3 social security laws all retirees should know by 2025
As you might expect, a program like Social Security is loaded with regulations. Some can be quite obvious – for example, the earliest age you can enroll is 62, and you’ll get a cash reward for delaying your claim up to a certain point. But whether you’re planning to claim or receiving benefits this year, here are a few key things you should know about Social Security.
You often hear that if you want to collect Social Security in retirement, you have to work and pay into the program for good years. That’s generally true, but if you don’t have your own work history there may be another way to collect benefits – spousal benefits.
You may be entitled to spousal benefits based on your current or former spouse’s record. But it’s important to know how spousal benefits work.
First, you can claim spousal benefits after you turn 62. Full retirement ageYou collect a small amount of money every month for your life.
That means, once you reach full retirement age, it pays to claim spousal benefits immediately. It allows Social Security claimants to file benefits on their own earnings records to collect delayed retirement credits for filing after full retirement age. Those credits add up to monthly payments. However, those credits don’t apply to spousal benefits, so there’s no point in waiting.
You should also know that your spousal benefits are more than 50% of what your spouse would have collected at full retirement age. And you have to wait until your spouse registers Social security To claim spousal benefits if you’re married, you don’t have to wait for your ex if you’re divorced.
Did you know that if you claim Social Security too early and regret your decision, you can reverse your filing? Although this option is available to you only once in your life, but it is there. But there are guidelines you must follow.
First, you must file your claim for benefits within one year of your claim. You will also need to pay back all the money the Social Security Administration paid to be able to apply later. But if you can make that work, you can reverse an early claim and enroll at a younger age to lock in higher monthly payments.
Social Security recipients are allowed to collect benefits while working. After reaching full retirement age, you can receive any amount, excluding reduced benefits. But before that point, you’re subject to an income-tested limit.
