Navigating Social Security changes when going into retirement can bring up questions about benefits, taxes, and more. This article answers frequently asked Social Security questions, helping you understand your options and maximize your benefits.
What Is Social Security?
Social Security is a government program that provides financial benefits to several groups, including retirees. Workers who have paid into the Social Security system are eligible to receive retirement benefits starting as early as age 62.
Understanding Different Types of Social Security Benefits
Spousal Benefits
These benefits are designed to help spouses who may not have worked enough to qualify for their own Social Security retirement benefits or who have earned significantly less than their working spouse.
Here’s how spousal benefits work in relation to retirement:
- Spouses are eligible to receive up to 50% of the worker’s full retirement benefit.
- If the spouse claims benefits before reaching their own full retirement age, the benefit is reduced.
- If the spousal benefit is higher than their own benefit, Social Security will pay the higher amount
- Divorced spouses: Individuals may still claim spousal benefits if the marriage lasted at least 10 years, the divorced spouse is unmarried, and both spouses are at least 62. It is not necessary for the worker to claim benefits in order for the ex-spouse to qualify, but the worker must be eligible for benefits.
Survivor Benefits
The spouse survivor benefit equals 100% of your deceased spouse’s benefit. If they claimed benefits after full retirement age, the increased benefit amount is included. If both you and your spouse are receiving benefits, you will receive the higher of the two amounts after their death. Benefits can start at age 60 (or 50 if disabled), but you won’t qualify if remarried when filing.
Children of a deceased parent may also qualify for survivor benefits if they are unmarried and:
- Under 18
- Between 18 and 19 and are a full-time high school student
- Any age if the child has a disability that dates to before the child turned 22
Retirement Benefits
For the year 2024: If younger than 67, you can earn up to $22,320/year without any reduction in benefits. If you earn more than that amount, $1 in benefits will be withheld for every $2 earned over the limit.
If you will reach Full Retirement Age (FRA) in 2024, you can earn up to $59,520/year in the months before reaching your FRA without any reduction in benefits. Earn more than that amount, and Social Security withholds $1 in benefits for every $3 earned over the limit.
Once an individual reaches full retirement age, there are no earnings limits or withholdings from these benefits.
Social Security retirement benefits are designed to provide income during retirement (calculated to equal about 40% of your average monthly paycheck from your highest earning work income years — not fully replace it).
Disability Benefits
Social Security Disability Insurance provides benefits to individuals who are unable to be employed for at least a year due to a qualifying disability, which may also be terminal in nature.
When individuals already on Social Security Disability Insurance (SSDI) reach Full Retirement Age, SSDI benefits automatically convert to Social Security retirement benefits. As the switch happens automatically, there is no need to apply for these benefits, and the payment amount typically remains the same.
Social Security Questions to Ask About Retirement Benefits Before You Apply
Can anyone draw Social Security retirement benefits?
Eligibility depends on these factors:
- Work Credits Requirement – To qualify for Social Security retirement benefits, you must accumulate enough work credits during your working years. You earn work credits by paying Social Security payroll taxes, either through FICA or self-employment taxes. On average, 40 work credits (about 10 years of work) is necessary to be eligible for retirement benefits.
- Age – You can claim reduced benefits as early as 62. However, if you choose to claim early, Social Security permanently reduces your monthly payments.
| Full Retirement Age (FRA) by Birth Year | |
| Born between 1943 and 1954 | 66 years |
| Born between 1955 and 1956 | 66 years and 2 months |
| Born in 1957 | 66 years and 6 months |
| Born between 1958 and 1959 | 66 years and 8 months |
| Born 1960 and later | 67 years |
If you cannot meet the work history and age requirements, you can only draw survivor’s or spousal benefits.
Do I have to be a U.S. citizen to qualify for Social Security?
You do not have to be a U.S. citizen to qualify for Social Security benefits. But you do need to live in the U.S. as a lawfully present non-citizen, not be jailed or institutionalized, and have enough work credits.
If you worked both inside the U.S. and in a country that has a totalization agreement with the U.S., you can combine the work credits accumulated in both countries to meet the minimum required for benefits.
When should I apply for Social Security retirement benefits?
The age at which you apply for SSR benefits impacts how much you will receive each month. Here’s what you need to know:
| Age | Details | Pros | Cons |
| 62 | Earliest age to apply | Start receiving benefits earlier – can be helpful if you need immediate income, are in poor health, or plan to retire early | If you claim benefits at this age, your monthly payments will be permanently reduced – about 30% less than FRA |
| 66 – 67 | Full retirement age | You receive 100% of your monthly benefit with no reduction | Will not receive benefits early |
| 70 | Delaying benefits | Monthly benefit increases by 8% each year past your FRA until you reach 70. Waiting this long allows you to max out your benefits. | You delay receiving any Social Security payments for several years |
Pro Tip: Regardless of which option you choose, apply four months before you want payments to begin to ensure your benefits will start on time.
Can I work and receive Social Security benefits at the same time if I’m not ready to retire yet?
Yes, you can receive your Social Security retirement benefits while still working if you’re not ready to retire yet. However, the SSA reduces your pay amount if you’re younger than 67.
What should I know if I’m self-employed?
If you do both these steps, then you’re still eligible for benefits:
- Pay self-employment taxes through the Self-Employment Contributions Act (SECA) during the years you work for yourself
- Pay Social Security and Medicare payroll taxes on your self-employment work income
Social Security Questions About Benefit Amounts, Taxes, and Garnishments
How does Social Security calculate my monthly retirement benefit amount?
First, Social Security takes your average monthly income from your 35 highest-earning years to calculate your Average Indexed Monthly Earnings (AIME). Then, the agency applies bend points to your AIME using the Primary Insurance Amount (PIA) formula.
In 2024, the maximum monthly benefit amount at Full Retirement Age (FRA) is $3,822 per month. The projected average monthly benefit for all retired workers is around $1,892.
Will I owe income taxes on my benefits?
If the total of half of your benefits + all of your other income (including tax-exempt interest), is greater than the base amount of your filing status your benefits may be taxed.
Base amount for filing status is as follows:
- $25,000 –
- Single, head of household, or qualifying surviving spouse
- Married, filing separately and lived apart from your spouse for the entire year
- $32,000 – Married, filing jointly
- $0 – Married, filing separately and lived with your spouse at any time during the tax year
Can the IRS or creditors garnish my Social Security benefits?
The IRS can garnish your Social Security benefits to collect unpaid federal taxes. They can take up to 15% of your monthly benefit through the Federal Payment Levy Program (FPLP).
Garnishment can also happen if you have unpaid federal student loans or owe money for child or spousal support.
Is there any way to increase my Social Security benefits once I start receiving payments?
Yes, there are several ways:
- Continue to Work – If you continue working and earn more than in some of your previous highest-earning years, Social Security will recalculate your benefit based on your new earnings.
- Cost-of-Living Adjustments (COLA) – Every October, Congress may approve an adjustment to Social Security for inflation. These increases automatically raise your monthly payments.
- Withholding Benefits Due to Earnings – If you claim benefits before Full Retirement Age (FRA) and your earnings exceed the limit, Social Security may temporarily reduce your payments. However, once you reach FRA, Social Security will recalculate your benefits. They’ll also give you credit for any withheld months, potentially increasing your future payments.
- Delaying Benefits – If you initially claimed benefits early but stop them before reaching FRA, your benefits will increase for each month you delay, up to age 70.
Can I get two different Social Security payments at once, such as disability and retirement?
Federal law states you can only draw one payment on the same work record. If you qualify for two benefits, the Social Security Administration will only pay you the higher amount you’re eligible for, not both added together.
What happens to my Social Security check if I file for bankruptcy?
If you file for bankruptcy while receiving Social Security, the court may consider your retirement income when evaluating your ability to repay creditors. Additionally, be aware that combining Social Security funds in the same account with other money may put all combined funds at risk of forfeiture to creditors.
Attend an Educational Workshop to Learn More Social Security and Retirement FAQ Answers
Retirement is a complex issue, and Social Security plays a key role in most people’s income once they stop working. Knowing how and when to apply while also avoiding any tax pitfalls can help you maximize those benefits in retirement. Register for one of our educational workshops to learn more Social Security tips and tricks from an experienced retirement planner.
