Social Security

Facts and Figures for Older Workers and Retirees in 2020

A new year always brings change, and this year is no exception. From Market Watch, the article “Numbers that older workers and retirees need to know in 2020” provides key information for this new year.

Retirement Plan Changes. Limits for how much can be saved in 401(k), 403(b), Thrift Savings Plan, and most 457 plans have increased by $500 to $19,500 for 2020. If you are 50 and older, the “catch-up” contribution has also increased by $500.

For those with SIMPLE retirement plans, which are usually from small businesses with 100 or fewer employees, you can increase savings by $500 to $13,500.

What hasn’t changed—if you have an individual traditional IRA, you can save $6,000, with a catch-up contribution of $1,000.

Social Security Changes. The Social Security Administration reports that the average monthly benefit in 2019 was $1,356.05. This will rise by 1.6% in 2020, which will mean an increase of $21.69 per month. Last year, some 63.8 million Americans took Social Security benefits. It was the first year since the program began in 1935 that spending topped $1 trillion.

Another change to Social Security in 2020 is the longer period of time to reach full retirement age. For people born in 1958, this now increases to 66 years and eight months. The longer period is also going to increase in 2021 and 2022—making the full retirement age 67 for anyone born in 1960 or later.

That doesn’t mean people can’t get Social Security benefits earlier—you can elect to take benefits as early as age 62—but you’ll receive less. If you take benefits at age 62, they’ll be 75% of the monthly benefits because you will have added 48 months. At age 65, you’ll receive 93.3% of full benefits because of adding an additional 12 months. If you are taking spousal benefits, there are more numbers to consider.

Medicare Changes. The good news was the increase from Social Security. The bad news? Standard monthly Part B premiums will increase 6.7%, from $135.50 in 2019 to $144.60. That’s the minimum premium. Depending upon your premium, they could go as high as $491.60 per month. Medicare officials blame higher drug prices on the increase.

Health care costs are part of a rising tide of costs facing retirees and older workers. Considering how few Americans have enough money saved for retirement, this is going to become more of a national issue as boomers and millennials age. It should serve as a reminder for all—save as much as you can for retirement, starting now.

Reference: Market Watch (Dec. 28, 2019) “Numbers that older workers and retirees need to know in 2020”

Preparing for the Inevitable: The Loss of a Spouse

Becoming a widow or widower at a relatively young age puts many people in a tough financial position, says the article “Preparing for the Unexpected Death of a Spouse” from Next Avenue. At this point in their lives, they are too young to draw Social Security benefits. There is no best time to lose your spouse, but this is a particularly hard time.

Women are more likely than men to lose a spouse, and they are typically left in a worse financial position than if their spouse dies before they are old enough to take retirement benefits.

One of the best ways to plan for this event, is for both spouses to have life insurance. This can replace income, and term life insurance, if purchased early in life, can be relatively affordable. The earlier a policy is purchased, the better. This can become a safety net to pay bills and maintain a lifestyle.

Another key component for surviving early widowhood, is being sure that both spouses understand the couple’s finances, including how household bills are paid. Usually what happens is that one person takes over the finances, and the other is left hoping that things are being done properly. That also includes knowing the accounts, the log in and password information and what bills need to be paid at what dates.

Having that conversation with a spouse is not easy, but necessary. There are costs that you may not be aware of, without a thorough knowledge of how the household works. For instance, if the husband has done all of the repairs around the house, maintaining the yard and taking care of the cars, those tasks still need to be done. Either the widow will become proficient or will have to pay others.

Couples should work with an estate planning attorney and a financial advisor, as well as an accountant, to be sure that they are prepared for the unexpected. What survivor’s benefits might the surviving spouse be eligible to receive? If there are children at home age 16 or under, there may be Social Security benefits available for the child’s support.

Discuss what debt, if any, either spouse has taken on without the other’s knowledge. Any outstanding medical bills should also be discussed. The last thing a loved one should have to cope with when a spouse passes, is a tangle of debt. However, this often happens.

If the spouse was a veteran, the surviving spouse might be eligible for benefits from the Veterans Administration. Find out what information will be needed to apply for benefits.

Talk with your estate planning attorney to make sure that all proper documents have been prepared. This includes a last will and testament, power of attorney, health care proxy and any trusts.

Reference: Next Avenue (Dec. 18, 2019) “Preparing for the Unexpected Death of a Spouse”

Turning 65 in 2020? Some Pointers for a Special Year

Many things change when celebrating your 65th birthday. For one thing, if you haven’t already retired, chances are good that you’ve set a retirement date and it’s not too far away. There are a number of things to be considered, advises the article “Points to ponder before turning 65” from Knox News.

The year you turn 65 is the year that you enroll in Medicare. Coverage begins at age 65, and the initial window to enroll opens three months before your 65th birthday and ends three months after. Miss that deadline, and there may be penalties when you do at last sign up for Medicare.

You can sign up for Medicare, whether you are working or not. If you are turning 65 and already collecting Social Security, you’ll automatically be enrolled in Medicare Parts A and B. You’ll need to sign up for Part D to avoid penalties, unless you have coverage through a spouse’s employer.

Here are some details:

  • Part A covers hospital care and is generally free for enrollees.
  • Part B covers diagnostic and preventive care. You pay for it with a monthly premium.
  • If you’re still working at age 66 and have health insurance through your employer, you may choose not to enroll in Part B. You can sign up for Part A, at no cost, and delay Parts B and D.
  • If you’re still working past 65 and have creditable coverage through your employer or your spouse’s employer, then you can defer Medicare.

Note that you may not get a full monthly benefit, if you claim Social Security right away. You can begin collecting Social Security at the young age of 62, but you won’t get the full monthly benefit that you otherwise would get unless you wait until you reach full retirement age. That date depends upon your date of birth. For most people turning 65 in 2020, that means full retirement age is 66 plus two months. Is it worth the wait? Your monthly benefit shrinks by 7.8%, if you file for benefits at age 65.

This is the time to check on your estate planning documents. If you don’t have these already, speak with an estate planning attorney to make sure that you and your family are protected by the following:

  • General Durable Power of Attorney for Finances
  • Durable Power of Attorney for Healthcare
  • HIPAA release
  • Revocable Living Trust
  • Advanced Health Care Directive
  • Last Will and Testament

It’s a great birthday to celebrate but be certain that you take care of the estate planning, Medicare and Social Security aspects of your life, as you prepare for this milestone.

Reference: Knox News (December 26, 2019) “Points to ponder before turning 65”Social Security, Medicare, Part A, Part B, Estate Planning Attorney, Power of Attorney, Revocable Living Trust, Health Care Directive, Last Will and Testament

Disappointing News from Social Security for 2020

The annual Cost of Living Adjustment, aka COLA, for 2020, is a smidge of an increase: 1.6%. That’s only slightly more than half of the 2.8% COLA for 2019. For the average beneficiary that means about $23.50 more per month, says the Globe Gazette’s article “Disappointed in Your Social Security Raise? 3 Steps to Take.” It’s a lot like getting a tiny raise that doesn’t budge the budget needle at all. Remember, there’s also going to be an increase in Medicare Part B, which is expected to rise by $8.80. That puts a raise of just $14.70 per month in benefits, once New Year’s Day passes.

News from Social Security
News of the meager increase in the 2020 COLA from Social Security is disappointing.

The problem is, healthcare costs are continuing to climb. That puts seniors in a bind, especially those who count on Social Security for the bulk of their retirement income. Is there anything you can do to beef up your income despite this bad news from Social Security?

Review and revise your budget. You needed a budget when you were working, and you really need one in retirement. If you are using up all your available income every month, it may be time to make some changes. Maybe it’s finally time to clear out the big sprawling ranch and downside to a two-bedroom condo. Going from a two-car household to a one-car family could net considerable savings. If you eat most of your meals out at restaurants, consider trimming those outings to cut spending.

Work part-time. You may have a lot of time on your hands, as a retired person. Getting a part-time job during retirement has a number of benefits. One, you have less free time to spend money, two, you have income and three, you have more social interactions during working hours. There’s also no need to accept a job that you wouldn’t want. Maybe you are great at baking and can turn that into a side business, or dog walking or crafting. Pet-sitting and babysitting are in demand.

Move somewhere less expensive. The cost of living varies greatly from state to state. Look for states that don’t tax Social Security and that offer a lower cost of living and a relatively low income tax rate. However, check your Medicare benefits. Medicare Advantage and Part D plans vary from state to state. If you have supplemental insurance through Medigap, the cost of your plan may change.

If so much of your retirement income budget is based on Social Security, be prepared to make some changes. You can stretch those benefits and, at the same time, lessen your stress.

Reference: Globe Gazette (October 14, 2019) “Disappointed in Your Social Security Raise? 3 Steps to Take”

What Changes Will Be Made to Social Security This Year?

Social Security now delivers benefit checks to more than 63 million people every month, so it’s important to know what changes will be made to social security this year.

The program is primarily designed to provide a financial foundation for our nation’s retired workers. Nearly 45 million retired workers (70% of all beneficiaries) receive a benefit check monthly, with more than 60% of these seniors expecting their payout to make up at least half of their income.

What changes will be made to social security this year
There will be five primary changes to Social Security this year.

Motley Fool’s recent article, “5 Social Security Changes in 2020 That Could Affect Your Take-Home Income” explains that with the relative importance of Social Security, it should come as no shock that the second week of October holds considerable importance to these tens of millions of Americans. That’s because it’s when the Social Security Administration (SSA) announces changes to the program for the upcoming year. Any changes could directly affect what beneficiaries are paid on a monthly basis. These changes can also affect non-retirees who aren’t getting a Social Security benefit. Let’s look at some of the primary changes.

  1. COLA. The most important figure in the announcement from the SSA is the cost-of-living adjustment (COLA). The COLA is measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The average monthly CPI-W reading from the third quarter of the current year (July through September) is compared to the average monthly CPI-W reading from the third quarter of the previous year. If the average figure has risen from the previous year, then beneficiaries receive a “raise” that’s in line with the percentage increase year over year, rounded to the nearest 0.1%.
  2. Withholding thresholds. Early claimants who haven’t hit their full retirement age but are currently (or expected to begin) taking benefits, will now be subject to the retirement earnings test. This test allows early filers to earn up to a certain amount of money each year, before the SSA is allowed to withhold a portion, or all, of their benefit. For those who won’t reach their full retirement age in 2019, $1 in benefits can be withheld for every $2 in earnings above $17,640 ($1,470 a month). For those who’ll reach their full retirement age this year but have yet to do so, are allowed to earn $46,920 before the SSA begins withholding $1 in benefits for every $3 in earnings above the limit. Note that these withheld benefits aren’t lost forever, because you get them back in the form of a higher monthly payout when you reach your full retirement age.
  3. Maximum monthly payout. If you’re currently claiming a retired worker benefit and have made a good deal of money on an annual basis over your working career, there’s a chance that you’ll be able to net more in monthly payouts in 2020. There’s a cap on the maximum monthly payout at full retirement age. In 2019, no individual at their full retirement age can take home more than $2,861 per month, even if they made millions of dollars each year throughout their working career.
  4. Disability income thresholds. Even though 70% program recipients are retired workers, about 10 million people each month also get a check from Social Security Disability Insurance (SSDI). Approximately 8½ million are disabled workers, and the rest are spouses or children of these disabled workers. If the average CPI-W reading does increase on a year-over-year basis from the previous year (which appears likely), these SSDI income thresholds for the disabled and legally blind should go up a little in 2020.
  5. A warning to the wealthy. Lastly, SSA changes for 2020 won’t just impact those receiving a benefit. Wealthy workers can also anticipate paying more into the program, provided that inflation rises on a year-over-year basis, as measured by the CPI-W.

Reference: Motley Fool (July 28, 2019) “5 Social Security Changes in 2020 That Could Affect Your Take-Home Income”

Prior Planning is Always a Better Alternative

None of us knows what kind of unexpected surprises will occur in our lives. We’d like to believe they will all be happy events, like winning the big Power Ball jackpot. However, unpleasant things like illness or a flood or fire often occur. We never think it will happen to us, says The Dalles Chronicle’s article “Prepare now for emergencies.” Unfortunately, these things do happen, and when they do, being prepared can make all the difference between a stressful situation and a really awful situation that could have been made, well, less awful.

For starters, have you met with an estate planning attorney to create a comprehensive estate plan that includes a last will and testament, a financial power of attorney and a health care power of attorney? The will concerns distribution of your possessions and property, the power of attorney gives a trusted person the ability to take financial and legal actions on your behalf, in the event that you become incapacitated and the medical power of attorney allows someone to make health care decisions for you, also if you become incapacitated. There are also many other tools that an estate planning attorney can help you with, such as a Special Needs Trust, if your family includes a family member with special needs, or other trusts, if they are needed.

Next, your emergency preparations should include having important documents assembled in a notebook, on a memory stick and/or a safe location. Imagine there was an emergency evacuation and you had to leave your home immediately. What documents would you need? Here’s a checklist:

  • Contact information for family members, doctors, attorneys, dentist, insurance broker, financial advisor.
  • Cash, so if ATMs are not working, you will have cash on hand.
  • Identification documents, including originals of your birth certificate, marriage license, divorce papers, passport, Social Security card, health insurance cards (or Medicare or Medicaid cards).
  • A video of your home and all of your possessions on your mobile phone. Consider emailing it to a family member or friend who lives in a different location.
  • Insurance policies for home, auto, disability, long-term care, etc. Include contact information for either 800-numbers or your local agent, if you need to file a claim.
  • A copy of recent financial statements for credit cards, banks, brokerage firms, retirement accounts, car loans, mortgage and similar types of accounts.
  • Copies of the last three years of tax returns. If you work with a CPA, they should have them on a secure portal, but a hard copy will be useful to have.
  • Legal documents for your estate plan, including the will, power of attorney and health care power of attorney, as described above.
  • Other legal documents, including car registration, car title and property deed to your home.

These documents should all be organized in a folder that is placed in your home where you and your spouse know where it is and can grab it on your way out the door.

One more item that should be noted in this digital age: if you use a laptop or tablet that contains websites that you use frequently for personal finance, investments, etc., be mindful of its location in the house, so you can grab it and a charger cable quickly. If you have passwords for accounts—and most of us do—you should print them out and include them in your file folder for easy access. You can almost always re-set a password, but how much easier will rebuilding your life be if you have them on hand?

If you do ever face a catastrophic emergency, having these materials will save you hours of time and stress.

Reference: The Dalles Chronicle (July 16, 2019) “Prepare now for emergencies”

What Happens to Social Security when a Spouse Dies?

Mary is right to be concerned. She is worried about what will happen with their Social Security checks when her spouse dies, who she needs to notify at their bank, how to obtain death certificates and how complicated it will be for her to obtain widow’s benefits. Many answers are provided in the article “Social Security and You: What to do when a loved one dies” from Tuscon.com.

What happens to Social Security after a spouse dies
Trying to figure out what happens to Social Security after a spouse dies can be complicated.

First, what happens to the Social Security monthly benefits? Social Security benefits are always one month behind. The check you receive in March, for example, is the benefit payment for February.

Second, Social Security benefits are not prorated. If you took benefits at age 66, and actually turned 66 on September 28, you would get a check for the whole month of September, even though you were only 66 for three days of the month.

On the other hand, if your spouse dies on January 28, you would not be due the proceeds of that January Social Security check, even though he or she was alive for 28 days of the month.

Therefore, when a spouse dies, the social security monies for that month might have to be returned. The computer-matching systems linking the government agencies and banks may make this unnecessary, if the benefits are not issued. Or, if the benefits were issued, the Treasury Department may simply interrupt the payment and return it to the government, before it reaches a bank account.

There may be a twist, depending upon the date of the decedent’s passing. Let’s say that Henry dies on April 3. Because he lived throughout the entire month of March, that means the benefits for March are due, and that is paid in April. Once again, it depends upon the date and it is likely that even if the check is not issued or sent back, it will eventually be reissued. More on that later.

Obtaining death certificates is usually handled by the funeral director, or the city, county or state bureaus of vital statistics. You will need more than one original death certificate for use with banks, investments, etc. The Social Security office may or may not need one, as they may receive proof of death from other sources, including the funeral home.

A claim for widow’s or widower’s benefits must be made in person. You can call the Social Security Administrator’s 800 number or contact your local Social Security office to make an appointment. What you need to do, will depend upon the kind of benefits you had received before your spouse died.

If you had only received a spousal benefit as a non-working spouse and you are over full retirement age, then you receive whatever your spouse was receiving at the time of his or her death. If you were getting your own retirement benefits, then you have to file for widow’s benefits. It’s not too complicated, but you’ll need a copy of your marriage certificate.

Widow’s benefits will begin effective on the month of your spouse’s death. If your spouse dies on June 28, then you will be due widow’s benefits for the entire month of June, even if you were only a widow for three days of the month. Following the example above, where the proceeds of a check were withdrawn, those proceeds will be sent to your account. Finally, no matter what type of claim you file, you will also receive a one-time $255 death benefit.

For more on this topic and how to make sure your wishes are carried out and your assets are protected after you pass away visit the Mastry Law website.

Reference: Tuscon.com (March 13, 2019) “Social Security and You: What to do when a loved one dies”

Suggested Key Terms: Social Security, Benefits, Widow, Widower, Full Retirement Age, Death Certificate

Celebrated Your 50th Birthday? Here’s What You Need to Do Next

The 50s are the time of life when your kids are starting to become more independent and may have moved out. If that’s true, you may have a little more disposable income. That presents a good opportunity to ramp up your retirement savings, advises Sioux City Journal in the article “In Your 50s? Do These 3 Things to Plan for Your Retirement.”

Unfortunately, many people who turn 50 start thinking now is the time to retire early, go on extravagant vacations or buy themselves big ticket items that they’ve always wanted. A better approach: consider this a time to make the most of your income, keep saving for retirement and stay on a steady course.

Use the catch-up options available to you. The federal government knows that many people don’t have the means or the motivation to save for retirement until later in their careers. That’s why there are several provisions in the tax laws that let you catch up, once you reach 50.

  • You can put away an additional $1,000 above the annual contribution limit to an IRA.
  • You can add $6,000 in annual contribution to 401(k)s and similar employer-sponsored plans after age 50.
  • Once you pass your 55th birthday, you can make an additional $1,000 annual contribution to health savings accounts.

If you’ve got the cash to spare, these are great opportunities.

Educate yourself about Social Security. Many people rely on Social Security for their retirement, while others use it as a safety net. You’ll want to start learning about the rules.

When you take your first benefits has an impact on how much you’ll receive over your lifetime. Yes, you can start at age 62, but the difference in the amount you’ll get at 62 versus 70 is substantial. If you plan to keep working indefinitely, maximizing earnings is the best way to boost your Social Security benefits.

Get access to savings in the early years of retirement. If you can afford to retire in your 50s, know when you can tap your retirement savings. If you’ve used regular taxable accounts to invest your savings, it won’t matter when you make withdrawals. However, if your money is locked up in 401(k)s, SEPs, IRAs and other tax favored accounts, you’ll need to know the rules. Penalties for taking withdrawals before the specified age, can take a big bite out of your retirement accounts.

It is hard to think about working every day for another 15 or 20 years, once you’ve celebrated your 50th birthday.  However, keeping these three key ideas in mind as you plan for the future will help put you in the best financial state possible.

Another post-50th birthday task? Meet with an estate planning attorney and make sure you have a will, Power of Attorney and other legal documents to protect yourself and your loved ones in case something unexpected should happen.

Reference: Sioux City Journal (Aug. 25, 2018) “In Your 50s? Do These 3 Things to Plan for Your Retirement”

Countdown to Retirement with Three Simple Questions

To help plan for retirement, it helps to move from asking global questions, like “Can I afford to retire?” to more specific questions, like “What’s my monthly cost of living right now?”

Sometimes retirement planning is so overwhelming that people just shrug their shoulders and hope that things work out. That’s a terrible way to plan for the last two or even three decades of your life. Plus, says Motley Fool in a recent article titled “Don’t Even Think About Retiring Until You Can Answer These 3 Questions,” if you can’t answer three basic questions, maybe you’re not ready to start thinking about retirement.

Happy RetirementCan you believe that just 38% of Americans say they have a long-term financial plan, according to a recent survey? Let’s look at three important planning questions.

When to claim Social Security. Many people think that retirement and claiming Social Security benefits occur at the same time. However, they don’t have to. You could elect to retire at age 60 but wait to claim your benefits until you reach 65. Remember that the amount of money you get in benefits is linked to the age at which you start claiming them. Age 62 is the earliest you can claim Social Security. However, if you do, your benefits will be reduced by up to 30% of what they could be. For every month you wait, you’ll receive slightly more with each check up to age 70. Your full retirement age (FRA) is the age when you’ll get 100% of the benefits to which you’re entitled. Waiting can have its advantages, but there’s no single right answer for when you should start claiming. It all depends on your personal circumstances.

Will your retirement savings last? Take a look at how far your savings will last during retirement. To determine how far your money will go, calculate the amount you’ll need each year to get by during retirement. With a number in mind, you’ll be able to better determine how long your current savings will last. You might realize that you need more than you anticipated, especially if you’re going to be spending several decades in retirement.

Paying for healthcare costs. Healthcare costs are one of the largest expenses in retirement. Know that the average retiree spends about $4,300 per year on out-of-pocket healthcare expenses. A total of two-thirds of that is spent on premiums. It’s important to understand that Medicare will help cover many healthcare expenses you’ll face, but it doesn’t cover everything.

Circumstances often dictate when people retire; they lose a job in their mid to late 60s or illness prevents them from working. However, even when that is the case, understanding where you are from a financial perspective can help make your retirement work in your favor.

Reference: Motley Fool (October 9, 2018) “Don’t Even Think About Retiring Until You Can Answer These 3 Questions”

Another Facet of Social Security to Learn: The Earnings Test

If it seems like every time you start to understand Social Security, there’s something else to learn, you’re right. However, this is an important part of your retirement income, so it’s important to understand.

The Social Security earnings test is a way that the agency determines the limit of the amount of money individuals who have not yet reached full retirement age (FRA) can earn, while they are collecting Social Security retirement benefits.

Social securityFor 2018, for every $2 that a worker who has not yet reached FRA earns over the annual threshold limit of $17,040, Social Security will withhold $1 from your benefits.

The Social Security benefit threshold rises significantly (to $45,360 in 2018) in the year you attain your full retirement age (FRA). At that point, one dollar will be withheld for every three dollars you earn over that threshold. The earnings limit is effective the first of the year and indexed annually.

Investopedia’s recent article, “How the Social Security Earnings Test Works,” says that everyone getting Social Security benefits prior to their full retirement age is subject to the earnings test—even widows and widowers receiving survivor benefits and minor children receiving benefits on a deceased parent’s record, if the child earns more than the annual limit. If a minor child is receiving benefits based on a parent’s work history and the parent is still living and under full retirement age, the earnings test for the child’s benefit will be subject to the amount earned by the parent.

Let’s look at how the earnings limit is applied. In the first year you claim Social Security prior to your full retirement age, you’re subject to a monthly earnings test beginning the month you start receiving benefits ($17,040 ÷ 12, or $1,420 per month in 2018). As a result, you can earn as much as you want prior to the month you startyour benefits.

In subsequent years, until the year you reach FRA, you’re subject to an annual earnings limit each year after the first year, until the year you reach your full retirement age. At the start of each year, you’ll be asked to estimate how much you plan to earn. If your estimated earnings are less than the annual limit for that year, there won’t be any Social Security benefits withheld.

The earnings limit in the year when you reach your full retirement age is much higher ($45,360 in 2018). This is a monthlyearnings limit ($45,360 ÷ 12 or $3,780 per month), if it’s the first year you are claiming benefits, but an annualearnings limit if it’s the second or subsequent year you’re not receiving benefits.

The annual gross earnings, as reported on your W-2, are used. Therefore, contributing to a 401(k) or similar retirement plan to reduce earnings subject to state and federal income taxes won’t impact your earnings for the earnings test. However, payments received “on account of retirement,” like a severance package, aren’t subject to the earnings test.

Remember that the earnings of your spouse may be considered, when applying the earnings test for your benefits. If you’re claiming benefits based on your currentspouse’s work record, and your spouse is under FRA and continues to work, his or her earnings are considered when applying the earnings test for your benefits (even if you’ve already attained FRA). However, if you’re claiming benefits on an ex-spouse’srecord, only your current earnings and age are used when applying the earnings test.

Self-employed people have to work fewer than 45 hours per month in their business, otherwise benefits claimed prior to FRA will be withheld, no matter how much they earn.

When the Social Security Administration (SSA) determines you have or will exceed the earnings test based on the estimated earnings you give them, they’ll calculate the amount to withhold and begin doing so immediately. They’ll withhold payment of full benefit checks, until they receive the full amount overpaid, then they’ll go back to remitting your monthly benefit.

Depending on how much you will earn, it does sometimes make sense to apply for Social Security before your FRA, even if you might be subjected to the earnings test. For instance, a widow or widower with one income who needs the additional income might file for benefits earlier than they had anticipated. You’ll want to understand all of your options, before making the decision to file.

Reference: Investopedia (September 18, 2018) “How the Social Security Earnings Test Works”

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