07 May What To Be Aware of With Social Security

There are many ins and outs, secrets and hidden information a person may not know about when it comes time to applying for Social Security. Along with that, there are many rules everyone should know about and be aware of. Your benefits are no joke and many Americans are dependent on Social Security benefits during their elderly years. Here we will explain what exactly to be aware of within Social Security.

One of the most important aspects of Social Security to understand is that 35 years of your working experience with the highest pay or highest income are accounted for to calculate your benefits each month. If you take this into consideration and look at the differentiation of your incomes throughout the beginning and end of your working years, delaying your benefits claim could be the right move if you want a higher monthly benefits payment. If there is no variation in your payments, then filing your claim would not have as big of an effect at the current moment.

Another important topic people are curious and ask about is the claims process. Most people do not know that if you desire too, you can actually revert your decision of filing your claim, but there are certain time lengths and situations where this is possible. That being said, if you finally decide to claim your benefits, you then have a 12 month period to cancel or void that claim and then delay it to another time whenever you decide you truly want to claim your benefits. 

One of the basic pieces of knowledge you should know is the exact retirement age you possess. This is considered to be probably the most crucial piece of information you should know and be aware of. According to the Social Security Administration, your retirement age would be 66 years and 10 months if you were born in 1959 and if you were born in 1960 and any year after, your full retirement age would be 67 years old. Depending on whatever age your full retirement age is, this is where you will be able to receive the full benefit amount that you are qualified for.

One of the last rules of Social Security that a majority of people are unaware of is the ability of receiving benefits in lump sum. By this we mean that you can request 6 months worth of benefit payments to be received at once. This should only be used if you are in dire need of income and have no other choice. This is also only allowed for those who are past their Full Retirement Age and these benefits are known as “retroactive” benefits.