Social Security Retirement Benefits: What You Must Know

Employees who have worked at a non-governmental organization under covered employment for 10 years or more are entitled to retirement benefits at 62. You may start reaping your retirement gains after you are 62 years of age. You are eligible for other incentives too, but for that, you must wait until the full retirement age (FRA), which is between 65 and 67 years. Here are a few important things you must know about social security retirement benefits:

Early Retirement Will Reduce Your Benefits

If you start receiving the benefits early at 62, they will be reduced, i.e. if you choose to retire before the FRA. You will see a reduction in the benefits by 5/9ths of one percent for each month between the date of your retirement and your FRA until three years, and then by 5/12ths of one percent afterward. Let’s explain this point with a suitable example. Say your FRA is 67. If you decide to retire at 62, your benefit will be about 30 percent less than what you would get if you wait until 67 years. Remember that this is a permanent reduction and you will not be eligible for an increase in the benefit once you are 67 years of age. However, you may receive less every month, but will continue to collect the benefits over a longer period.

Benefits Your Family Members Enjoy

Even though your spouse is not employed or has never worked at an organization that offered Social Security benefits, s(he) is entitled to receive the benefits depending on the records of your social security income. There are other ‘qualified members’ who are entitled to receive the incentives if they are in need of your financial support and meet certain criteria. For instance, your spouse aged at least 62 years can receive the benefits if you are married for at least one year. Your former spouse too is eligible for receiving spousal benefits if the person is 62 years of age and if your marriage lasted for at least 10 years. Your spouse or former spouse can be of any age and yet qualify for spousal benefits if s(he) takes care of your child who is either under 16 years of age or is disabled. Dependent family members eligible for your retirement benefits also include unmarried children below 18 years of age, children under 19 years if disabled or full-time students, and kids 18 years or more if they are seriously crippled or handicapped.

The social security retirement benefits depend a lot on the age you decide to leave your employment. If you are on the verge of your retirement, ensure that you consult professionals who will help you overcome the challenges associated with your future income planning. This is one of the best ways to ensure your financial security in your golden years.