The Social Security program will probably be a very important source of income for you when you attain senior citizen status. In this blog post, we will provide you with some very useful information about the program. Eligibility Age First, we will look at the age of eligibility for Social Security coverage. In many cases, the government can make things more complicated than they probably should be, and this enters the picture when it comes to the eligibility age. There is no one age of eligibility that applies to everyone. The eligibility date depends upon your year of birth. If you were born between 1943 and 1954, your age of eligibility for your full Social Security benefit is 66. After 1954, the eligibility age goes up by two months each year. To explain by way of example, if you were born in 1955, you would become eligible for your full Social Security benefit two months after your 66th birthday. Someone who was born in 1956 would become eligible at the age of 66 years and four m
People often want gratification as soon as they can possibly get it, but in many cases, waiting can provide better results. This enters the picture when it comes to the submission of your Social Security application. There are those who can t wait to start receiving a benefit, and they want to know how soon they can get it. To provide a straightforward answer, if you have earned at least 40 retirement credits while you have been working, you can submit your application for your Social Security benefit when you are as young as 62 years of age. This can be an exciting prospect, especially if you are still going to be working when you are 62. You can receive your Social Security benefit as gravy on top of your salary, right? That would put you in a great position as you look ahead toward your retirement years. This may make sense at first, but there are rules in place that limit the possibilities. If you decide to take an early Social Security benefit when you are 62, there is a limit to
The government programs that are in place to assist senior citizens should not be overestimated. If you rely on these benefits as the centerpiece of your retirement plan, you may be sorely disappointed when you recognize that you will never be able to retire. First, we should explain the eligibility requirements. When you work and pay your taxes, the FICA or self-employment tax that you pay goes toward future Medicare and Social Security eligibility. This is done through the accrual of retirement credits. During the current calendar year, you get one credit for every $1220 that you earn, and you can earn as many as four credits in a year. When you have a least 40 credits, you will qualify for these benefit programs for seniors. The age of eligibility for Medicare is 65 for everyone under currently existing laws. Things are different with Social Security. The full eligibility age depends on the year of your birth, but it will be somewhere between 66 and 67. Modest Payouts Social Securi
We assist clients who are concerned about the eventualities of aging, so we provide retirement planning services along with our elder law and estate planning assistance. Social Security is going to be important for most seniors, so you should understand how you can maximize your benefit. Before we get into the details, we should point out the fact that it is important to understand the limitations of the Social Security program. The average benefit in 2015 is just $1328, and the maximum benefit is a relatively modest $2663 a month. When you consider these figures, you can see why you should develop a retirement nest egg, and additional income sources can also be quite useful. There are three different approaches that you can take to Social Security eligibility. It is possible to accept an early benefit when you are as young as 62 years of age. This can sound enticing, but your early benefit would be between 30 and 35 percent less than your full benefit. The exact amount of the reducti
When you are working throughout your life, you pay a tax that can seem like a nuisance. It carries these initials: FICA. Though this can seem like money down the drain, in fact, if you live long enough you do get something for your contributions. As you are paying these taxes, you are earning retirement credits that can provide you with eligibility for Social Security and Medicare. It is relatively easy to earn the maximum amount of credits that you are allowed to accumulate in a calendar year. You can earn up to four credits each year, and in 2015, you get one credit for every $1220 that you earn. So, if you make a minimal amount of money for at least 10 years, you will qualify for Social Security and Medicare coverage. Age of Full Social Security Eligibility You may think that you become eligible for your full Social Security benefit when you reach a particular age, regardless of your year of birth. This would seem like a logical way to go about it, but the powers that be have creat
Social Security is going to be very important for most people who are planning ahead for their retirement years. You should understand the facts as you look toward the future so that you can create a sensible retirement budget. You become eligible for Social Security through the accumulation of retirement credits. It is possible to earn up to four credits in a year. In 2014, you accumulate one credit for each $1200 that you earn. If you pay taxes on $5000 or $5 million in 2014, you still get four retirement credits. Once you have at least 40 credits, you will qualify for Social Security when you reach the age of eligibility. The exact date of Social Security eligibility will depend on the year of your birth. If you were born between 1943 and 1954, you will be eligible to receive your full benefit at the age of 66. The eligibility age then rises by two months each year. To clarify, someone born in 1955 would become eligible for their full benefit at the age of 66 years and two months.
When you are engaged in your retirement planning efforts, you probably recognize the fact that Social Security will be a big piece to the puzzle. You should certainly understand what you can expect from this program when you are looking ahead toward your senior years. Retirement Credits During your working career, you see an annoying deduction from your direct deposit in the form of the FICA tax. This deduction is not entirely negative, because you are paying into Social Security and Medicare when you pay it. Each year you accumulate retirement credits as you are paying this tax. In 2015, you get one credit for every $1220 that you earn. It is possible to earn a maximum of four credits in a calendar year. Once you have 40 retirement credits in the bank as it were, you will qualify for Social Security when you reach the age of eligibility. The eligibility age depends upon the year of your birth. Suffice to say that if you are not currently receiving Social Security, your age of eligibi