.

How Are Social Security Benefits Calculated?

Your Social Security benefit amount is based on:

📌 Your highest 35 years of earnings – The Social Security Administration (SSA) averages your top 35 years of earnings to determine your benefit amount. If you worked fewer than 35 years, the missing years count as $0, which lowers your benefit.

📌 Your full retirement age (FRA) – This is the age when you can receive your full Social Security benefit. FRA depends on your birth year:

• Born 1943-1954 → Full retirement age is 66

• Born 1955-1959 → FRA increases by 2 months per year (e.g., 66 and 2 months for 1955, 66 and 4 months for 1956, etc.)

• Born 1960 or later → Full retirement age is 67

📌 When You Choose to Claim – The age at which you start collecting benefits affects the amount you receive:

• Early retirement (age 62-66/67) → You can claim benefits as early as 62, but your monthly check will be reduced permanently (by about 25-30%).

• Full retirement age (66-67) → You get your full benefit amount.

• Delaying past FRA (up to age 70) → Your benefit increases by about 8% per year until age 70, when it maxes out.

Choosing when to claim is a personal decision based on your financial needs, health, and other sources of income.

How to Apply for Social Security

Applying for Social Security is easier than you might think. You can apply:

✅ Online at www.ssa.gov
✅ By phone at 1-800-772-1213
✅ In person at your local Social Security office (appointment recommended)

You should apply about 3-4 months before you want your benefits to start. The SSA will need documents like your birth certificate, Social Security number, and tax records to process your application.

Will My Social Security Be Taxed?

Yes, depending on your total income. Social Security benefits may be taxable if you have other retirement income, such as wages, pensions, or withdrawals from retirement accounts.

Here’s a quick breakdown:

• If your total income is below $25,000 (single) or $32,000 (married) → You won’t owe taxes on Social Security.

• If your income is between $25,000-$34,000 (single) or $32,000-$44,000 (married) → Up to 50% of your benefits may be taxed.

• If your income is above $34,000 (single) or $44,000 (married) → Up to 85% of your benefits may be taxed.

Planning ahead can help you minimize taxes in retirement.

Can You Work While Collecting Social Security?

Yes! However, if you claim benefits before your full retirement age and continue working, your benefits may be temporarily reduced if you earn above a certain limit:

• In 2024, the earnings limit is $22,320. If you earn more, Social Security will withhold $1 for every $2 earned above the limit.

• Once you reach full retirement age, there’s no limit—you can earn as much as you want without reducing your benefits.

Even if benefits are reduced, the withheld money is recalculated and returned to you after reaching FRA, so you’re not losing it permanently.

What About Social Security for Survivors & Spouses?

Social Security isn’t just for retirees—it also provides benefits for spouses and survivors:

💙 Spousal Benefits – If your spouse qualifies for Social Security, you may be eligible for up to 50% of their benefit (even if you didn’t work yourself).

💙 Divorced Spouse Benefits – If you were married 10 years or more, you can claim spousal benefits on your ex’s record without affecting their benefits.

💙 Survivor Benefits – If your spouse passes away, you may receive their full benefit amount, depending on your age.

Knowing your options can help maximize household income in retirement.

Key Takeaways

✔️ Social Security is an essential retirement benefit based on your highest 35 years of earnings.
✔️ You can start collecting as early as 62, but waiting until 67-70 can increase your monthly check.
✔️ Social Security benefits may be taxable if you have other retirement income.
✔️ You can work while collecting benefits, but your check may be reduced if you claim early.
✔️ Spouses, divorced spouses, and widows/widowers may qualify for additional benefits.

Need Help Navigating Social Security?

Deciding when and how to claim Social Security can feel overwhelming, but you don’t have to figure it out alone. I’m here to help you understand your options and make informed decisions that support your financial freedom.

📞 Call/Text: 216-800-7303
📧 Email: Strive.tonia@gmail.com

It’s never too late to embrace financial freedom—let’s plan your retirement together!