As 2024 comes to a close, many are preparing to claim their Social Security benefits. But before you apply, it’s essential to take a few minutes to prepare and ensure you’re not missing out on potential benefits.
Understanding your claiming age is crucial. Your full retirement age (FRA) varies by birth year, but most people can expect to receive full benefits at 66 or 67. Claiming early, before your FRA, reduces monthly checks, while delaying benefits increases them. You can claim as early as 62, but be aware that this may reduce your lifetime benefit.
To estimate the best claiming age for you, use the Social Security Administration’s online calculator. Compare your estimated monthly benefit at each claiming age with your expected lifespan to determine the optimal strategy.
Next, check your earnings record for accuracy. The SSA relies on IRS information and can make mistakes if you’ve had a name change or incorrect digits entered on employment paperwork. Verify your earnings record by comparing it to your own records of income from that year. If you’re a high earner, note that your income may be underreported due to Social Security payroll tax limits.
Finally, know when you can apply for Social Security. You can submit an application up to four months in advance of your desired claiming date. Consider applying early to avoid delays and ensure timely payment of benefits.
Remember to also factor in the unique rules surrounding 62-year-olds, who may face a delay in their first application due to birth month restrictions. Plan ahead to cover any expenses between your application submission and receipt of your first check.
Source: https://www.fool.com/retirement/2024/12/23/applying-for-social-security-2025-things-to-do-now