Some Ins And Outs Of The Social Security System For Applicants

Social Security is the largest public benefits program in the United States and pays money to over 59 million beneficiaries every year. However, as the population ages more and more people will enter the system so here a few things to keep in mind before applying:

• To qualify you must have 40 retirement credits which equals 10 years of employment. The time spent working does not have to be consecutive but a failure to meet the requirement will keep you from collecting.
• Retirement benefits can begin between age 62 and 70 with the monthly payout increasing every year that a person defers the benefits. However, the amount is based on actuarial charts so no matter when you take the payout the predicted benefit is expected to be the same over a lifetime.
• Since Social Security, on average, only covers %40 of pre-retirement income it is imperative that savings are established that supplement SSA benefits. Alternatively, beneficiaries are still allowed to work which might be the only option for those that have no nest-egg.
• For high earners or long time workers the maximum that can be drawn per month is about $3500 so keep that in mind when planning on how much extra money will be needed to maintain a household after retirement.

See Todd Campbell, 5 Social Security Rules Every Retiree Should Know, My San Antonio, April 15, 2016.