The Social Security Administration (SSA) has decided to reduce costs by no longer sending out paper earning statements to workers under 60 years of age. This doesn’t seem to concern most people who are still far from their retirement years.
However, every worker should be reviewing their earning statements periodically, which you can do online at “mySocialSecurity”. There are occasionally mistakes made which need to be corrected immediately.
Here are the five most important things to know when looking at your Social Security earning statement:
- When is your “full retirement age?” This is not when you plan to retire, but when SSA will start paying your full benefits. For most people today, the full retirement age is between 66 and 67 years old, but it varies from person to person. The retirement age was raised for younger workers in the 1980’s to make sure that social security would be funded long term.
- Your retirement bonus. The official name is a “delayed retirement credit” and you receive this by delaying the date that you start receiving social security benefits. You receive an 8% annual increase in benefits from your full retirement age until you reach 70.
- Understand benefits for family members and spouses. If you pass away, your spouse and children are entitled to survivor benefits. The benefits vary, but you can calculate the amount your survivor will receive on your online “mySocialSecurity” account.
- Medicare Sign-Up. This program is connected to social security, but has its own unique set of rules. Unless you are receiving Social Security Disability benefits, you become eligible when you turn 65. You should sign up for Medicare three months before you turn 65 so that your Medicare is in place when you turn 65.
As you can see, it is never too early to start reviewing your social security earnings record. If you have questions feel free to call Virginia Social Security attorney Sheri R. Abrams at (571) 328-5795 to set up a consultation today.